LEGISLATIVE COUNCIL ― 25 April 2018 8757

OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 25 April 2018

The Council met at Eleven o'clock

MEMBERS PRESENT:

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

THE HONOURABLE JAMES TO KUN-SUN

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.

PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.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.

8758 LEGISLATIVE COUNCIL ― 25 April 2018

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

THE HONOURABLE PAUL TSE WAI-CHUN, J.P.

THE HONOURABLE CLAUDIA MO

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

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

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 CHAN CHI-CHUEN

THE HONOURABLE CHAN HAN-PAN, 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.

DR THE HONOURABLE KWOK KA-KI

THE HONOURABLE DENNIS KWOK WING-HANG

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

DR THE HONOURABLE HELENA WONG PIK-WAN

THE HONOURABLE IP KIN-YUEN

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DR THE HONOURABLE ELIZABETH QUAT, B.B.S., J.P.

THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P.

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

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

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

THE HONOURABLE CHUNG KWOK-PAN

THE HONOURABLE ANDREW WAN SIU-KIN

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

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 SHIU KA-CHUN

THE HONOURABLE WILSON OR CHONG-SHING, M.H.

THE HONOURABLE YUNG HOI-YAN

THE HONOURABLE CHAN CHUN-YING

THE HONOURABLE TANYA CHAN

THE HONOURABLE CHEUNG KWOK-KWAN, J.P.

8760 LEGISLATIVE COUNCIL ― 25 April 2018

THE HONOURABLE LUK CHUNG-HUNG

THE HONOURABLE LAU KWOK-FAN, M.H.

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

DR THE HONOURABLE CHENG CHUNG-TAI

THE HONOURABLE JEREMY TAM MAN-HO

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 CHARLES PETER MOK, J.P.

THE HONOURABLE KWOK WAI-KEUNG, J.P.

DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG

THE HONOURABLE ALVIN YEUNG

THE HONOURABLE CHU HOI-DICK

DR THE HONOURABLE PIERRE CHAN

THE HONOURABLE HUI CHI-FUNG

THE HONOURABLE KWONG CHUN-YU

LEGISLATIVE COUNCIL ― 25 April 2018 8761

PUBLIC OFFICERS ATTENDING:

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

THE HONOURABLE JAMES HENRY LAU JR., J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY

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

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

DR BERNARD CHAN PAK-LI, J.P. UNDER SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT, AND SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT

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

CLERKS IN ATTENDANCE:

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

MISS ODELIA LEUNG HING-YEE, DEPUTY SECRETARY GENERAL

MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL

8762 LEGISLATIVE COUNCIL ― 25 April 2018

PRESIDENT (in Cantonese): Will the Clerk please ring the bell to summon Members to the Chamber.

(After the summoning bell had been rung, a number of Members entered the Chamber)

TABLING OF PAPERS

The following papers were laid on the table under Rule 21(2) of the Rules of Procedure:

No. 98 ― Employees Retraining Board Annual Report 2016-17

No. 99 ― Report No. 70 of the Director of Audit on the results of value for money audits―April 2018

Report No. 11/17-18 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments

WRITTEN ANSWERS TO QUESTIONS

Multifunctional smart lampposts installed in the Hong Kong Science Park

1. MR AU NOK-HIN (in Chinese): President, it has been reported that early this year, the Hong Kong Science and Technology Parks Corporation ("HKSTPC") installed in the Hong Kong Science Park ("HKSP") a total of eight multifunctional smart lampposts ("smart lampposts") developed by five partner companies. Each smart lamppost is equipped with a number of functions, such as surveillance by closed-circuit cameras, provision of light-emitting diode lighting, monitoring of pedestrian and traffic flow, provision of quick charging for electric vehicles and collection of meteorological data. The various real-time data collected by the smart lampposts will be shared with the Data Studio of HKSP. In this connection, will the Government inform this Council:

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(1) whether it knows the names of the aforesaid five partner companies, and set out in the table below the details of the collection of data by such companies through the smart lampposts;

Technology/ Company Type or system used for Frequency of Usage of data name field of data collecting data data updating and data format

(2) whether it knows if those partner companies and HKSTPC will provide the data collected from the smart lampposts to the Government for its use, including allowing the Government to publish such data through the data.gov.hk portal;

(3) whether it knows if those partner companies and HKSTPC will, through the smart lampposts, collect data on identifying particulars of an individual; if they will,

(i) how they ensure that the collection, use and processing of the relevant data are in compliance with the data protection principles stipulated in the Personal Data (Privacy) Ordinance (Cap. 486);

(ii) whether they will review the relevant arrangements on a regular basis; if so, of the details; if not, the reasons for that; and

(iii) whether they will provide such data to the Government for its use (including transferral of the data to a third party); if so, how they ensure that the data subjects are informed of the relevant arrangements; and

(4) as the Chief Executive indicated in the Policy Address delivered in October last year that the Government would push ahead with three infrastructure projects to develop Hong Kong into a smart city, including (i) providing an "eID" for all Hong Kong residents, (ii) launching a pilot "Multifunctional Smart Lampposts" scheme at selected urban locations, and (iii) reforming the development technology of e-Government systems and building a big data 8764 LEGISLATIVE COUNCIL ― 25 April 2018

analytics platform, whether the Government will draw reference from the relevant experience of HKSTPC when pushing ahead with those projects; if so, of the details; if not, the reasons for that?

SECRETARY FOR INNOVATION AND TECHNOLOGY (in Chinese): President, to complement the development of smart city, and to promote the research and development, testing, validation and adoption of various smart city solutions, the Hong Kong Science and Technology Parks Corporation has installed eight multi-functional smart lampposts using the technologies from five companies in the Hong Kong Science Park ("Science Park") for collecting real-time data on road conditions and weather etc. Some of the smart lampposts are even equipped with electric vehicle charging function.

Our reply to the various parts of the question is as follows:

(1) The names of the five companies mentioned above and the data collected through the smart lampposts are at Annex.

(2) The data collected by the smart lampposts would be processed and consolidated collectively in the Data Studio of the Science Park for testing purposes and will not be published at the data.gov.hk portal.

(3) At present, the smart lampposts installed in the Science Park mainly collect data on the external environment, such as weather, air quality and traffic condition. The images by the smart lampposts are used for real-time viewing of road conditions or verification of the operation of the concerned technologies. Data relating to the identification of personal identity will not be collected and relevant images will not be stored.

(4) In March this year, the Office of the Government Chief Information Officer ("OGCIO") briefed the Panel on Information Technology and Broadcasting of the Legislative Council the proposals regarding three key infrastructure projects for smart city development, which include the "eID" and the "Multi-functional Smart Lampposts Pilot Scheme". On the "eID" project, OGCIO also issued a Request for Information to invite submissions from relevant sectors and professional bodies on the technical solutions and various potential e-service applications of eID. Subject to the Finance Committee's funding approval, OGCIO plans to invite tenders in the second half LEGISLATIVE COUNCIL ― 25 April 2018 8765

of 2018, with the target to launch the new system for operation by mid-2020. As for the "Multi-functional Smart Lampposts Pilot Scheme", OGCIO targets to roll out the first phase and progressively install some 50 smart lampposts in Kowloon East for use before mid-2019. In implementing these projects, OGCIO will make reference to the application of relevant technologies as well as the experience and effectiveness of the trials/pilots pursued by the Government and other organizations.

Annex

Data Collected by the Smart Lampposts in Hong Kong Science Park

Technology/ Frequency Type or field system used for Company name Usage of data of data of data collecting data updating and data format 1. Beghelli Asia Weather data, Weather Sensor Every 20 Pacific Ltd including: observation minutes, or temperature, as needed humidity, pressure, wind speed, wind direction, noise level Colour Image Real-time CCTV Video viewing of road streaming conditions near bicycle parking spaces and road conditions near the lamppoles; no image storage 2. Infineon Traffic data, Traffic Radar sensor As needed, Technologies including: management, e.g. when Hong Kong number of road design the car Ltd vehicles, enters the speed, driving in-scope direction areas 8766 LEGISLATIVE COUNCIL ― 25 April 2018

Technology/ Frequency Type or field system used for Company name Usage of data of data of data collecting data updating and data format Image Verification of Verification Video the operating lens streaming conditions of radar sensor, experimental use; no image storage LED lamp Switch on/off Cloud As needed operating data and adjust LED output luminosity Smart Monitor Wire Real-time lamppole lamppole transmission operating operating electrical conditions parameters 3. Inspiring Ambient Switch on/off Lux Every 15 Light brightness and adjust LED photometric minutes Electronic output sensor, LoRa Software luminosity communication Development gate Ltd Weather data, Weather Sensor Every 15 including: observation minutes, or temperature, as needed humidity, carbon dioxide levels 4. Siemens Ltd Ambient Switch on/off Photometric Every 20 brightness and adjust LED sensor seconds, or output as needed luminosity LEGISLATIVE COUNCIL ― 25 April 2018 8767

Technology/ Frequency Type or field system used for Company name Usage of data of data of data collecting data updating and data format Road traffic Adjust LED CCTV Video data output streaming luminosity, energy saving, traffic management Environmental Environmental Sensor Every 20 data, observation seconds, or including: as needed temperature, humidity, pressure, PM2.5, PM10, VOC, NO2, SO2, CO, O3, noise and vibration levels 5. United Weather data, Weather Sensor Every 30 Technologies including: observation, air minutes, or Global temperature, quality as needed Limited humidity, monitoring pressure, wind speed, wind direction, UV, PM2.5, CO, NO/NO2, O3 Ordinary Real-time CCTV Video image: traffic viewing of road Streaming and people conditions near flow the lamppole; no image storage Smart Monitoring Wire Real-time lamppole operation transmission operating condition of electrical lamppole, energy parameters saving

8768 LEGISLATIVE COUNCIL ― 25 April 2018

Instant message frauds and technology crimes

2. MR TONY TSE (in Chinese): President, it has been reported that in recent years, some fraudsters randomly sent messages to different mobile phone numbers, requesting the mobile phone users concerned to forward them, through WhatsApp (an instant messaging application) the verification codes for WhatsApp accounts upon receipt. When mobile phone users were hooked, the fraudsters immediately hijacked, by using the verification codes received, the WhatsApp accounts of the mobile phone numbers concerned, and then sent WhatsApp messages, impersonating the mobile phone users, to the relatives and friends of such users to defraud money from them under various pretexts (e.g. borrowing money and purchasing stored-value cards or virtual point cards on their behalf) ("instant message frauds"). In the first quarter of this year alone, the Police received 270 reports of this type of frauds, with the total amount of money defrauded standing at $2.6 million. Such figures have already surpassed the corresponding figures for the whole of last year (i.e. 146 reports and $1 million), indicating that this type of frauds are on the rise. In this connection, will the Government inform this Council:

(1) of the respective numbers of reports of the various types of technology crimes received by the Police in each of the past five years; among such reports, the number and percentage of instant message frauds, and the respective numbers of those cases in which the suspects were subsequently prosecuted and convicted;

(2) of the standard procedure adopted by the Police for handling reports on instant message frauds, and the difficulties they encountered when conducting the relevant investigation and evidence collection work; whether the Police will refuse to handle such reports on the ground that the informants have not suffered any monetary loss and whether the Police will provide the informants with assistance, e.g. assisting them in preventing their relatives and friends from falling prey to such frauds; and

(3) whether the Cyber Security and Technology Crime Bureau of the Police will, in the coming three years, take measures to further (i) combat the ever-evolving technology crimes and (ii) heighten public vigilance against the approaches adopted in instant message frauds and other types of technology crimes; if so, of the details?

LEGISLATIVE COUNCIL ― 25 April 2018 8769

SECRETARY FOR SECURITY (in Chinese): President, my reply to the question raised by Mr Tony TSE is as follows:

(1) In recent years, technology crime cases received by the Police involved different types of offences, such as those related to online games, online business frauds and unauthorized access to computer systems. Relevant figures in the past five years are tabulated below:

Case nature 2013 2014 2015 2016 2017 Online game-related 425 426 416 363 311 Online business fraud 1 449 2 375 1 911 1 602 1 996 Unauthorized access to 1 986 1 477 1 223 1 107 822 computers Other nature 1 273 2 500 3 312 2 867 2 438 (i) Miscellaneous Fraud 435 1 436 1 733 1 563 1 542 (ii) Child Pornography 41 38 53 43 29 (iii) Distributed Denial of 3 29 35 6 9 Service Attacks (iv) E-banking 40 17 3 2 0 (v) Naked Chat Not 638 1 098 697 305 available (vi) Other Blackmail 509 46 71 120 94 (vii) Criminal Intimidation 61 81 87 74 88 (viii) Sexual Exploitation 92 79 96 167 223 (ix) MiscellaneousNote 92 136 136 195 148 Total 5 133 6 778 6 862 5 939 5 567

Note:

"Miscellaneous" covers many different types of cases, such as online gambling, forged document, phishing URL, identity theft, etc.

In 2017, 266 cases of unauthorized control over instant messaging applications were recorded, representing about 4.8% of all 5 567 technology crime cases of that year. The Police are undertaking investigation on this type of cases and no arrest has been made for the time being.

8770 LEGISLATIVE COUNCIL ― 25 April 2018

(2) Compared with traditional crimes, the Police generally encounter greater challenges in investigating technology crimes (including cases involving unauthorized control over instant messaging applications) due mainly to the following reasons:

(a) The Police require the cooperation of Internet service and content providers in providing relevant information and records to assist with investigation. If the provider is located outside Hong Kong, does not keep such information or only keeps information for a short while, it will be difficult for the Police to gather evidence and obtain leads for tracking down offenders;

(b) Many technology crimes were cross-boundary in nature. In some cases, all of the criminal acts were committed outside Hong Kong with only the victim(s) being in Hong Kong or only the payment to fraudsters being remitted through Hong Kong, thus posing greater difficulties for the Police in investigation, evidence-gathering, law enforcement and exercise of jurisdiction;

(c) Some victims, after being scammed or after their computer was hacked, deleted the information in their computer immediately or even reinstalled all the software to prevent the computer from further damage, thus destroying all relevant evidence.

Anyone who controls another person's instant messaging application account through any means without authorization may commit the offence of "access to computer with criminal or dishonest intent" under section 161 of the Crimes Ordinance (Cap. 200) and is liable to a maximum penalty of 5 years' imprisonment. Anyone who deceives another person into giving away their properties or buying virtual point cards may commit the offence of "obtaining property by deception" under section 17 or "fraud" under section 16A of the Theft Ordinance (Cap. 210) and is liable to a maximum penalty of imprisonment for 10 years and 14 years respectively.

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Upon receiving reports related to suspected instant messaging application deception cases, the Police will immediately follow up on and actively investigate them. If members of the public suspect that they have come across a deception case, they should, irrespective of whether an actual loss was involved, keep records of their communication with the fraudsters and report the case to the Police for assistance as soon as possible. They may also call the 24-hour Anti-Scam Helpline 18222 of the Hong Kong Police Force ("HKPF") to make enquiries or seek assistance.

(3) HKPF is committed to combating technology crimes, and will coordinate Police resources more effectively to combat such crimes and further raise the public's security awareness. HKPF has put "combating technology crime" as one of the Commissioner's Operational Priorities since 2012, and has also included the element of "enhancing cyber security" since 2014 to highlight its importance and extend its coverage.

The Police will continue to enhance its technology, equipment and resources input to cope with cyber attacks and combat technology crimes, including the purchase and upgrade of computer software and hardware to enhance the effectiveness of technology crimes investigation, intelligence analysis, digital forensic and training, as well as the upgrade of cyber security equipment and facilities.

Regarding intelligence exchange and law enforcement operations, the Police will gather intelligence from different channels and take active law enforcement actions to combat crimes. In addition, the Police are proactively exchanging intelligence and conducting working meetings with Mainland and overseas law enforcement agencies to help officers better understand the latest trends of and investigation techniques for online frauds and strengthen international cooperation. The Cyber Security and Technology Crime Bureau has been exchanging intelligence and practices with Interpol and other law enforcement agencies through the Interpol Global Complex for Innovation in Singapore, joining efforts to combat cross-boundary online frauds.

8772 LEGISLATIVE COUNCIL ― 25 April 2018

On publicity and education, the Police will proactively strengthen its cooperation with relevant stakeholders, and will make recommendations on the security measures of mobile applications that are commonly used by Hong Kong citizens. Besides, the Police will regularly produce short videos and anti-crime information, as well as introduce the latest modus operandi of fraudsters to the public through various Internet platforms and discussion fora, and by using the Police's electronic platforms, including YouTube, the Hong Kong Police Mobile Application, the Police website and the Police Facebook page, and the "Fight Scams Together" scam prevention information platform. Furthermore, the Police also disseminate anti-crime messages to the public through Police Magazine and traditional media (i.e. television, radio and newspapers).

Moreover, to reinforce the combat against deception cases and raise the public's anti-deception awareness, the Police's Commercial Crime Bureau established in July 2017 the Anti-Deception Coordination Centre ("ADCC"), which operates round-the-clock. Its major duties include: monitoring and analysing the trends of deception cases, with a view to formulating and implementing combating strategies; coordinating anti-deception publicity work; setting up a 24-hour hotline "Anti-Scam Helpline 18222" to facilitate public enquiries and provide timely assistance; and expediting the investigation of similar deception cases and minimize the loss of victims. In the nine months since it came into operation, ADCC has received more than 17 700 telephone enquiries. Officers of ADCC provide anti-deception advice to members of the public making telephone enquiries, and assist those in need in making reports.

Cross-boundary container truck drivers

3. MR FRANKIE YICK (in Chinese): President, as at the end of 2014, there were about 4 500 persons with permission to drive cross-boundary container trucks to commute between Guangdong Province and Hong Kong, with nearly 70% of them being persons aged 50 or above. The Mainland authorities have stipulated that drivers aged over 60 are not permitted to drive heavy vehicles. LEGISLATIVE COUNCIL ― 25 April 2018 8773

Some members of the logistics industry have pointed out that with the upcoming commissioning of the Hong Kong-Zhuhai-Macao Bridge ("HZMB"), the cargo hinterland of Hong Kong will be expanded. However, as the freight industry is plagued with the long-standing succession problem of drivers, Hong Kong may miss out the business opportunities to be brought about by the commissioning of HZMB. In this connection, will the Government inform this Council:

(1) whether it knows the number of cross-boundary container truck drivers in each of the past three years, and set out in the table below a breakdown by the age group to which they belonged;

Age (years) 2015 2016 2017 Below 20 20 to 29 30 to 39 40 to 49 50 to 59 60 or above Total

(2) whether it knows the number of courses related to the cross-boundary container freight and related industries offered in each of the past five years by the Employees Retraining Board ("ERB") under its Skills Upgrading Scheme Plus, and a breakdown of the number of trainees by (i) course title and (ii) whether they are in-service cross-boundary container truck drivers or persons outside the trade;

(3) of the measures taken by the Government in the past three years to alleviate the shortage of cross-boundary container truck drivers, and the effectiveness of such measures; and

(4) of the measures the Government will take to boost the number of cross-boundary container truck drivers to dovetail with the commissioning of HZMB; whether such measures will include: (i) making reference to the arrangement of the Professional Training and Examination Refund Scheme under the Maritime and Aviation Training Fund and granting tuition and examination fees subsidies 8774 LEGISLATIVE COUNCIL ― 25 April 2018

to persons enrolled in training courses for cross-boundary container truck drivers, (ii) suggesting ERB to offer placement-tied courses for cross-boundary container truck drivers, and (iii) relaxing the restrictions on importing Mainland drivers; if so, of the details; if not, the reasons for that, and what other measures are in place to attract new blood into the industry?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, the reply to Mr Frankie YICK's question is as follows:

(1) Any person who wishes to drive a container vehicle must hold a valid driving licence for articulated vehicles issued by the Transport Department ("TD"). Moreover, according to the requirement of the two governments of Guangdong and Hong Kong, only designated drivers may drive cross-boundary vehicles (including container vehicles) between the two places. Based on TD's information, the numbers of persons fulfilling the above requirements for driving cross-boundary container vehicles in the past three years (as at the end of each year) are listed below.

Age (years) 2015 2016 2017 Below 20 0 0 0 20 to 29 23 37 17 30 to 39 225 365 172 40 to 49 984 1 249 653 50 to 59 2 451 2 864 2 245 60 or above 649 878 1 211 Total 4 332 5 393 4 298

(2) In the past five years, there were no training courses specifically for the cross-boundary container freight industry provided by the Employees Retraining Board ("ERB"). Nevertheless, ERB provided the following courses under the "Skills Upgrading Scheme Plus" for the general land transport industry, including the cross-boundary freight industry:

LEGISLATIVE COUNCIL ― 25 April 2018 8775

No. of persons enrolled 2017- 2018 Course Title 2013- 2014- 2015- 2016- (as at 2014 2015 2016 2017 Feb 2018) Foundation Certificate in Land Not yet Not yet Not yet Not yet Transport 10 launched launched launched launched Knowledge (Part-time) Certificate in Defensive Driving 90 30 40 80 100 (Skidding Control) (Part-time)

ERB does not keep information on whether the persons enrolled are past or existing cross-boundary container vehicle drivers.

(3) and (4)

TD's records show that there were over 44 000 people in Hong Kong holding valid driving licences for articulated vehicles as at the end of 2017. About 4 300 of them were designated drivers for cross-boundary container vehicles. It is believed that the gap reflects the personal choice of drivers and relevant considerations regarding the different working and employment conditions offered by other industries.

With a view to relieving the overall shortage problem of commercial vehicle drivers and facilitating prospective occupational drivers to join the industry, TD proposes to relax the licence-holding requirements for application of commercial driving licences, by changing the current requirement for an applicant to hold a valid driving licence for private car or light goods vehicle for at least three years to at least one year (i.e. completing a probationary driving period of at least one year). In 2017, TD consulted various 8776 LEGISLATIVE COUNCIL ― 25 April 2018

transport trades, the Legislative Council Panel on Transport and the Road Safety Council on the proposal, and received supportive views in general. The Government is now working on the relevant legislative amendment work and plans to introduce the relevant legislative proposals into Legislative Council within 2018. Although the commercial vehicles as stated in the aforementioned relaxation proposal do not include articulated vehicles, under the current legislation, any persons who wish to apply for a learner's or full driving licence for articulated vehicles have to hold a valid full driving licence for medium goods vehicles or heavy goods vehicles, both of which fall under the commercial vehicles as stated in the relaxation proposal. Therefore, the aforementioned proposal, if approved by Legislative Council in the future, should be able to help increase the supply of commercial vehicle divers (including drivers of cross-boundary container trucks), thereby relieving the manpower shortage problem in the cross-boundary container freight industry.

ERB develops courses that are market-driven and employment-oriented. In general, it will consult the relevant Industry Consultative Network under its purview to ascertain the employment opportunities of a particular industry or occupation before considering whether to develop related training courses.

As regards the proposal to import Mainland drivers, since importing Mainland drivers may affect the local community and local drivers' livelihood, and as described above, there are currently (as at end 2017) more than 44 000 holders with a valid driving licence for container vehicles, the Administration currently has no plan to relax the restrictions on importing Mainland drivers.

We will continue to maintain liaison with the industry, as well as keep in view the industry's operating conditions and the demand for cross-boundary container vehicle drivers. We will also review the industry's training needs in consultation with the trade, as well as provide feasible support and formulate appropriate policies.

LEGISLATIVE COUNCIL ― 25 April 2018 8777

Improving the public general out-patient services

4. MRS REGINA IP (in Chinese): President, at present, the general out-patient ("GOP") services under the Hospital Authority ("HA") are primarily targeted at low-income people, the elderly and chronically ill patients. Some members of the public have relayed that the services provided by general out-patient clinics ("GOPCs") are unsatisfactory. For instance, consultation quotas are in short supply, the coverage of service hours is inadequate, and the clinics are unevenly distributed among districts. Currently, among the 73 GOPCs in the territory, only 23 of them provide evening consultation services (i.e. from 6:00 pm to 10:00 pm) from Mondays to Fridays, and only 13 of them provide, in addition to evening consultation services, consultation services on Sundays and public holidays. On the other hand, the Chief Executive indicated in the Policy Address delivered in October last year that the Government would allocate resources to improve the healthcare system and services, and the relevant measures included vigorously promoting primary healthcare, reducing repetitive admission of patients to hospital, and rectifying the phenomenon where accident and emergency ("A&E") services were regarded by members of the general public as the first point of contact in seeking medical consultation. In this connection, will the Government inform this Council:

(1) whether it will allocate additional resources to HA to strengthen the provision of evening GOP services on Saturdays, Sundays and public holidays; if so, of the details; if not, the reasons for that;

(2) given that at present, while no GOP services on Sundays and public holidays are provided by HA in six District Council districts (i.e. the Central and Western District, Sham Shui Po, Kowloon City, Kwai Tsing, Sai Kung, the Islands District), the aggregate population in those districts has all along been accounting for about 30% of Hong Kong's total population in the past few years, whether the Government will allocate additional resources to HA to enable it to provide the relevant services in those districts, so that patients need not go to other districts for seeking medical consultation; if so, of the details; if not, the reasons for that;

(3) given that as GOPCs and the vast majority of private clinics do not provide consultation services in late hours, members of the public who are taken ill during those hours, albeit with relatively mild symptoms only, have no alternative but to seek medical consultation 8778 LEGISLATIVE COUNCIL ― 25 April 2018

from the A&E departments of public hospitals, thereby exerting extra pressure on the latter and wasting public resources, whether the Government will request HA to provide round-the-clock GOP services; if so, of the details; if not, how the Government rectifies the phenomenon where A&E departments are regarded by members of the public as the first point of contact in seeking medical consultation;

(4) given that the ratios of the number of low-income households (i.e. those with monthly household income below $10,000) to the number of GOP consultation quotas in various districts are varied (with the overall ratio in Hong Kong being 4:1 last year, Sham Shui Po having the highest ratio of 5.6:1 and Islands District having the lowest ratio of 2.5:1), whether the Government will request HA to redeploy the resources allocated to GOPCs in various districts, so that the low-income households in various districts have equal access to the relevant services; if so, of the details; if not, the reasons for that; and

(5) whether it will allocate additional resources to the Department of Health for the provision of GOP services, so as to strengthen the provision of public GOP services and alleviate the pressure on the GOPCs operated by HA; if so, of the details; if not, the reasons for that?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, my reply to the question raised by Mrs Regina IP is as follows:

(1) to (4)

The general outpatient ("GOP") services under the Hospital Authority ("HA") are primarily used by the elderly, low-income persons and chronically ill patients. Patients under the care of general outpatient clinics ("GOPCs") fall into two major categories: chronically ill patients in stable medical condition, such as patients with diabetes mellitus or hypertension; and episodic disease patients with relatively mild symptoms, such as those suffering from influenza, cold or gastroenteritis.

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At present, HA manages a total of 73 GOPCs, of which 23 provide evening outpatient services and 13 provide outpatient services on Sundays and public holidays. GOP services are provided on the basis of hospital clusters and consultation quotas are pooled together for use among clinics in nearby area to achieve effective use of resources.

Given the current shortage of doctors, extension of service hours (e.g. the provision of additional evening GOP services on Saturdays, Sundays and public holidays) will create further pressure on the existing staffing. Besides, the two major categories of patients under the care of GOPCs are not in need of round-the-clock services, and GOPCs are not intended for provision of emergency services. To ensure effective use of GOP resources, extending GOP services into the late hours or providing overnight services is not cost-effective. At this point, HA has no plans to provide GOP services at late hours or overnight GOP services.

To meet the rising service demand, HA endeavours to improve its GOP services, including renovating and modernizing the facilities of ageing clinics to streamline patient flow, improve clinic environment and increase clinical space. HA also actively recruits staff to enhance service capacity. With the implementation of various measures, HA has increased the number of GOP attendances by a total of over 600 000 attendances from 2012-2013 to 2017-2018, including those of the extended evening and public holiday outpatient services, and additional attendances provided during the winter surge periods and long holidays. To cater for the demand for GOP services, HA plans to increase the GOPC consultation quotas by about 55 000 attendances in 2018-2019.

On the other hand, the General Outpatient Clinic Public-Private Partnership Programme ("GOPC PPP") was launched by HA in 2014 for clinically stable patients having hypertension and/or diabetes mellitus (with or without hyperlipidemia) and being taken care of by HA to select a participating private doctor as his/her family doctor and receive primary care services from the private sector on a voluntary basis. In addition to facilitating patients to consider choosing primary care services from the private sector, GOPC PPP 8780 LEGISLATIVE COUNCIL ― 25 April 2018

also helps alleviate demand for HA's GOP and reduce the pressure on the public health care system. Since April 2018, GOPC PPP has been rolled out to all 18 districts in Hong Kong.

In planning for the provision and development of public primary health care services, the Government takes into account a number of factors, including the service delivery model of primary health care services, the demographic changes and distribution of target groups, as well as the provision of primary health care services and the demand for public primary health care services in a district. Having considered the distribution of target groups and the future population growth in various districts, the Food and Health Bureau has set aside sites in some districts for the future development of primary health care facilities. Among them, three proposed community health centre projects to be developed in Mong Kok (on the ex-Mong Kok Market site), North District (on Pak Wo Road, Sheung Shui) and Shek Kip Mei (on the existing site of the Shek Kip Mei Health Centre) have been included in the Ten-year Hospital Development Plan and are now in the active planning stage.

HA will continue to recruit staff actively to cope with the rising service demand. Where manpower allows, the service capacity of GOPCs will be further enhanced, including the provision of more evening consultation services and outpatient services on public holidays. Meanwhile, we will closely monitor the operation and service utilization of GOPCs, and flexibly deploy manpower and other resources to provide appropriate primary health care services for key target users.

The Government is conducting a comprehensive review of the planning for primary health care services with a view to drawing up a blueprint. The first district health centre will be set up in Kwai Tsing District in the third quarter of next year, after which such centres will be progressively set up in all the 18 districts. The planned district health centre, with a brand new operation mode and funding from the Government, will make use of the local network to procure services for strengthening medical and rehabilitation services in the community, so that the public can receive the necessary care in the community and unwarranted use of hospital services can be reduced.

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(5) To facilitate the integration of the primary and secondary levels of medical care in the public sector, and to introduce the practice and training of family medicine, all GOPCs were transferred to the management of HA in 2003. The management of GOPCs by HA would facilitate flow of information between the clinics and other HA units, hence improving efficiency and service quality. At this stage, the Government has no plans to provide GOP services through the Department of Health.

Metal impurities in drug products

5. DR HELENA WONG (in Chinese): President, in December 2014, the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use promulgated a Guideline for Elemental Impurities ("the Guideline"), which provides for qualitative and quantitative limits on metal impurities in drug products and ingredients. It has been reported that a drug manufacturer which produced a potassium supplement named "Slow K" notified the Department of Health ("DH") in December last year that taking a high dose of that drug by patients might result in their intake of lead exceeding the standards stipulated in the Guideline. The drug manufacturer concurrently informed the Hospital Authority ("HA") of its decision to cease the production of that drug product for the aforesaid reason. However, due to an insufficient supply of alternative drugs, pharmacies of public hospitals and outpatient clinics continued to dispense Slow K to patients without telling them the associated risks. Only after the aforesaid incident had been disclosed in newspapers in mid-March this year did those pharmacies switch to dispense alternative drugs. In this connection, will the Government inform this Council:

(1) whether drug products applying for registration in Hong Kong are currently required to meet certain metal impurities standards; if so, of the details, including the international organizations or overseas drug regulatory authorities which promulgated the standards concerned; if not, the reasons for that and whether relevant standards will be set;

(2) whether the authorities have reviewed if the existing registered drug products meet the metal impurities standards stipulated in the Guideline; if they have, of the outcome; if not, the reasons for that;

8782 LEGISLATIVE COUNCIL ― 25 April 2018

(3) how the authorities handle the following situations: where a registered drug product is found (i) to contain metal impurities of levels exceeding the relevant standards promulgated in the Guideline or by other international organizations or overseas drug regulatory authorities, or (ii) to be no longer suitable for prescribing to patients;

(4) how DH and HA handle the unexpired Slow K in stock;

(5) whether it knows if HA will recall the Slow K which has been dispensed to its patients, and whether the authorities will deregister that drug product; if HA will, of the details; if not, the reasons for that; and

(6) whether it knows if HA will arrange blood tests for those patients who have taken Slow K for a long period of time to ascertain if their blood lead levels are normal; if HA will, of the details; if not, the reasons for that?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, in consultation with the Department of Health ("DH") and the Hospital Authority ("HA"), a consolidated reply to the six parts of the question is as follows:

(1) to (3)

Under the Pharmacy and Poisons Ordinance (Cap. 138), pharmaceutical products should meet the criteria of safety, efficacy and quality and be registered with an independent statutory body, the Pharmacy and Poisons Board ("PPB") before they can be sold in Hong Kong. DH has been tasked to provide professional advice and executive support to PPB. The registration certificate of a pharmaceutical product is valid for five years and renewal application should be submitted to PPB before it expires.

Application for registration of pharmaceutical products in Hong Kong must be accompanied by the required supporting documents stipulated by PPB in the "Guidance Notes on Registration of Pharmaceutical Products/Substances". They include the master LEGISLATIVE COUNCIL ― 25 April 2018 8783 formula and specification of the product (which generally adopt the pharmacopeial standards). The required documents and evaluation standards are set mainly having regard to the drug registration recommendations of advanced drug regulatory authorities and reputable international organizations (for example, the World Health Organization).

The registration of pharmaceutical products can be divided into two main categories including new chemical entities and non-new chemical entities (generic products). Currently, Hong Kong adopts a secondary review approach to the registration of pharmaceutical product. For new chemical entities, PPB will assess the safety, efficacy and quality based on the evaluation results conducted by the drug regulatory authorities of reference countries (there are now 32 reference countries whose drug regulatory authorities fully implement the International Council for Harmonisation of Technical Requirements for Pharmaceuticals for Human Use ("ICH") guidelines). For generic products, their safety and efficacy should be supported by reputable literature references. Regarding quality, applicants of both new chemical entities and generic products must provide evidence that the manufacturers of pharmaceutical products have complied with the Pharmaceutical Inspection Co-operation Scheme Good Manufacturing Practice standards, and the specification of product should comply with the requirements of relevant pharmacopoeia or quality standards.

ICH guidelines are of top science level and their implementation requires advance technology. According to the report issued by the World Health Organization in 2002 on the impact of implementation of ICH Guidelines among non-ICH countries, it mentions among others the high costs related to full implementation of the guidelines by the industry, which may lead to withdrawal of the marketed drugs and may adversely affect public health. As for the domestic drug market in Hong Kong, 80% of the pharmaceutical products are imported. Together with products manufactured locally, about 60% of pharmaceutical products are manufactured in non-ICH countries/regions. Currently, PPB does not require the compliance of ICH guidelines as registration requirement.

8784 LEGISLATIVE COUNCIL ― 25 April 2018

Nevertheless, having regard to the inclusion of elemental impurities (including lead level) as quality standard by the British and US Pharmacopoeias in accordance with the ICH requirement, PPB will consider and discuss whether such standard should be included as registration requirement. The trade will be consulted in the process.

(4) and (5)

Regarding the incident of modified release potassium chloride tablet (Slow-K) exceeding ICH lead level limit, DH considered that there is no evidence showing the product on the market does not comply with its registered product specification or the pharmacopoeial standards applicable to the products at the time of manufacture, and that there is no need for recalling the product. However, having considered public and patient concerns on the quality of the product, the clinic dispensaries under DH has stopped dispensing Slow-K tablets by the end of March upon the availability of alternative source of supply. The remaining undispensed Slow-K tablets will be arranged for disposal as chemical waste in accordance with the relevant regulation under the Waste Disposal Ordinance (Cap. 354).

The supply of potassium chloride tablets from the new drug suppliers has stabilized since end of March 2018. HA has completely suspended using the original tablets and the remaining stock will be disposed of according to established procedure. Currently, HA does not recall the potassium chloride tablets dispensed to patients. HA will take appropriate follow-up actions in accordance with the guidelines of DH.

On the other hand, DH has closely monitored the relevant drug safety information announced by other overseas drug regulatory authorities. So far there is no similar incident related to other registered pharmaceutical products. If any pharmaceutical product available in Hong Kong has impact on public health, DH will take immediate actions as deemed appropriate.

(6) HA has followed up on all patients taking high-dose potassium chloride tablets and arranged blood tests for individual patients. No abnormal results have been observed so far.

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Replacement and maintenance works for the electrical and mechanical facilities at the Stonecutters Island Sewage Treatment Works

6. MR MARTIN LIAO (in Chinese): President, the Drainage Services Department ("DSD") announced on 12 February this year that replacement and maintenance works would be carried out from early this year to early 2020 for the electrical and mechanical facilities at the Stonecutters Island Sewage Treatment Works ("SISTW") under the Habour Area Treatment Scheme ("HATS") Stage 1. The works include the replacement of two large inlet penstocks installed deep underground at the Main Pumping Station No. 1 of SISTW. During the works period, DSD needs to discharge effluent, which has been initially treated at some of the upstream preliminary treatment works, into the Victoria Harbour by five bypasses, with each bypass not expected to exceed two weeks. DSD has indicated that according to the outcome of a consultancy study, the potential impact of the bypasses on the water quality of the Victoria Harbour is expected to be mild and transient, and DSD has devised appropriate contingency and mitigation measures. However, the water quality monitoring results published earlier by DSD showed that on some days during the first bypass (from 20 February to 5 March this year), the total Escherichia Coli ("E. coli") levels in three beaches near Tusen Wan ranged from 180 to 610 counts/100 millilitres ("mL") (a "poor" ranking for beach water quality), and the total E. coli levels in the two typhoon shelters in To Kwa Wan and Gin Drinkers Bay ranged from 10 000 to 50 000 counts/100 mL (a "very poor" ranking for beach water quality). In this connection, will the Government inform this Council:

(1) as it has been reported that the aforesaid inlet penstocks needing replacement were made of cast iron and wrapped with phosphor bronze on all sides, and they have suffered serious corrosion due to prolonged exposure to effluent, of the details of the new inlet penstocks (including their design, materials used, how they compare with the original ones in terms of anti-corrosion capacity, anticipated service periods and replacement procedure in future);

(2) whether the materials used for and the design of the inlet penstocks of the Main Pumping Station No. 2 under HATS Stage 2A are the same as those of the aforesaid inlet penstocks needing replacement; 8786 LEGISLATIVE COUNCIL ― 25 April 2018

whether DSD will examine the corrosion condition of the former during the said replacement and maintenance works to assess when they need to be replaced;

(3) whether DSD activated the aforesaid contingency and mitigation measures during the first bypass; if so, of the details; if not, the reasons for that;

(4) of DSD's new measures to further alleviate the impacts on the water quality brought about by the bypasses yet to be carried out;

(5) as DSD has indicated that it will, after conducting the first bypass, review (i) the arrangements for the replacement and maintenance works and (ii) the effectiveness of the contingency and mitigation measures, whether the review has been completed; if so, of the outcome; and

(6) whether DSD will take measures to (i) reduce the number of bypasses that need to be carried out and (ii) shorten the duration of each bypass?

SECRETARY FOR THE ENVIRONMENT (in Chinese): President, the maintenance works carried out by the Drainage Services Department ("DSD") from 20 February to 4 March 2018 mainly involved the first stage of replacement of two large penstocks which were located at 34 m below ground level inside the Main Pumping Station No. 1 ("MPS1") of the Stonecutters Island Sewage Treatment Works ("SCISTW"). As these two penstocks were situated at a unique location at the outermost part of MPS1 where the deep sewage tunnels of the Harbour Area Treatment Scheme ("HATS") were connected to SCISTW and taking into account safety consideration, it was necessary to carry out temporary bypass of sewage at some of the upstream Preliminary Treatment Works and to empty MPS1 of sewage before technicians can enter to carry out the works. Overall speaking, 55% of the total volume of HATS flow was bypassed, while the remaining 45% was conveyed by Main Pumping Station No. 2 ("MPS2") and another system to SCISTW as usual for proper treatment and disposal.

LEGISLATIVE COUNCIL ― 25 April 2018 8787

When planning the maintenance works, DSD had employed consultants to conduct detailed water quality impact assessment. The assessment indicated that the potential impact on water quality of Victoria Harbour would be slight and transient. In addition, the Government had, during the bypass, implemented a series of mitigation measures, closely monitored the water quality, formulated contingency plans and informed the public through different channels to minimize the impact to the environment and the public.

Regarding the questions raised by Mr Martin LIAO, our responses are as follows:

(1) Since the commissioning of MPS1 of SCISTW in 2001, DSD has been providing timely inspection and maintenance to its facilities, including the deeply located penstocks. The penstocks in MPS1 were designed and made with materials in accordance with the prevailing design standards, with a normal service life of 15 to 20 years. After operating continuously for over 16 years, the current conditions of the main bodies of the penstock gates are generally satisfactory, but their function is affected by the rusting and corrosion occurred around the edges that are in contact with the penstock frames and supporting facilities. The overall conditions of these penstocks tally with the duration of their operation and they are now due for replacement. In designing the new penstocks, DSD would make reference to the current technologies and use materials with enhanced corrosion and abrasion resistance properties. The service life of the new penstocks is estimated to be up to 30 years.

(2) The design and facilities of MPS2 of SCISTW are different from those of MPS1. The pipes and gate valves (instead of penstocks) adopted in MPS2 have an expected service life of up to 30 years.

(3) In order to minimize the potential impact of the bypass to the environment and the public, the Government has carried out detailed assessment and preparatory work at the outset, formulated and implemented contingency plans as well as various mitigation measures (including means to enhance the dilution and dispersion of the sewage discharged, addition of odour suppressants and installation of deodorization units). Furthermore, the maintenance works were conducted during the non-bathing season to minimize 8788 LEGISLATIVE COUNCIL ― 25 April 2018

potential impact to the public. Besides, throughout the bypass period, DSD had conducted comprehensive and detailed water quality monitoring, uploaded the latest monitoring results on the Internet for public inspection and set up a telephone hotline and email address for public enquiry. All relevant government departments had also collaborated closely to monitor the bypass situation. With the above measures in place, the water quality conditions observed during the bypass were in line with the predictions.

(4) to (6)

During the bypass, DSD conducted comprehensive water quality monitoring at 47 monitoring sites, including beaches, fish culture zones, coral sites, promenades and, typhoon shelters. The monitoring results indicated that the water quality was generally in line with the consultant's predictions. Overall speaking, the actual levels of water quality impact of the bypass were slightly lower than the predictions and, as expected, the water quality of different parts of Victoria Harbour resumed to normal within one to several days after the cessation of bypass. The monitoring results also indicated that baseline water quality at the beaches in Tsuen Wan, the fish culture zones and coral sites close to Victoria Harbour were of similar level before and after the bypass, indicating that they were not affected by the bypass. As regards the conditions at the typhoon shelters at To Kwa Wan and Gin Drinkers Bay, it is not appropriate to apply beach water quality grading standard to evaluate the impact there as they are not bathing beaches, notwithstanding that the elevation of E. coli level had only lasted for a short period of time and the water quality had quickly resumed to normal in two to four days after the cessation of bypass.

According to the original plan, the maintenance works have to be implemented in stages and require a total of five rounds of bypass, including the first one conducted recently, with due consideration of safety and sequencing of works. Upon completion of the first stage of the scheduled works (i.e. detailed survey and partial dismantling of the existing penstocks), we are consolidating the experience of this round of bypass and reviewing the environmental monitoring LEGISLATIVE COUNCIL ― 25 April 2018 8789

results with a view to ensuring safety of works, minimizing the duration of bypass and reducing potential environmental impact of the future works.

Hospital Authority employing part-time nurses and hiring the services of nurses employed by agencies

7. PROF JOSEPH LEE (in Chinese): President, it is learnt that in order to alleviate a shortage of nursing manpower in the public hospitals, the Hospital Authority ("HA") at present not only employs part-time nurses, but also hires the services provided by nurses employed by agencies ("agency nurses"). In this connection, will the Government inform this Council if it knows:

(1) the respective numbers of days for which (i) part-time nurses and (ii) agency nurses worked in the public hospitals under each hospital cluster ("cluster") last year, as well as the respective expenditures involved;

(2) of the respective (i) entry requirements (including working experience), (ii) employment terms, (iii) range of salaries (including minimum pay point and maximum pay point) and (iv) duties, of part-time nurses and agency nurses (set out in a table);

(3) the criteria based on which HA determines (i) whether there is a demand for extra nursing manpower, and (ii) whether such demand is to be met by employing part-time nurses or hiring the services provided by agency nurses;

(4) whether HA has (i) provided pre-employment training to part-time nurses and agency nurses to ensure that the care services provided by them are up to professional standards, and (ii) put in place a mechanism to evaluate their performance; if so, of the details; if not, the reasons for that; and

(5) the respective numbers of days for which (i) part-time nurses and (ii) agency nurses worked/will work in the public hospitals under each cluster from March to May this year, as well as the respective expenditures involved?

8790 LEGISLATIVE COUNCIL ― 25 April 2018

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, my reply to the various parts of the question raised by Prof Joseph LEE is as follows:

(1) The number of part-time nurses employed in each cluster of the Hospital Authority ("HA") and the expenditure involved in 2017-2018 are as follows:

Estimated annual Number of part-time expenditure on salaries of Cluster nurses part-time nurses in (as at 31 December 2017) 2017-2018 ($ million) HKEC 296 44.1 HKWC 371 44.2 KCC 374 50.3 KEC 421 42.2 KWC 214 31.7 NTEC 559 63.7 NTWC 305 37.5

Abbreviations:

HKEC―Hong Kong East Cluster HKWC―Hong Kong West Cluster KCC―Kowloon Central Cluster KEC―Kowloon East Cluster KWC―Kowloon West Cluster NTEC―New Territories East Cluster NTWC―New Territories West Cluster

Notes:

(1) The figures on manpower are calculated on a headcount basis, including permanent staff, contract staff and temporary staff in the ranks of Temporary Undergraduate Nursing Student, Enrolled Nurse, Registered Nurse and Advanced Practice Nurse.

(2) Payroll cost includes basic salaries, allowances, contract gratuities and other on-costs, such as home loan interest subsidy as well as death and disability benefits.

As the salaries of some of the part-time nurses are calculated on the basis of the number of hours worked, HA is unable to provide information on the number of working days of the part-time nurses employed.

LEGISLATIVE COUNCIL ― 25 April 2018 8791

Regarding agency nurses, as their working hours are extremely irregular, HA does not keep data in this regard.

(2) The entry requirements for full-time nurses, part-time nurses and agency nurses set by HA are the same, i.e. applicants must hold valid practising certificates issued by the Nursing Council of Hong Kong. The duties of full-time nurses and part-time nurses are similar. They are mainly responsible for providing nursing care to patient and assisting other healthcare personnel in patient care. Given their higher turnover rate, agency nurses are mainly responsible for assisting full-time and part-time nurses in the patient care.

The terms of employment and range of salaries (including minimum pay point and maximum pay point) of part-time nurses are set out in the table below:

Hourly rate for part-time Terms of employment employment Equivalent to (actual hourly Rank (for temporary the HA General rate depends part-time Pay Scale on experience employment) and working time) Enrolled Nurse $91 to $287 Point 7 to 21 (General) Point 7 to 23 (Psychiatric) Registered Nurse In general, $144 to $329 Point 15 to 25 annual leave, (General) sick leave, Point 17 to 26 maternity leave (Psychiatric) Advanced and paternity $243 to $456 Point 26 to 33A Practice Nurse leave are (General) included. Point 27 to 33A (Psychiatric) Temporary $91 to $119 Not applicable Undergraduate Nursing Student

8792 LEGISLATIVE COUNCIL ― 25 April 2018

In general, the terms of employment and salaries of agency nurses are set by individual agencies, while HA sets out the terms in the tenders regarding the provision of services by the agencies, having regard to its service needs. Therefore, HA is unable to provide information on the terms of employment and salary range of agency nurses.

(3) When compiling duty rosters, the unit or the ward in-charge concerned assesses and estimates the nursing workload and staffing requirements according to factors such as the number of patients, patient dependency and nursing activities in the unit or ward. If it is found that the number of full-time nurses deployed cannot meet the staffing requirement, arrangement will be made for part-time nurses and agency nurses to be on duty.

(4) HA provides necessary pre-service training for both full-time nurses and part-time nurses before they join the service to ensure they meet the service needs of the clusters. The training covers basic infection control, protection of patients' privacy and safety, fire safety guidelines and knowledge of occupational safety and health. Apart from pre-service training, HA also provides nurses with in-service training to ensure that they provide care services of professional standards. HA has developed a Staff Development Review system to assess staff's performance and help staff set their future development goals.

As for the training of agency nurses, HA incorporates terms and conditions in tenders before they are issued, stating and specifying that agencies are required to provide necessary pre-employment training, and will request agencies to submit relevant training records as and when needed. Moreover, the unit or the ward in-charge concerned provides orientation for agency nurses to ensure that the service needs are met and the relevant workflow followed. The nurse in-charge also provides the agencies with feedback on the performance of agency nurses for appropriate follow-ups.

(5) HA employs and deploys part-time nurses and agency nurses according to the service demand. The compilation of the statistics on part-time nurses and agency nurses for the period from March this year up to now has not yet been completed.

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Electronic enquiry service for Mandatory Provident Fund personal accounts

8. MR CHAN KIN-POR (in Chinese): President, the Mandatory Provident Fund Schemes Authority ("MPFA") launched, in late 2016, an e-Enquiry of Personal Account ("ePA") platform and an ePA mobile application to enable members of Mandatory Provident Fund ("MPF") schemes to access and manage their MPF personal accounts more easily ("ePA service"). In this connection, will the Government inform this Council if it knows:

(1) the current number of MPF scheme members who have registered and activated the ePA service;

(2) whether MPFA has reviewed the effectiveness of the ePA service since its launch; if so, of the outcome; if not, the reasons for that; and

(3) whether MPFA has any plan to expand the scope of information available for enquiry under the ePA service so as to enable MPF scheme members to have access to (i) the latest balances in their MPF personal accounts, and (ii) information on the contributions made by their current employers to the MPF accounts set up for them; if so, of the details; if not, the reasons for that?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Chinese): President, the replies to the questions raised by Mr CHAN are as follows:

(1) As at the end of March 2018, 51 000 scheme members have successfully registered and activated the e-Enquiry of Personal Account ("ePA") service.

(2) At present, the average monthly hit-rate of the ePA platform is about 100 000, whilst the number of users who check their personal accounts using the ePA service is about 6 300 per month on average. We are satisfied with the utilization rate, and believe that the number of people registering and using the service will continue to increase.

8794 LEGISLATIVE COUNCIL ― 25 April 2018

(3) Limited by the Mandatory Provident Fund Schemes (General) Regulation, the ePA service does not provide information on the latest personal account balance and employers' contribution information. The Mandatory Provident Fund Schemes Authority has set up a hotline, "MPF Contribution Enquiry Line", through which scheme members may enquire the relevant information from trustees concerned.

We are developing the eMPF, a centralized electronic platform, which is planned to support more comprehensive information enquiry and account management functions.

Feeding of birds in public places by members of the public

9. DR PRISCILLA LEUNG (in Chinese): President, I have often received complaints from members of the public that due to regular feeding by some people, large numbers of birds often congregate in certain public places, which causes noise and public hygiene problems as well as increases the risk of diseases being transmitted from birds to humans. In this connection, will the Government inform this Council:

(1) of (i) the number of reports received by the authorities in each of the past three years on bird carcasses found in public places, and (ii) the number of cases in which such bird carcasses were tested positive to avian influenza virus, with a breakdown by District Council ("DC") district;

(2) of the number of complaints received by the authorities in each of the past three years about people feeding birds in public places, with a breakdown by DC district;

(3) whether the authorities will step up the cleansing and disinfection of bird-feeding black spots, so as to reduce the risk of diseases being transmitted from birds to humans; if so, of the details; if not, the reasons for that;

LEGISLATIVE COUNCIL ― 25 April 2018 8795

(4) as persons dirtying public places by feeding birds may be prosecuted, whether the authorities will consider installing closed-circuit television cameras at bird-feeding black spots and deploying additional staff to patrol such places, so as to step up law enforcement efforts; if so, of the details; if not, the reasons for that; and

(5) whether currently there is any legislation which directly prohibits the acts of feeding birds in public places; if so, of the details; if not, whether it will consider enacting such legislation?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, my reply to the Member's question is as follows:

(1) The number of reports on dead wild birds received by the Agriculture, Fisheries and Conservation Department, and the total number of detected cases of avian influenza ("AI") viruses in relevant carcasses over the past three years are tabulated below:

Total number of detected Number of reports on Year cases of AI viruses in dead dead wild birds received birds 2015-2016 9 222 6* 2016-2017 9 306 0 2017-2018 10 007 4#

Notes:

* In Yuen Long, Sai Kung, Kwai Tsing, Wong Tai Sin, Tuen Mun and Islands.

# In Kowloon City, Sai Kung and Yuen Long.

(2) The numbers of complaints received by the Food and Environmental Hygiene Department ("FEHD") over the past three years on feeding of birds causing dirtiness to public places by members of the public are as follows:

8796 LEGISLATIVE COUNCIL ― 25 April 2018

District 2015-2016 2016-2017 2017-2018 Central and Western 51 41 45 Wan Chai 35 37 61 Eastern 47 51 53 Southern 17 28 19 Islands 0 2 5 Yau Tsim Mong 28 30 53 Sham Shui Po 29 51 47 Kowloon City 28 12 28 Wong Tai Sin 4 9 11 Kwun Tong 16 22 20 Kwai Tsing 4 6 14 Tsuen Wan 3 2 5 Tuen Mun 4 5 6 Yuen Long 20 21 42 North 0 0 5 Tai Po 14 12 11 Sha Tin 8 20 23 Sai Kung 16 23 30 Total 324 372 478

(3) Apart from providing routine street sweeping and washing services, FEHD also increases the frequency of street washing and disinfection with 1:99 diluted bleach solution at places where wild birds congregate as appropriate, so as to ensure environmental hygiene and street cleanliness.

(4) FEHD launched a six-month pilot scheme on installation of Internet Protocol ("IP") cameras in late December 2016, under which IP cameras were installed at a total of six illegal refuse dumping blackspots in Central and Western, Sham Shui Po and Yuen Long districts, to step up surveillance on illegal dumping of refuse and to facilitate the planning of more effective law enforcement actions. Given the encouraging result, in consultation with District Councils, FEHD decided to extend the pilot scheme to all districts progressively on a trial basis for one year and start to install IP cameras at some illegal refuse dumping blackspots, including feral bird feeding blackspots, in the second quarter of 2018.

LEGISLATIVE COUNCIL ― 25 April 2018 8797

In addition, since mid-2017, FEHD has set up six dedicated enforcement teams ("DETs"), primarily to step up enforcement action against various public cleanliness offences, including bird feeders who dirty public places. FEHD will set up additional DETs in 2018-2019 to strengthen law enforcement work in relevant respects.

(5) There is no legislation which regulates bird feeding at present. However, people dirtying public places by feeding birds, e.g. leaving the feed behind on the ground, will contravene section 4(1) of the Public Cleansing and Prevention of Nuisances Regulation (Cap. 132BK). FEHD officers can take enforcement actions against the offenders.

Restrictions on carriage of luggage by railway passengers

10. MR MA FUNG-KWOK (in Chinese): President, the Conditions of Carriage of Luggage issued by the MTR Corporation Limited ("MTRCL") stipulate that each passenger travelling on the trains of the urban lines may carry one piece of luggage only, with dimensions not exceeding the specified limits. In November 2015, MTRCL implemented a Trial Registration Scheme for Carriage of Oversized Musical Instruments ("the Scheme") under which a passenger holding a permit issued by MTRCL may carry one piece of large musical instrument with dimensions not exceeding relaxed limits while travelling on the trains of urban lines. The Scheme was regularized in March 2016, and its coverage was extended to sports equipment in August of the same year. On the other hand, there are restrictions on the weight of luggage carried by passengers travelling on the trains of the East Rail Line ("ERL"). In this connection, will the Government inform this Council if it knows:

(1) in each of the past three years, (i) the number of actions taken by MTRCL to enforce the size or weight restrictions on luggage, and (ii) the respective numbers of persons who were given a verbal warning, given a written warning, prosecuted and convicted (and among such numbers, the respective numbers involving oversized musical instruments or sports equipment);

8798 LEGISLATIVE COUNCIL ― 25 April 2018

(2) the respective numbers of applications for registration of oversized musical instruments received, approved and rejected by MTRCL since the launch of the Scheme in November 2015, with a breakdown of the rejected cases by the reason for the rejection and the type of musical instruments involved;

(3) the respective numbers of applications for registration of oversized sports equipment received, approved and rejected by MTRCL since the Scheme's coverage was extended to sports equipment in August 2016, with a breakdown of the rejected cases by the reason for the rejection and the type of sports equipment involved;

(4) the details of the training and guidelines provided by MTRCL for its frontline staff on the handling of cases of passengers' carrying oversized musical instruments or sports equipment; whether frontline staff may, under such guidelines, exercise discretion to allow passengers who have applied for but have not been issued a permit to carry oversized musical instruments or sports equipment;

(5) whether MTRCL will consider improving the Scheme, such as relaxing the size restrictions on luggage, streamlining the application procedure, designating additional locations for collection of the permits; if MTRCL will, of the details; if MTRCL will not, the reasons for that; and

(6) given that there used to be a baggage car at the front and rear of ERL trains operated by the Kowloon-Canton Railway Corporation before the rail merger, whether MTRCL will draw reference from such practice and designate parts of the trains for exclusive use by passengers carrying relatively bulky objects to avoid their causing inconvenience to other passengers; if MTRCL will, of the details; if MTRCL will not, the reasons for that?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, my reply to Mr MA Fung-kwok's question is as follows:

LEGISLATIVE COUNCIL ― 25 April 2018 8799

To facilitate entry into the railway system of passengers carrying oversized musical instruments and sports equipment with dimensions exceeding the current permitted limits(1), the MTR Corporation Limited ("MTRCL") regularized the MTR Registration Scheme for Carriage of Oversized Musical Instruments ("the Scheme") on 1 March 2016, and extended the Scheme to include Sports Equipment on 1 August of the same year. The Scheme, formulated upon a prudent risk assessment of the safety of railway operations, allows a passenger holding a permit issued by MTRCL to carry one large musical instrument or one piece of large sports equipment with dimensions not exceeding the relaxed limits(2) while travelling on the trains of urban lines.

(1) The statistics on actions taken by MTRCL in each of the past three years against passengers carrying luggage exceeding the size or weight limits are set out below:

2015 2016 2017 Written warning 8 388 7 542 3 791 Prosecution 305 321 69 Conviction by the court 246 242 45

MTRCL does not maintain a breakdown of the above figures showing the respective numbers of cases involving oversized musical instruments and sports equipment.

(2) and (3)

Since the launch of the Scheme, MTRCL has received 6 389 applications involving oversized musical instruments and sports equipment. Among these applications, only one was not considered on the grounds of incomplete information. Others were all approved.

(4) To ensure that frontline staff understand the Scheme and assist in its implementation, MTRCL arranges suitable training for its staff and established practical guidelines on the handling of noncompliant

(1) The total dimensions (length+width+height) do not exceed 170 cm and any one side does not exceed 130 cm.

(2) The total dimensions (length+width+height) of the musical instrument or sports equipment, including the case or bag, do not exceed 235 cm and any one side does not exceed 145 cm. 8800 LEGISLATIVE COUNCIL ― 25 April 2018

passengers who carry oversized musical instruments or sports equipment without a permit. In general, the frontline staff will check on the case and give verbal advice in the first instance; and take appropriate actions, where warranted, including written warning and enforcement action, against those who do not heed the advice.

(5) and (6)

Passengers who wish to carry a piece of oversized musical instrument or sports equipment exceeding the current limits on luggage dimensions may apply for a permit under the Scheme. To facilitate applicants, application forms can be obtained from specified MTR Customer Service Centres(3) and application can be submitted on-line, in person or by mail. An applicant may collect his permit from the station of his choice(4) seven working days after submitting the form or upon receiving an email notification that the permit is ready for collection. Details of the Scheme have been uploaded to the websites of MTRCL. At present, the Scheme is running smoothly. MTRCL will review the implementation of the Scheme from time to time.

According to MTRCL, to ensure passenger safety, improve travelling environment and address changes in patronage, the conditions of luggage have been aligned for all railway lines with effect from 1 January 2009, and luggage handling services on East Rail Line have been cancelled to free up more space for providing safe, comfortable and efficient train services to the public. MTRCL noted that with a daily average of over 5 million passenger trips being carried by the railway system, it is of paramount importance to ensure the safe, reliable and smooth operation of railway. Providing a baggage car or designating some part for exclusive use of passengers carrying oversized objects will restrict the flexible use of the limited space on trains, which will affect the overall efficiency of train service and the space available for passenger use. As such, MTRCL does not have plans to change its existing practices.

(3) Except Airport Express, Lo Wu, Lok Ma Chau, Racecourse, Disneyland Resort and Sunny Bay stations.

(4) Customer Service Centres at Mei Foo Station, Olympic Station, Kowloon Tong Station, Tai Wo Station, Wan Chai Station and Yau Tong Station; as well as Concessionary Travel Office in Admiralty Station, Siu Hong Station and Tai Wai Station. LEGISLATIVE COUNCIL ― 25 April 2018 8801

Fare concessions for students

11. MR IP KIN-YUEN (in Chinese): President, under the Student Travel Scheme implemented by the MTR Corporation Limited ("MTRCL"), students between the ages of 12 and 25 who are currently studying in full-time day courses offered by recognized institutions in Hong Kong may enjoy fare concessions. Full-time post-secondary students aged 26 or above are therefore unable to benefit from the Scheme. Some members of the public have pointed out that in recent years, quite a number of young people have, after working for several years, chosen to go back to school to take full-time courses. As these people have become financially self-reliant, the economic pressure borne by them may be greater than that borne by students aged 25 or below. As a result, such people have a greater need for fare concessions. It has been learnt that similar provisions on an upper age limit for the beneficiaries are not found in the student fare concession schemes offered by the railway services in certain overseas places (e.g. Sydney and Singapore). Regarding the fare concessions for students offered by public transport operators, will the Government inform this Council:

(1) of the details of the fare concessions for students currently offered by the public transport operators in the territory (including whether there is any upper age limit for the beneficiaries);

(2) whether it knows the justifications for MTRCL setting an upper age limit for the beneficiaries of its Student Travel Scheme;

(3) whether it will suggest to MTRCL that the upper age limit for the beneficiaries be removed; and

(4) whether it will consider including, in the new franchise/service concession agreements for public transport service to be granted in future, a provision requiring the operators concerned to provide fare concessions for students?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, my reply to various parts of Mr IP Kin-yuen's question is as follows:

8802 LEGISLATIVE COUNCIL ― 25 April 2018

(1) and (4)

It is the Government's policy that public transport services should be run under the Government's regulatory framework by the private sector in accordance with commercial principles, in order to increase operational efficiency. Fare concession schemes launched by different operators are also implemented under this policy framework. Whether and how fare concession schemes are introduced are subject to the commercial decisions of individual operators. Nevertheless, the Government has been liaising closely with all operators and encouraging them to introduce suitable fare concession schemes as far as possible, having regard to the principle of financial prudence required of such operators while taking account of their operating conditions, the economic environment of the market and other relevant factors, with a view to reducing the fare burden of the public.

At present the MTR Corporation Limited ("MTRCL") offers fare concessions of about 50% discount to holders of Personalized Octopus Card with "Student Status"(1). The Kowloon Motor Bus Company (1933) Limited ("KMB") also provides same-day return half fares for passengers holding Personalized Octopus Card with "Student Status" on the designated groups of routes(2). In respect of green minibuses, a total of 30 green minibus routes are currently offering student fare concessions ranging from $0.4 to $6 in the territory. Based on information available, operators usually require that passengers enjoying student fare concessions should hold Personalized Octopus Card with "Student Status", wear school uniforms or hold valid student cards. With regard to ferries, the operator of the "Central―Discovery Bay" route offers student concessionary fares from $16 to $20.5 for full-time students(3) living in Discovery Bay.

(1) Any person aged between 12 and 25 and currently enrolled on a full-time day course offered by a recognized institution will be eligible to apply.

(2) Must use the same Octopus Card for same-day return trips of fares at $12 or above for the same designated groups of day-time KMB solely-operated routes.

(3) Aged between 12 and 25. LEGISLATIVE COUNCIL ― 25 April 2018 8803

The Transport Department will continue to actively encourage public transport operators to provide different fare concessions. Moreover, to relieve the fare burden of daily commuters who travel by local public transport and whose public transport expenses are relatively high, the Government is actively preparing for the launch of the non-means tested Public Transport Fare Subsidy Scheme and will strive to implement the scheme in the first quarter of 2019 so as to benefit the general public as soon as possible.

(2) and (3)

MTRCL has always been committed to providing passengers with safe, comfortable and reliable railway services. To thank passengers for their support and encourage different passenger groups to use railway services, MTRCL offers a wide range of fare concessions and promotional schemes (including the MTR Student Travel Scheme) to various groups including the elderly, children, eligible students and persons with disabilities. In 2017, these ongoing fare concession schemes brought a total of about $2.6 billion of additional fare savings to passengers. There is currently a daily average of about 500 000 passenger trips enjoying the student concessionary fares within the MTR network, and in 2017, the fare concessions that students enjoyed amounted to about $0.7 billion.

MTRCL has advised that it, as a major public transport operator in Hong Kong, attaches great importance to corporate social responsibility. As early as in 1981, the pre-merger MTRCL began offering fare concessions of up to 50% discount to eligible students aged between 12 and 25 who enrolled on full-time day courses offered by recognized institutions in Hong Kong. The reason why the upper age limit was then set at 25 can no longer be traced. In any case, MTRCL is currently the major public transport operator in the territory to offer year-round fare concessions of about 50% discount per trip to eligible full-time students of recognized local institutions. Such concessions are provided by MTRCL through deployment of internal resources, which are of substantial magnitude. At this stage, MTRCL has no plans to change the eligibility criteria, and terms and conditions for such fare 8804 LEGISLATIVE COUNCIL ― 25 April 2018

concessions. MTRCL will continue to offer fare concession schemes to different passengers from time to time in response to the market situation.

Rodent prevention and control

12. MR WILSON OR (in Chinese): President, many residents in the districts of Kwun Tong and Wong Tai Sin have complained to me that rodent infestation is a serious problem in their districts. They have also pointed out that although the authorities have all along been implementing the Keep Clean campaign and carrying out anti-rodent campaigns at small targeted areas, the hygiene conditions in the back alleys of private buildings and nearby streets in the districts remain poor. Not only do rodents appear in markets, back alleys, streets, etc., but they also trespass on residential premises to find food. In this connection, will the Government inform this Council:

(1) whether it will step up the cleaning and anti-rodent work in the aforesaid districts, review the effectiveness of the Keep Clean and anti-rodent campaigns, and revise the strategy for rodent prevention and control; if so, of the details; if not, the reasons for that;

(2) given that the rodent infestation rate ("RIR") of a certain district is calculated with reference to the proportion of baits placed in the district bitten by rodents, but the extent to which baits are bitten by rodents may be affected by a number of factors (e.g. whether there is other food which is more appealing), whether the authorities will review and improve the calculation method of RIR so that it can reflect more accurately the real situation of rodent infestation; if so, of the details; if not, the reasons for that; and

(3) as the authorities are implementing an Internet Protocol Camera Scheme at the hygiene black spots across the territory to combat indiscriminate refuse dumping, of the latest progress of the Scheme; whether the authorities will expedite the implementation of the Scheme so as to reduce the food sources of rodents; if so, of the details; if not, the reasons for that?

LEGISLATIVE COUNCIL ― 25 April 2018 8805

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, the Government has always been concerned about rodent infestation in various districts. The Food and Environmental Hygiene Department ("FEHD") has adopted multi-pronged strategies, including cleaning, rodent disinfestation and enforcement action, to address the situation. My reply to the various parts of the question is as follows:

(1) The current integrated approach adopted by FEHD in rodent prevention and control by cleansing, poisonous baiting and trapping is based on the recommendations and technical guidelines of the World Health Organization ("WHO"). Strategic deployment of poisonous baiting and trapping operations would be adjusted in accordance with the environmental conditions of individual districts and preferences of rodents. These methodologies are in line with those adopted in major overseas and Mainland cities. In addition, FEHD keeps abreast of the latest international developments in the methodologies and materials for rodent prevention and control through various channels, such as exchanging views with experts through meetings and participating in international conferences. FEHD will also review the existing measures from time to time and actively study the feasibility of introducing various rodent prevention and control methods that are suitable for the environment and the actual conditions of Hong Kong.

FEHD has adopted multi-pronged strategies in rodent control. In addition to palliative solutions like the use of effective rodenticides and trapping devices to kill rodents, we place great emphasis on scrupulous implementation of fundamental control measures to improve environmental hygiene. Since the anti-rodent operations conducted in designated target areas last year achieved fruitful results, in addition to the two phases of the regular territory-wide anti-rodent campaign, FEHD will continue to launch two two-month anti-rodent operations in designated target areas with rodent problems in all districts in April and October this year. The elimination of the three survival conditions of rodents, namely food, harbourages and passages, supplemented by a variety of direct control measures including poisoning, trapping, destroying rat holes, etc., will sustain the effectiveness of rodent prevention and control. FEHD will continue to propagate anti-rodent messages through 8806 LEGISLATIVE COUNCIL ― 25 April 2018

various channels, including its website, the Keep Clean Ambassador Ah Tak Facebook page, Announcements in the Public Interest broadcast on television and radio, as well as posters displayed in MTR stations and at bus stops etc., to encourage active participation by members of the public in rodent prevention and control work. Meanwhile, FEHD will collaborate with the District Councils ("DCs") and District Offices of the Home Affairs Department to organize anti-rodent promotional activities at the district level and to appeal to the community for joint efforts against rodent infestation.

We must adopt a comprehensive approach to achieve success in anti-rodent work. Disinfestation operations by FEHD at public places alone cannot solve the problem. It is important that members of the public should work closely with FEHD in rodent control by eliminating rodents in their own premises. To this end, it is part of FEHD's anti-rodent operation to provide health education on prevention of rodent infestation to the public and to offer technical support to those in need.

To keep Hong Kong's environment clean, the provision of cleansing services by Government departments is certainly important. However, without the persistent and active participation of different sectors of the community, the work of keeping Hong Kong clean cannot be carried out effectively. FEHD has already reinforced street sweeping and washing services at some rear lanes and nearby streets where hygiene conditions were relatively poor. Despite the increase of the frequency of street sweeping to as high as eight times per day and washing services to at least twice per week, we have not observed significant improvement in the hygiene conditions. For these locations, strengthening the street sweeping and cleansing services alone might not be the most effective solution, and it could not achieve the best value for public money. The cooperation of the public is necessary for solving the problem by exercising a strong sense of civic mindedness and self-discipline, and not placing rubbish at rear lanes and streets for the sake of convenience. As such, it is of paramount importance to strengthen civic education to enhance the civic awareness of the public.

LEGISLATIVE COUNCIL ― 25 April 2018 8807

(2) Since 2000, FEHD has been making use of the rodent infestation rate ("RIR") and its trend to gauge the general situation of rodent infestation in individual districts and as the basis for devising anti-rodent measures and assessing the overall efficacy of rodent prevention and disinfestation work. FEHD conducts RIR surveys in rodent-infested areas or places likely to have rodent problems, in particular areas bustling with human activities. The survey is conducted every six months. Baits are set in selected localities to gather statistics on the ratio of baits bitten by rodents for the purpose of making meaningful comparison of RIRs using the same standard. Changes to the RIR readings in individual districts over time facilitate our assessment of progress made in containing rodent infestation and the overall efficacy of our work, as well as provide an informed basis for allocation of resources.

FEHD has, when devising the RIR, made reference to practices adopted by cities around the world and the actual situation of Hong Kong. The Department has, over time, tried out different methods. Having regard to a number of factors including our local climate, environmental conditions and the habits of rodents, the Department has come to the conclusion that adopting the ratio of baits gnawed by rodents as the infestation rate is the most suitable method for Hong Kong. Having said that, we will continue to keep in view rodent prevention and control (including rodent infestation assessment) methods adopted by WHO and major cities around the world.

Given the high adaptability and reproductive rate of rodents, the state of rodent infestation in individual districts often varies with changes in environmental hygiene conditions. When carrying out regular anti-rodent work, apart from making reference to the RIR, individual district environmental hygiene offices of FEHD would also take into account the rodent complaint figures and views of the public and makes appropriate adjustments to the rodent prevention and control strategy.

(3) FEHD launched a six-month pilot scheme on installation of Internet Protocol ("IP") cameras in late December 2016, under which IP cameras were installed at a total of six illegal refuse dumping 8808 LEGISLATIVE COUNCIL ― 25 April 2018

blackspots in Central and Western, Sham Shui Po and Yuen Long districts, to step up surveillance on illegal dumping of refuse and to facilitate the planning of more effective enforcement actions.

Given the encouraging result of the pilot scheme, FEHD decided to extend the pilot scheme to all districts progressively on a trial basis for one year. FEHD has consulted DCs on the installation of the IP cameras as well as the illegal refuse dumping blackspots for installation of these cameras. Responses from DCs were very positive. FEHD plans to start to install IP cameras at some illegal refuse dumping blackspots in the second quarter of 2018.

Manpower supply and demand of the local vessel sector and river trade sector

13. MR LUK CHUNG-HUNG (in Chinese): President, recently, some trade union representatives have relayed to me that although the Government has implemented a number of measures in recent years to encourage young people to pursue a career in the maritime industry, the local vessel sector and river trade sector are still facing manpower shortage and succession problems. In this connection, will the Government inform this Council:

(1) whether it knows the respective numbers of persons employed in the two aforesaid sectors in each of the past five years (with a breakdown by age group), and the respective anticipated manpower demand of the two sectors in each of the coming five years;

(2) whether it knows the respective (i) average monthly vacancy rates and (ii) median monthly wages, of seamen in the two sectors in the past five years;

(3) whether it knows the respective numbers of seamen in the two sectors who will retire within the coming five years;

(4) whether it knows the respective numbers of persons who joined the two sectors as seamen in the past five years upon completion of the relevant training; and

LEGISLATIVE COUNCIL ― 25 April 2018 8809

(5) whether it will formulate new measures to attract members of the public to pursue a career in the two sectors so as to mitigate their manpower shortage and succession problems?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, the HKSAR Government has been committed to entrenching the position of Hong Kong as an international maritime centre. One of our major tasks is to collaborate with the maritime industry through the Hong Kong Maritime and Port Board ("HKMPB") to nurture more talents for the trade. The Government set up a $100 million Maritime and Aviation Training Fund ("MATF") in April 2014 with an aim to assist and encourage young students and industry practitioners to receive maritime and aviation related training, thereby enhancing the overall competitiveness and professional competency of the industry.

Our reply to the question raised by Mr LUK Chung-hung is as follows:

(1) to (3)

In order to assess the manpower situation and training needs of the maritime industry, the Maritime Services Training Board of the Vocational Training Council ("VTC") conducted manpower survey ("Manpower Survey Report") in 2012, 2014 and 2016 respectively, which covered four major categories, namely the ocean going sector, river trade sector, local vessel sector and shore-based personnel sector.

For the river trade sector, according to the 2016 Manpower Survey Report, information provided by the employer respondents reflected that there were over 1 330 seafarer positions offered by the organizations concerned, including around 1 260 seafarers employed and around 70 vacancies, as at August 2016. The employer respondents of the river trade sector projected at the time of the survey that the manpower demand in 2017 and 2018 would be more or less the same as that in 2016.

As regards the local vessel sector, information provided by the employer respondents during the above survey period reflected that there were around 5 000 seafarer positions in 2016 in the 8810 LEGISLATIVE COUNCIL ― 25 April 2018

organizations concerned, including around 4 800 seafarers employed and around 200 vacancies. The employers of local vessel sector projected that the number of positions required in 2017 and 2018 would be slightly reduced to around 4 900 each year.

According to the 2014 and 2016 Manpower Survey Reports, the age distribution of employers of the two sectors is set out at Annex 1. Given that there is no statutory retirement age for seafarers, we cannot provide the number of retirees in the coming five years.

The Government does not have the projected manpower requirement and the average monthly vacancy rate of the coming five years for the two sectors. According to the "Annual Survey of Wages of Hong Kong Registered Seafarers" conducted by the Mercantile Marine Office of Hong Kong and the Manpower Survey Reports conducted by VTC, the mean average wages of the two sectors are set out in Annex 2.

(4) The number of new Certificates of Competency ("CoCs") for seafarers issued by the Marine Department ("MD") per year may reflect the number of new seafarers joining the industry. The number of CoCs newly issued by MD for river trade and local vessel sectors in the past five years is set out at Annex 3.

(5) The Government attaches importance to the overall manpower supply of the maritime industry and is aware of the problem encountered by the river trade and local vessel sectors. Owing to the intense competition of labour market and the relatively less favourable working environment of the industry as compared with the various jobs onshore, it is relatively difficult for the industry to attract young people to join.

In view of the above, the Local Vessel Trade Training Incentive Scheme ("LVTTIS") under MATF provides financial incentive to those who is newly employed by the local vessel sector with an aim to encourage them to acquire the first professional qualification as coxswains or engine operators of local vessels. Since the implementation of LVTTIS in 2014, around 110 employees in the local vessel sector have benefited. Besides, we also implement the LEGISLATIVE COUNCIL ― 25 April 2018 8811

Maritime and Aviation Internship Scheme under MATF for arranging young people to work in different maritime companies. The experience gained by the participants will serve as their good reference to consider whether to join the local vessel sector in future.

The Manpower Development Committee of HKMPB has also endorsed earlier various enhancement measures proposed by MD to increase the manpower supply for the local vessel sector, including:

- enhancing LVTTIS to allow recipients to change companies during the subsidy period, as long as they are still performing seaman duties in local companies;

- granting an equivalent commercial local trade CoC to retired civil servants who are qualified to operate government vessels when in service, so that they would be qualified to become local seafarers;

- allowing holders of Grade 2 CoC to operate certain types of large local vessels for routes specified by MD upon completion of relevant on-job training and passage of capability assessment; and

- allowing candidates to sit for Coxswain or Engine Operator Grade 3 examination first before acquiring the necessary sea experience.

To enhance the image of seafarers in the perception of the general public and raise attractiveness of seafaring jobs to young people, MD has invited the Hong Kong Council for Accreditation of Academic and Vocational Qualifications to initiate an accreditation exercise for professional seafaring qualifications issued by MD and applied for appointment as an "Assessment Agency". Other than ocean going sector, MD is also applying for appointment as the Assessment Agency of the local seafarer qualifications and will soon commence the benchmarking work for eight CoCs of local seafarers, including three CoCs for Local Coxswains, three CoCs for Local Engine Operators and two CoCs for Pleasure Vessels Operators. Upon 8812 LEGISLATIVE COUNCIL ― 25 April 2018

passing the accreditation exercise, anyone who has obtained these qualifications of seafarers from MD will be considered to have acquired the respective qualification framework level.

In addition, the Transport and Housing Bureau has published and disseminated at the Education and Careers Expo ("the Expo") this year a booklet of "Local Vessel Trade in Hong Kong" to introduce the career and training information of the trade to the Expo visitors, with a view to strengthening the promotion of the trade to young people. We also broadcasted career videos at the Expo to introduce the work of Coxswain and Engineer in local ferry operators in order to increase the understanding of young people on these jobs.

We will continue to actively explore implementing further enhancement measures under MATF and introducing new schemes for the industry, so as to provide more financial incentives to young people and inject new blood to the industry.

Annex 1

Age Distribution of Seafarers of River Trade and Local Vessel Sectors

2014 Manpower Survey Report of VTC―Actual Age Distribution of Seafarers

River Trade Local Vessel Trade 50 or below 467 2 062 51 to 60 370 1 636 At or above 61 101 757 Age not specified N. A. 239 Total 938 4 694

2016 Manpower Survey Report of VTC―Average Age Distribution of Seafarers

River Trade Local Vessel Trade Below 40 524 1 340 41 to 50 374 1 473 51 to 60 362 1 195 LEGISLATIVE COUNCIL ― 25 April 2018 8813

River Trade Local Vessel Trade 61 to 65 2 225 Above 66 0 23 Age not specified N. A. 507 Total 1 262 4 763

Note:

As the data collection method and statistical analysis of the ages of seafarers differed in the above two Manpower Survey Reports, survey findings of the two years cannot be compared directly.

Annex 2

Mean Average Gross Wages of Major Seafarer Positions of River Trade and Local Vessel Trade

River Trade

Mean Average Monthly Gross Wage Rank 2013 2014 2015 2016 2017 Master $56,010 $50,320 $60,644 $62,336 $59,648 Chief Officer $37,462 $34,033 $40,937 $41,459 $39,727 Navigation Officer $29,704 $25,650 $26,478 $27,092 $29,097 Chief Engineer $42,442 $38,612 $47,461 $48,991 $48,372 Assistant Engineer Officer $13,049 $11,706 $14,046 $15,398 $15,610 Rating* $14,115 $13,908 $14,744 $14,780 $15,558

Note:

* Ratings include General Purpose Rating, Sailor, Fitter and Cabin Attendant.

Source of Information: Annual Survey of Wages of Hong Kong Registered Seafarers conducted by Mercantile Marine Office of Hong Kong

Local Vessel Trade

Mean Average Monthly Gross Wage Rank 2014 2016 Coxswain $20,138 $28,241 Assistant Coxswain $18,892 $24,175 8814 LEGISLATIVE COUNCIL ― 25 April 2018

Mean Average Monthly Gross Wage Rank 2014 2016 Engine Operator $18,090 $26,984 Assistant Engine Operator $20,618 $20,573 Sailor $16,208 $18,674

Source of Information: 2016 Manpower Survey Report by the Maritime Services Training Board of VTC

Annex 3

Newly Issued Certificates of Competency for River Trade and Local Vessel Trade by MD

River Trade

Number of Newly Issued Certificates of Competency Rank 2013 2014 2015 2016 2017 Certificate of Competency (Deck Officer) (River 12 3 3 7 9 Trade) Class 1 Certificate of Competency (Deck Officer) (River 17 3 1 1 2 Trade) Class 2 Certificate of Competency (Deck Officer) (River 16 5 9 13 17 Trade) Class 3 Certificate of Competency (Marine Engineer Officer) 1 1 0 0 1 (River Trade) Class 1 Certificate of Competency (Marine Engineer Officer) 1 6 2 15 3 (River Trade) Class 2 Certificate of Competency (Marine Engineer Officer) 5 5 3 3 9 (River Trade) Class 3 Total: 52 23 18 39 41

LEGISLATIVE COUNCIL ― 25 April 2018 8815

Local Vessel Trade

Number of Newly Issued Certificates of Competency Rank (By Examination) 2013 2014 2015 2016 2017 Local Coxswain Grade 2 6 11 11 21 44 Local Coxswain Grade 3 93 166 149 130 139 Local Engine Operator 16 24 13 34 41 Grade 2 Local Engine Operator 53 114 135 140 137 Grade 3 Total: 168 315 308 325 361

Note:

Upon accumulation of the required experience, holders of Local Coxswain/Local Engine Operator Grade 2 Certificate can apply for the Local Coxswain/Local Engine Operator Grade 1 Certificate from MD.

Pilot Earn and Learn Scheme for the Retail Industry

14. MR HO KAI-MING (in Chinese): President, the Government, the Vocational Training Council and the Hong Kong Retail Management Association jointly launched in 2014 a Pilot Earn and Learn Scheme for the Retail Industry ("Earn and Learn Scheme") to provide student-workers with an opportunity to "earn and learn" as well as a well-defined progression pathway, aiming to attract talents to join the retail industry. According to the arrangement under the Earn and Learn Scheme, if the student-workers of the Foundation Diploma ("FD") programme, upon graduation, become full-time employees of the same employers as those during the training period, they will be entitled to a monthly income of not less than $11,000. It has been learnt that the first three runs of FD programme were completed between 2016 and this year, and the fourth run is underway. In this connection, will the Government inform this Council whether it knows:

(1) in respect of the second and third runs of the FD programme respectively, (i) the number of enrollees, (ii) the number of dropouts with a breakdown by reason therefor, (iii) the number of graduates, (iv) the dates of graduation, and (v) the number of graduates who are still currently employed by the same employers as those during the training periods;

8816 LEGISLATIVE COUNCIL ― 25 April 2018

(2) the respective total numbers of positions offered by the employers participating in the Earn and Learn Scheme to the graduates of the second and third runs of the FD programme; among such positions, the respective numbers of those with a monthly basic salary of $11,000 or more and less than $11,000, and among the latter, the respective numbers of positions with a monthly basic salary (i) of less than $5,000, (ii) from $5,000 to $7,000, (iii) from $7,001 to $9,000, and (iv) of more than $9,000;

(3) among the graduates of the first to third runs of the FD programme, (i) the number of those who still work in the retail industry (with a breakdown by position and monthly income range), and (ii) the number of those who have left the retail industry (with a breakdown by reason for leaving); and

(4) the number of enrollees for the fourth run of the FD programme; when the enrolment for the courses of the fifth run will begin and when they will start?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Chinese): President, the Earn and Learn Pilot Scheme for the Retail Industry ("the Pilot Scheme"), which was launched in 2014 by the Vocational Training Council ("VTC") in partnership with the Hong Kong Retail Management Association ("HKRMA"), seeks to enable Secondary Six graduates to attend classes on campus while acquiring work experience with participating employers and receiving a government allowance of $2,000 per month. It aims to ease the manpower strain of the retail industry and encourage aspiring youngsters to join the retail workforce.

My reply to the various parts of the question is as follows:

(1) The second cohort of the Foundation Diploma ("FD") programme under the Pilot Scheme commenced in September 2015, with an intake of 175 student-workers. Among them, 104 completed the programme in February 2017 and the remaining 71 had dropped out. The third cohort of the FD programme (renamed as Diploma of Foundation Studies ("DFS") programme in 2016) commenced in September 2016, with an intake of 72 student-workers. Among them, 38 completed the programme in March 2018 and the LEGISLATIVE COUNCIL ― 25 April 2018 8817

remaining 34 had dropped out. According to the enquiries made by VTC with the drop-outs, they left the programme for various reasons, including joining the retail workforce or other sectors full-time at an earlier stage, switching to full-time studies, having difficulties with handling both work and study requirements at the same time, other personal reasons, etc.

VTC would conduct tracking surveys on student-workers after their graduation. For the 104 graduates of the second FD cohort, the first tracking survey was conducted in September 2017, with 43 responses received. Over 40% of the respondents (i.e. 18 respondents) have joined the retail workforce, of which 12 respondents were employed by the companies that had provided them with the internship placements under the Pilot Scheme (including three on a full-time basis and nine on a part-time basis). The remaining six respondents were employed by other retail companies. As regards graduates of the third DFS cohort who just completed the programme in March this year, since the first tracking survey will be conducted in September this year, the relevant information is not yet available for the time being.

(2) As set out in the proposal put forward by the Government when seeking funding approval for the Pilot Scheme from the Legislative Council, employers should offer a salary of no less than $11,000 per month, which may include basic salary, commission and allowances, to the graduates of the FD (now DFS) programme if they become full-time employees of the companies that have provided them with the internship placements.

According to the aforementioned tracking survey for the second FD cohort graduates, for all three respondents who were employed by companies that had provided them with the internship placements, they were receiving a salary of no less than $11,000 per month, which included basic salary, commission and allowances. Their average basic salary was over $9,000. As regards graduates of the third DFS cohort who just completed the programme in March this year, since the first tracking survey will be conducted in September this year, the relevant information is not yet available for the time being.

8818 LEGISLATIVE COUNCIL ― 25 April 2018

(3) For the 161 graduates of the first FD cohort, VTC conducted the second tracking survey in September 2017, with 61 responses received. According to these responses, about one-third (21 respondents) were working in the retail sector. About 30% (18 respondents) were pursuing careers outside the retail sector, while another 30% (18 respondents) were undertaking further studies. The remaining four respondents had yet to decide on a definite path they wish to take. As regards the situation on the second FD and third DFS cohort graduates, please refer to the reply at part (1).

(4) The fourth DFS cohort under the Pilot Scheme commenced in September 2017, with an intake of 30 student-workers. Application to the fifth DFS cohort has opened. The programme is expected to commence in September 2018. We will work with VTC and HKRMA to enhance the publicity on the Pilot Scheme to schools and students who will graduate shortly.

We will also continue to do our best in taking forward and enhancing the Pilot Scheme and providing graduates with a clear articulation and career ladder, with a view to helping the retail industry bring in new blood and enhancing its professional service standards.

Smart City Blueprint for Hong Kong

15. MR JEREMY TAM (in Chinese): President, the Smart City Blueprint for Hong Kong ("the Blueprint"), released in December 2017 by the Government, has proposed measures to promote the development of Hong Kong into a smart city, and made recommendations for development in respect of six major areas: smart mobility, smart living, smart environment, smart people, smart government and smart economy. In this connection, will the Government inform this Council:

(1) given that, on smart government, the Blueprint has proposed to develop Common Spatial Data Infrastructure ("CSDI") by 2023 to facilitate the sharing of geo-spatial data across government departments and government-to-business ("G2B") applications, and the relevant work includes the launch of a related portal, 3D digital maps and an electronic submission hub for building plans,

LEGISLATIVE COUNCIL ― 25 April 2018 8819

(i) of the respective budgeted expenditures for construction and management of CSDI,

(ii) of the file format to be adopted for the 3D digital maps,

(iii) of the government departments responsible for such work, and

(iv) of the details of the G2B applications to be developed within the coming three years and the types of enterprises to be involved;

(2) given that, on smart mobility, the Blueprint has mentioned that the Government will continue to explore and formulate relevant initiatives to tie in with the technological and industrial developments in vehicle-to-everything and autonomous vehicles,

(i) whether it has plans to amend the relevant legislation and law enforcement procedure; if so, of the details; if not, the justifications for that;

(ii) whether it launched in the past three years, and whether it has plans to launch in the coming three years, relevant pilot schemes; if so, of the details; if not, the justifications for that; and

(iii) whether it has established a mechanism for reviewing if the initiatives concerned can catch up with the latest technological development; if so, of the details; if not, the justifications for that; and

(3) given that My Kowloon East ("MyKE"), a mobile application developed by the Government's Energizing Kowloon East Office and Lands Department with the aim to promote smart city initiatives and provides real-time traffic and pedestrian walking paths information of the Kowloon East district, has reportedly received a lukewarm response from the public since its launch in 2016 (only about 6 800 person-download-times recorded as at February this year, representing about 0.6% of the population in the district),

8820 LEGISLATIVE COUNCIL ― 25 April 2018

(i) of the expenditure incurred by the Government for developing MyKE,

(ii) of the number of times for which MyKE was updated so far, and the relevant dates of such updates,

(iii) of the number of active users of MyKE in each of the past three months,

(iv) of the annual expenditure on the maintenance/management of MyKE, and

(v) whether it has plans to incorporate, within the coming three years, information of other districts into MyKE; if so, of the implementation timetable, the names of the government departments and service contractors responsible for such work, the budgeted expenditure, and the estimated return on investment?

SECRETARY FOR INNOVATION AND TECHNOLOGY (in Chinese): President, the Government published the Smart City Blueprint for Hong Kong ("the Blueprint") in December 2017, mapping out the development plans in the next five years. Smart city involves different work areas. Relevant bureaux and departments will set out implementation timetables, as well as financial resources and manpower estimates for their initiatives.

Having consulted the Development Bureau and the Transport and Housing Bureau, my reply to Mr TAM's question is as follows:

(1) In March 2017, the Development Bureau commissioned a consultancy study on the overall strategy for the implementation of the Common Spatial Data Infrastructure ("CSDI") to provide government departments initially, and public and private organizations in due course, an information infrastructure to share spatial data in support of various applications and the Smart City Blueprint promulgated by the Innovation and Technology Bureau. The scope of CSDI consultancy includes, among other things, the proposed governance structure and implementation road map. Upon completion of the study, the Development Bureau will LEGISLATIVE COUNCIL ― 25 April 2018 8821

consider the implementation approach and work plan, with the aim of developing CSDI gradually for full operation by 2023. The consultancy study, at an estimated cost of $5 million, is targeted for completion in mid-2018. To foster information technology application as well as to facilitate alignment and integration of spatial data, the Lands Department ("LandsD") will commission in mid-2018 a consultant to establish the data exchange standards for spatial data. The estimate of this project is about $4.5 million, and LandsD targets to complete it in 2020.

LandsD will continue to enhance the 3D spatial data and prepare the road map for 3D Digital Map. In addition, the Buildings Department is preparing relevant information for the development of a centralized electronic submission hub so that the industry can submit building plans and other related submissions of private development, while relevant government departments can process the submissions, through the system.

These works are currently undertaken by staff in the Development Bureau and other relevant bureaux/departments as part of their overall duties. There is no separate breakdown of the resources involved.

(2) The Transport Department ("TD") will continue to study the development of vehicle-to-everything ("V2X") communications as well as review the experience and regulatory framework in overseas jurisdictions in relation to autonomous vehicles ("AV") and examine their applicability in Hong Kong. The preliminary study will recommend possible means to facilitate development and implementation of AV technology in Hong Kong. Findings of the study will help TD consider suitable measures to facilitate trials in designated public areas and roads. After studying the latest overseas developments including experience related to vehicles, road safety as well as legislation and regulation, TD will timely conduct a review of the Road Traffic Ordinance and its subsidiary legislation to facilitate the development and application of AV technology.

Meanwhile, TD will continue to facilitate trials of AV technology at suitable locations in Hong Kong. TD maintains close liaison with, and renders facilitation measures to, organizations which have 8822 LEGISLATIVE COUNCIL ― 25 April 2018

expressed interest in setting up testing facilities for AV technology or conducting trials of AV. Each application for trial of AV is assessed on a case-by-case basis having regard to a number of factors, such as vehicle design and construction, vehicle testing and operation record in the past, competency of the testing team and test route conditions, etc.

Since June 2017, TD has approved seven trials of AV technologies, involving four AV, at West Kowloon Cultural District, Zero Carbon Building, Hong Kong Science Park and the campus of Hong Kong University of Science and Technology. The Government expects that more organizations would submit applications for trials of AV on the roads in Hong Kong in future. TD will assess the relevant applications and render assistance as far as practicable to ensure that the trials could be conducted in a safe and controllable manner.

(3) The My Kowloon East mobile app was launched by the Energizing Kowloon East Office ("EKEO") of the Development Bureau to promote smart city initiatives in Kowloon East and to serve as an interactive platform for demonstrating the feasibility of real-time data sharing. The mobile app was developed by EKEO in collaboration with LandsD using existing resources with no additional expenses incurred so far. Since the launch of trial version in December 2016, the mobile app has been updated eight times with the dates as follows:

4 January 2017 5 April 2017 9 May 2017 14 June 2017 15 August 2017 13 September 2017 19 March 2018 12 April 2018

As at mid-April 2018, the download rate was about 7 400 and the number of active users has not been recorded.

LEGISLATIVE COUNCIL ― 25 April 2018 8823

Protection of personal data collected by social media platforms

16. MR KENNETH LAU (in Chinese): President, it has been reported that a data analytics and political consulting firm in the United Kingdom ("UK") was recently found to have allegedly harvested, through a psychological quiz mobile phone application ("App"), the Facebook account data of the users of the App as well as such data of their friends, and used the data to help the firm's clients to influence the outcome of the 2016 Presidential Election of the United States and the UK Brexit referendum. The number of Facebook users affected is as high as 50 million. The incident has aroused concerns about whether the privacy of users of social media platforms (such as Facebook, WhatsApp and Instagram) is adequately protected and whether the data in their accounts will be misused. In this connection, will the Government inform this Council:

(1) whether it knows the number of complaints received by the Office of the Privacy Commissioner for Personal Data ("PCPD") in each of the past five years about the personal data in social media accounts having been misused; among such complaints, of (i) the first three types with the highest number of complaints by complaint nature, and their respective numbers, as well as (ii) the number of those complaints relating to electoral activities;

(2) whether it knows if PCPD has gained an understanding from Facebook's office in Hong Kong on whether the company has, in the light of the aforesaid incident, stepped up the protection for Hong Kong users' personal data in their Facebook accounts, including strengthening its examination on those Apps which are connected to Facebook, so as to ascertain if such Apps have intruded on users' privacy; if PCPD has, of the details; if not, the reasons for that;

(3) whether it will consider enacting dedicated legislation to regulate the collection of and protection for users' account data by social media platforms so as to protect users' privacy and prevent misuse (including sale) of such data; if so, of the legislative timetable; if not, the reasons for that;

(4) whether it has plans to raise the awareness of members of the public of protecting their own privacy when using social media; if so, of the details; if not, the reasons for that; and

8824 LEGISLATIVE COUNCIL ― 25 April 2018

(5) as PCPD has in recent years received quite a number of complaints about the use of personal data in electoral activities without the data subjects' consent, and it has become increasingly common for candidates of elections to use social media platforms for conducting their electioneering campaigns, whether the authorities will step up the regulation of activities of using social media platforms to influence election outcome (e.g. posting advertisements); if so, of the details; if not, the reasons for that?

SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS (in Chinese): President, having consulted the Office of the Privacy Commissioner for Personal Data ("PCPD"), our consolidated reply to the question raised by Mr Kenneth LAU is as follows:

(1) The numbers of complaints received by PCPD that were related to personal data in social media accounts being misused in the past five years are as follows:

The first three types of complaints with the highest number of complaints and their Total number Year respective numbers of cases* Collection of Use of Security of personal data personal data personal data 2013 45 5 42 3 2014 99 27 92 1 2015 90 23 80 3 2016 86 30 71 4 2017 113 58 106 8

Note:

* As a case may involve more than one allegation, the total number of different allegations may be more than the total number of cases. Of the aforementioned complaint cases, a total of two cases involved election-related activities.

(2) Having learnt of the suspected misuse of personal data of Facebook users, PCPD immediately commenced compliance check on Facebook Hong Kong in respect of the incident to gain a thorough understanding of the case, such as whether Hong Kong users were affected, and whether Facebook has disclosed data of Hong Kong LEGISLATIVE COUNCIL ― 25 April 2018 8825

users to other third-party application developers. Meanwhile, PCPD liaised with privacy protection authorities of various countries and regions (including the United States) to learn about the latest information relating to the incident in different parts of the world. Furthermore, PCPD learnt that Facebook publicly expressed in recent United States congressional hearings that a series of remedial and improvement measures would be taken to enhance the protection of users' privacy. PCPD will closely monitor the remedial and improvement measures of Facebook and their effectiveness.

(3) and (4)

The Personal Data (Privacy) Ordinance ("the Ordinance") is a piece of principle-based and "technology neutral" legislation. While the development of information technology ("IT") or online social media is evolving, as long as the relevant technology or media involves the collection of personal data, the requirements of the Ordinance as well as the relevant Data Protection Principles will have to be complied with. PCPD will continue to keep in view personal data privacy issues arising from the development of IT and social media, and will conduct enforcement actions, compliance checks and education, etc. in accordance with the Ordinance.

To enhance public awareness on protecting personal data privacy when using social media, PCPD published the information leaflet "Protecting Online Privacy―Be Smart on Social Networks" to explain to the public the privacy risks involved in the use of social media platforms. PCPD has also through its own website as well as a specifically established thematic website "Be SMART Online", and through the broadcast of a publicity video titled "Think Privacy! Be Smart Online: Privacy check-up at social media", publicized information related to the protection of personal data privacy. PCPD will continue to remind the public to protect their personal data and of the proper use of social media through education and promotional activities, as well as by providing timely responses to latest privacy issues and matters of concern through the mass media.

(5) Candidates' election campaign on social media is already subject to the regulation of the relevant electoral legislation. If a candidate places advertisements on social media, and such advertisements are 8826 LEGISLATIVE COUNCIL ― 25 April 2018

for the purpose of promoting or prejudicing the election of a candidate or candidates at the election, the advertisements may become election advertisements,(1) and the expenses incurred may become election expenses.(2)

In accordance with the Electoral Affairs Commission regulations on electoral procedures, a candidate needs to make available a copy of each of his/her election advertisements, and the relevant information/documents including publication information, permission or consent in relation to the election advertisements for public inspection by posting it onto the Central Platform or Candidate's Platform, or by providing its hard copy to the Returning Officer.

In accordance with section 37 of the Elections (Corrupt and Illegal Conduct) Ordinance (Cap. 554) ("ECICO"), a candidate needs to lodge an election return setting out his/her election expenses. The aggregate amount of such election expenses shall not exceed the maximum amount of election expenses prescribed by law.

(1) In accordance with section 2 of ECICO, "election advertisement", in relation to an election, means―

(a) a publicly exhibited notice; or

(b) a notice delivered by hand or electronic transmission; or

(c) a public announcement made by radio or television or by video or cinematographic film; or

(d) any other form of publication,

published for the purpose of promoting or prejudicing the election of a candidate or candidates at the election.

(2) In accordance with section 2 of ECICO, "election expenses", in relation to a candidate or group of candidates at an election, means expenses incurred or to be incurred, before, during or after the election period, by or on behalf of the candidate or group for the purpose of―

(a) promoting the election of the candidate or group; or

(b) prejudicing the election of another candidate or group, and includes the value of election donations consisting of goods and services used for that purpose. LEGISLATIVE COUNCIL ― 25 April 2018 8827

Besides, a candidate may have engaged in illegal conduct under section 26 of ECICO if he/she publishes a materially false or misleading statement of fact about the candidate or candidates with whom the candidate is associated, or about another candidate or other candidates, for the purpose of promoting the election of the candidate or candidates with whom the candidate is associated; or prejudicing the election of the other candidate or candidates.

The Caring and Sharing Scheme

17. MR WU CHI-WAI (in Chinese): President, in the 2018-2019 Budget delivered on 28 February this year, the Financial Secretary ("FS") proposed a number of measures for sharing the fruits of success, including (i) reducing salaries tax and tax under personal assessment for the last financial year by 75% (subject to a ceiling of $30,000), (ii) waiving the rates for the four quarters of the current financial year (subject to a ceiling of $2,500 per quarter for each property), (iii) providing a one-off grant of $2,000 to each student in need, and (iv) providing an extra allowance to social security recipients, in an amount equivalent to two months of the standard rate Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance or Disability Allowance. FS announced on the 23rd of last month a Caring and Sharing Scheme ("the Scheme"), under which an eligible person will receive a sum of $4,000 or the difference between $4,000 and the amount received under the aforesaid fruit-sharing measures. The Scheme will be implemented by the Working Family Allowance Office ("the Office"). Regarding the details of the Scheme, will the Government inform this Council:

(1) given that where the amount receivable by social security recipients from the aforesaid fruit-sharing measures is less than $4,000, they will automatically be given the shortfall under the Scheme, of the application procedure for other eligible persons under the Scheme; when the Scheme will disburse payments, as forecast by the authorities;

(2) given that those persons who own self-occupied properties but have been granted rates concession of less than $4,000 may receive the difference between $4,000 and the rates concession, how the Office will calculate the rates concession which have been received by persons who own only part of a property title;

8828 LEGISLATIVE COUNCIL ― 25 April 2018

(3) whether the amount receivable under the Scheme by students who have received the aforesaid grant of $2,000 and are eligible to apply for the Scheme is $4,000 or $2,000 (i.e. the difference between the two);

(4) given that as the owner and the occupier of a property may settle on their own which party is responsible for paying the rates, the beneficiaries of the rates concession may not necessarily be the owners, whether owners who have not benefitted from the rates concession may apply for receiving $4,000 under the Scheme; if not, of the justifications for that;

(5) given that the current Demand for Rates and/or Government Rent ("Demand") does not contain information which can be used to verify the property owner's identity (e.g. identity card number), how the staff of the Office, upon finding that the owners' names stated on some Demands are the same as that of a certain applicant under the Scheme, will ascertain whether those owners and the applicant concerned are the same person; and

(6) whether it has assessed if, according to the Personal Data (Privacy) Ordinance (Cap. 486) and relevant legislation, the Inland Revenue Department and the Rating and Valuation Department may transfer the information in their respective possession relating to salaries tax and rates to the Office for vetting and approval of applications made under the Scheme; if it has assessed and the outcome is in the negative, of the authorities' solution in order to implement the Scheme?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Chinese): President, the Financial Secretary proposed in the 2018-2019 Budget an array of measures to share the fruits of our economic success with the community. To extend the coverage of these measures to benefit more people, the Financial Secretary announced on 23 March the introduction of the Caring and Sharing Scheme ("the Scheme").

LEGISLATIVE COUNCIL ― 25 April 2018 8829

The Government submitted an information note on the Scheme to the Finance Committee of the Legislative Council on 20 April and uploaded Frequently Asked Questions onto the website of the Working Family Allowance Office ("WFAO") to help people understand the Scheme. My reply to Mr WU's question is as follows:

(1) WFAO is actively preparing for the implementation of the Scheme with a view to receiving applications starting from 1 February 2019 at the earliest. WFAO expects the first batch of applications to be approved in April 2019.

(2) Applications under the Scheme are individually-based. Therefore, joint owners of a property are required to apply separately. If they meet the eligibility criteria of the Scheme, the amount of payment granted to each of them will be $4,000, minus the rates concession declared and apportioned on a pro rata basis for the property which is used as their principal place of residence as well as salaries tax concessions (if any).

(3) The amount payable to students aged 18 or above who meet the other eligibility criteria of the Scheme and make their applications will not be affected by the one-off grant of $2,000 announced in the Budget to each student with financial needs.

(4) A person who owns a property which is not used as his principal place of residence will be regarded as a non-occupier owner and will not be eligible under the Scheme. As the Financial Secretary said when announcing the Scheme, the Scheme was formulated having regard to, among others, the need to ensure proper use of public money and a targeted approach in sharing the annual surplus with the community.

(5) and (6)

WFAO will process the applications based on the information submitted by the applicants. Applicants will be required to declare that the properties they own are used as their principal places of residence, and indicate consent in the application forms authorizing WFAO to verify the particulars of the properties with the Land 8830 LEGISLATIVE COUNCIL ― 25 April 2018

Registry and verify the amounts of rates concession for the properties for the year 2018-2019 with the Rating and Valuation Department.

In addition, applicants will be required to indicate consent in the application forms authorizing WFAO to request information on their salaries tax payments for the year of assessment 2017-2018 from the Inland Revenue Department (if any).

Imposition of tariffs by the United States on certain imports from Hong Kong

18. MR HOLDEN CHOW (in Chinese): President, the Government of the United States ("US") announced last month its plan to impose tariffs respectively of 25% and 10% on certain steel and aluminium products (including aluminium products imported from Hong Kong). In this connection, will the Government inform this Council:

(1) of (i) the figures of Hong Kong's surpluses/deficits in merchandise trade with US and (ii) the quantity of aluminium products exported from Hong Kong to US, in each of the past five years;

(2) whether it knows the current number of local enterprises that engage in the businesses of manufacturing and export of aluminium products; whether the Government has estimated the number of such enterprises which will be affected by the measure of imposition of tariffs; and

(3) given that the Government has requested US to exempt Hong Kong from the measure of imposition of tariffs, of the details of such request; whether the Government has any contingency plans to mitigate the impacts on local enterprises in the event that US imposes additional tariffs on other imports from Hong Kong?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Chinese): President, Hong Kong is an economy that pursues free trade policy. As a founding member of the World Trade Organization ("WTO"), Hong Kong LEGISLATIVE COUNCIL ― 25 April 2018 8831 always adhere to the commitments and rules of WTO. We staunchly support the multilateral trading system with other WTO Members and are against any restrictive trade measures that are inconsistent with WTO agreements.

Therefore, in face of measures that are inconsistent with WTO agreements, Hong Kong must advance our arguments robustly in order to uphold WTO rules on the one hand and to safeguard our rights and interests as a WTO member on the other hand.

"Section 232 Investigation" Report

In respect of the additional tariffs unilaterally imposed by the United States on imported steel and aluminium, the United States Department of Commerce released on 16 February 2018 "Section 232 investigation"(1) reports relating to the threatening and impairment of United States national security by imports of steel and aluminium.(2) The reports recommended the United States President consider unilaterally imposing quotas or additional tariffs on imported steel and aluminium covered in the investigation. One of the recommendations is to subject aluminium products imported from five countries/economies (including Hong Kong) to import tariffs at 23.6%.

We consider the United States' above proposed measures are unilateral, discriminatory and based on unfounded allegations. Since the release of the investigation reports by the United States, the Government has been actively following up the matter with the United States and in WTO through various channels. On 27 February 2018, we filed our formal representation to the United States Administration to register our objection to United States' measures which were unilateral, unfounded and inconsistent with WTO rules. At the same time, we approached major local chambers of commerce as well as the American Chamber of Commerce in Hong Kong to ascertain the impact of the

(1) It refers to Section 232 of the Trade Expansion Act of 1962 which authorize the United States Secretary of Commerce to conduct certain investigations.

(2) The coverage of the products in the investigations are set out below:

Steel: carbon and alloy flat products; carbon and alloy long products; carbon and alloy pipe and tube products; carbon and alloy semi-finished products; and stainless products.

Aluminium: unwrought aluminium; aluminium bars, rods and profiles; aluminium wire; aluminium plates, sheets, and strip; aluminium foil; aluminium tubes and pipes; aluminium tube and pipe fittings; aluminium castings and forgings. 8832 LEGISLATIVE COUNCIL ― 25 April 2018

United States' actions on the trade, and the five major local chambers of commerce(3) also issued a joint statement to support the Government's follow-up actions on the same day. At the same time, the Permanent Representative of the Hong Kong Special Administrative Region of China to WTO registered our grave concern on the subject tariff measures at the WTO General Council Meeting held on 7 March 2018 and urged WTO Members to honour their WTO commitments.

On 8 March 2018, the United States President decided to impose as from 23 March 2018 tariffs globally (including Hong Kong) of 25% and 10% respectively on steel and aluminium imports covered in the "Section 232 investigation" reports. Hong Kong does not agree that the United States' measures are consistent with WTO rules. The measures are also detrimental to Hong Kong's rights and interests.

In this connection, the Secretary for Commerce and Economic Development met with the Consul General of the United States to Hong Kong and Macau on 15 March 2018 and requested the exclusion of Hong Kong from such improper measures. Our Economic and Trade Office ("ETO") in Washington DC took complementary follow-up actions in reiterating Hong Kong's standpoints and requests to relevant local authorities. We issued a note to the United States Administration again on 11 April 2018 to reiterate our request for excluding Hong Kong from the tariff measures. We will continue to follow up on the matter with the United States Administration and in WTO. We also reserve our rights to pursue all necessary actions under WTO. We are now awaiting the United States' response and will then decide whether to take further actions.

We have also taken follow-up actions at various levels of WTO. Taking the opportunity of the participation of the Director-General of Trade and Industry at the WTO Informal Ministerial Gathering held on 20 March 2018 in New Delhi, India, we reiterated that WTO Members should act within the WTO framework, and pointed out that unilateral moves could undermine WTO's rules and commitments that seek to uphold the fundamental principles of non-discrimination, predictability and transparency, and bring about systemic risks to the multilateral system. Protectionist measures will also impede global

(3) The Federation of Hong Kong Industries; The Chinese Manufacturers' Association of Hong Kong; The Chinese General Chamber of Commerce; The Hong Kong General Chamber of Commerce; and The Hong Kong Chinese Importers' and Exporters' Association LEGISLATIVE COUNCIL ― 25 April 2018 8833 economic growth. At the WTO Council for Trade in Goods meeting held on 23 March 2018, representative of the Geneva ETO reiterated our concerns and stated clearly our position on the subject tariff measures.

In addition, noting that China has requested for consultations with the United States under the WTO Dispute Settlement Mechanism on the latter's measures under the "Section 232 investigation", we made a formal request on 19 April 2018 to join the consultations between China and the United States as third party in order to safeguard our interests. WTO Members making the same request include the European Union, India, Russia and Thailand.

As regards the affected trade, the Government has been keeping in touch with them, and will provide advice and assistance to manufacturers who intend to make representation to the United States Department of Commerce to exclude their products from the tariffs unilaterally imposed by the United States.

"Section 301 Investigation" Report

Separately, on 22 March 2018 the Office of the United States Trade Representative ("USTR") published its findings of a "Section 301 investigation" on the Mainland, and on the same day, the United States President signed a memorandum to direct the United States Administration to take a range of actions. Among them, USTR published on 3 April 2018 a list containing approximately 1 300 tariff lines of Mainland products including aerospace, information and communication technology, and machinery, etc. which are proposed to be subject to an additional 25% tariff. USTR is now collecting public views and will hold a public hearing on 15 May 2018. USTR will then make a final decision on the list of products subject to additional tariffs.

The Government is deeply concerned about the proposed trade restrictive measures under the "Section 301 investigation". Of the list published by USTR, it is estimated that about HK$52 billion of Mainland products concerned were re-exported via Hong Kong to the United States in 2017, which accounted for about 20% of Hong Kong's re-exports of all Mainland products to the United States. The proposed list involves a wide variety of products and components/parts. An additional 25% tariff will certainly undermine the market competitiveness of these products and consequentially affect Hong Kong's re-export trade, and Hong Kong companies engaging in associated supporting industries and services.

8834 LEGISLATIVE COUNCIL ― 25 April 2018

The Secretary for Commerce and Economic Development met with the chairmen and senior management of the five local chambers of commerce on 4 April 2018 to discuss the impact of the measures to the trade. The chambers will further consult their members on the impact of the measures to Hong Kong's re-export trade and also Hong Kong businesses manufacturing these products on the Mainland.

The United States President instructed USTR on 5 April 2018 to consider imposing further tariffs on an additional US$100 billion worth of Mainland imports under the "Section 301 investigation". The list of products has not been announced so far.

We will continue to closely monitor further developments, and assess the potential impact of the measures to Hong Kong trade and companies.

Our replies to the three questions are as follows:

(1) According to information of the United States Bureau of Economic Analysis, the United States has been enjoying the following trade surplus in goods with Hong Kong in the past five years:

Year Trade Surplus (in USD billion) 2013 37.3 2014 35.3 2015 30.6 2016 27.8 2017 32.8

According to information of Census and Statistics Department, Hong Kong's export (including domestic export and re-export) to the United States on related aluminium products in the past five years were:

Year Value (in USD million) 2013 47.30 2014 52.25 2015 63.30 2016 42.92 2017 38.72

LEGISLATIVE COUNCIL ― 25 April 2018 8835

(2) According to our communication with the industry and other information, there are only a very limited number of companies producing and exporting aluminium products to the United States. Nevertheless, the United States' unreasonable measures are unfair to the companies concerned and will hurt their business. Moreover, our minimal export of aluminium products could by no means threaten the United States' national security, and therefore, we cannot agree to the United States' reason for its unilateral tariff measures against Hong Kong.

(3) As mentioned above, we will continue to follow up on the matter through bilateral and multilateral channels. The Government will also continue to closely monitor any further trade restrictive measures of the United States and their potential impact to Hong Kong trade and companies. We would promptly keep the trade informed and communicate closely with them and make appropriate response in order to safeguard the interests of Hong Kong companies and the overall trade.

Besides, the Government endeavours to assist the trade in responding to changes in the business environment and their operational needs and will provide support when necessary.

Amongst them, the SME Loan Guarantee Scheme launched in 2001 provides loan guarantee to small and medium enterprises ("SMEs") to help them secure loans from participating lending institutions for acquiring business installations and equipment or meeting working capital needs of general business uses. Since the launch of the Scheme and up to the end of 2017, a total of 30 870 applications have been approved, involving a guarantee amount of about $24.8 billion.

Moreover, the Hong Kong Mortgage Corporation Limited launched the special concessionary measures under its existing SME Financing Guarantee Scheme ("SFGS") to provide 80% loan guarantees at concessionary fee rates. The Government provides a total loan guarantee commitment of $100 billion. The application period of the special concessionary measures has been extended for the sixth time to the end of February 2019, to help enterprises tide over their liquidity needs, grasp economic opportunities and boost their competitiveness.

8836 LEGISLATIVE COUNCIL ― 25 April 2018

In addition, the Hong Kong Export Credit Insurance Corporation ("ECIC") encourages and supports export trade by providing Hong Kong exporters with insurance protection against non-payment risks arising from commercial and political events. ECIC is committed to supporting SMEs. The tailor-made Small Business Policy offers SMEs policy fee waiver, premium discount and a range of flexible arrangement.

Manpower of healthcare staff

19. MR JIMMY NG (in Chinese): President, according to the information published by the Association of Hong Kong Nursing Staff in August 2013, the nurse-to-patient ratio of night-shifts in public hospitals in that year was 1:24, i.e. each nurse needed to take care of 24 patients on average, and such ratio was far worse than the ratio of international standard at 1:6. Some nurses of public hospitals have relayed that their workload has increased continuously in the past few years and their work pressure has therefore become greater. In addition, the Hospital Authority ("HA") has all along been facing shortages of various types of healthcare staff. In this connection, will the Government inform this Council:

(1) whether it knows (i) the average doctor-to-patient ratio and (ii) the average nurse-to-patient ratio, in each public hospital for each of the morning, afternoon and night shifts in each of the past five years (set out in a table);

(2) whether it knows the respective average rates of pay increases for staff of various ranks in each healthcare grade in public and private hospitals in each of the past five years (set out in a table);

(3) whether it will consider drawing up a target nurse-to-patient ratio to ensure the quality of nursing care services, alleviate the work pressure on nurses and reduce nurse wastage;

(4) as the Chief Executive announced on 30 January this year that an additional one-off allocation of $500 million would be provided immediately to HA to alleviate the tremendous work pressure faced by frontline healthcare staff during the winter surge in service LEGISLATIVE COUNCIL ― 25 April 2018 8837

demand, whether the Government knows if HA will use the funding to implement new measures for retaining healthcare professionals; if HA will, of the details; and

(5) as some frontline healthcare staff members have pointed out that the use of the $500 million funding by HA to reduce nurses' clerical work in the wards is not conducive to solving the long-term manpower shortage problem, and coupled with the fact that the influenza summer surge is forthcoming, whether the Government will expeditiously and comprehensively review if the nursing manpower in public hospitals is sufficient to meet the ever increasing service demand, and formulate new short and medium term measures to solve the problem; if so, of the details; if not, the reasons for that?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, my reply to the various parts of the question raised by Mr Jimmy NG is as follows:

(1) The Hospital Authority ("HA") adopts an integrated and multi-disciplinary approach in the delivery of various kinds of services to the public, including day inpatient, accident and emergency, specialist outpatient and primary health care services. The doctor-to-patient and nurse-to-patient ratios by cluster in HA in the past five years are set out in the tables below. As the clinical duties of health care staff are determined flexibly having regard to the actual operational needs, a statistical breakdown of the requested information by AM, PM and night shifts is not available.

Table 1: Doctor-to-patient ratios by cluster in 2013-2014, 2014-2015, 2015-2016, 2016-2017 and 2017-2018 (as at 31 December 2017)

Ratio per 1 000 Ratio per 1 000 inpatient and day Number of inpatient Cluster inpatient doctors discharges and discharges and deaths deaths 2013-2014 HKEC 575 5.1 3.2 HKWC 602 5.5 3.2 KCC 679 5.5 3.3 8838 LEGISLATIVE COUNCIL ― 25 April 2018

Ratio per 1 000 Ratio per 1 000 inpatient and day Number of inpatient Cluster inpatient doctors discharges and discharges and deaths deaths KEC 627 5.2 3.7 KWC 1 300 4.9 3.5 NTEC 879 5.3 3.4 NTWC 702 5.3 3.5 2014-2015 HKEC 584 5.1 3.2 HKWC 608 5.4 3.1 KCC 703 5.5 3.4 KEC 644 5.1 3.6 KWC 1 318 4.9 3.5 NTEC 881 5.2 3.3 NTWC 723 5.3 3.4 2015-2016 HKEC 595 5.2 3.2 HKWC 624 5.5 3.1 KCC 731 5.5 3.4 KEC 676 5.3 3.7 KWC 1 352 4.9 3.5 NTEC 921 5.3 3.3 NTWC 748 5.3 3.5 2016-2017 HKEC 594 5.0 3.1 HKWC 646 5.4 3.0 KCC 740 5.3 3.3 KEC 682 5.0 3.5 KWC 1 375 4.9 3.4 NTEC 941 5.1 3.1 NTWC 793 5.4 3.4 2017-2018 (as at 31 December 2017) HKEC 610 5.1 3.2 HKWC 652 5.4 3.0 KCC 1 170 5.2 3.3 KEC 687 5.0 3.4 KWC 993 4.8 3.4 LEGISLATIVE COUNCIL ― 25 April 2018 8839

Ratio per 1 000 Ratio per 1 000 inpatient and day Number of inpatient Cluster inpatient doctors discharges and discharges and deaths deaths NTEC 972 5.1 3.1 NTWC 808 5.3 3.4

Table 2: Nurse-to-patient ratios by cluster in 2013-2014, 2014-2015, 2015-2016, 2016-2017 and 2017-2018 (as at 31 December 2017)

Ratio per 1 000 Ratio per 1 000 inpatient and inpatient Cluster Number of nurses day-inpatient discharges and discharges and deaths deaths 2013-2014 HKEC 2 443 21.6 13.8 HKWC 2 553 23.2 13.7 KCC 3 175 25.8 15.7 KEC 2 474 20.6 14.7 KWC 5 337 20.3 14.4 NTEC 3 707 22.3 14.1 NTWC 3 027 23.0 15.0 2014-2015 HKEC 2 517 22.1 13.7 HKWC 2 679 23.6 13.5 KCC 3 275 25.4 15.6 KEC 2 613 20.8 14.8 KWC 5 608 20.7 14.7 NTEC 3 897 23.1 14.5 NTWC 3 163 23.3 15.1 2015-2016 HKEC 2 613 22.8 14.1 HKWC 2 788 24.6 13.8 KCC 3 304 25.0 15.5 KEC 2 698 21.2 14.8 KWC 5 730 20.8 14.8 NTEC 4 053 23.3 14.5 NTWC 3 356 23.9 15.5 8840 LEGISLATIVE COUNCIL ― 25 April 2018

Ratio per 1 000 Ratio per 1 000 inpatient and inpatient Cluster Number of nurses day-inpatient discharges and discharges and deaths deaths 2016-2017 HKEC 2 679 22.5 14.0 HKWC 2 821 23.7 13.3 KCC 3 333 23.9 14.8 KEC 2 750 20.2 14.0 KWC 5 746 20.4 14.3 NTEC 4 090 22.3 13.5 NTWC 3 514 23.8 15.3 2017-2018 (as at 31 December 2017) HKEC 2 769 22.9 14.6 HKWC 2 888 23.8 13.3 KCC 5 209 23.2 14.8 KEC 2 873 21.0 14.3 KWC 4 226 20.4 14.3 NTEC 4 249 22.3 13.5 NTWC 3 613 23.6 15.1

Abbreviations HKEC―Hong Kong East Cluster HKWC―Hong Kong West Cluster KCC―Kowloon Central Cluster KEC―Kowloon East Cluster KWC―Kowloon West Cluster NTEC―New Territories East Cluster NTWC―New Territories West Cluster

Notes:

(1) The manpower figures are calculated on a full-time equivalent basis, including permanent, contract and temporary staff in HA.

(2) Wong Tai Sin and Mong Kok have been re-delineated from KWC to KCC since 1 December 2016. The service units in the communities concerned have been re-delineated from KWC to KCC accordingly to support the new KCC catchment districts with effect from the same date. As a transitional arrangement, reports on services/manpower statistics and financial information continued to be based on the previous clustering arrangement (i.e. the service units concerned still under KWC) until 31 March 2017. Reports in accordance with the new clustering arrangement (i.e. the service units concerned grouped under KCC) started from 1 April 2017.

LEGISLATIVE COUNCIL ― 25 April 2018 8841

(3) The ratios of manpower per 1 000 inpatient and day inpatient discharges and deaths refer to the manpower position as at 31 March of the respective years except for 2017-2018, of which the manpower position was as at 31 December 2017. The numbers of inpatient and day inpatient discharges and deaths refer to the figures for the whole financial year except those for 2017-2018 which were the provisional figures as at 31 December 2017.

(4) HA measures and monitors its service throughput by performance indicators, such as the numbers of inpatient discharges and patient days, instead of headcount as the latter cannot fully reflect the services (e.g. admissions/attendances, discharges and transfers, which may involve multiple specialties, service units and hospitals) delivered to patients in the course of treatment. Therefore, the requested information on the ratios is based on the numbers of discharges and deaths instead of the number of patients.

(5) In HA, day inpatients refer to those who are admitted to hospitals for non-emergency treatment and discharged within the same day, while in-patients are those who are admitted to hospitals via the Accident & Emergency Departments, or those who are hospitalized for more than one day.

(6) The number of nurses and the nurse-to-patient ratio vary with cluster due to different case-mixes, i.e. the mix of patients with varying conditions in a cluster, which may differ according to population profile and other factors, including the specialization level of the specialties, in the cluster. The number and ratio also vary with the complexity of patient conditions and the diagnostic services, treatments and prescriptions required. Therefore, the number of nurses and the nurse-to-patient ratio cannot be directly compared among the clusters.

(2) The respective rates of pay increases for staff of HA in the past five years are set out in the table below:

1 April 1 April 1 October 1 April 1 April 1 April Effective date 2013 2014 2014 2015 2016 2017 HA General 2.55% 5.96% 3% 3.96% 4.19% 1.88% Pay Scale point 45 or above or equivalent Above HA - General Pay Scale point 33 or equivalent 8842 LEGISLATIVE COUNCIL ― 25 April 2018

1 April 1 April 1 October 1 April 1 April 1 April Effective date 2013 2014 2014 2015 2016 2017 HA General 3.92% 4.71% - 4.62% 4.68% 2.94% Pay Scale point 33 or below or equivalent

Notes:

(1) Examples of the ranks at HA General Pay Scale point 33 or below or equivalent are as follows: Resident (at HA General Pay Scale point 30 to 44B)/Enrolled Nurse/Registered Nurse/Advanced Practice Nurse/Physiotherapist II/Physiotherapist I

(2) Examples of the ranks above HA General Pay Scale point 33 or equivalent are as follows: Resident (at HA General Pay Scale point 30 to 44B)/Associate Consultant/Consultant/ Department Operation Manager/Senior Physiotherapist

The Government does not have information on the salaries and respective rates of pay increases of health care professionals by ranks in private hospitals.

(3) HA provides various types and levels of health care services to patients having regard to the conditions and needs of each patient. To meet the operational needs, HA deploys nursing manpower flexibly and does not prescribe rigid nurse-to-patient ratios. HA has also developed a workload assessment model to assess the nursing workload and staffing requirement according to factors such as the number of patients, patient dependency and nursing activities. HA will make reference to the manpower requirement as assessed by this model when planning new services.

Given the increasing demand for health care services, the Government has substantially increased the number of University Grants Committee ("UGC")-funded health care training places by about 60% (from about 1 150 to about 1 800) over the past 10 years. The Government is discussing with UGC to further increase the publicly-funded training places for health care professionals (including nurses) in the 2019-2020 to 2021-2022 triennium.

LEGISLATIVE COUNCIL ― 25 April 2018 8843

Besides, the Government also encourages self-financing institutions to provide more training places for health care professionals under the Study Subsidy Scheme for Designated Professions/Sectors ("SSSDP") to help meet part of the manpower demand. Under the SSSDP, the Government subsidizes 860 students studying in qualified self-financing health care training programmes (including 765 places for nursing programmes) in the 2018-2019 academic year.

(4) The Government had announced the allocation of an additional one-off provision of $500 million for HA to meet the service needs during the winter surge. Apart from strengthening HA's response plan for the winter surge in 2017-2018, the provision has also been used to implement a series of additional measures from 12 February to 31 May 2018 to alleviate the manpower shortage and work pressure of staff.

Insofar as the overall human resources policy is concerned, HA has been implementing various manpower measures proactively to retain staff and alleviate the tight manpower situation of frontline nursing staff. Key measures are as follows:

(a) Continuous recruitment of full-time, part-time and agency nurses: Hospitals will continue to recruit full-time, part-time and agency nurses to enhance the flexibility in staff deployment, thereby easing the workload of frontline staff;

(b) Special Retired and Rehire Scheme ("SRRS"): HA has implemented the SRRS since 2015-2016 to rehire appropriate health care professionals after their retirement, so as to retain professionals to provide training, impart knowledge and alleviate the manpower shortage in HA;

(c) Enhancement of promotion opportunities: In 2008-2009, HA created the post of Nurse Consultant to enhance the development prospects of the nursing profession, thereby 8844 LEGISLATIVE COUNCIL ― 25 April 2018

improving the health care services of HA. There are currently 113 Nurse Consultant posts. A total of 1 476 nurses were promoted in the past three years;

(d) Provision of more training opportunities: The Institute of Advanced Nursing Studies of HA offers 26 nursing specialist training courses each year for nurses to continuously pursue further studies after graduation. HA also provides subsidies for over 100 senior nurses to pursue further studies and training overseas each year;

(e) Enhancement of preceptorship support: Under HA's preceptorship programme, experienced nurses are recruited through formats such as special allowance and part-time employment to serve as preceptors to provide guidance for newly recruited nurses in an actual clinical setting, thereby familiarizing them with ward procedures and environment as well as alleviating the work pressure of other experienced nursing staff in coaching new nurses. HA also provides simulation training for newly recruited nurses to enhance their first aid and emergency handling skills;

(f) Improvement of work environment: HA has installed 6 000 additional electrically-operated beds and 523 ceiling hoist systems to facilitate the lifting and transfer of patients. This can help simplify the burdensome work processes of ward staff and improve the work environment and facilities, thereby relieving the work pressure of frontline nurses;

(g) Recruitment of additional ward clerks and ward assistants: HA recruits additional ward clerks and ward assistants to assist nurses in carrying out clerical work and providing patient care, thereby easing the workload of nurses; and

(h) Reinstating the annual increment mechanism: To further boost staff morale and retain staff, HA has reinstated the annual increment mechanism for all serving staff who joined HA on LEGISLATIVE COUNCIL ― 25 April 2018 8845

or after 15 June 2002, as well as new recruits, with effect from 1 April 2018. This arrangement is expected to be applicable to about 17 000 eligible staff.

With the various enhancement measures to improve manpower supply, the number of nurses in HA has been on the rise over the past few years. Calculated on a full-time equivalent basis, the number of nurses increased from 24 587 on 31 March 2016 to 26 103 on 31 March 2018. HA plans to recruit about 2 230 nurses in 2018-2019, and the number of nurses is expected to reach 26 560 by 31 March 2019.

(5) HA is actively reviewing the nursing manpower and recruiting more health care staff, having regard to factors such as service needs and service development needs, staff wastage and market supply. HA will continue to make appropriate arrangements for manpower planning and deployment, including implementing the staff retaining measures mentioned in part (4) of the reply, to cope with the service needs.

Preventing youths from being addicted to video game playing

20. MR CHAN HAK-KAN (in Chinese): President, it has been reported that the World Health Organization plans to classify "gaming disorder" as one of the diseases hazardous to mental health when it updates the International Classification of Diseases ("ICD") in the middle of this year. On preventing youths from being addicted to video game playing, will the Government inform this Council:

(1) of the number of requests for assistance received by the authorities in each of the past three years concerning youths' addiction to video game playing (with a breakdown by age and gender of addicts), and how the authorities helped the assistance seekers;

(2) of the details of the public education efforts currently made to prevent youths from being addicted to video game playing;

8846 LEGISLATIVE COUNCIL ― 25 April 2018

(3) whether it will allocate additional resources to assist parents in handling the problem of their children being addicted to video game playing; if so, of the details; if not, the reasons for that;

(4) whether it has assessed if the inclusion of gaming disorder in ICD will impact on the implementation of the existing insurance laws; if it has, of the details; if it has not, the reasons for that; and

(5) whether it has conducted studies on the adverse impact of the development of the electronic sports industry on youths; if so, of the details; if not, whether it will conduct such studies?

SECRETARY FOR FOOD AND HEALTH (in Chinese): President, having consulted the Financial Services and the Treasury Bureau and the Innovation and Technology Bureau, my reply to Mr CHAN Hak-kan's question is as follows:

(1) The multi-disciplinary teams of the psychiatric services in the Hospital Authority ("HA") comprising health care practitioners in various disciplines, including doctors, nurses, clinical psychologists, medical social workers and occupational therapists etc., provide comprehensive and continuous mental health services, including inpatient, outpatient, day rehabilitation training and community support services, to psychiatric patients (including adolescents with mental health problems due to addiction to video game playing) having regard to the severity of their condition and clinical needs.

HA does not have the number of adolescents with mental health problems due to addiction to video game playing.

(2) Different government bureaux and departments, non-government organizations ("NGOs"), schools and other organizations have been providing various services and programmes to address the problem of excessive use of Internet (including Internet-based games). In addition to the publication of the Report of the Advisory Group on Health Effects on Use of Internet and Electronic Screen Products in 2014, the Department of Health ("DH") has also set up a designated LEGISLATIVE COUNCIL ― 25 April 2018 8847

web page on Healthy Use of Internet and Electronic Screen Products(1) and uploaded relevant information and resources to offer assistance to children and other relevant target groups (e.g. parents and teachers). DH has been working closely with schools and NGOs to promulgate the healthy use of Internet and electronic screen products among students and adolescents.

(3) While only a small proportion of people who engage in digital- or video-gaming activities may have Gaming Disorder, the World Health Organization ("WHO") suggested that people who partake in gaming should be alert to the amount of time they spend on gaming activities, particularly when it results in the exclusion of other daily activities, as well as to any changes in their physical or psychological health and social functioning that could be attributed to their pattern of gaming behaviour. WHO plans to include Gaming Disorder in the new version of International Classification of Diseases, relevant bureaux and departments will act accordingly to provide appropriate responses.

(4) The Insurance Ordinance (Cap. 41) ("IO") aims to regulate the carrying on of insurance business; to establish the Insurance Authority with prescribed functions and regulatory powers (including powers of intervention and powers to take disciplinary actions); and to set out provisions applicable to insurers and insurance intermediaries for their compliance. As IO has no direct connection with the International Classification of Diseases, inclusion of Gaming Disorder in the new version of International Classification of Diseases will not affect the operation of IO.

However, should Gaming Disorder be identified as one of the diseases that jeopardizes psychological health, depending on the provisions of individual policies, insurance companies may need to amend the definition of "sickness" or "disease" in the terms and conditions of individual medical insurance policies.

(1) 8848 LEGISLATIVE COUNCIL ― 25 April 2018

(5) Cyberport conducted a study in 2017 to explore the latest e-sports technology and product development, and published the Report on Promotion of E-sports Development in Hong Kong ("the Report") in February this year. Apart from the recommendations to support the industry in organizing e-sports competitions and promote the development of related technology industries, the Report points out the concerns of some parents and teachers (such as students and teenagers addicted to "video gaming" or "playing video games") and suggests taking measures to enhance the positive image of e-sports. Cyberport will launch a series of public promotion and engagement activities, including seminars, small-scale e-sports competitions and exhibitions on game history and products. Cyberport will also set up an experience corner at the future Cyberport e-sports and digital entertainment node and invite e-sports and digital entertainment corporations to showcase related new technologies and e-sports products to raise the public's positive understanding and interest in e-sports, game development and related technologies.

Cyberport will study the effectiveness of these activities and the views of various stakeholders, and strengthen such public promotion and education in the community with reference to the actual circumstances.

E-sports competitions are conducted mostly on a team basis (each team has five players). Team competition emphasizes on systematic training and requires team members to receive prolonged training and build rapport among themselves, cooperate and communicate with one another, and align with the professional analysis and tactics of the coaches and the team. E-sports is a group activity. The Report also highlights that e-sports training can facilitate the building up of self-confidence, team spirit and sense of achievement etc. for the player, which is different from the recreational pastime of "playing video games" and "video gaming" that centred around the player only.

LEGISLATIVE COUNCIL ― 25 April 2018 8849

Converting on-street facilities into infrastructural facilities needed for building a smart city

21. MR CHARLES PETER MOK (in Chinese): President, the Chief Executive indicated in the Policy Address delivered in October last year that the Government would launch a pilot Multi-functional Smart Lampposts scheme at selected urban locations to support the building of a smart city with city-wide coverage of data and network, and complement the future infrastructure development for 5G mobile communications services in Hong Kong. Some members of the information technology sector have pointed out that in addition to lampposts, quite a number of existing on-street facilities (e.g. telephone booths and bus stops) can be converted into infrastructural facilities needed for building a smart city ("smart infrastructural facilities"). In this connection, will the Government inform this Council:

(1) whether it has studied which types of existing on-street facilities are suitable for conversion into smart infrastructural facilities; if so, of the number of each type of such on-street facilities and, among them, the respective numbers of those which are government-owned and privately-owned;

(2) as it is learnt that quite a number of advanced cities are gradually converting existing telephone booths into smart electronic information kiosks which provide services such as free WiFi, telephone communications, power charging through USB ports and provision of city information, as well as installing detectors on on-street facilities to collect various real-time city data in order to strengthen traffic and city management, whether the Government has plans to make reference to such practices and convert Hong Kong's on-street facilities into smart infrastructural facilities; if it has no such plans, of the reasons for that; if it has such plans, whether the Government will (i) designate the Policy Innovation and Co-ordination Office or set up an inter-departmental task group to undertake the relevant work, so as to strengthen the coordination among the various government departments and shorten the related vetting and approval time, as well as (ii) adopt a public-private partnership approach to take forward those conversion works involving privately-owned on-street facilities; if so, of the details; if not, the reasons for that; and

8850 LEGISLATIVE COUNCIL ― 25 April 2018

(3) regarding the suggestion of converting existing on-street facilities into smart infrastructural facilities, whether the Government will (i) conduct public consultation, and (ii) implement pilot schemes; if so, of the details; if not, the reasons for that?

SECRETARY FOR INNOVATION AND TECHNOLOGY (in Chinese): President, after consulting the relevant departments, a consolidated reply to the three parts of the question is provided as follows.

In March 2018, we briefed the Panel on Information Technology and Broadcasting of the Legislative Council on three key infrastructure projects for smart city development proposed in the 2017 Policy Address. These include the pilot "Multi-functional Smart Lampposts" scheme. Other than this pilot scheme, we do not have the timetable for converting the existing on-street facilities into smart lampposts. After the first phase of the pilot scheme has been in operation for a year, we will start to review the implementation experience and effectiveness of the scheme. The 400 smart lampposts under the pilot scheme will replace existing street lightings, and do not involve private land or properties.

Regarding the pilot "Multi-functional Smart Lampposts" scheme, the Office of the Government Chief Information Officer and the Highways Department have formed an inter-departmental task force to take forward the scheme and coordinate the work of relevant departments. It is expected that the lamppost design will make provision for interested mobile network operators to install small cells and Wi-Fi hotspots. We will consult the relevant District Councils and the local personalities on the installation of smart lampposts in respective areas.

Impact of sewage treatment on the quality of water bodies in Hong Kong

22. MR KENNETH LEUNG (in Chinese): President, the Drainage Services Department announced in February this year that replacement and maintenance works would be carried out from early this year to early 2020 for the electrical and mechanical facilities at the Stonecutters Island Sewage Treatment Works ("SISTW"). The works include the replacement of two large inlet penstocks at the Main Pumping Station No. 1 installed deep underground that have been LEGISLATIVE COUNCIL ― 25 April 2018 8851 operating for over 16 years. It has been reported that the inlet penstocks need to be replaced due to corrosion, and during the works period when the pumping station concerned needs to be closed, around 930 000 cubic metres (equivalent to 370 standard swimming pools) of preliminarily treated/screened effluent will be discharged into the Victoria Harbour each day. Regarding the impact of sewage treatment on the quality of water bodies in Hong Kong, will the Government inform this Council:

(1) of the estimated expenditure for the aforesaid replacement of inlet penstocks; the other sewage treatment works ("STWs") currently using inlet penstocks of the same model; and whether it has regularly monitored the corrosion situation of those inlet penstocks; if so, of the details; if not, the reasons for that;

(2) of the following information in respect of each STW: (i) the year of commissioning, (ii) the average volume of sewage treated per day, (iii) the average volume of treated effluent discharged per day, (iv) the water control zone ("WCZ") into which the treated effluent is discharged, and (v) the name(s) of the beach(es) in the vicinity, with the locations of the various STWs, their outfalls and nearby beaches marked on a map;

(3) of the respective Water Quality Objectives ("WQO") compliance rates of the water bodies in each WCZ in terms of total inorganic nitrogen, unionized ammonia nitrogen, E. coli bacteria, etc., in each of the past five years (set out in a table);

(4) of the respective WQO compliance rates of the water bodies in the various gazetted beaches in the vicinity of each STW in terms of dissolved oxygen, E. coli bacteria, turbidity, etc., in each of the past five years (set out in a table);

(5) in respect of the incidents in the past five years in which STWs discharged effluent not having gone through the established treatment procedure, of the following details of each incident: (i) the name of the STW concerned, (ii) the date on which the incident happened and (iii) the number of days the incident lasted, (iv) the cause(s) of the incident, and, during the incident, (v) the level(s) of 8852 LEGISLATIVE COUNCIL ― 25 April 2018

treatment which the discharged effluent had undergone, (vi) the average volume of sewage treated per day and (vii) the volume of effluent discharged per day (set out in a table); and

(6) whether it has assessed the impacts of the incidents mentioned in (5) on the quality of water bodies in the vicinity, and whether it has monitored the relevant situation and adopted mitigation measures; if so, of the details; if not, the reasons for that?

SECRETARY FOR THE ENVIRONMENT (in Chinese): President,

(1) The maintenance works carried out by the Drainage Services Department ("DSD") from 20 February to 4 March 2018 mainly involved the first stage of replacement of two large penstocks, which were located at 34 m below ground level inside the Main Pumping Station No. 1 ("MPS1") of the Stonecutters Island Sewage Treatment Works ("SCISTW"). According to the current estimate, the works would cost about $70 million. As these two penstocks were situated at a unique location at the outermost part of MPS1 where the deep sewage tunnels of the Harbour Area Treatment Scheme ("HATS") were connected to SCISTW and taking into account safety consideration, it was necessary to carry out the temporary bypass of sewage at some of the upstream Preliminary Treatment Works and empty MPS1 of sewage before technicians may enter to carry out the works.

DSD has been providing timely inspection and maintenance to its facilities, including the deeply located penstocks. The penstocks that require replacement has been in operation since 2001. After operating continuously for over 16 years, the current conditions of the main bodies of the penstock gates are generally satisfactory, but their function is affected by the rusting and corrosion occurred around the edges that are in contact with the penstock frames and supporting facilities. The overall conditions of these penstocks tally with the duration of their operation and they are now due for replacement.

LEGISLATIVE COUNCIL ― 25 April 2018 8853

The situation of the penstocks at SCISTW that require replacement is rather unique. The other DSD's sewage treatment works ("STWs") do not have similar deeply located penstocks.

(2) The details of the major STWs in Hong Kong are shown in Annex 1.

(3) The compliance rates of the key marine Water Quality Objectives ("WQOs") parameters, including dissolved oxygen ("DO"), total inorganic nitrogen ("TIN"), unionized ammonia ("UIA") and E. coli, for the 10 Water Control Zones ("WCZs") in the past five years (2013 to 2017) are listed in Annex 2.

(4) All gazetted beaches in Hong Kong have fully complied with the WQO parameter of E. coli for the past five years. There is no relevant WQO on DO and turbidity for bathing beaches.

(5) The details of the incidents involving the discharge of sewage that was not fully treated due to operational or engineering problems of STWs in the last five years are shown in Annex 3.

(6) The incident occurring on 25 August 2014 at Tuen Mun Pillar Point Sewage Treatment Works involved the mechanical failure of the plant equipment. During the incident, about 95 000 cu m of untreated sewage was discharged through the emergency submarine outfall. As a precautionary measure, the Leisure and Cultural Services Department ("LCSD") temporarily closed 14 beaches in Tsuen Wan and Tuen Mun districts in the evening on that day. The Environmental Protection Department also collected water samples at these beaches in the morning and afternoon of the following day, and confirmed that the water quality at all the 14 beaches was suitable for swimming. LCSD subsequently reopened all the beaches concerned.

Besides, three incidents occurred in the North West Kowloon Preliminary Treatment Works ("NWKPTW"), Tai Po Sewage Treatment Works and Ma Wan Sewage Treatment Works in 2017. They were mainly due to minor malfunction of the plant facilities and electricity supply problem of the power company. Due to the 8854 LEGISLATIVE COUNCIL ― 25 April 2018

short duration of these incidents and small volume of sewage discharged, the impact caused to the water quality nearby was small and the problems were swiftly dealt with.

The replacement of penstocks for SCISTW from 20 February to 4 March 2018 had necessitated the temporary bypass of sewage as explained in part (1) above. Overall speaking, 55% of the total volume of HATS flow was bypassed, while the remaining 45% was conveyed by Main Pumping Station No. 2 and other system as usual to SCISTW for proper treatment and disposal.

When planning for the maintenance works, DSD had employed consultants to conduct detailed water quality impact assessment. The assessment indicated that the potential impact on water quality of Victoria Harbour would be slight and transient. And water quality would resume to normal quickly in a few days after the cessation of bypass.

Notwithstanding that, in order to minimize the potential impact of the bypass to the environment and the public, the Government has carried out detailed assessment and preparatory work at the outset, formulated and implemented contingency plans as well as various mitigation measures (including means to enhance the dilution and dispersion of the sewage discharged, addition of odour suppressants and installation of deodorization units). Furthermore, the maintenance works were conducted during the non-bathing season to minimize potential impact to the public.

During the bypass, all relevant government departments collaborated closely to monitor the situation. DSD had conducted comprehensive water quality monitoring at 47 monitoring sites, including beaches, fish culture zones, coral sites, promenades and typhoon shelters. The monitoring results indicated that the water quality was generally in line with the consultant's predictions. Overall speaking, the actual levels of water quality impacts of the bypass were slightly lower than the predictions and, as expected, the water quality of different parts of Victoria Harbour resumed to normal within one to several days after the cessation of bypass.

LEGISLATIVE COUNCIL ― 25 April 2018 8855

Annex 1

Details of the major STWs in Hong Kong

m/day] m/day]

cu

STWs Year of discharge discharge Treatment Treatment 000

close to STW to STW close Capacity and Average Daily Commissioning Bathing beaches beaches Bathing (Treatment Level) (Treatment [10 Discharge Quantity WCZ receiving STW STW receiving WCZ

HATS SCISTW 1997 188.4 Western Ma Wan Tung (Main (Collect Buffer WCZ Wan Beach, Pumping preliminary/screening Anglers' Station treated sewage from Beach, Gemini in 2001) HATS Stage 1 and Beaches, Lido Stage 2A for Beach, Hoi chemically enhanced Mei Wan primary treatment in Beach, Casam SCISTW) Beach, Ting Kau Beach, Approach Beach HATS Stage 1 Kwai Chung 1995 20.1 Sewage Not applicable Preliminary (Preliminary/Screening conveyed by Treatment Treatment) deep tunnels Works to SCISTW Tsing Yi 1986 5.6 for treatment Preliminary (Preliminary/Screening and Treatment Treatment) disinfection Works before NWKPTW 1997 34.8 submarine (Preliminary/Screening discharge Treatment) since end 8856 LEGISLATIVE COUNCIL ― 25 April 2018

m/day] m/day]

cu

STWs Year of discharge discharge Treatment Treatment 000

close to STW to STW close Capacity and Average Daily Commissioning Bathing beaches beaches Bathing (Treatment Level) (Treatment [10 Discharge Quantity WCZ receiving STW STW receiving WCZ

To Kwa Wan 1990 22.0 2001 (except Preliminary (Preliminary/Screening NWKPTW Treatment Treatment) which Works connects to Kwun Tong 1987 35.0 SCISTW Preliminary (Preliminary/Screening direct) Treatment Treatment) Works Tseung Kwan O 1987 13.1 Preliminary (Preliminary/Screening Treatment Treatment) Works Chai Wan 1985 5.3 Preliminary (Preliminary/Screening Treatment Treatment) Works Shau Kei Wan 1992 7.1 Preliminary (Preliminary/Screening Treatment Treatment) Works HATS Stage 2A North Point 1989 9.9 Sewage Not applicable Preliminary (Preliminary/Screening conveyed by Treatment Treatment) deep tunnels Works to SCISTW Wan Chai East 1989 14.0 for treatment Preliminary (Preliminary/Screening and Treatment Treatment) disinfection Works LEGISLATIVE COUNCIL ― 25 April 2018 8857

m/day] m/day]

cu

STWs Year of discharge discharge Treatment Treatment 000

close to STW to STW close Capacity and Average Daily Commissioning Bathing beaches beaches Bathing (Treatment Level) (Treatment [10 Discharge Quantity WCZ receiving STW STW receiving WCZ

Central 1988 11.9 before Preliminary (Preliminary/Screening submarine Treatment Treatment) discharge Works since end Ap Lei Chau 1980 2.6 2015 Preliminary (Preliminary/Screening Treatment Treatment) Works Aberdeen 1979 5.2 Preliminary (Preliminary/Screening Treatment Treatment) Works Wah Fu 1970 0.7 Preliminary (Preliminary/Screening Treatment Treatment) Works Cyberport 2002 0.5 Preliminary (Preliminary/Screening Treatment Treatment) Works Sandy Bay 1999 0.6 Preliminary (Preliminary/Screening Treatment Treatment) Works Others Cheung Chau 1985 1.3 Southern Kwun Yam Sewage (Primary Treatment) Beach Treatment Works 8858 LEGISLATIVE COUNCIL ― 25 April 2018

m/day] m/day]

cu

STWs Year of discharge discharge Treatment Treatment 000

close to STW to STW close Capacity and Average Daily Commissioning Bathing beaches beaches Bathing (Treatment Level) (Treatment [10 Discharge Quantity WCZ receiving STW STW receiving WCZ

Ma Wan Sewage 2002 0.4 Western Ma Wan Tung Treatment (Secondary Treatment) Buffer Wan Beach Works Mui Wo Sewage 1987 0.2 Southern Silver Mine Treatment (Secondary Treatment) Bay Beach Works Ngong Ping 2006 0.05 Southern No beach Sewage (Tertiary Treatment) located nearby Treatment the discharge Works point Peng Chau 2007 0.2 Southern Silver Mine Sewage (Secondary Treatment) Bay Beach Treatment Plant Pillar Point 2014 17.3 North and Butterfly Sewage (Chemically Enhanced Western Beach, Castle Treatment Primary Treatment) Peak Beach, Works Kadoorie Beach, Cafeteria Old Beach, Cafeteria New Beach, Golden Beach Sai Kung 1996 0.9 Port Shelter Kiu Tsui Sewage (Secondary Treatment) Beach Treatment Works LEGISLATIVE COUNCIL ― 25 April 2018 8859

m/day] m/day]

cu

STWs Year of discharge discharge Treatment Treatment 000

close to STW to STW close Capacity and Average Daily Commissioning Bathing beaches beaches Bathing (Treatment Level) (Treatment [10 Discharge Quantity WCZ receiving STW STW receiving WCZ

San Wai 1993 12.5 North and No beach Preliminary (Preliminary/Screening Western located nearby Treatment Treatment) the discharge Works point Sha Tau Kok 1989 0.1 Mirs Bay No beach Sewage (Secondary Treatment) located nearby Treatment the discharge Works point Sham Tseng 2004 1.0 Western Anglers' Sewage (Chemically Enhanced Buffer Beach, Gemini Treatment Primary Treatment) Beaches, Hoi Works Mei Wan Beach, Casam Beach, Lido Beach, Ting Kau Beach, Approach Beach Sha Tin Sewage 2012 24.3 Victoria No beach Treatment (Secondary Treatment) Harbour located near Works (Phase 2) the discharge point Shek O 1997 0.1 Southern Shek O Beach, Preliminary (Preliminary/Screening Rocky Bay Treatment Treatment) Beach, Big Works Wave Bay Beach 8860 LEGISLATIVE COUNCIL ― 25 April 2018

m/day] m/day]

cu

STWs Year of discharge discharge Treatment Treatment 000

close to STW to STW close Capacity and Average Daily Commissioning Bathing beaches beaches Bathing (Treatment Level) (Treatment [10 Discharge Quantity WCZ receiving STW STW receiving WCZ Shek Wu Hui 2009 8.7 Deep Bay No beach Sewage (Secondary Treatment) located near Treatment the discharge Works point Siu Ho Wan 2006 5.2 North Anglers' Beach Sewage (Chemically Enhanced Western Treatment Primary Treatment) Works Stanley Sewage 1995 0.8 Southern Stanley Main Treatment (Secondary Treatment) Beach, Hairpin Works Beach, Turtle Cove Beach Tai O Imhoff 1982 0.1 North Tong Fuk Tank (Primary Treatment) Western Beach Tai Po Sewage 2015 11.5 Victoria No beach Treatment (Secondary Treatment) Harbour located near Works (Phase 2) the discharge point Yuen Long 1992 2.9 Deep Bay No beach Sewage (Secondary Treatment) located near Treatment the discharge Works point Yung Shue Wan 2014 0.04 Southern Hung Shing Sewage (Secondary Treatment) Yeh Beach Treatment Works Sok Kwu Wan 2014 0.01 Southern Lo So Shing Sewage (Secondary Treatment) Beach, Treatment Repulse Bay Works Beach

LEGISLATIVE COUNCIL ― 25 April 2018 8861

Map showing locations of major STWs and nearby Gazetted Beaches

Annex 2

Compliance rates of WQOs in 2013 to 2017

WQOs compliance rates (%) for the main marine water body of Victoria Harbour Water Control Zone DO TIN UIA E. coli* 2013 90 60 100 Not applicable 2014 40 90 100 Not applicable 2015 100 70 100 Not applicable 2016 100 80 100 Not applicable 2017 100 50 100 Not applicable

WQOs compliance rates (%) for the main marine water body of Eastern Buffer Water Control Zone DO TIN UIA E. coli* 2013 100 100 100 Not applicable 2014 100 100 100 Not applicable 8862 LEGISLATIVE COUNCIL ― 25 April 2018

DO TIN UIA E. coli* 2015 100 100 100 Not applicable 2016 100 100 100 Not applicable 2017 100 100 100 Not applicable

WQOs compliance rates (%) for the main marine water body of Western Buffer Water Control Zone DO TIN UIA E. coli* 2013 75 100 100 Not applicable 2014 50 100 100 Not applicable 2015 75 100 100 Not applicable 2016 100 100 100 Not applicable 2017 100 100 100 Not applicable

WQOs compliance rates (%) for the main marine water body of Junk Bay Water Control Zone DO TIN UIA E. coli* 2013 100 100 100 Not applicable 2014 100 100 100 Not applicable 2015 100 100 100 Not applicable 2016 100 100 100 Not applicable 2017 100 100 100 Not applicable

WQOs compliance rates (%) for the main marine water body of Deep Bay Water Control Zone DO TIN UIA E. coli* 2013 60 0 60 Not applicable 2014 60 0 60 Not applicable 2015 60 0 100 Not applicable 2016 60 0 100 Not applicable 2017 80 0 100 Not applicable

WQOs compliance rates (%) for the main marine water body of Mirs Bay Water Control Zone DO TIN UIA E. coli* 2013 100 100 100 100 2014 93 100 100 100 2015 86 100 100 100 2016 100 100 100 100 2017 93 100 100 100

LEGISLATIVE COUNCIL ― 25 April 2018 8863

WQOs compliance rates (%) for the main marine water body of North Western Water Control Zone DO TIN UIA E. coli* 2013 100 17 100 Not applicable 2014 50 33 100 Not applicable 2015 83 17 100 Not applicable 2016 100 17 100 Not applicable 2017 100 17 100 Not applicable

WQOs compliance rates (%) for the main marine water body of Tolo Harbour & Channel Water Control Zone DO TIN UIA E. coli* 2013 43 Not applicable Not applicable 100 2014 14 Not applicable Not applicable 100 2015 57 Not applicable Not applicable 100 2016 57 Not applicable Not applicable 100 2017 57 Not applicable Not applicable 100

WQOs compliance rates (%) for the main marine water body of Port Shelter Water Control Zone DO TIN UIA E. coli* 2013 100 100 100 100 2014 33 100 100 100 2015 100 100 100 100 2016 100 100 100 100 2017 100 100 100 100

WQOs compliance rates (%) for the main marine water body of Southern Water Control Zone DO TIN UIA E. coli* 2013 100 0 100 100 2014 94 13 100 100 2015 100 0 100 100 2016 100 0 100 100 2017 100 0 100 100

Note:

* The E. coli WQO only applies to the Secondary Contact Recreation Subzones

8864 LEGISLATIVE COUNCIL ― 25 April 2018

Annex 3

Incidents of discharging not fully treated sewage due to operational or engineering problems of STWs in the last five years

Average daily Discharge Level of sewage volume Day of Incident Cause of treatment treatment STWs during incident duration incident of sewage capacity incident discharge during (cu m) incident (cu m) Pillar Point 25 August 11 Mechanical Untreated 183 000 About Sewage 2014 hours failure 95 000 Treatment Works NWKPTW 25 July 7 Mechanical Preliminary 348 000 About 55 2017 minutes failure treatment Tai Po 23 August 20 Electrical Untreated 11 500 About Sewage 2017 minutes supply 600 Treatment failure Works Ma Wan 14 October 2 hours Electrical Preliminary 4 000 About Sewage 2017 and 45 installation treatment 320 Treatment minutes failure Works HATS 20 February 13 days Maintenance Preliminary About About Stage 1: 2018 to and treatment 1 million 1 million Chai Wan, 4 March replacement daily Shau Kei 2018 of electrical/ Wan, mechanical Tseung facilities in Kwan O, SCISTW Kwun Tong, To Kwa Wan, Tsing Yi and Kwai Chung Preliminary Treatment Works

LEGISLATIVE COUNCIL ― 25 April 2018 8865

GOVERNMENT BILLS

First Reading and Second Reading of Government Bill

First Reading of Government Bill

PRESIDENT (in Cantonese): Government Bill: First Reading.

COMPANIES (AMENDMENT) BILL 2018

CLERK (in Cantonese): Companies (Amendment) Bill 2018.

Bill read the First time and ordered to be set down for Second Reading pursuant to Rule 53(3) of the Rules of Procedure.

Second Reading of Government Bill

PRESIDENT (in Cantonese): Government Bill: Second Reading.

COMPANIES (AMENDMENT) BILL 2018

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, I move the Second Reading of the Companies (Amendment) Bill 2018 ("the Bill").

The Bill seeks to amend certain provisions of the new Companies Ordinance ("CO"), which came into operation in 2014, so as to improve the clarity and operation of the new CO and to further facilitate business in Hong Kong.

The new CO commenced operation in March 2014. It provides a modern statutory framework for the incorporation and operation of companies in Hong Kong. A number of measures have been introduced under the new CO to simplify statutory procedures, reduce the compliance costs of companies and cater for the needs of small and medium-sized enterprises ("SMEs"). 8866 LEGISLATIVE COUNCIL ― 25 April 2018

Implementation of the new CO has been smooth and it has achieved our policy objectives to enhance corporate governance, ensure better regulation, facilitate business and modernize the company law.

Based on the operational experience since the commencement of the new CO, as well as the feedbacks from various stakeholders, we have identified certain provisions of the new CO which have to be amended. The proposed legislative amendments are mainly technical in nature, which can be broadly divided into two categories:

(a) Amendments to incorporate new developments after the commencement of the new CO

There are two sets of amendments under this category, namely expanding the scope of the current regime for simplified reporting, and updating the accounting-related provisions in the new CO.

In respect of expanding the scope of the current regime for simplified reporting, the new CO allows for simplified reporting to group companies of SMEs which meet specified size criteria. Under this exemption, the holding company of an eligible group of companies is entitled to prepare simplified financial statements in accordance with the Small and Medium-sized Entity―Financial Reporting Standard issued by the Hong Kong Institute of Certified Public Accountants ("HKICPA"), and is subject to less stringent requirements for the preparation of auditors' report and directors' report.

In the light of operational experience and after discussing with relevant stakeholders, we consider that there is room to provide more flexibility to SMEs to reduce their compliance costs so long as the size criteria are met. We propose to allow the holding companies of two other types of corporate groups to benefit from the reporting exemption, namely:

(i) groups of small private companies or small guarantee companies, provided that both the holding company of those groups and all of its subsidiary companies meet the size criteria; and

(ii) groups of small private companies or small guarantee companies with non-Hong Kong subsidiaries, provided that the holding company of those groups and all of its subsidiary companies (including non-Hong Kong subsidiaries) meet the size criteria.

LEGISLATIVE COUNCIL ― 25 April 2018 8867

Another amendment to incorporate new developments after the commencement of the new CO has been proposed in the light of the introduction of the Hong Kong Financial Reporting Standard 10 issued by HKICPA. The amendment seeks to update the definitions of "holding company" and "parent undertaking" in the CO provisions related to accounting standards to reflect the latest accounting standards.

(b) Amendments to clarify policy intent or to remove ambiguities and inconsistencies

The major proposals include: align the obligations of non-Hong Kong companies with those of local companies in the display of company names, align penalty provisions relating to financial statements, and streamline and clarify provisions to facilitate compliance.

CO and its subsidiary legislation contain detailed requirements regarding the display of the name of a company incorporated in Hong Kong. However, there are no corresponding provisions for non-Hong Kong companies. We propose to empower the Financial Secretary to make regulations providing for the requirements on the display of company names and the disclosure of liability status of non-Hong Kong companies so as to align the obligations of non-Hong Kong companies with those of local companies in this regard.

In addition, at present, the penalty level for an offence relating to the revision of financial statements and reports is lower than the penalty level for a corresponding offence relating to the original financial statements and reports. During the scrutiny of the subsidiary legislation by the Legislative Council in 2013, in response to Bills Committee members' request, the Government undertook to review and remove the inconsistency in the penalty levels in the next legislative exercise to amend CO. As a result, we propose amendments to the provisions to align the penalty levels for the relevant offences upon conviction.

In respect of streamlining and clarifying provisions to facilitate compliance, a series of amendments have been included. For example, a holding company which is also a wholly owned subsidiary is provided with an option of preparing consolidated financial statements; and regarding the requirement for a holding company to list the names of the directors of its 8868 LEGISLATIVE COUNCIL ― 25 April 2018 subsidiary undertakings in the directors' report, an option is added to allow a holding company to provide such information on its website, or keep the relevant name lists at its registered office and make it available for inspection.

We have consulted the Legislative Council Panel on Financial Affairs and relevant stakeholders, including professional bodies and chambers of commerce, and the Standing Committee on Company Law Reform on the proposed legislative amendments. They were generally supportive of the proposals. We hope that Members will support the above proposals. Subject to its passage by the Legislative Council, we propose that the Bill comes into operation on 1 February 2019.

President, I so submit.

PRESIDENT (in Cantonese): I now propose the question to you and that is: That the Companies (Amendment) Bill 2018 be read the Second time.

In accordance with the Rules of Procedure, the Second Reading debate is adjourned and the Bill is referred to the House Committee.

Resumption of Second Reading Debate on Government Bill

PRESIDENT (in Cantonese): This Council resumes the Second Reading debate on the Appropriation Bill 2018.

Members may speak at today's or tomorrow's meeting. At the third Budget meeting to be held next Wednesday, only public officers may speak before consideration of the provisions of and amendments to the Appropriation Bill by committee of the whole Council.

Today's debate will end at about 8:00 pm and tomorrow's debate will start at 9:00 am.

Members who wish to speak in the Second Reading debate on the Appropriation Bill today will please press the ''Request to speak'' button.

LEGISLATIVE COUNCIL ― 25 April 2018 8869

Under the Rules of Procedure, each Member may speak for up to 15 minutes. If any Member speaks in excess of the specified time, I will direct the Member concerned to discontinue.

APPROPRIATION BILL 2018

Resumption of debate on Second Reading which was moved on 28 February 2018

MR ABRAHAM SHEK: President, after 20 years of patience waiting for the "dream team" of our Government's management, we have finally got one, in the presence of Carrie LAM and Paul CHAN and the absence of the Chief Secretary for Administration. This "dream team" made up of people from the grass roots rising through the ranks to the top positions of our Administration. It is only natural that people of Hong Kong, not necessarily this institution, have high expectation of their policies, particularly the Budget; the policies they expect would be policies and budget for the people, especially being made by representatives of the people reflecting the very true spirit of Hong Kong.

The maiden Budget of the LAM Administration is, to put it lightly, rather incoherent and misguided that I have ever seen in my 18 years of service in this assembly.

A budget is meant to make available the necessary financial resources to realize the policy objectives of the Government of the day. Thanks to the financial discipline and prudence of the existing and previous Financial Secretaries, Hong Kong now enjoys a hefty fiscal reserve that can keep its machines running for two and a half years without any income. We are in an enviable position to institute some fundamental changes that can tackle our entrenched social problems at their roots.

Yet, the Budget has turned out to be rather a disappointment, Financial Secretary. It is so conspicuously biased against the neediest in society that triggered a public outcry. The Government has since stitched together a cumbersome $11 billion cash scheme for some 3 million residents left behind. The embarrassing U-turn is evident of the Government at a loss, or to put it in a better way, the Government is "臨崖勒馬 " (stopping short of a misdeed), which is not necessarily a bad thing.

8870 LEGISLATIVE COUNCIL ― 25 April 2018

The overall public expenditure for 2018-2019 is estimated at $557.9 billion―an increase of 17.6% over the revised estimate last year. The amount greatly surpassed the 3.8% Gross Domestic Product growth of last year. Yet, the way our money is to be spent does not smack of a "new financial philosophy" as pledged by Chief Executive Carrie LAM. It is, in essence, incremental. More or less, more of the same.

The Chief Executive has referred to the MTR Corporation Limited, of which I am an independent non-executive director, Link REIT and the Mandatory Provident Fund as three mountains to overcome. I am more worried that she has lost sight of the reality that she is sitting on three other active volcanoes. These political explosive issues are the widening wealth gap, imparity in education and increasingly unattainable decent housing. The three are intertwined and have become a source of growing grievances.

The Census and Statistics Department's latest findings put us behind New York as the world's second-most unequal society in terms of wealth distribution. Hong Kong's Gini Coefficient for household income last year reached a record high of 0.539 on a scale from zero to one. Zero represents equality. Meanwhile, Singapore saw its coefficient fall to 0.458, the lowest in a decade.

President, the Gini Coefficient at 0.539 is indeed a heart-wrenching figure, testifying to the severity of our social injustice. It warns us of a societal breakdown. While many of us are working to death to make a living, may I ask the Financial Secretary and the Secretary for Labour and Welfare to take note that 5 881 retirees actually died in 2015 while waiting for subsidized residential care services. Over 36 000 senior citizens are put on hold for subvented or contract homes. For those who live long enough, it takes them an average of 38 months to be assigned a bed, with our surplus of over $138 billion. The money is there but the will, pardon me for saying, is absent. The Government has pointed to the lack of labour and other technical difficulties, as explained by Secretary for Labour and Welfare. They are mulling over a scheme for the elderly to hire foreign domestic helpers to take care of them in public rental housing flats for singletons. Officials almost congratulated themselves for thinking out of the box. The proposal, however, is expected to take five years to take shape. Do not take me wrong. I am totally in support of any ideas to ensure that senior citizens can live in dignity with proper care―I, myself, am an elderly person. The focus, however, must be on those on the Centralized Waiting List for care-and-attention places. This is not the first time that I am speaking on their behalf. I have been speaking for years―a voice in the wilderness. I dare the LEGISLATIVE COUNCIL ― 25 April 2018 8871

Chief Executive and the Secretary for Labour and Welfare to make a performance pledge to slash the waiting time by half. The Budget can then be organized around how to attain the goal. This is the respect that money can buy for those who have made a lifelong contribution to Hong Kong.

At the same time, President, 200 000 residents are languishing in tiny rooftop shacks, metal cages and the infamous "coffin beds", bearing the representative of the real estate and construction sector to say things like these. The United Nations has dubbed these cramped and unsanitary homes, if we can call them homes, as "an insult to human dignity".

As of last December, 280 000 applicants were on the Waiting List for Public Rental Housing. This is their hope to be upgraded into a relatively decent shelter. Yet, this humble wish has become increasingly elusive. The waiting time for them has now climbed to a record of 4.7 years.

Inadequate land supply is often cited as an excuse. The Government is poised to launch a consultation exercise on a range of options for boosting land supply. The options on offer are in fact well known. The society has been engaged in fruitless debates on the subject for decades. Instead of squeezing a few acres here and there, what we need is a sizable development that can meet the long-term needs for land, primarily for public housing. The private sector can look after themselves. As I see it, the East Lantau Metropolis to be reclaimed is the most viable way forward. Further, the Government should think of eliminating bureaucracy in land administration, making it easier for land lease modification to be introduced to bring more homes to Hong Kong.

The next Budget should focus on how to expedite the required studies and other preliminary works to get whatever preferred options off the ground, particularly the options related to land lease modification and agricultural land. There is no quick fix for our housing problems. Taking over the golf course―I declare I am a member―is not a solution. It is only a political gimmick. The least that the Government can do is to give us a glimmer of hope that a solution is at least in sight.

Speaking of hope, President, many middle-class parents are seeking to lift their children out of the local educational system to study overseas or even in international schools locally. I do not have the latest statistics on hand, but the tally has certainly been growing at an alarming rate. Sadly so.

8872 LEGISLATIVE COUNCIL ― 25 April 2018

The Chief Executive has announced an additional $5 billion for the education sector even before the Budget was drafted. The Budget has subsequently meted out a few billion dollars here and there. Two billion dollars to be spent on installation of lifts on campus and another $2.5 billion to support student activities. I do not object to such housekeeping appropriations. What we really need, however, is that the Government should take a hard look at why so many parents are striving to shun local schools for their children.

Even those who stay put are trying to eke out a budget of their own to send their children to tutorials, training and classes of all sorts to make up for what they perceive as the inadequacies of our local schools. We have the so-called "one sport, one art" requirement in school. The better-offs would enrol their kids for private tutors and personal coaches. Officials talk a lot about promoting STEM education. Parents are again ahead of the system. Computer coding workshops offered in the market, for example, have mushroomed as parents are anxious to get their children a head start to ride the waves of innovation and technology.

However, children from poor families are simply left behind. Those of ethnic minorities in particular are falling through the cracks. Indians, Pakistanis and Nepalese account for over 1% of the local population. By-census figures released last month show that one in five ethnic minority residents are living below the poverty line. South Asian children, in particular, are falling through the cracks. Racial discrimination aside, they have the added problem of language barriers in integrating into the mainstream society. Many of them have poor grades and hence low social mobility. Ample resources are needed to be budgeted to break the downward spiral. Given the chance, these children can also excel in an inclusive education system. Financial Secretary, education is for all, there should be no discrimination in education.

Another challenge for our education is to nurture enough talents to meet Hong Kong's present and future economic needs. Shenzhen and South Korea are spending up to 4.5% of their GDPs on innovation and technology. Hong Kong has yet to make it to 1%.

Our universities have a combined intake of just 15 000 first-year students. Given the opportunities arising from the Bay Area, our annual output of graduates can hardly meet future demands. We need to expand both the breadth and depth of our tertiary curricula, particularly in innovation and technology.

LEGISLATIVE COUNCIL ― 25 April 2018 8873

President, my time is running out. Hong Kong used to take pride in vigour and vitality. At one time, Hong Kong is called a city that does not sleep but we are now better known around the world as a city that does not smile.

Financial Secretary, in all your sincerity and honesty, please give us a reason or two to reclaim our smiles. This is what we want, particularly as he is the Financial Secretary from the people and we hope that in his future budget, he can work for the people. With these words, I support the Budget. Thank you, President.

DR KWOK KA-KI (in Cantonese): President, every year the delivery of the Budget will being about the most serious social dissension in Hong Kong. This year, the surplus is $138 billion, which exceeded the Financial Secretary's original estimation of $121.6 billion by $16.4 billion. Interestingly, when Hong Kong recorded its highest ever surplus, how many local people feel happy with this all-time high surplus? The data speaks for itself. The popularity rating of the Financial Secretary, the levels of public confidence in the Government or public acceptability of the Budget are at all-time low since 2008. In other words, the more money the Government has hoarded, the more unhappy Hong Kong people became. On the whole, the level of public satisfaction with the Budget is 28% and the level of dissatisfaction is 59%, representing a difference of -31%.

Has the Government considered why members of the public are so disgusted with the Government and the Budget despite a hefty surplus? Worse still, the level of satisfaction has already taken into account the information about "giving out candies" disclosed by the Government time and again, including the provision of more than $11 billion for the distribution of $4,000 for all eligible applicants. But still, many people feel unhappy.

When Financial Secretary Paul CHAN was a Member of the Legislative Council, he had repeatedly criticized his predecessor John TSANG for his wrong estimation. Very interestingly, however, after he took office as the Financial Secretary, the estimation error has become even more significant. If Hong Kong people are asked how they would feel happy, I guess all of them would reply that as long as life …

(The microphone in the Chamber was interrupted)

8874 LEGISLATIVE COUNCIL ― 25 April 2018

PRESIDENT (in Cantonese): Dr KWOK Ka-ki, please put your mobile phone aside.

DR KWOK KA-KI (in Cantonese): Okay. As long as life is satisfactory or at a generally manageable level, members of the public would feel happy. As we all know, the demand of Hong Kong people is indeed very humble. While Hong Kong's Exchange Fund and fiscal reserves currently add up to over $3 trillion, members of the public pay no great attention to how the Hong Kong Monetary Authority manages the trillions of dollars because, after all, the money does not have anything to do with them. To them, the most important of all is having hope. According to public policies, the Budget is the most fundamental basis on which financial resources can be fairly distributed. Let us see how much care the vulnerable groups have received.

After the introduction of a number of relief measures by the Government, the number of poor people in Hong Kong has not reduced significantly. The Gini Coefficient, which reflects the disparity between the rich and the poor, has not dropped but risen instead from 0.537 to 0.539, the highest among developed countries, in Asia in particular. It is a figure which Hong Kong people are ashamed of.

Although many elderly people were granted "triple pay" by the Government, which means providing an extra two months of the Old Age Living Allowance, "fruit grant" or Comprehensive Social Security Assistance for the elderly, they still do not feel happy. Why is that so? Because even though the amount of payment has increased, many of their problems still remain unresolved and one of which is health care problem.

Over the past 20 years, the proportion of elderly persons in the total population has risen from below 9% to over 16% at present, and will further increase to 25% or even 30% in the near future. In other words, one in every three Hong Kong people will be an elderly person in the next 20 years.

However, in the past 20 years, Hong Kong's expenditure on health care still accounts for only 2.5% to 2.7% of our GDP. According to the World Bank, while the percentage share of health care expenditure in GDP for the rest of the world is currently around 10%, it is as high as 12% to 14% in many developed countries and is 7% for even the poorest countries in Asia. In the case of Hong LEGISLATIVE COUNCIL ― 25 April 2018 8875

Kong, however, after adding up the health care expenditures of both the public and private sectors, the sum is still only 5.5%. What is more regrettable is that the contribution made by the Government is 2.8% lower than that of the general public. The Government has repeatedly vowed to increase funding for health care, but progress has yet to be made. Worse still, we might have stepped backwards for 20 years.

The number of elderly persons has been increasing over the past 20 years, so has the waiting time for various health care services. At present, the longest waiting time for specialist services is three years, whereas that for non-urgent operations is also nearly three years. Apparently, the Government has abundant resources to help the disadvantaged, especially those who are in need of medical treatment, but it has instead urged Hong Kong people to take out medical insurance.

As we all know, more than 80% of the people currently using hospital services are elderly persons aged over 65. Given that the majority of elderly persons are unable to enjoy their twilight years, many countries or regions have helped them to plan for their retirement life. And yet, the Government of Hong Kong is going in the opposite direction. Instead of considering how members of the public can enjoy their twilight years, the Financial Secretary, Chief Secretary for Administration and the Secretary for Labour and Welfare advised that "we encourage members of the public to rejoin the labour force for the sake of their own living". In my opinion, the elderly persons are forced to work again, which is very pitiable. Many elderly aged over 60 or 70 are employed to clean toilets or collect garbage, but they only earn the minimum wage under the outsourcing scheme of the Food and Environmental Hygiene Department and the Government, and have to bear the most despicable and inhuman standard of living. Notwithstanding that, the Government does not feel bad at all about this shameful outcome, but has kept luring other elderly to follow suit. It may, after forcing them to work, go further to compel the elderly to take out medical insurance. But as we all know, it is unrealistic to think that medical insurance is a solution to the long-term health care problems. Even if an elderly person aged 65 is really interested in taking out medical insurance, his insurance premium will fall between $10,000 and $30,000 under the existing requirement. The amount of $30,000 is indeed enough to pay for the living allowance or universal retirement protection which they have been begging the Government to provide.

8876 LEGISLATIVE COUNCIL ― 25 April 2018

I remember that when the current-term Government took office, it declared that there would be a new era and a new government to make certain achievements. But from our observation, I am not quite satisfied with its so-called achievements as many policies have remained unchanged or even regressed.

I wrote to the Financial Secretary last month, asking him to show concern for another disadvantaged group, and that is, adolescents with mental illness. In March, a tragedy happened in Hong Kong where a boy, who had learning difficulties and was waiting for treatment, was killed by his grandmother as she was unable to take care of him and many problems remained unresolved. This is indeed an extremely sad ending. In Hong Kong, there are currently some 100 000 children and adolescents desperately waiting for various services, including medical care, assessment or other services relating to educational psychology, clinical psychology and social workers. Nonetheless, only 33 900 quotas are available, which means that more than half (that is, over 60 000) of the children and adolescents are left to run their own course in the community. Earlier on, the waiting time for child psychiatric service was more than 133 weeks, and the shortest was 52 weeks. While we thought that the situation had improved with the waiting time being shortened to 111 weeks in the coming year, the shortest waiting time has risen to more than 70 weeks.

Sitting on a huge surplus, the Government should be able to give each child $2,000. And yet, will this do any good or help to them? No, it will not. That amount of money will not help them in any way, it is not enough to pay for medicine for even one month, and the waiting time for public health care services is measured in terms of years. Why is our Government so insensitive? I finally figure out why Hong Kong people are not happy at all even though the Government has an all-time high surplus.

At present, there are nearly 90 000 households living in subdivided units, a total of over 209 000 people, and a record-breaking number of more than 280 000 on the Waiting List for public rental housing ("PRH") with a waiting time of 4.7 years. However, as for our Government, "words speak louder than actions", and the pledged waiting time of 4.7 years may not be reached in the next 5 to 10 years as it has already indicated that there is insufficient land for housing development. However, insufficient land is just a false issue as the Government actually has nearly 2 000 hectares of vacant land, and more than 1 200 hectares of land has been reserved for Village Type Development. As for brownfield sites of the Government, apart from 500 hectares being used, there are still 800 hectares LEGISLATIVE COUNCIL ― 25 April 2018 8877 remaining. While the Government does have abundant land available for use, it is smart enough to pass the burden to the Land Supply Task Force under the chairmanship of someone who is not an official, in the hope of distracting people's attention from the Government. When people thought they might be allocated a PRH unit and thus escaped from the inhuman living conditions of subdivided units, the Government proposed to conduct a general debate. But what are we going to debate? Option A, B or C? After all, most of them can be implemented by the Government on its own. Brownfield sites, damaged agricultural land and land for Village Type Development are products of some absurd policies which the Government is capable of rectifying and then make land available for building public housing as soon as possible. And yet, instead of doing so, the Government has decided to go for a more indirect way of conducting a general debate, in the hope of delaying the issue indefinitely.

However, some people cannot wait any longer, such as elderly persons waiting for subsidized places of residential care homes ("RCHs"). While waiting for places in private RCHs, 3 293 elderly persons died. Even for public RCHs, more than 6 000 elderly persons died while waiting for subsidized places and the average waiting time is nearly two years. The Government has kept telling us that it is incapable of addressing the problem, but according to our observation, the Government is actually capable of doing something in respect of poverty alleviation, elderly care as well as health care and housing issues, but it just refused to do so. On the contrary, it has put forward various excuses or pretended to deal with the problems. When the Government, sitting on hundreds of billions of dollars of surplus, gives out $2,000 and $4,000 to each child and adult respectively, how happy will they be? It is beyond their imagination how this affluent society has anything to do with them because under the so-called new governance, they have no hope at all. We do understand the reason behind and the Government only has itself to blame for such a poor popularity rating. This is indeed self-inflicted. I so submit.

MR KENNETH LAU (in Cantonese): President, I speak in support of the 2018-2019 Budget. This year's Budget is the first budget of the new Government. I will express my views on the Budget in areas such as the new fiscal philosophy of the Government, the business environment of Hong Kong, innovation and technology as well as health care. Then I will talk about how villages in the New Territories can benefit from the Budget.

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The Budget this year is pragmatic, proactive and steadily progressive. It introduces targeted measures in areas such as assisting small and medium enterprises, reducing the burden on middle-class people, social welfare, people's livelihood, education and culture, so as to benefit the business sector, the middle class and the grass roots, and help Hong Kong enhance its competitiveness and embrace new challenges amidst the current economic uncertainty.

The new Government places emphasis on its new fiscal philosophy, claiming that it should boldly increase expenditure. The total public expenditure of this year's Budget will reach $598.6 billion, representing a year-on-year increase of 16.7%. Recurrent public expenditure reflects the long-term and regular commitment of the Government to society. This year, recurrent expenditure on social welfare will increase by 21.3%, followed by an increase of 14.7% in expenditure on environment and food. This reflects that the current Government cares for people's livelihood needs.

A budget surplus of $138 billion was reported for 2017-2018, and our fiscal reserves surpassed the threshold of $1 trillion. Government coffers are described in the community as being awash in money, but we need to note that some 40% of government revenue comes from land premiums and stamp duties. Land is a limited resource in Hong Kong, property prices will not keep rising infinitely, the Hong Kong economy is susceptible to external factors, and the trade war between China and the United States is imminent, giving rise to many uncertain factors. For this reason, when the Government is in a sound financial position, it should think of danger in times of safety, and allocate resources appropriately for investing for the future.

Next, I will speak on the business environment and competitiveness of Hong Kong. The Government formally implemented the two-tiered profits tax rates regime on 1 April this year. A small or medium enterprise may save up to $165,000 in tax each year. The Financial Secretary announced in the Budget that the first $2 million eligible research and development expenditure of an enterprise can enjoy a 300% tax deduction and the remainder a 200% tax deduction. It is thus clear that the Government has listened to the commercial sector and embarked on reforming the tax system to reduce tax burden on small and medium enterprises and start-up businesses, and create a favourable business environment.

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The Global Competitiveness Report 2017-2018 issued by the World Economic Forum summarizes the comments of business executives on the various competitive edges of Hong Kong. According to them, the factor that hinders business operation in Hong Kong most is the lack of capacity to innovate. For a city to have the capacity to innovate, talent is the most important factor, and certainly institutions and infrastructure are also very important. In the Budget, we note that the Government has set aside $50 billion as designated funding to promote the development of innovation and technology. As for innovation and technology talents, the Government will earmark $500 million, which accounts for only 1% of the said $50 billion, to establish a Postdoctoral Hub programme and subsidize technology training received by staff of local enterprises.

In 2017-2018, the Government has actually already set aside $10 billion to support the development of innovation and technology in Hong Kong. According to a research brief issued by Legislative Council Secretariat, only $600 million of the funding earmarked has been included in the Estimates and Medium Range Forecast this year. The aforesaid phenomena indicates that the Government is aware that Hong Kong should develop innovation and technology as a way forward, but it has yet to introduce specific measures to take the idea forward. As a result, the Government has opened a lot of "accounts" and deposited a large amount of cash into each account. However, apart from building hardware facilities, it has failed to come up with any specific ways to spend the money. It is simply inept. I think the top priority for the Government at this moment is to plan for human resources and continue to commit resources for education and training talents, so as to attract talents from various places to develop in Hong Kong and embrace the challenges of a new era.

As regards challenges, population ageing will be a medium and long-term challenge for Hong Kong. Based on the projection of the Census and Statistics Department, one in four people will be an elderly person by 2026. Facing the trend of population ageing, the Government has earmarked $300 billion to support the second ten-year hospital development plan, which is expected to provide an additional 3 000 to 4 000 hospital beds in the long run. As regards health care talents, the Government will increase publicly-funded training places for health care personnel such as doctors, dentists and nurses in the coming three years. As for short-term measures, there will be a significant increase in the value of health care vouchers. An additional $1,000 worth of health care vouchers will be provided, and elderly persons can get $3,000 worth of health care vouchers in 2018-2019.

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The Government adopts a proactive attitude toward health care funding, but whether the quality of public health care services in Hong Kong can be maintained mainly hinges on the retention of health care talents. In the case of a perennial shortage of health care personnel, doctors, nurses and supporting staff will constantly be exhausted, and regardless of how committed they are, their morale will one day be eroded, thus making them leave public hospitals and turn to the private sector. As for the increase in the value of health care vouchers, the Department of Health should step up its oversight, or else the cases of using health care vouchers to buy fish maw and ginseng will probably continue to emerge. A faulty regulatory system will only be taken advantage of by unscrupulous medical practitioners.

Now I would like to change the topic of my speech. I will talk about whether the Budget this year can deliver on promises made to villages in the New Territories. Last year, $1.1 billion was earmarked in the Budget for improving pier facilities in remote areas, so as to make it convenient for people to travel to and from attractions in remote suburban areas, and cater to the basic needs of villagers and fishermen who travel by boats. The piers include Lai Chi Wo Pier, Tung Ping Chau Public Pier and Kau Sai Village Pier in Sai Kung. The relevant projects are being undertaken one after another, and it is estimated that it takes four to five years to complete.

It seems that this year's Budget has not offered such good news as providing a one-off grant of a considerable amount of money as that of last year, neither has additional recurrent expenditure been provided for villages. Some may ask: Isn't the extension of broadband coverage as announced by the Government this year a good news for 380 villages and 170 000 villagers? Shouldn't they be happy? For villagers, they find the three basic facilities of water, electricity and roads more pressing than broadband coverage. Just pick any one village on the map, pay a visit there and ask local villagers whether they need broadband coverage or a road, I believe they will say for sure, "give me a road to walk on".

President, even if there is broadband coverage, residents who used to live in remote villages may not move back for settlement, but if roads are built, villagers may return home in their twilight years. "Young when I went away, I now come home an old man". Heung Yee Kuk New Territories has long been fighting for road construction, water supply and power grids for remote villages, but the Government rejected our request on the pretext of cost-effectiveness, LEGISLATIVE COUNCIL ― 25 April 2018 8881 saying, for example, that it would not be cost-effective to build a road for a village given the limited number of residents. In fact, this is a chicken-and-egg problem. No roads are built for villages with few residents but, by the same token, few people return to live in the villages because there are no roads.

Land resources in Hong Kong are precious, and the whole city is now actively identifying land. The Task Force on Land Supply will soon conduct a large-scale public consultation to jointly discuss with various social sectors the options and priorities in increasing land supply. As the new Government stresses the adoption of a new philosophy in public finance management, I hope that the Government will likewise discard its old way of thinking in rural planning and undertake bold and innovative development. The Government often says that there is a lack of "disposed sites", and it needs to identify and reclaim land. But why does it not build roads in remote villages and develop land lots in the vicinity? If the Government still clings to its old way of thinking that development should be only undertaken when there are people and roads, it will be a bit inopportune and outdated. Many Mainland cities have large areas of undeveloped sites, and in many cases, roads are first built and when water and electricity supplies are available, people will gradually move in; we should not wait till a certain number of people have settled in a place and then take remedial action to build infrastructure facilities.

President, Chek Keng Village in Sai Kung forms part of the Sai Kung East Country Park. Since there is no direct vehicular access to the village, villagers rely on kaito ferry service for access, hence the younger generation has moved out to live in urban areas. Villagers who live in the vicinity have relayed to me that the environment of Sai Kung is suitable for the elderly to spend their twilight years. They therefore propose that the Government should build roads to connect Chek Keng Village and nearby villages, and upon the commissioning of roads, elderly homes can be built for elderly persons to spend their twilight years in contentment. In so doing, we will not only release the land potential but also revitalize the villages, so that different people, including indigenous villagers, hikers and the elderly, can jointly enjoy rural resources and create a multiple-win situation.

Even though I think the Government has not committed sufficient resources for building infrastructure hardware in villages, there is one area of work worthy of commendable, and that is, the Government has actively updated 8882 LEGISLATIVE COUNCIL ― 25 April 2018 the software and preserved the traditional culture and history of Hong Kong, including rural culture. In recent years the Government has actively committed resources for relics conservation and promotion of intangible cultural heritage ("ICH"). Apart from funding the New Territories East Cultural Centre and the Heritage Conservation and Resource Centre, the Government will also allocate $300 million this year for promoting ICH among the public and for research purposes. We can thus see the continuity of the Government in promoting ICH.

As regards similar conservation and revitalization projects introduced by the Government, such as the revitalization of Lai Chi Wo, the funding mainly goes to the environmental groups, and thus villagers no longer have the right to explain rural culture and history to outsiders. Certainly, I am not criticizing environmental groups, and I highly recognize their efforts and achievements. I only want to point out that based on past experience, the Government seems to presume that the applicants are experienced organizations, and villagers are seldom given any opportunity to share proactively despite their enthusiasm and endless stories. I advise the Government to first review the vetting and approval mechanism when subsidizing ICH-related promotion activities held by any groups, so that people who are enthusiastic to share their beloved rural culture but lack the experience will be able to hold small-scale sharing activities.

President, the Legislative Council holds a debate on the Budget each year. During the prolonged meetings, we usually list out our requests and ask the Government to deliver on its promises. When listening to the speeches of Members from various political parties and groups, I cannot help asking myself the following question: Behind all the figures in the Budget, what specific effect do we want to achieve through the annual funding allocation by the Government?

In a recent global survey relating to smiling index in service industries, Hong Kong was ranked fifth from the last place. The survey has made me suddenly realize that Hong Kong people have not smiled happily for a long time. Over the past few years, we have been plagued by our living conditions, and we have got entangled with internal political attrition. That said, one thing has recently made me smile happily, that is, the Government has listed a new drug to treat spinal muscular atrophy, a rare disease. When I saw the firm and unflinching spirit of spinal muscular atrophy patient Josy CHOW and her family who never gave up and admitted defeat, I was deeply moved.

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I believe that other than officials, Members and Members' assistants, few members of the public have read each page of the Budget that we are debating today, but their demands to the Government are very specific and easily understood. They only want a desirable living environment, so as to ensure that everyone, regardless of their gender, age, physical constraints or political stands, can live in dignity. This may be a road far and wide, but I firmly believe that if we do not forget the people and incidents that have touched our hearts, do our respective jobs and focus on our respective responsibilities, we will always be walking on the right path.

President, I so submit.

MS STARRY LEE (in Cantonese): President, after the Financial Secretary announced in February his maiden Budget in Carrie LAM's Government, the overall comment of the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") on the Budget is that "it shows commitment to invest for the future but is ineffective in sharing fruits of success".

DAB thanks the Financial Secretary for taking on board some of our suggestions to invest heavily in expanding the capacity of the local health care system and developing diversified economy, as well as setting aside resources for long-term investment in areas such as education enhancement, upgrading of community, cultural and market facilities and injection into the Continuing Education Fund ("CEF"). As regards the sharing of fruits of success, the Financial Secretary also accepted some of our suggestions which included reducing salaries tax, waiving rates, providing an extra allowance to recipients of the Old Age Allowance, the Old Age Living Allowance and the Disability Allowance and providing an allowance to "N have-nots". In addition, the Government took some of our advice to, among others, widen the tax bands for salaries tax, increase the child allowances, provide additional funds for the Elderly Health Care Voucher Scheme and offer students in need with additional grants.

President, as the revenue from land and housing is impressive this year, the public coffers have recorded a hefty surplus of $138 billion. Noting the high hopes of the public for sharing fruits of success before the delivery of the Budget, I had reminded the Financial Secretary during my various meetings with government officials (including the Financial Secretary) that he must bear in 8884 LEGISLATIVE COUNCIL ― 25 April 2018 mind to give everybody a share when sharing prosperity. With these words still ringing in our ears, the initiatives proposed in the Budget to share fruits of success turned out to be disappointing to some people for the scope of benefits was criticized as being too narrow. The Financial Secretary later accepted public opinions and introduced the Caring and Sharing Scheme ("the Scheme") so that each citizen could at least receive $4,000. After the Scheme has come to light, many people want to know how much they can get and the implementation details. Meanwhile, many wish to obtain the money as soon as possible without being kept waiting. There are also views suggesting that the Government should be more creative in giving cash handouts to save administrative costs. However, all in all, I think the introduction of the Scheme has more or less settled the disputes over the Budget.

President, during the election campaign, Mrs LAM repeatedly said that the current-term Government should demonstrate a new fiscal philosophy. I very much look forward to this new philosophy. The discussion of the new fiscal philosophy is set out in paragraphs 47, 48 and 49 of the Budget. In paragraph 49, the Financial Secretary has stated his public finance strategies as follows: (a) acting proactively; (b) investing for the future; (c) improving services; (d) getting prepared for the future; (e) improving the tax regime; (f) caring for and sharing with the community; and (g) maintaining fiscal stability.

Under these strategies, what are the budget allocations this year? To recap, apart from recurrent expenditure, the Financial Secretary has mainly made the following provisions: firstly, $300 billion for planning the second ten-year hospital development plan; secondly, $50 billion for promoting innovation and technology ("I&T"); thirdly, $20 billion for improving cultural facilities; fourthly, an additional of $9 billion in total for supporting schools, teachers and students; fifthly, another injection of $8.5 billion into CEF; sixthly, $8 billion for improving district facilities in 18 districts; seventhly, an additional recurrent funding of $6 billion for the Hospital Authority to, among others, recruit more local medical graduates; and eighthly, another injection of $5 billion into the Elite Athletes Development Fund.

President, if members of the public are asked, after listening to the Budget delivered by the Financial Secretary, whether they understand the new fiscal philosophy or whether there are any concrete examples in the Budget manifesting this new philosophy, I am afraid they will not be able to give a clear answer. I LEGISLATIVE COUNCIL ― 25 April 2018 8885 really hope that the Financial Secretary and the Government will adopt the new fiscal philosophy to solve deep-rooted social conflicts by, say, considering the actual needs of the community in funding allocation. I also hope that the Financial Secretary will speak more on his new fiscal philosophy in his response, so that the Council and the public can have a better understanding.

President, regarding this resources allocation exercise, I would say that the public are in support of providing additional resources for the eight most heavily-funded items mentioned above. For example, they agree to increase the funding for improving the health care system, boosting technological innovation, enhancing cultural and educational facilities, and so on. However, the public will then ask: While funds have been earmarked, what specific measures will actually be taken to improve services? How will an investment of $300 billion in hospital development improve public services? No performance indicators have been set in the Financial Secretary's Budget to drive service improvement.

Here, I will give two examples. The first one is expanding the capacity of our health care system which is strongly supported by the public. They are often upset by the news about public hospitals being swarmed with patients during long holidays. While the public do not object to the Financial Secretary's allocation of $300 billion for expanding the capacity of the health care system, the seven relevant paragraphs in the Budget (i.e. paragraphs 139 to 145) have not elaborated on how the amount of $300 billion can actually improve the health care services for the public. For instance, by how long the waiting time for general and specialist outpatient services can be shortened after a specified period or when the overcrowding problem of the accident and emergency department during long holidays can be eased.

President, another example is about I&T. It is a well-known fact that the SAR Government has invested heavily in I&T in order to catch up with other places. As we all know, Hong Kong lagged far behind in I&T development and that was why the Innovation and Technology Bureau had to be set up. Last year, the Government invested $10 billion in I&T development; and this year, there is another injection of $50 billion. In paragraphs 63 to 75 of the Budget, many ideas have been raised, including the Lok Ma Chau Loop, the Innovation and Technology Fund, the establishment of technology research clusters, the Science Park, the Cyberport, E-sports, the encouragement of research and development, the promotion of "re-industrialization", the Technology Voucher 8886 LEGISLATIVE COUNCIL ― 25 April 2018

Programme and I&T talent. Having said that, if members of the public are asked about their views after reading these paragraphs, I do not think they will consider there is much to do with them.

I am often asked by members of the public: After establishing the Innovation and Technology Bureau, the Government has invested heavily in technological development, but how does it make use of technology to help us solve the pressing problems? Take traffic congestion as an example. In many cities, technology has played a role in addressing the problems of traffic congestion and lack of parking spaces. In Hong Kong, after putting in substantial resources to set up the Innovation and Technology Bureau, there is no mention in the Budget how the problem of traffic congestion can be tackled by technology. In respect of electronic payment, we really lag way behind. After the huge investment, how long will it take for electronic payment to make a big leap in Hong Kong, so as to change our living habits and provide the business sector and young people with more business opportunities? Similarly, I do not see the Budget setting any goals on this issue.

President, these are just some of the examples. I am aware that the Budget has set aside resources for different policy areas, but it has not drawn any goals, concrete plans, visions or blueprints for service enhancement. Given these "three nos", if members of the public are asked whether they have confidence in our future health care system in, say, 5 or 10 years' time, or what are their expectations for our technological development by then, I do not think any of them can give a clear answer. In this connection, I urge the Financial Secretary or the SAR Government to take a bolder move by setting performance indicators for public services when adopting the new fiscal philosophy or the new governance approach, so that people can have a better idea on government effectiveness.

President, this is the 10th year that I listened to the Budget in this Council; it is also the first year that I visited Beijing to attend the sessions of the National People's Congress and the Chinese People's Political Consultative Conference ("CPPCC") in my capacity as a member of the National Committee of CPPCC, and listen to the work report delivered by the Premier. On both occasions of listening to the delivery of a report, I had completely different feelings. This year, I listened to the Premier's report in the Great Hall of the People in Beijing. It is a special year in the sense that it is the first year of the Five-Year Plan and at the same time the 40th anniversary of the reform and opening of the country. LEGISLATIVE COUNCIL ― 25 April 2018 8887

Over the past 40 years of reform and opening up, it has been the practice of the country to deliver a work plan once every five years. After the implementation of eight work plans, the country has risen from poverty to today's success. I am sure we all witness the great leaps of the country in the areas of politics, economy, military, diplomacy, culture and people's livelihood brought by the eight Five-Year Plans. Such achievements have even attracted worldwide attention.

In contrast, in the past the Hong Kong Government seldom made medium- to long-term planning and rarely reviewed its work when delivering policy addresses or budgets. To put it plainly, the Government should submit report cards and set goals for its future tasks. That is why I, after listening to the Premier's report and the Budget, have confidence that the country can achieve its goals in the next five years or at least move towards the goals, but I do not feel the same for Hong Kong … I know that the Financial Secretary is dedicated to his work and the Directors of Bureaux are willing to take up responsibilities. However, after making such a huge investment, what will be the outlook of our health care system five years later? To what extent will the waiting time for elderly homes be shortened five years later? We really do not have the answers for the public. To be honest, if even we do not know the answers, how can the public have any idea? They indeed do not have much confidence in the improvement. Therefore, I do hope that the SAR Government will learn from the country by developing a work plan every five years, reviewing its performance annually, submitting report cards and setting clear goals.

President, social tensions have greatly been eased some 10 months after the current-term Government taking office. The public are well aware of the huge efforts made by the Chief Executive, the Secretaries of Departments and the Directors of Bureaux. Meanwhile, the Central Government and the SAR Government has effectively countered the radical forces advocating "Hong Kong independence". Given the relatively harmonious social atmosphere, I urge the Government to make the best use of time and focus on solving the deep-rooted social conflicts.

President, I can see the efforts of the current-term Government, and its accomplishments should be commended. In my view, the Government is very active in promoting economic diversity and improving business environment by capitalizing on the opportunities brought by the Belt and Road Initiative and the development of the Bay Area and playing the role of "super-connector", etc. As 8888 LEGISLATIVE COUNCIL ― 25 April 2018 the incumbent Secretary for Commerce and Economic Development is busy with overseas duty visits, Under Secretary Dr Bernard CHAN often has to attend meetings in the capacity of Acting Secretary. This reflects that the Secretary for Commerce and Economic Development attaches great importance to overseas trade promotion. Also, the Chief Executive has honoured her election pledge by offering small and medium enterprises with tax concessions to ease their burden. All these are the positive achievements of the Government.

After the commendation, I must raise my criticism. I am most discontented with the unsatisfactory performance of the Chief Executive and her team in addressing land and housing problems after taking office. In fact, we can easily know from opinion polls or random interviews in the community that housing is the biggest concern of the people. Hong Kong has the highest property prices on earth. It takes a person 20 years without spending money on food to buy an ordinary flat. Time flies and 10 months have gone by. What has the current-term Government done to address the housing and land problems? The Financial Secretary once "talked the talk" that he would consider introducing a vacant property tax, but we did not see him "walk the walk" afterwards.

The general public are still plagued by the difficulties in home ownership. While there are currently more than 150 000 people waiting for public rental housing and 90 000 households living in subdivided units, the housing supply under the Home Ownership Scheme limits to 5 000 flats a year. The supply is no match for the demand. The Task Force on Land Supply will launch a large-scale consultation exercise this Thursday. Frankly speaking, I am quite disappointed with the approach taken. Repeated consultations cannot bring any action before reaching a conclusion. Yet, there are only five years in each government term. Will the current-term Government be able to boost land supply after this consultation exercise? I do not think so. As a matter of fact, all land production proposals will draw support and opposition at the same time. If the Government wishes to draw a conclusion from the large-scale consultation, I am afraid it will just be a waste of time without making any progress in dealing with the serious problems.

President, as Secretary Dr LAW Chi-kwong is present right now, I must take this chance to say that on top of the land issue, I am also very unhappy with the mindset of the Government in providing elderly care. I remember clearly that when I asked Secretary Dr LAW Chi-kwong at the special meeting of the Finance Committee whether he would consider providing non-means tested "fruit LEGISLATIVE COUNCIL ― 25 April 2018 8889 grant" to elderly persons aged 65 to 70, he candidly said "no" to me. I was very disappointed with his answer. I recall that the Chief Executive once told us that retirement protection could only be improved step by step before solving the funding problem. However, when social conditions are ripe, with one of which being the huge fiscal reserves, we should think more for the elderly. I know that the Secretary is working hard to solve the problems with the residential care homes but elderly persons aged between 65 and 70 should be allowed to receive "fruit grant" without going through a means test. This suggestion only involves the extra provision of some $1,000 to the elderly. How come the Government refuses to think about it? The Secretary did not even bother to consider this suggestion. President, I do not think (The buzzer sounded) … his response has lived up to our …

PRESIDENT (in Cantonese): Please stop speaking.

MR TOMMY CHEUNG (in Cantonese): President, the incumbent Government's first Budget has met with a mix of positive and negative comments. As regards how the Government is to dole out sweeteners to share with the public the fruits of our economic success, opinions are mixed.

The Liberal Party is overjoyed to find that this year's Budget has, when compared with the past, paid more attention to the needs of the middle class and some of the initiatives proposed are very close to the Liberal Party's recommendations. In many ways, they are more positive and pragmatic.

The Liberal Party welcomes the Financial Secretary's acceptance of our proposal to widen the tax bands for salaries tax from the current $45,000 to $50,000 and increase the number of tax bands from four to five. This is a good start as some livelihood burdens of the middle class can be eased.

However, the Liberal Party is disappointed with the measures relating to the profits tax. Although the Government has adopted the two-tiered profits tax rates regime, it has shifted the focus and has not made good on its promise of resetting the profits tax rate to the original 15%. Do not forget that back then, when the Government had financial deficit, the business sector agreed to tide over the difficulties by raising the profits tax rate to 16.5%. The sector expected that the original tax rate would resume when the economy recovered. The then 8890 LEGISLATIVE COUNCIL ― 25 April 2018

Financial Secretary also made such a promise. Given that the Government has a huge surplus, and that some countries in the region are offering various tax reductions and tax concessions to attract foreign investment, the Government has paid no heed to our demand. The business sector is greatly disappointed.

Another failure of this year's Budget is that unlike the past few years, the Government has not waived the licence fees of restaurants, hawkers and the Restricted Food Permit. As many small and medium enterprises ("SMEs") have not made any profits, they have all along been unable to benefit from the profits tax rebates, and at most they can only benefit from the rates waiver from the rents they pay. This year government revenue has reached record high but there are even fewer measures to benefit SMEs, which is a far cry from their expectations. This shows that the authorities have no idea about the difficulties faced by small businesses. In recent years, as the operation costs of restaurants continue to rise, operators of small restaurants may have to work harder than their employees, and very often they cannot even afford to get paid. Very often, owing to manpower shortage, these owners and their family members may even have to wash dishes and clean the toilets.

President, although the Government has already introduced the minimum wage and paternity leave, trade unions have kept making more and more demands, such as stipulating standard working hours, increasing the minimum wage rate, extending the paternity and maternity leaves, providing better benefits for workers and aligning statutory holidays with public holidays. Now, they are fighting for the abolition of the mechanism for using Mandatory Provident Fund contributions to offset severance payments ("offsetting mechanism"). It can thus be said that the survival conditions of SMEs have continued to deteriorate. On the contrary, workers' wages continue to rise. Many young people prefer taking up easier jobs, such as security guards, or higher-paid jobs, such as construction workers. Yet, even the security service sector is still in short supply of manpower; the manpower shortage problem of the catering sector is particularly serious.

It is gratifying to note that the idea of recruiting overseas talent has been mentioned in the Budget. The Financial Secretary has also realized that the lack of manpower resources in Hong Kong is so acute that economic growth has been hampered. However, Financial Secretary, it seems that the Director of Bureau sitting behind you is only concerned about the abolition of the offsetting mechanism, and has not considered labour importation. He is smiling at me. It LEGISLATIVE COUNCIL ― 25 April 2018 8891 seems that other government departments have not considered this issue as well, and have failed to put forward any specific proposals or implementation timetable, which is quite disappointing.

The problem of manpower shortage in many other trades and industries is even more serious than that of the catering industry. For example, the lack of professional drivers and care workers in elderly homes has caused great hardship to the relevant industries. In the case of cross-border truck drivers, if the authorities can relax the restrictions by slightly increasing the number of Mainland truck drivers to Hong Kong, the problem can be solved, but the Government just refuses to do so.

President, I have always appreciated the work of the Efficiency Unit, previously under the Chief Secretary for Administration's Office. In the past, the Unit, as in the case of the Office of The Ombudsman, identified the problems concerning government bureaucracy and took the lead to coordinate relevant government departments to discuss with the business sector for solutions. It had formulated many measures to make improvements, facilitate business operation and enhance the efficiency of the departments concerned. However, this year, with reasons unknown, the Efficiency Unit is placed under the Innovation and Technology Bureau. I am gravely disappointed about this arrangement.

I do not think innovation and technology alone can facilitate business operation. For example, when it comes to liquor licensing, the Police have all along adopted the century-old mentality of regulating vice, gambling and narcotics. The Liquor Licensing Board arbitrarily imposes excessively stringent licensing standards on restaurants. If government departments do not change this inherent mentality, innovation and modern computers will not be of any help.

The Efficiency Unit and the Business Facilitation Advisory Committee under it have provided an excellent platform for industries to negotiate with government departments the measures to remove barriers. In recent years, the Government has accepted our proposal to put in place a risk assessment mechanism when vetting the licence renewal applications. A pilot scheme has been introduced in respect of liquor licensing, under which the validity of liquor licences of restaurants with good records will be extended from one year to two years. This is a good example. After a trial of over two years, it has been proved that this mechanism can speed up the liquor licence renewal process. The authorities should apply the same mechanism to restaurant licensing, 8892 LEGISLATIVE COUNCIL ― 25 April 2018 extending the validity of the licence of restaurants with good records from one year to two years, so as to reduce the workload of the departments concerned. The manpower saved can then be deployed to speed up the processing of other licence applications.

Hence, I do not understand why the Government has to transfer the Efficiency Unit out of the direct ambit of the Chief Secretary for Administration's Office. But since it is history now, I can only urge the authorities to ensure that even though the Efficiency Office has been restructured, it will maintain the interdepartmental cooperation mode, so as to avoid going into another extreme by depending solely on innovation and technology when trying to resolve problems.

President, to be consistent with the incumbent Government's emphasis on "new government and new mentality", I advise the Government to urge the Environment Bureau and the Environmental Protection Department to abolish the bad practice of "beating the donkey with the stick" only; and instead, it should give out "carrots" such as tax concessions. What I am saying is that the two departments should not think that charging heavy levies can reduce emission and waste and they need not encourage or educate the public to reduce waste through measures such as separating waste at source, waste recovery and recycling.

It cannot be denied that the Government has, over the past 20-odd years, advocated the ideas of "users pay" and "polluters pay", the favourite tactic of the Financial Secretary, so as to convince the public to accept many new additional charges. However, as the Treasury is flooded with money today, is cost recovery still a must? To put it simply, when a person reports a case to the Police, will the Police ask the person to pay first before handling the case? Hence, cost recovery is not always the golden rule.

President, after talking about the problems of the above industries, I would like to talk about three major livelihood problems faced by Hong Kong people today. The first is the deep-rooted problem of housing.

There are two problems that should be addressed urgently. First, the living conditions of low income earners are worsening and the waiting time for public rental housing ("PRH") is getting longer and longer; and second, how to help young people buy their own homes.

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In this respect, will the Government increase PRH supply expeditiously and provide a proper home ownership ladder? In my view, one of the possible solutions is to speed up the turnover of PRH units. My suggestion is that if suitable sites are available in the near future, they should all be used for housing development under the Green Form Subsidised Home Ownership Scheme and the Interim Scheme to Extend the Home Ownership Scheme Secondary Market to White Form Buyers, so as to help green form buyers attain home ownership and vacate their PRH units to be allocated to PRH applicants on the Waiting List. As regards whether this will affect the supply of private flats, I think the Government needs not worry too much at the present stage as private developers have plenty of land sites and they are also very resourceful. The authorities should focus on speeding up the PRH turnover or constructing more PRH units. These are the pressing tasks. In recent years, many parents waiting for PRH allocation only allow their children to work after being allocated a PRH unit, for fear that their household income will exceed the limit. Consequently, there is a lack of young people joining various trades and industries, the catering industry in particular. What is to be done about that?

Moreover, the Government should consider abolishing the policy of pricing Home Ownership Scheme ("HOS") flats at a discount of the prevailing market price; instead the prices should be set on the basis of the construction cost. The authorities can consider revising the present requirement of payment of land premium for selling HOS flats, so as to avoid being perceived to be unfair by the middle class. The authorities can consider requiring the seller of an HOS flat to share the selling price at a ratio to be negotiated. As such, the prices of HOS flats can be lowered expeditiously, which in turn will lower the home ownership threshold for the middle and lower classes.

I understand that the Government has met many difficulties in identifying suitable sites for housing construction. For example, land reclamation will affect the view and the resentments thus arisen cannot be pacified easily. However, the Government should not be frustrated and can first select sites that are easier to deal with. For example, a large area of land will be made available after the relocation of the Shatin Sewage Treatment Works, which can be used for building many residential units. It is true that owing to the limitations of the roads, the traffic of the region can easily be heavily congested along Tai Po Road to Sheung Shui. In that case, will the Government consider adopting the practice in Discovery Bay and designate the region as an environmental protection zone, barring the residents from driving their own vehicles and only allowing the access of a limited number of vehicles?

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To put it simply, the Government can no longer rely solely on the "curb" measure to tackle the problems of high property prices and land shortage. It should use more innovative ideas to solve the housing problem.

Another livelihood issue I would like to talk about is health care, which has also been of great concern to the Liberal Party in recent years.

The Liberal Party commends the Financial Secretary for his out-of-the-box thinking in stating expressly in the Budget that he would ensure the Hospital Authority ("HA") has adequate resources to employ all local medical graduates. The Liberal Party hopes that this commitment can ease the worries of the medical sector, especially young doctors, that the admission of overseas doctors will deprive medical graduates of their employment opportunities, so that the policy on the admission of overseas doctors can be passed to alleviate the problem of acute shortage of local doctors.

I have repeatedly pointed out that even if the Government is willing to allocate more resources, increase public hospital beds and make effort to implement the ten-year hospital development plan, its efforts will be futile if there is only the hardware but not the software.

As private hospitals continue to expand in recent years, they have attracted many doctors from public hospitals, resulting in the public health care system being overloaded. The authorities should expeditiously find an effective solution to solve this problem.

The Liberal Party has long ago advocated that we should adopt the practice of Singapore to draw up a list of authorized training institutions for overseas doctors, so that medical students trained by those institutions can work in our public hospitals without having to sit for examinations. A mechanism should also be put in place to ensure that if these doctors meet the required standards during the probation period, they can apply to register as qualified doctors. This practice can help in attracting this kind of professionals to work in Hong Kong, in particular, in attracting children of Hong Kong people who study medicine abroad to return to Hong Kong and work. This proposal has gradually won the support of the majority of people in Hong Kong. The Government should grasp this opportunity to introduce a relevant policy in response to public demand.

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President, the Liberal Party welcomes the pledges made in the Budget to review the patient's co-payment mechanism under the Community Care Fund programme, extend the scope of subsidy and set aside $500 million for this purpose. However, money cannot resolve all problems. At present, the structure of the Hospital Authority ("HA") is multi-layered and the seven hospital clusters have adopted different policies, with each having its own Drug Management Committee and Drug Formulary. As a result, it takes a long time to approve drugs. For a new drug, the time taken from registration to being used by patients is as long as 23 to 40 months. Hence, even with the increase in drug subsidies, if HA and the relevant departments do not change this management style which fails to keep abreast of the times, the problem will never be solved.

Lastly, I would like to talk about education. The public have been greatly concerned about student suicide and emotion problems in recent years. The Liberal Party certainly welcomes the Government's pledge to provide more resources for public sector primary schools, and encourage such schools to strengthen social work and counselling services according to the principle of school-based management, with a view to ultimately achieving the target of one school social worker for each primary school. However, some schools have told me that the counsellors they employ also hold psychology and counselling degrees and during their studies, they had their internship training in schools. These counsellors have similar functions as social workers and sometimes they may even be better than social workers in helping to soothe students' emotions and prevent them from committing suicide.

Therefore, when I raised this point at the special meeting of the Finance Committee, though the authorities indicated that it would not ask schools to dismiss the counsellors already employed, I think they should broaden their vision and enhance the programme, changing the target from "one school social worker for each school" to "one school social worker or one counsellor for each school". The person employed must hold a degree in social work or psychology and his scope of work should be managing the students' families and emotion problems. This may better meet the original target (The buzzer sounded) …

PRESIDENT (in Cantonese): Mr CHEUNG, please stop speaking.

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MR TOMMY CHEUNG (in Cantonese): … so that the money can be used for a good cause.

MS CLAUDIA MO (in Cantonese): It is said that the Hong Kong Treasury is awash with cash and the main source of cash comes from land sales revenue. It is said that land is sold to the highest bidder and we call it the high land premium policy, people with more money can buy more land. In recent years, most of the successful bidders are consortiums from Mainland China and we call them the "red capital". When they pay a high price for the land, they will certainly recover the costs upon completion of the building construction. As a result, the high land premium policy will sustain. At the same time, the Government claims that there is a short supply of land. There is indeed insufficient land for public housing development in Hong Kong.

Today Frederick MA, Chairman of MTR Corporation, suggested developing a Hong Kong town in the Mainland, facilitating further integration between China and Hong Kong. That is totally inconceivable. When Hong Kong is pushed to further integrate with China, Hong Kong will lose its uniqueness and Hong Kong people will lose their status and identity. The Government has completely distorted the principle of public finance management in the name of land sales. The Government also states that no particular measures have been put in place to stop Mainland developers from buying land in Hong Kong. Even the right-hand man of LI Ka-shing also said that they were incapable of competing with the financial giants armed with Chinese capital. Hong Kong is doomed in the hands of the Government.

The Government is a total hypocrite. It claims that it has a new fiscal philosophy regarding the management of public finance. What is the new philosophy? That is unmistakably a black hole. No matter how hard the Government tries to whitewash it, it is still a black hole. The Government tells us that it is implementing a new fiscal philosophy, and all officials spared no efforts to mock John TSANG, the former Financial Secretary, calling him scrooge and accusing him of clinging on the principles stipulated in Article 107 of the Basic Law, namely, to keep expenditure within the limits of revenues and achieve a fiscal balance. They said that the incumbent Government did not need those criteria any more.

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Some asked you to hand out money and forget about any long-term expenditures and long-term development. People no longer trust this Government. They do not care about the development in the next 20 or 30 years. There are already too many "white elephant" projects, including the Express Rail Link and the Hong Kong-Zhuhai-Macao Bridge. The Hong Kong Government initially said that handing out money was against the guiding ideology and refused to take this action. While those words were still ringing in our ears, you suddenly said you would hand out money. But still people scorn you for handing out money. Such a situation is really inconceivable. This picture is produced by Stand News, an online news agent. Just take a look at how it depicts Paul CHAN's chaotic policy to give cash handouts. It is totally chaotic and intolerable. Application will only be accepted in February next year and the complexity of the whole process is just beyond our imagination.

According to the latest instruction of the Government, people who own some part of a property can also apply for the handouts but the amount they get is the difference between $4,000 and the amount of rates exempted. Wouldn't it take a great deal of manpower and time to make the calculation? I learnt that the administration cost alone will incur $330 million. I am not surprised at all. It is shameful how you hand out money. You really owe John TSANG an apology. The way John TSANG handed out money and the way you hand out money …

PRESIDENT (in Cantonese): Ms Claudia MO, may I remind you that Members should address the President when they present their views. Please take note of this point. When you spoke just now, you repeatedly used the pronoun "you", but I have no authority to hand out money. You should use the term "the Government" instead …

MS CLAUDIA MO (in Cantonese): The pronoun "you" refers to government officials. I presented my views to government officials through you as the President and I have always presented my views to the President.

PRESIDENT (in Cantonese): When Members speak, they should present their views to the President. If Members refer to the Government when they speak, they should use the term "the Government".

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MS CLAUDIA MO (in Cantonese): Someone describes the Government as a "dream team". No doubt it is "dream" as all government officials are dreaming, daydreaming about their own interest. This is an issue about their "power" and "interest".

In each year's Budget of the Hong Kong Government, the biggest expenditure is surely on education. But if we look closely, we will find some very strange expenditure items. Members may not have noticed the international exchange programmes mentioned in the Budget. In 2017-2018, over 300 people participated in those programmes and it is estimated that over 1 000 people will participate in 2018-2019. The expenditure on these international programmes was only $5 million in the past but the expenditure for the coming year will be three times of that, amounting to $15 million. It seems to be very good, as the base amount is very low.

Look at another programme. Last year, over 20 000 people participated in Mainland exchange programmes and the expenditure was $36 million. This year, the number of expected participants is the same and the expenditure is slightly increased to about $40 million. If we take a closer look, we will find another programme providing internship in the Mainland and all the expenses are paid from public coffers. Last year, 3 400 people participated in this programme and $75 million was spent. This year, the number of participants is increased by 200 to 3 600 but the expenditure shoots up to over $100 million. How come an increase of 200 people will incur an increase in expenditure by 25% of last year? How does the Government spend money? How come the expenditure for international exchange programmes is so little while the expenditure for Mainland exchange programmes is so big? It is totally beyond me.

The intent is just too obvious to miss. The dispute involving history textbook is known to all. At a meeting of the Finance Committee, when the Secretary for Education was having a dialogue with Members, he suddenly took the initiative to say, for no reason at all, in a politically correct manner that there was no such thing as recovery or transfer of Hong Kong's sovereignty. That was very weird indeed. It was stipulated in the Treaty of Nanking signed in 1842 that the territory of Hong Kong was ceded permanently to Britain; and later on by the Convention of Peking signed in 1860, the part of Kowloon Peninsula south of Boundary Street was ceded permanently to Britain. Government officials keep stressing that according to the Basic Law, China only resumed sovereignty over Hong Kong and there was no such thing as recovery or transfer of sovereignty. LEGISLATIVE COUNCIL ― 25 April 2018 8899

Stop playing with words! What kind of a government is this? Parents already have to pay a lot for textbooks, and what kinds of textbooks are used to teach students now? If China never acknowledges the unequal treaties signed by the Qing Government at that time, then tell me what happened in Hong Kong on 1 July 1997? On that day, there was a hubbub in the city with beating of gongs and drums. If it was not to celebrate China's resumption of sovereignty over Hong Kong, what was it?

Carrie LAM said we must use more precise wording and we should not wear coloured glasses. But the one wearing coloured glasses is Carrie LAM herself. I wonder if she understands what it means by history. She was once the Assistant Secretary for Security years ago and she also held different directorate positions in various departments in the British Hong Kong Government.

In the name of education, the Financial Secretary allocates $300 million to the Ocean Park to develop the so-called "eco-tourism", claiming that students will benefit. Buddy, the Ocean Park is a statutory organization and should be self-financed. The one who said "the Ocean Park is a park of Hong Kong people" is not present now. He said that since the Ocean Park belonged to Hong Kong people, subsidy should be provided. Well then, since Hong Kong style cafes and Dai Pai Dong are struggling to maintain their business, will the Government provide subsidy to them as well? As regards the so-called "eco-tourism", there are plenty of eco-tourism sites in Hong Kong. People can go to the Hong Kong Wetland Park to really get in touch with Mother Nature, instead of seeing caged animals.

We are now in the new era and there are new viewpoints on human civilization. Many big cities in the world are gradually closing up parks similar to the Ocean Park. You still ask students to watch dolphins jumping out of water or animals eating and playing in cages, and you call that eco-tourism? That is absolutely shameful. And then the $300 million provision to the Ocean Park also includes the expenditure on promoting the Ocean Park in the place where most customers come from, which I guess everyone knows where it is, the Mainland of course.

Hong Kong people have avoided going to the Ocean Park in the past decade as they have been scared off by swarms of Mainland tourists. Now the Government proposes to attract even more Mainland tourists to the Ocean Park, which is putting the cart before the horse. I hope that the Government will think 8900 LEGISLATIVE COUNCIL ― 25 April 2018 twice. The allocation of $300 million to the Ocean Park is just beyond me. The Government should not dole out this kind of relief. At the same time, the Government has especially earmarked $3 billion to the Hong Kong Science and Technology Corporation for the sake of animals. I have asked the authorities time and again how much money will be spent on animals out of the $3 billion set aside for facilities, including those for animal experiments. I have not got any answers yet. The authorities' only response is that the issue will be discussed by the Panel on Commerce and Industry first and then by the Finance Committee. This is really mind boggling.

Let me reiterate, according to the spirit of new human civilization, animal experiments should be avoided as far as possible. Of course, certain experiments have to be carried out for the sole purpose of saving human lives, such as finding cure for cancer and AIDS, and guinea pigs are used in such experiments. I will not argue with you for the time being about such experiments as it seems there is still such a need. However, such experiments are still conducted for the benefit of human beings. We use our benefits as an excuse to ignore the suffering of animals.

In Mainland China, animals are still used for testing cosmetic products. Oddly enough, China requires all imported cosmetics to have been tested on animals, as if the safety standards of other countries for cosmetics are inferior to that of China. That is a little strange but it does not matter. Nowadays, are animals used in Hong Kong to test the safety of cosmetic products? The authorities indicated that of the $3 billion provision to the Hong Kong Science and Technology Corporation, no money will be spent on animal experiments for cosmetic products. However, animal experiments are still conducted in universities in Hong Kong. Will the authorities provide the statistics in this regard?

One should never underestimate the suffering of animals. We always talk about the rights and interests of animals but that is not purely a matter of animal welfare. There is no statistics for the last year but in the four years before last, over 1 000 cats and 1 000 dogs were sacrificed for that purpose. This is human being's hypocrisy as they classify animals into different classes, while eating pigs, cattle and sheep is allowed, eating cats and dogs is prohibited by law. But there are new definitions for human spirit. How can these basic definitions be implemented in Hong Kong?

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In combating cruelty to animals, the Government only relies on the Prevention of Cruelty to Animals Ordinance, hoping that Hong Kong can thus become a city that is not unfriendly to animals. The government funding in this area is only $3 million this year. However, the money set aside for dealing with stray animals, which I call "community animals", is over $33 million, 11 times of the former. From this we can see that in the eyes of the Government, dealing with animal right is just like dealing with people. It makes little effort to tackle the problem itself but uses a lot of force to suppress the person who points out the problem. This is totally a matter of putting the cart before the horse.

I hope that if I keep talking about this, the Hong Kong Government will finally realize that both animals and human beings have rights. Thank you.

MR CHAN CHUN-YING (in Cantonese): President, the SAR Government announced in this year's Budget that it would have an estimated record-high surplus of $138 billion in the 2017-2018 financial year, with the fiscal reserves being expected to reach $1,092 billion. The Government decided to share with the community about 40% of the annual surplus, i.e. $52 billion, and use the remaining for improving services and investing for the future by way of investing heavily in innovation and technology, strengthening the traditional pillar industries, attracting and training talent, investing in various infrastructures, enhancing the competitiveness of Hong Kong and improving people's quality of life. After the delivery of the Budget, there were strong demands in society for widening the coverage of measures to share fruits of success. A few weeks later, the Government decided to launch a new Caring and Sharing Scheme. If we take into account this "gap-plugging" measure, the "candies" to be dished out will amount to a record high of almost $64 billion. Unexpectedly, the willingness of the Government to share its huge surplus with the community has, for no reason, given rise to a happy problem. Anyway, I will support the Budget as it will bring benefits to the public as well as to the long-term development of Hong Kong.

Today, I would like to speak on the measures to deal with fiscal surplus, the long-term fiscal planning and the development of the financial sector.

Firstly, how fiscal surplus should be handled. According to Fiscal Monitor published by the International Monetary Fund last October, among the 35 developed economies being monitored, only 15 of them were expected to have surplus in 2017; and Hong Kong topped the list with a fiscal surplus amounting to 8902 LEGISLATIVE COUNCIL ― 25 April 2018

5.2% of its Gross Domestic Product ("GDP"). Hong Kong, South Korea, Norway and Singapore were the few economies which had recorded fiscal surplus for each of the past 10 years.

While many governments around the world are in straitened conditions and have to raise loans for economic development, the SAR Government has, under the principles of prudent financial management and keeping its expenditure within the limits of revenues over the past two decades after the reunification of Hong Kong with China, grossly underestimated its budget, resulting in getting record-high surpluses year after year. Although Hong Kong was hit by the burst of the dotcom bubble, the SARS incident, etc. between 1998 and 2004, leading to an accumulated fiscal deficit of close to $200 billion, our fiscal reserves managed to double from some $400 billion at the time of reunification in 1997 to the latest figure of over $1,000 billion. Adding this figure to the accumulated surplus of the Exchange Fund, which exceeds $700 billion, and the Housing Reserve of around $80 billion, Hong Kong's disposable reserves will be close to $2,000 billion, excluding the surplus of government funds of $120 billion in the Consolidated Account. Some people even say that Hong Kong has a structural fiscal surplus.

This Budget manifests the boldness of the SAR Government in investing for the future and its willingness to adopt a new fiscal philosophy. It is what I expected from the new Government when I spoke in the Budget debate last year. According to the Budget, it is proposed that public expenditure will increase slightly from 20% to 21% of our GDP. Given that Hong Kong's GDP stood at $2,660 billion in 2017, 1% of it means $26.6 billion. It is unlikely that the 1% increase in public expenditure will, in any way, affect the fiscal stability of the Government.

Hong Kong has no lack of financial resources. What we need is a new public finance philosophy to guide an effective investment of surplus in different domains of Hong Kong, including housing, infrastructure, health care, elderly care and education, so as to maintain and enhance our overall competitiveness, improve people's quality of life and health, make Hong Kong a better place to live and work in, and give people hopes. In view of the huge government surplus, it is high time for us to consider whether a cap should be set for our fiscal reserves. My suggestion is that in any financial year when the amount of fiscal reserves exceeds the cap, the Government should boldly adopt deficit budgeting to increase funding for expeditiously handling social problems such as housing.

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I must clarify that it is never a problem to have hefty reserves. What matters is how the reserves can be put to good use and will not be managed in a way to simply maintain the basic purchasing power. As the Government is in charge of managing public money, which is a fortune accumulated by the public over the years, I urge the Government to adopt forward-looking and strategic financial management principles in optimizing the use of surplus to invest for Hong Kong and relieve our people's burdens.

Secondly, the enhancement in long-term fiscal planning. President, it is important for us to consider how Hong Kong can maintain healthy public finance. Despite persistent fiscal surpluses, there are weaknesses in our financial structure which are difficult to overcome. A narrow tax base and the overreliance of land revenue are our long-standing problems. Hong Kong is actually doomed to have a narrow tax base under the simple and low tax regime. This view is supported by the fact that in 2015-2016, about 51% of the working population did not need to pay salaries tax and 5% of taxpayers contributed 63% of the total revenue from salaries tax. Besides, around 91% of corporations did not need to pay profits tax while some 5% of corporate taxpayers contributed 86% of revenue from profits tax. Tax concessions granted in consideration of the huge surplus have further narrowed the tax base.

It is difficult to find a perfect solution to this problem. If any new taxes are introduced, our low, simple and competitive tax regime will lose its appeal. On the other hand, as Hong Kong consistently runs a fiscal surplus, the public will object to the widening of tax base. Nevertheless, I think the Government should rise up to challenges amid controversies by actively considering whether new taxes, such as the vacant property tax hinted lately, should be introduced.

As for liabilities, the Government still has some unfunded commitments and liabilities, including civil service pensions, outstanding commitment for capital works projects and government guarantees for various liabilities. Yet, as these commitments and liabilities are not required to be paid off in a single financial year but have long repayment periods, the Government may deduct the present value of the liabilities to get the amount of the remaining financial resources, so as to decide on how the resources should be used.

The Government should set up a dedicated reserve fund for its remaining financial resources in order to make long-term investment. These resources should include not only the annual cash surplus but also the large number of sites 8904 LEGISLATIVE COUNCIL ― 25 April 2018 and properties owned by the Government. Currently, properties under the management of the Government Property Agency include over 20 000 residential units, offices totalling over 1 million sq m and sites exceeding 170 000 sq m in area. If the rental income from government canteens, car parks, automatic teller machines, etc. is also taken into account, Hong Kong will indeed have more than $2,000 billion of disposable reserves. It is necessary for Hong Kong to save its remaining fiscal surplus and assets for the sake of tackling population ageing and meeting other long-term fiscal challenges.

If we take this as the starting point, Hong Kong should have its own wealth management fund. Over the past few years, sovereign wealth funds ("SWFs") have boomed all over the world. According to the estimates of the Sovereign Wealth Fund Institute, SWFs around the world amassed $7,200 billion in assets in 2016. Norway's SWF, the world's largest SWF in asset terms, has its funds coming from oil export revenue, the Government's foreign exchange reserves generated from trade surplus, as well as fiscal surplus. Its investment returns are used to pay for the health care expenses and pensions of Norwegian nationals. By investing in growth investment tools since 1996, the SWF in question grew to over $1,000 billion in assets in 2017, with the return on investment reaching 13.7%. Its investment is characterized by a diversified portfolio (comprising stocks, bonds and properties) and strategic investment.

President, a few years ago, the SAR Government injected a sum of $220 billion from the Land Fund, plus some of its annual surplus, into the Future Fund, which was then handed to the Hong Kong Monetary Authority ("HKMA") for investment to gain higher returns. The Future Fund, however, is quite different from the wealth management funds of other places in terms of operation. The SAR Government should learn from Norway's example of how to make use of fiscal reserves wisely and study actively the investment approaches and strengths of other successful funds.

While the Government has set up numerous small funds in the past, it never explains in its annual Budget how the development of these funds can be sustained. Instead, it just keeps on injecting into those funds according to the needs in a particular year. For example, this year, the Government will inject $10 billion into the Innovation and Technology Fund, another $5 billion into the Elite Athletes Development Fund, $1.5 billion into the Dedicated Fund on Branding, Upgrading and Domestic Sales, and $1 billion into the SME Export Marketing and Development Funds. The Government should change its current LEGISLATIVE COUNCIL ― 25 April 2018 8905 practice of allowing its funds to decide whether their money should be managed by HKMA. It should consider standardizing the investment approach of different types of funds to provide them with self-financing funding through the annual distribution of dividends. These funds can then attain financial self-sufficiency and sustain their development.

Lastly, the Budget should give more support to maintain the development of the financial industry and strengthen financial integration. In this Budget, the Government has shown its determination in developing the financial industry. Apart from proposing to set up an academy of finance to upgrade our financial talent pool, it also supports the development of green finance in Hong Kong by proposing to launch a green bond issuance programme of $100 billion to provide funding for green public works projects of the Government. Moreover, the Government will offer grants to eligible enterprises issuing bonds in Hong Kong for the first time to attract local, Mainland and overseas enterprises to issue bonds in Hong Kong. It has also proposed to amend the qualifying debt instrument scheme by increasing the types of qualified instruments. In addition to instruments lodged and cleared by the Central Moneymarkets Unit of HKMA, debt securities listed on the Stock Exchange of Hong Kong will also become eligible.

However, it does not seem to be adequate for the Budget to set aside a dedicated provision of only $500 million for the development of the financial services industry in the coming five years. In the next five years, the financial industry will have to strengthen its development in financial technology and will be presented with the opportunities brought by the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Bay Area ("the Bay Area"). I therefore advise the Government to increase the dedicated provision as appropriate in order to seize the opportunities presented to us.

The planning of the Bay Area is crucial to the future development of Hong Kong. Among the 11 cities in the Bay Area, Hong Kong and Macao are the two international cities which have already connected to the global economy as well as the whole world. Hong Kong and Macao are also separate customs territories with the status of free port. As for the nine other cities in the Pearl River Delta ("PRD"), though they are closely related to the global economy and have become the major investment areas of multi-national corporations as well as the largest import/export and global manufacturing bases in China, they are yet to be connected to the global economy and are not fully internationalized. The "two" 8906 LEGISLATIVE COUNCIL ― 25 April 2018 and "nine" cities mentioned above can still be divided into two or even three groups among which a seamless flow of people, goods, information and capital and a convenient socio-economic system are yet to be established.

With regard to the planning and development of the Bay Area, innovation in systems and institutions is the most difficult and yet the most crucial part. It is particularly difficult to strike a balance between full integration of the Bay Area and maintenance of "one country, two systems". For example, it is now very inconvenient for a resident of the Bay Area to open a bank or investment account in a non-residing city because account opening involves the stringent requirements imposed by regulatory authorities and the limitations posed by access conditions. If the requirements for account opening and the access conditions can be relaxed in the Bay Area, the residents therein will be able to manage their wealth more effectively.

Furthermore, at present, if business enterprises in the nine PRD cities obtain loans from, or provide loan guarantees to, financial institutions in Hong Kong or Macao, the loans in question will be considered as foreign debts and hence subject to the cumbersome provisions on the management of foreign debts. If loans and various financing or loan guarantees and securities in the Bay Area are no longer considered as foreign debts, and enterprises in the Bay Area are allowed to freely engage in financing, and provision of guarantees and securities in the 11 cities in the Bay Area, the capital flow in the region will be greatly promoted.

Although I cannot tell clearly how many resources should be put in for this kind of ideas and development directions, if the funds in the Budget can be reallocated as appropriate to give sufficient support, the relevant policy study should be able to complete expeditiously.

President, around the world, few economies can manage to have fiscal surpluses persistently. While each year Hong Kong people have argued incessantly about the "candies" to be dished out and the level of their "sweetness", it is my hope that Hong Kong will continue to have the happy problem of recording fiscal surplus every year.

I so submit. Thank you, President.

LEGISLATIVE COUNCIL ― 25 April 2018 8907

MR LEUNG CHE-CHEUNG (in Cantonese): President, the main feature of this year's Budget is giving cash handouts and everyone is counting how much they can get.

Whether it is the caring and sharing proposal put forward by the Financial Secretary initially to hand out cash or the "gap-plugging" remedial proposal announced subsequently, both have the same philosophy of sharing the fruits of Hong Kong's economic success with the people. The Democratic Alliance of the Betterment and Progress of Hong Kong ("DAB") greatly welcomes this principle and direction. However, the chaotic approach adopted by the Government in handing out cash is regrettable, bringing more boos than applauses. To be fair, there are no perfect policies or proposals in the world. A new policy very often needs to undergo a baptism of environment and time before it becomes perfect and meets public needs.

It is not a new thing for the Financial Secretary to hand out money. The former Financial Secretary handed out $6,000 in 2011 to all people holding a permanent Hong Kong identity card. The administration cost then was about $200 million. The cash handouts proposal is far more complicated this time, requiring vetting of application and calculating the amount of difference. The money will also be handed out in phases. Members of the general public are confused. In fact, when public officers attended the meeting of the Panel on Welfare Services on 9 April, they indicated that they did not know the details and process of handing out cash. Offering cash handouts should be a desirable measure to please the public, but owing to the cumbersome administrative procedures, people have negative feelings about the initiative. The Government is doing a disservice out of good intentions and directly causing a bad impression of the Government.

DAB thinks that money should only be handed out to people and incidents with genuine needs. When the Government announced the introduction of the additional relief measures, we advised the Financial Secretary that if more people were to share the fruits of economic success, the target beneficiaries should include tenants of public rental housing ("PRH"), low-income people who are ineligible to apply for the Low-income Working Family Allowance, young elderly people aged between 60 and 64 and also young people who just join the workforce. We also suggest that the Government pay the rent for PRH tenants, subsidize electricity charges, urge the Community Care Fund to propose specific relief measures, relax the application criteria and extend the subsidy scope to 8908 LEGISLATIVE COUNCIL ― 25 April 2018 benefit more non recipients of Comprehensive Social Security Assistance ("CSSA") and low-income non-PRH tenants. Moreover, the Government should also waive students' repayment of the means-tested loans applied under the Tertiary Student Finance Scheme―Publicly-funded Programmes.

President, in this financial year, the Government has a record high surplus of over $100 billion and hence it is well capable of making longer-term commitments to the public, especially the underprivileged and the elderly. Take for example the allowance for carers of disabled persons. The Pilot Scheme on Living Allowance for Low-income Carers of Persons with Disabilities aims at providing financial assistance for the carers of disabled persons to supplement their living expenses. At present, each eligible carer receives a monthly allowance of $2,000. If a carer takes care of one more person with disabilities at the same time, the allowance he gets doubles the amount, totalling $4,000. Most of these carers are family members or close relatives of the disabled persons. They are most familiar with the persons under their care and hence they are most suitable to take up this responsibility. They are willing to give up their original job to take up this responsibility. Although they are responsible for ordinary caring work, they are actually working as care worker.

Nowadays, it costs a lot to train a care worker. I believe Members are familiar with the Navigation Scheme for Young Persons in Care Services ("the Scheme"). Starting from 2015-2016, the Social Welfare Department has provided in phases a total of 1 000 training places under the Scheme to encourage young persons to join the elderly and rehabilitation care services. In 2015-2016 and 2016-2017, the actual expenditures under the Scheme were $24,700,000 and $56,300,000 respectively. Despite the large amount of money spent, the ratio of trainees joining the industry … As at the end of December 2017, there were a total of 465 students enrolled in the Scheme and 99 students graduated. According to the information provided by students at their graduation, only 63 graduates sought employment in social welfare service units, and among them, 30 were employed by elderly and rehabilitation homes. In a word, the Government has earmarked about $100 million to provide training for 1 000 young persons, spending at least $140,000 on each person, but it still cannot guarantee that all students will join the rehabilitation care services after the training. Hence, the Government should not belittle these carers' efforts and contributions to society. In my opinion, the Government should increase the allowance for carers and lower the minimum requirements for applying for such allowance. As such, LEGISLATIVE COUNCIL ― 25 April 2018 8909 families of the disabled persons will not be plagued by financial difficulties as they can only apply for CSSA after spending all their savings which, in the long run, will only bring negative impacts on Hong Kong.

DAB has for years urged the Government to lower the eligible age for "fruit grant" to 65. Secretary, according to our preliminary estimation, there are about 412 900 elderly people between the age of 65 and 69, deducting 128 000 of which who are now receiving Old Age Living Allowance ("OALA"), only 280 000-odd people are eligible to apply for "fruit grant", incurring an additional annual expenditure of no more than $4.6 billion, just about 4% of the underestimated surplus of $104.7 billion for this year. If, in my wildest imagination, the surplus of more than $100 billion is used to set up a fund for specific purpose to pay for the additional $4.6 billion annual expenditure on "fruit grant", the money can pay for the additional expenditure on "fruit grant" for 20 years.

At present, both the "fruit grant" and OALA carry a permissible annual absence limit, under which applicants must not leave Hong Kong for more than 305 days, which means they must remain in Hong Kong for at least 60 days. As far as I know, this limit is to ensure that the applicants are still alive, so as to avoid wasting public money and the allowances being abused. As a matter of fact, we always receive inquiries on this issue from the public. Many elderly people have already settled in the Mainland but they have to travel all the way back to Hong Kong each year so that they can continue to receive "fruit grant". Although the Government has adopted the Guangdong Scheme and Fujian Scheme, elderly people's hometowns may be in other places of the country. It will involve large amounts of manpower and money if the Government is to set up similar schemes for each province and city.

Therefore, we think that the Government should learn from the experience gained from the Guangdong Scheme and Fujian Scheme and implement the "fruit grant" scheme in all places over the country. The absence limit should be abolished, so that elderly people who have contributed the best part of their lives to Hong Kong can settle down in their hometowns after retirement without any worries.

My concept has already been put into practice in overseas countries. For example, elderly people in Australia who have resided in the country for 10 years can receive portable pension each month. In other words, they need not live in 8910 LEGISLATIVE COUNCIL ― 25 April 2018

Australia and can continue to receive the pension when they choose to live in 31 specified countries over the world. The Australian Government does not impose any absence restriction. After the elderly left Australia, they do not need to return to Australia in person to verify their status.

Sweden in the European Union has also adopted a similar scheme. Its elderly citizens can choose to spend their retired life in any one of the 33 countries within the European Union and enjoy health care benefits in the European Economic Area and Switzerland. Similarly, these elderly pensioners living outside Sweden are not required to return to Sweden every year as long as they renew their birth documents with the pension authorities.

It has been 20 years since Hong Kong's reunification but the authorities often cling to established practices in handling many livelihood issues and lay a trap for themselves, hampering the integration and development between the two places. Back in 1997, the Government already formulated a policy of portable welfare benefits and implemented the Portable Comprehensive Social Security Assistance Scheme and planned to extend the Scheme from Guangdong to Fujian in 2013. However, as health care services in these places cannot tie in with this Scheme and applicants have to surrender their PRH flats, many elderly people are reluctant to join Scheme.

According to government statistics, 400 participants of the Guangdong Scheme or Fujian Scheme withdrew from the Schemes between April 2012 and December 2016, with 41% of them returning to Hong Kong for medical treatment. Although at present, hospitals in Shenzhen are operating under the mode of Hong Kong and have accepted the Elderly Health Care Vouchers since October 2015, owing to the lack of extensive publicity, few elderly people know about such policies. Also, if elderly people are seriously ill and need operations, the high medical charges in Shenzhen hospitals have scared them off.

As Hong Kong's population is rapidly ageing, the elderly population will be on the increase, we think the Government should, in the long run, formulate an elderly policy that allows the elderly to settle outside Hong Kong. At present, with the preparation for the development of the Bay Area in full swing, the Government should extend the coverage of the Elderly Health Care Voucher Scheme to major hospitals and clinics in Guangdong and Macao and improve the health care services for the elderly in the Bay Area, such as join hands with the local authorities to run hospitals that adopt the operation mode of Hong Kong and LEGISLATIVE COUNCIL ― 25 April 2018 8911

Macao. With this arrangement, elderly people can feel at ease to settle in the Mainland and will not be forced to return to Hong Kong for medical treatments for fear of high medical fees in the Mainland.

Moreover, the authorities can also consider allowing Hong Kong citizens living in Guangdong to pay the same fees as local residents for basic health care services, and the SAR Government will reimburse the Guangdong Provincial Government the relevant health care expenses on a regular basis, giving the elderly more options regarding where to live in their twilight years.

I so submit.

PROF JOSEPH LEE (in Cantonese): President, I am going to talk about how the Budget and the Policy Address can help Hong Kong people. I will focus on medical and health services and services for the elderly and briefly discuss housing issues. The Secretary responsible for elderly services is present, but I will only discuss issues for which he is responsible later. I will talk about medical and health services first.

The Budget generously allocates some $580 billion for medical and health services. Why is the provision so big? It is because $500 billion out of the total amount cannot be used, as $200 billion will be used for the ten-year hospital development plan while $300 billion will be reserved for the second ten-year hospital development plan. For this reason, these are all empty figures. Yesterday, the Panel on Health Services approved the allocation of funds for the creation of a post to oversee the implementation of the first ten-year hospital development plan and these funds form part of the above empty figures. In fact, the Budget proposes to allocate only some $72 billion recurrent subvention to the Hospital Authority ("HA") and the Department of Health ("DH"), of which $62 billion will be allocated to HA and $10 billion to DH.

We certainly welcome the allocation of over $70 billion recurrent subvention to HA and DH but according to the Government's argument or the Financial Secretary's remarks, $62 billion is a regularized recurrent provision and the amount will become higher or lower in a certain year. Of course, we welcome an increase of the provision, and the Government should not reduce the provision. Moreover, the Government should progressively increase the recurrent provision for HA on a triennium basis, which will enable more effective 8912 LEGISLATIVE COUNCIL ― 25 April 2018 resource planning by HA to provide public health care services. Otherwise, there will be a manpower shortage even if the Government allocates $500 billion for the construction of a number of hospitals.

President, manpower cost is a recurring expenditure and employers will not dismiss employees after they have served for a year. Therefore, we welcome this mode of provision because such a cycle enables HA to carry out detailed planning and recruit sufficient manpower to meet service requirements. If HA is allocated $62 billion, it will be able to increase the number of hospital beds and operating theatre sessions, and provide more services. Some Members have asked whether the waiting time will be shortened and how much waiting time will be shortened, but there is no answer to these questions.

I am really worried that hardship rather than wages will be on the increase in future. Health care manpower is currently insufficient and manpower planning is unsatisfactory despite a constant increase in medical facilities. While everyone thinks that HA will certainly be able to provide excellent services after it has received a $62 billion recurrent provision, we must not forget that manpower is required for the provision of services; otherwise, the waiting time will become longer and frontline staff will be reproved. So, it seems that the Government is doing a disservice by giving HA a recurrent provision. I agree and support giving HA a recurrent provision but the Government and the Food and Health Bureau should urge HA and DH to do a better job in manpower planning.

In addition, the Chief Executive mentioned a phenomenon that new recruits of HA do not have an increment in the first two years of service. We have been arguing over this point for more than a decade and we finally have the opportunity to solve this problem. The recurrent expenditure involved is about $400 million. I ask the Financial Secretary to allocate another $400 million to HA, or else some staff will not have an increment because $400 million is needed to give a pay increase. Does HA have to employ fewer staff? If new recruits are to have a pay increase in the first year, HA will need a recurrent provision of $400 million; thus it may consider employing fewer staff. We believe this phenomenon is totally unacceptable. It does not matter if the Financial Secretary paid no heed to me, but I hope his subordinates have heard my opinion. The Government should allocate an additional recurrent expenditure of $400 million to HA, lest it should use this as an excuse to employ fewer staff in future. We must note that the Government will likewise do a disservice out of good intentions.

LEGISLATIVE COUNCIL ― 25 April 2018 8913

According to past statistics, a large number of nurses resigned within three years after work. If an additional provision of $400 million is allocated to give a pay increase to staff in their first two years of service, manpower can be retained because they will feel less aggrieved. As they have been working so hard, there is no reason why they will not be given a pay increase, and a pay increase should help to retain staff. Moreover, nurses who have worked for 6 to 10 years make up the largest number of resigned nurses. These nurses often complain about the hard toil, which has become increasingly difficult. When manpower is in short supply, they are also required to perform clinical supervision and other duties, so they think of resignation. Figures also show that the turnover rate of these nurses accounts for about 40% of the overall turnover rate of nurses.

When HA was first established, staff in the nursing grade had one increment each year, i.e. their pay points were at points 15 to 25 of the Master Pay Scale. At present, they also have pay an increment each year but their salary points are at points 17 to 21. In other words, they will have a pay increase earlier and the merit of this approach is that nurses can be retained. Of course, nurses do not only consider monetary rewards but since the Government is affluent, it might as well increase their salaries, so that they will think that their work is toilsome but rewarding. I hope the Government will consider taking this measure to change the current situation.

I have just mentioned that $500 billion will be allocated for building a number of hospitals but I do not know if there is sufficient manpower. According to the latest figures provided by HA, 820 nurses will be employed this year. The question is whether the nurses to be employed will fill the vacancies concerned or meet the additional service demand. If both purposes will be served, we will certainly support readily, but I do not believe that employing 820 nurses can meet the demands that we have been striving for a decade or so, i.e. attaining a 1:6 nurse-patient ratio in line with the international standard. I hope the Financial Secretary will allocate enough money in this aspect after listening to my comments.

Apart from hospital nurses, community nurses also work very hard. In reply to a question just now, the Government stated that the number of home visits made by community nurses will increase by 5 000 in future. Will the Government employ more community nurses for the additional 5 000 home visits? The Government has not mentioned how many more community nurses 8914 LEGISLATIVE COUNCIL ― 25 April 2018 would be employed. Do community nurses have to work overtime and work on Saturdays and Sundays? The Financial Secretary must face up to the problem as he cannot keep asking people to work harder and harder.

I would like to talk about psychiatric services which also have something to do with Secretary Dr LAW Chi-kwong. The Government has increased community services and also advocated "de-institutionalization" of mental health services. We absolutely welcome the government policy of helping students with mental health problems through "one social worker for each school" and "one nurse for each school". Nevertheless, as mentioned at the joint meeting of Panels the day before yesterday, the psychiatric assessment services for young people has hit a bottleneck. The Government is generally able to cope with the needs of children aged 0 to 6, but primary students aged 6 to 12 may have to wait one year for assessment and another 36 months to receive proper treatment. Psychiatrists and psychiatric nurses are responsible for the work.

A very interesting phenomenon is that the number of places for mental health nursing programme in the year 2018-2019, i.e. the programme starting in September this year, has surprisingly decreased by 27%, from 190 to 140. The Financial Secretary or the Secretary may not consider this a problem as students taking the programme this year will graduate five years later. By then, we will have retired and left the Government. Yet, no more than 140 psychiatric nurses will graduate each year by that time. As we all know, there is a wave of retirement during these few years and demand for service is on the increase, so I urge the Financial Secretary to think of a solution. The Government must upgrade psychiatric services and formulate a comprehensive manpower plan.

We absolutely welcome the Government's allocation to DH. This year, the amount of allocation is the greatest over the years because the Chief Executive stated that the Government would actively promote primary health care. A pilot project was launched in Kwai Tsing District. DH has to increase manpower to cope with the work. Currently, DH has inadequate manpower and with more funding, DH can carry out work on chronic diseases, disease prevention, health promotion and health education. Yet, the Government also needs to increase manpower.

President, I have been discussing the manpower problem which may bore you. In fact, I also feel bored as I have been expressing my views for more than 10 years but the manpower problem has yet to be solved. To solve the manpower problem, in addition to spending money on training, recurrent funding is also needed to maintain manpower supply and support the related services.

LEGISLATIVE COUNCIL ― 25 April 2018 8915

Lastly, I would also like to praise the Government for it will fully implement the Accredited Registers Scheme for Healthcare Professions ("administrative regulation") which we have been striving over the years. The speech therapy profession has been accredited, but the industry is worried as the Government has not clearly set out the details. The Scheme requires resources; for example, an authority must be set up to take charge of administrative regulation. The Authority can also hold hearings and inquiries but the industry hopes that the Government will bear the lawyers' fees so that the industry will feel relieved. If Joseph LEE is sued and my name may be removed from the Register of Nurses, I certainly want to attend an inquiry with a lawyer. But who should pay for the lawyers' fees? We hope that the Government will bear the lawyers' fees and that the Financial Secretary will consider making the relevant allocations.

(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

I have spoken for 10 minutes but I would also like to point out, of the $3.49 billion allocated by the Financial Secretary for elderly services, only 36% of the amount is recurrent funding. In other words, more than 60% of the allocation is non-recurrent funding.

Can this one-off provision be changed to a standing provision in future? We are worried that though the $3.4 billion provision is really impressive, i.e. the Government has allocated almost $4 billion for elderly services, more than half of the amount is non-recurrent funding. What should be done in future? Can these services be provided the following year? Non-governmental organizations ("NGOs"), the Social Welfare Department or nurses working in elderly homes are concerned whether sufficient manpower can be maintained if funding is not available the following year. The Government should face up to this problem. It should not just provide one-off funding to launch the service and then wash its hands of the project. Financial Secretary is not in the Chamber, but his subordinates should have heard what I said. Continuity of services for the elderly and proper planning are essential; otherwise, people will regard elderly services ineffective.

I would also like to talk about speech therapy services for the elderly. The Government will allocate $63 million for employing speech therapists, but the sector has reflected to me that there are not enough speech therapists. In 8916 LEGISLATIVE COUNCIL ― 25 April 2018 fact, there is room to recruit more than 200 speech therapists but the level of service is a prime concern. The sector hopes that NGOs and HA will have sufficient speech therapists to provide services. As clinical supervision is important, we hope that the Secretary will be concerned about the level of clinical supervision and provide sufficient funding to enable the sector and NGOs to provide high-level services. In the case of dysphagia assessment, it is a very complicated assessment. Although we do not have any difficulty in swallowing now and we will not be choked when drinking water, we may be choked when drinking water 30 years later, and by then, we have to receive expert assessments. The service must be targeted and the quality of service must be guaranteed. Therefore, we hope that the Government will provide funding so that speech therapists will feel relieved when providing services.

The Pilot Scheme on Visiting Pharmacist Services for Residential Care Homes for the Elderly has been temporarily extended. These services have been very successful in the past eight years or so. I hope the Government will provide recurrent funding for the Scheme instead of extending the Scheme year after year.

We definitely welcome the Pilot Scheme on Community Care Service Voucher for the Elderly, but is there sufficient manpower to provide services? Many community rehabilitation services have to be provided by physiotherapists, occupational therapists and nurses, etc. If there is insufficient manpower, the services can also be provided by NGOs but the elderly still have to wait. Thus, I hope the Secretary will face up to the manpower planning problem.

I will not talk too much about Health Care Vouchers, it is most important to put in place a mechanism to prevent abuse. I would also like to talk about hearing therapy for the elderly. Hearing loss is a natural consequence of getting old. We all hope that the elderly can hear more clearly but the Government has not done anything in this respect. I would like to tell the Secretary, in respect of hearing therapy, the situation in Hong Kong is only slightly better than that in Africa and there are only 200 audiologists in Hong Kong. Should the Government increase funding in this area to alleviate the hearing problems of the elderly? The relevant contents are not found in the Budget, so I hope the Secretary will consider securing the related funding.

LEGISLATIVE COUNCIL ― 25 April 2018 8917

Lastly, I would definitely like to talk about housing issues but the housing policies as stated in the Budget have nothing good to talk about. Even though rent control is an important issue that needs to be addressed, the Budget has mentioned nothing about the funding concerned. (The buzzer sounded) I hope everyone will live and work in contentment.

Thank you, Deputy President.

DEPUTY PRESIDENT (in Cantonese): Prof LEE, your speaking time is up.

MR FRANKIE YICK (in Cantonese): Deputy President, when the Financial Secretary was drafting the Budget for this year, the external environment was relatively favourable. Hence, the Financial Secretary has forecasted Hong Kong's economic growth to be 3% to 4% this year. However, after the Lunar New Year, we have noticed that cargo throughput has apparently started to fall amid rising prospects of a trade war between China and the United States. Although no war has formally been waged, given the close relations between Hong Kong and the Mainland, as I said just now, the volume of transhipment cargo has started to change. We are very concerned that Hong Kong's trading and logistics industry will be devastated in the event of a China-United States trade war. To maintain stable economic growth, we hope that the Financial Secretary will pay close attention to the situation. In the event of a China-United States trade war, it is necessary for the Government to introduce timely measures to support various sectors.

In the Outline of the 13th Five-Year Plan for the National Economic and Social Development of the People's Republic of China, the Dedicated Chapter on Hong Kong and Macao has clearly stated that the country supports Hong Kong in leveraging its unique strengths to consolidate and enhance its status as international financial, transportation and trade centres, and promote various services towards high value-added developments. Meanwhile, the Belt and Road Initiative and the Guangdong-Hong Kong-Macao Bay Area Development proposed by the Mainland will undoubtedly help make the pie of the trading and logistics industry bigger. However, the Government's willingness to deploy more resources to reinforce our inherent strengths will ultimately determine whether Hong Kong can capitalize on this opportunity.

8918 LEGISLATIVE COUNCIL ― 25 April 2018

With the increasing popularity of the Internet and smartphones, online shopping business has been growing more rapidly than ever. The continuous development of the Mainland economy has accelerated the growth of its online shopping business, thereby driving up the demand for Hong Kong's logistics services. At present, a large variety of products are available for online shopping, and among the hot items are high-value raw/fresh food and pharmaceuticals. Pharmaceuticals have recorded a continuous growth in air cargo handled by Hong Kong. To encourage the trading and logistics industry to move up the value chain, the Financial Secretary has announced in the Budget that the charge for each declaration will be capped at $200, so as to enhance Hong Kong's advantage as a high-value trading hub by lowering the cost of importing and exporting high-value goods to and from Hong Kong. However, in order to further promote Hong Kong's trading and logistics industry, it is necessary for the Government to step up its efforts.

For a long period of time, the land supply for logistics development has all along been insufficient. According to members of the industry, despite the strong demand from online shoppers for high-value fresh food and pharmaceuticals, there is a lack of land in Hong Kong for the construction of cold or constant temperature storage facilities, as well as facilities for carrying out such processes as packing/unpacking, processing and distribution, thereby hindering the development of the industry. Despite the lack of land, the Government has often awarded sites to the highest bidders in tendering processes, which is the most fatal practice contributing to continued rise in land and rental costs. As a result, the competitiveness of the industry has been constantly weakened.

To meet the land demand of the high value-added logistics industry, the Government had, in the 2014 Budget, proposed to reserve 10 hectares of land at Tuen Mun West for logistics use. Among the land reserved, a 3.2 hectare site in Tuen Mun Area 49 finally invited tenders last month, but no timetable has been set for the remaining sites. Yet, the 3.2 hectare site will still be awarded to the bidder offering the highest bid.

The Government has recorded a surplus of $138 billion and fiscal reserves of nearly $1,100 billion in 2017-2018. In fact, the Government is in a very robust financial position. The Financial Secretary has also indicated that on the premise of ensuring the health of public finance, the Government should adopt forward-looking and strategic financial management principles. In this LEGISLATIVE COUNCIL ― 25 April 2018 8919 connection, the Government should consider giving priority to the development of various industries. For sites designated for future logistics developments, including the Hung Shiu Kiu and Yuen Long South New Development Areas and the topside development at Hong Kong Boundary Crossing Facilities Island of the Hong Kong-Zhuhai-Macao Bridge ("HZMB"), the Government should expeditiously release them to the market, it should also give due consideration to the development of logistics-related businesses. Meanwhile, the Government should look into revising the current policy of awarding tender to the highest bidder. It may even plan the construction of government storage facilities at some sites which can be leased to the industry at affordable rents.

In 2017, Hong Kong Port ("HKP") managed to keep its fifth place in world rankings as container throughput returned to the level of 20 million Twenty-foot Equivalent Units ("TEUs"). However, HKP is just ahead of the sixth-ranked Busan Port in South Korea by 270 000 TEUs and the seventh-ranked Guangzhou Port by 410 000 TEUs respectively. In the event of a China-United States trade war, Hong Kong will likely drop two places to the seventh place. The transport costs to HKP are apparently higher compared with the neighbouring Shenzhen Port and Guangzhou Port. In addition, given the rapid development of Mainland ports, many products produced on the Mainland are being exported from Mainland ports directly. For this reason, when we develop HKP and related services, we must also develop a high-end cluster of maritime services.

Hong Kong is currently home to nearly 800 companies engaged in maritime business which have formed a maritime cluster covering such services as ship management, ship broking, ship finance, maritime insurance and legal services, etc. These services have contributed about HK$30 billion to Hong Kong's GDP and created over 100 000 jobs. To further expand the maritime cluster, the Government should consider introducing tax concessions. For example, tax concession in respect of ocean-going ship chartering can be introduced to attract more overseas companies to develop ocean-going ship chartering business in Hong Kong, thereby increasing their demand for other related professional services. This will not only help make the pie of maritime business bigger, but will also reinforce Hong Kong's status as a maritime centre.

Hong Kong's most recent unemployment rate has dropped to 2.9%, the lowest level for 20 years. Hong Kong's labour shortage has hindered the development of various sectors and industries. In the Budget, the Financial Secretary has mentioned on his own initiative that it is necessary to increase 8920 LEGISLATIVE COUNCIL ― 25 April 2018 imported labour in a timely manner and on an appropriate scale to address the specific needs of individual sectors. I welcome this suggestion. The Liberal Party and I have been calling for importing labour on an appropriate scale to sustain the development of the local economy, on the premise that local workers' priority for employment will be safeguarded. We hope that the Human Resources Planning Commission led by the Chief Secretary for Administration can make an effort by formulating decisive policies to import human resources as needed and appropriate in light of the needs of individual sectors.

The Government has repeatedly stressed that there are 370 000 holders of valid driving licences for various classes of commercial vehicles in Hong Kong. However, we all know and understand that this does not mean all of them will pursue a career in the transport sector. Professional drivers are not only required to work long hours, they may even be exposed to criminal liability. Hence, most young people are not willing to pursue a career in the sector. Meanwhile, the ageing problem of commercial drivers of road transport is getting more serious. At present, the average age of green minibus and taxi drivers is 68 and 58 respectively, while drivers of non-franchised buses and container trucks are mainly in their fifties. Recently, there was a press report entitled "Serious ageing of professional drivers―Government clearance of road bombs brooks no delay", highlighting the shortage of professional drivers. This will not only hinder Hong Kong's development, but will also pose a threat to other road users. At a special meeting of the Finance Committee of the Legislative Council last week, Dr LAW Chi-kwong, the Secretary for Labour and Welfare, indicated that he would consider relaxing the restrictions on importing Mainland drivers to work as drivers of internal trackers at container terminals and of the future HZMB cross-boundary coaches. Once implemented, the proposal will certainly help alleviate the shortage of drivers. However, in the long run, we still have to study how to increase the number of imported drivers.

At present, in addition to the basic fees for driving lessons, applicants for commercial vehicle licenses are also required by the Transport Department to pay the fees for a Learner's Driving Licence and a driving test, which are HK$548 and HK$510 respectively. In addition, they have to bear the cost of over $1,000 for renting a vehicle for the driving test. They may possibly end up spending a total of several to ten thousand dollars. In other words, prospective commercial drivers have to pay a considerable price before getting into the trade, which can be a disincentive to them. To address the shortage of commercial drivers, I hope that the Government will expeditiously implement a measure to relax the LEGISLATIVE COUNCIL ― 25 April 2018 8921 restriction on the application for commercial vehicle license, namely to shorten the period required for holding a valid driving licence for private car or light goods vehicle from at least three years to one year. The Government should also consider making use of the Employees Retraining Scheme or other training funds to provide economic incentive to applicants for commercial vehicle license. For example, successful applicants for commercial vehicle driving licence who are employed as a professional driver within a specific period of time can apply for a partial reimbursement of the fees for driving lessons and the test upon provision of relevant supporting documents. This is intended to attract new blood into the industry.

Cross-boundary land transport plays an important role in the success of Hong Kong's shipping and logistics industries. As HZMB is expected to be commissioned this year, Hong Kong's cargo hinterland in Mainland China will be expanded. The demand for cross-boundary drivers will expectedly increase. Given the ageing trend of cross-boundary container truck drivers and the upper age limit of 60 imposed by the Mainland authorities on truck drivers, in the absence of any government policies to attract new blood into the industry, the development of Hong Kong's logistics industry will be hindered, rendering it difficult for the industry to benefit from the new business opportunities arising from the upcoming commissioning of HZMB. Since cross-boundary container truck drivers are extremely important for the development of HKP, I hope that the Secretary will deploy additional resources to extend the coverage of the Maritime and Aviation Training Fund to include cross-boundary container truck drivers as well, with a view to subsidizing their application for driving licence for articulated vehicles in Hong Kong and driving licence for articulated vehicles on the Mainland. Successful applicants of the licence will be reimbursed the fees for lessons and driving tests. In order to dovetail with the future development of cross-boundary freight transport, the Government may even consider subsidizing newly recruited cross-boundary container truck drivers to attract new blood into the trade.

To improve air quality, the Government has been implementing measures to encourage the public to use electric vehicles. However, some critics pointed out last year that full exemption of the first registration tax ("FRT") for electric private cars is tantamount to subsidizing "rich people to buy toys". In view of this, the Government has capped FRT at $97,500. After the Government has scrapped the full exemption of FRT for electric private cars, the number of electric private cars registered for the first time has tumbled. However, I am still 8922 LEGISLATIVE COUNCIL ― 25 April 2018 in support of the Government's decision to impose a cap on the exemption of FRT for electric private cars. A full FRT exemption will make it difficult for car manufacturers to introduce relatively low-priced electric vehicles into the Hong Kong market. In fact, more affordable electric vehicles have gradually rolled out. As electric vehicles become more popular, their prices will definitely fall. Although the Liberal Party has suggested that the Government raise the cap of $97,500 to attract more members of the public to buy electric vehicles, the Government is more inclined to keep it at the current level.

To contain the number of vehicles, the Government has launched a "one-for-one replacement" scheme. Car owners who buy a new electric private car and scrap their old fuel-engined car can enjoy an FRT concession of up to $250,000. However, the old private car has to be aged six years or above and the driver must be the registered owner of the vehicle for at least three years on end. These conditions have been criticized as being harsh. The Financial Secretary has publicly explained that such conditions had been set to prevent any speculation on second-hand vehicles and the consequent misuse of public money. I understand the explanation of the Financial Secretary, but in order to encourage more car owners to switch to electric vehicles, I consider that this project still has room for further enhancement. I hope that the Government can pay more attention to the views of the public and consider making appropriate adjustments in the review later. This will not only address public demand but will also speed up the attainment of policy objectives.

Lastly, I would like to talk about a traffic accident which had resulted in one death and four injuries last week. It has been reported that the driver involved in the tragedy had engaged in illegal carriage of passengers for reward. Hence, it has been reported that the death, injuries and loss of properties in the accident might not be eligible for compensation by insurance company. This incident has accurately reflected that illegal carriage of passengers for reward has posed a threat to the property of other road users, a problem which the Government must face squarely. In fact, one car hailing platform which illegally uses private cars to carry passengers for reward has claimed to have more than 30 000 drivers. This number has not even included those drivers on other car hailing networks or mobile applications. Based on our conservative estimate, there are currently over 10 000 unlicenced cars (commonly known as "white licence cars") engaging in illegal carriage of passengers for reward on the roads. However, the Police have only instituted prosecution against 30-odd white licence cars in the past three years, which is completely disproportionate to LEGISLATIVE COUNCIL ― 25 April 2018 8923 the actual situation. To protect public interests, I hope that the Financial Secretary will deploy additional resources to step up public education and promotion on the scourge of taking unlicenced white licence cars, and strengthen police crackdown on illegal carriage of passengers for reward.

Deputy President, I so submit.

DEPUTY PRESIDENT (in Cantonese): I remind Members that under Rule 67(2) of the Rules of Procedure, the debate on the Second Reading of the Appropriation Bill ("the Bill") shall be confined to the financial and economic state of Hong Kong and the general principles of government policy and administration as indicated by the Bill and Estimates. Will Members please refrain from spending excessive time on discussing individual cases.

MR VINCENT CHENG (in Cantonese): I speak in response to the Appropriation Bill 2018 and its amendments.

Deputy President, when announcing this year's Budget, the Financial Secretary said that while the surplus was as high as $138 billion in 2017-2018, the fiscal reserves also reached $1,092 billion and the public coffers were overflowing with money. He thus introduced a number of measures to share the fruits of economic success with the people, but Members considered such initiatives inadequate. Therefore, the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") put forward an "enhanced" proposal to bring benefits to more people at the grass-roots level. The Financial Secretary subsequently decided to hand out $4,000 to each of the 3 million eligible members of the public who are unable to benefit from the relief measures, and we welcome this decision. But still, I would like to highlight a few points.

Firstly, members of the public do have expectation for the new fiscal philosophy advocated by Carrie LAM's administration, and the present "gap-plugging" proposal somehow shows its receptive attitude. And yet, we hope that in formulating the annual Budget, the Financial Secretary can give more careful thoughts as we really do not want to experience again the feeling of wavering between hope and disappointment, and then regaining hope. According to the present arrangement of handing out $4,000, all eligible members of the public are required to submit their applications in February next year, but 8924 LEGISLATIVE COUNCIL ― 25 April 2018 the first batch of recipients will not receive the payment until April. Many people asked us why the process took so long. I hope that the Government will inform us later if the process from application to payment can be expedited so that the applicants do not have to wait until April next year to receive $4,000. I have looked up the records and learnt that the decision to hand out $6,000 to all members of the public in 2011 was approved in March, and the first batch of people received the payment in October. Therefore, if the Government can give more thoughts to shortening the process and time, I think we will all be happier.

Secondly, information shows that the proposal will incur an administrative cost of over $300 million, which has caused a public outcry as it is $110 million higher than the amount incurred in 2011 when similar arrangement was made to hand out money. Can the Financial Secretary do something to cut down on the administrative cost of $300 million? If we add this $300 million to the $300 million spent on purchasing 10 000 admission tickets of Ocean Park for distribution, plus another $400 million, there will be a total of $1 billion, an amount enough to implement the proposal put forward by DAB to exempt one month's rent of public rental housing ("PRH") tenants in Hong Kong.

When it comes to handing out money, some newspapers made some efforts to do some calculations for the Government. They suggested that if the administration cost of $300 million was also handed out with each person receiving $4,000, an additional 27 000 people would benefit. However, as money will definitely be handed out, I only hope that the Government will streamline the application process by all means.

Thirdly, DAB has conducted a number of consultations on this year's Budget and put forward a lot of proposals. For example, we propose that the amount of Elderly Health Care Voucher, which is one of my grave concerns, should be increased to $3,000 on a permanent but not one-off basis, and that after-school care services should also be increased. I hope that the Government will continue to make such efforts in the future. On the other hand, in view of high property prices and exorbitant rents, the Government implemented the measure of tax deduction for home mortgages many years ago, and earlier on, I heard that the Financial Secretary would consider introducing tax deduction for rental payments. When will such measures be implemented? I hope that we will hear some good news as early as possible.

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We have also requested the Government to provide rental subsidy for eligible families who have waited for PRH allocation for more than three years because most of them are living in very poor conditions, such as subdivided units. Earlier on, I learnt from Chief Executive Carrie LAM that the Government had reservation about the proposed rental subsidy, worrying that property owners would pocket the relevant subsidy in the end. However, I earnestly hope that the Government will take a step back and see if there are any other ways that can genuinely help households of subdivided units address problems related to their livelihood and living environment.

Deputy President, next I would like to discuss the housing issue. As stated by the Financial Secretary in the Budget, the estimated public housing production for the next five years is about 100 000 units, of which about 75 000 are PRH units and 25 000 subsidized sale flats. Leaving aside the question that the 10-year public housing supply target as set out in Long Term Housing Strategy has yet to be achieved, given that an average of only 20 000 public housing units will be provided in each of the next five years, it still falls far short of the target production of 28 000 units each year, resulting in a shortfall of 40 000 units in five years. How can the Government make up this shortfall in these five years? The Task Force on Land Supply will launch a five-month public consultation on land supply tomorrow, and I believe a big debate will certainly be held. I hope that Members will discuss for the interests of the people.

At present, there are 280 000 families on the PRH Waiting List. Many of them are currently residing in subdivided units or "inadequate housing", and they have been waiting desperately for PRH units. According to the Government, there are 110 000 households residing in "inadequate housing" in Hong Kong, of which 90 000 were living in subdivided units, not including people living in subdivided units in industrial buildings. A similar question was put to the Secretary in this Council by me last week. According to some academics, there are a total of 160 000 households living in "inadequate housing" at present. If, after the big debate, the Government will release more land for public housing construction, so that more people will be allocated PRH units earlier, this is definitely a blessing for Hong Kong. The Government should provide a dwelling place for all people; I hope that the pledge of three-year waiting time for PRH allocation is not empty talk.

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Apart from public housing, the supply of Home Ownership Scheme ("HOS") flats also falls short of demand year after year. Worse still, the prices keep soaring which warrants the serious attention of the Administration. A total of 4 400 HOS flats were recently put on the market for sale and since the two housing estates Kai Long Court and Hoi Lok Court are located in the urban areas of West Kowloon, the average price per square foot has exceeded $10,000. The price of the most expensive unit is as high as $6.3 million―Financial Secretary, it is $6.3 million. Earlier on, in this Council, the Chief Executive has undertaken to examine the delinking of the pricing of HOS flats from market prices and I welcome this idea. And yet, I hope that the Government or the Hong Kong Housing Authority ("HA") will provide a timetable. I do not mind having a big debate, but what matters most is that the Government is willing to implement the proposals. We surely do not accept that HOS flats are priced at 70% of market price. How can members of the public catch up with the rising market price? Prices of HOS flats must be linked with people's affordability; the prices should be set at a lower discounted rate of the market price or on the basis of the construction cost plus a certain percentage which is open for discussion. After looking up the information of HA, I found that HOS flats were once set at 40% discount of market price at the lowest. No matter what, it is most important to engage in discussion based on reasons and facts, and Members should reach a consensus and avoid being indecisive or engaging in empty talks. I like running marathons very much, and I hope that the efficiency and speed of housing production can be on a par with Hong Kong.

After discussing the price of HOS flats, I would like to talk about social housing. Since the Secretary is also present at the meeting today, I would like to discuss the matter with him. Deputy President, while social housing has a long history of development in overseas countries, it is still pretty new in Hong Kong though it has been discussed and planned for a long period of time. After visiting the Bay Area last week, I discovered that the Mainland has adopted new thinking extensively to tackle different problems in the community, including housing and accommodation. Therefore, Hong Kong should also consider adopting short-, medium- and long-term strategies in a holistic manner. Given that Hong Kong is a small place with a dense population, consideration should also be made to the provision of transitional housing.

After taking office, Chief Executive Carrie LAM introduced the policy on social housing in September last year. She adopted DAB's proposal and introduced a pilot scheme of subletting HOS flats with premium unpaid to LEGISLATIVE COUNCIL ― 25 April 2018 8927 families on the Waiting List for PRH units at prices below market rental. However, the sublet arrangement is confined to HOS flats of the Hong Kong Housing Society ("HS") and it is reported that only 9 000 flats are eligible for subletting. Worse still, these flats are currently occupied and thus the number of flats available for subletting is expected to be very limited. I look forward to seeing the implementation of the scheme by HS in the second half of this year. Tenants can then apply towards the end of the year, and the application will be processed expeditiously. In that case, 200 000 owners of HOS flats with premium unpaid will be able to take part in our proposed scheme.

Furthermore, so far about 10 welfare organizations have taken part in the social housing programme, which include the "Light Housing" project that we are familiar with, and the three-year Community Housing Movement initiated by the Hong Kong Council of Social Service ("HKCSS"). Yesterday, I visited HKCSS's website and there is a detailed description of the Movement, which has already been implemented for some time. These welfare organizations have provided transitional housing options for those who have been residing in subdivided units for many years or who have been on the Waiting List for PRH units for more than three years, as well as for elderly persons or families with special needs. The rental period of these housing units can be up to two to three years with a monthly rental ranging from some $1,000 to $3,000. I am very supportive of this community caring movement and have recently met with individual organizations to gain a better understanding of their experiences in launching this social housing initiative and the problems encountered. As this is a brand new initiative, not only should the non-profit-making welfare organizations be carefully chosen, but also the operators and target tenants, so as to avoid arousing arguments in the community. To prevent the movement from falling through, these organizations must be well protected. I have great respect for the welfare organizations that have promoted the relevant project.

However, since the project is only viable with private landlords or developers donating housing units or land lots for occupation for a limited period of time, the number of units is limited or the tenancy is short, rendering the entire project very passive. I notice that under the heading of "Enhancing Liveability" of this Budget, the Financial Secretary points out that plenty of vacant government sites or school premises are available for use by non-governmental organizations through short-term tenancies, and local school premises should be better utilized. As I am aware, the Financial Secretary has set aside $1 billion to subsidize the costs of basic works of eligible projects. Apart from setting aside 8928 LEGISLATIVE COUNCIL ― 25 April 2018

$1 billion, I consider it more important to coordinate the work of various government departments. In Shek Kip Mei Street of my constituency, an old school premise has been left vacant for more than a decade. What is the point of leaving this piece of land idle under the sun? I eagerly hope that these vacant government sites or school premises can be rented out by way of short-term tenancy, thereby increasing the supply of flats for use by welfare organizations as social housing.

As I have said just now, my personal experience in West Kowloon is that certain sites have been left vacant for more than a decade, and it is indeed a great waste to let such sites become breeding grounds for mosquitoes. The Bureau concerned should assist in planning and increase the supply of transitional housing or pre-fabricated houses for leasing for a term of, say, three years, with a view to providing more transitional housing. I am eager to know how the Government is going to make good use of the $1 billion earmarked. The relevant details should be made public as soon as possible. The issue should be dealt with without delay and every minute counts. Of course, I expect to hear more good news from the Government.

Last but not least, Deputy President, I would like to talk about urban renewal. There are many old buildings in West Kowloon aged over 40 or 50 years. The relevant figures and distribution of such buildings have been disclosed by the Government recently. In the Budget, the Financial Secretary mentioned that the Government would continue to provide residential flats in the short to medium term by rezoning sites and taking forward railway property development projects and urban renewal projects. However, I would like to point out that the Urban Renewal Authority ("URA") has no longer undertaken demand-led redevelopment projects but will only implement urban renewal. We have also agreed to adopt a district-based approach in urban renewal to minimize single-block building redevelopment, and will explore small district development, as proposed by the Chief Executive in her election manifesto. We welcome this as well. However, according to the information frequently leaked out by URA recently, redevelopment is not the only option, as old buildings can be rehabilitated, conserved and have lifts installed. The authorities, on the other hand, also proposed urban regeneration and advised that a "Yau Mong" district study was now underway. I am particularly concerned about this study as it has been conducted for one whole year. Last week, I put a question to the Secretary and he replied that no information could be provided. Is this repeated procrastination on the part of the Government? At present, there are a large LEGISLATIVE COUNCIL ― 25 April 2018 8929 number of old buildings in Hong Kong and among them 5 300 even aged 50 years. Old buildings are commonly found in West Kowloon and they are of poor environment. Even if the residents can receive financial assistance under the Operation Building Bright ("OBB"), it is in no way easy for them to pay $60,000 to $70,000 for the maintenance of common areas of their buildings, such as the external walls. Therefore, many people have indicated to us that they hoped that the pace of urban renewal could be expedited. I surely hope that the Government can extend the scope of assistance of OBB to cover buildings aged 40 to 50 years, because there are too many buildings waiting to be repaired and the conditions of these buildings are very dangerous.

Last of all, in my opinion, urban renewal is very essential and should brook no delay, so I hope that URA will expeditiously implement the relevant measures. If there is a lack of resources, the Government should make further commitments so that residents of old districts can see hope.

I so submit. Thank you, Deputy President.

MR CHAN HAN-PAN (in Cantonese): Deputy President, I will speak mainly on transport and health care.

First of all, paragraphs 21 and 22 of the Budget Speech touch upon the connectivity and travel convenience brought about by the Guangdong-Hong Kong-Macao Bay Area ("the Bay Area"). Moreover, the Government will develop Hong Kong into a cross-border logistics centre. But then, in this cross-border logistics centre, the Lantau Link is prone to serious traffic congestion because of $15; parking spaces are lacking everywhere, with just 600 on our artificial island; and a number of railway lines have reached saturation point.

Members may still recall that in the past, the Government would formulate blueprints for the overall future transport development of Hong Kong, and would undertake relevant planning and studies. According to records, since 1976, the Government has conducted three comprehensive transport studies to map out the strategic plans for transport planning and overall development.

The Government completed the First Comprehensive Transport Study in 1976, resulting in the construction of the Mass Transit Railway. Subsequently, the Government completed the Second Comprehensive Transport Study in 1989, 8930 LEGISLATIVE COUNCIL ― 25 April 2018 proposing a number of large-scale infrastructure projects including the North Lantau Expressway, Lantau Link, Airport Railway, Tseung Kwan O Line and West Rail Line. Ten years later, in 1999, the Government completed the Third Comprehensive Transport Study, laying down the strategy of using railways as the backbone of our public transport system.

Nineteen years have passed, and Hong Kong has yet to conduct the Fourth Comprehensive Transport Study. In the meantime, Hong Kong's population, visitor arrivals, cross-boundary passenger flows and traffic flows have grown significantly. The Third Comprehensive Transport Study, which commenced in 1997, formulated a transport strategy up to 2016 only. What about after 2016? So far we still have not seen any sign of the Government embarking on a strategic study of this kind. At the end of 2014, the Government commenced the Public Transport Strategy Study, which lasted for two and a half years, and 67 measures were recommended eventually. However, all the measures were piecemeal, and no blueprint for transport development was provided.

Given the Government's long-standing transport strategy of using railways as the backbone, how should other kinds of public transport play their roles? The transport-related issues facing us today include: the serious saturation of railway services; the shortage and uneven distribution of parking spaces; the request of people with disabilities for social inclusion; the lack of regulation of bike-sharing schemes; the future development of electric vehicles; and people's demand for quality walking trails as a result of their improved standard of living. To complement the economic development of the Bay Area, we must plan ahead and take cross-boundary transport into consideration. Besides, the massive shift in population from urban areas to the Northwest New Territories also has a great impact on traffic in the districts concerned. When it comes to development, one of the grounds for objection is always related to transport. To date, there has yet to be a strategic plan for the future transport development of Hong Kong. If the Government continues down this path blindly, we are really worried and have no idea what our traffic situation will be like in the future.

Without long-term planning, the Government will be unable to lead society forward. In my view, apart from playing the roles of a balancer, a coordinator and a facilitator for society, the Government should also act as a guide to lead social development in the correct direction of long-term planning.

LEGISLATIVE COUNCIL ― 25 April 2018 8931

What would be the outcome of planning? In fact, the Government has already announced the Railway Development Strategy 2014 ("RDS-2014"). Every railway development strategy seeks to make development plans for the next 15 years, and RDS-2014 has provided a framework for planning our railway development up to 2026. It is now 2018; how many railway projects proposed in RDS-2014 have been completed? We have yet to see the completion of the Northern Link, Kwu Tung Station, Tuen Mun South Extension, East Kowloon Line, Tung Chung West Extension, Hung Shui Kiu Station, South Island Line (West) and North Island Line. Mr Wilson OR has repeatedly asked about the progress of the construction of the East Kowloon Line, but to no avail. Four years have passed; what is the result? A number of railways have actually been constructed, and we have seen the completion of the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the South Island Line (East), whereas the Shatin to Central Link will soon be completed. After the completion of these projects, what will happen to the construction workers? They may become unemployed and then switch to other trades or go to other places to work. However, we will still have to implement the aforesaid many railway projects in the future; where can we hire construction workers?

Actually, many railway or infrastructure projects in Hong Kong are linked with each other, and are supposed to be carried out one after another. Why was RDS-2014 formulated in 2014? The original plan was that upon completion of several of the railway projects, the construction workers would be able to proceed to carry out the remaining railway projects. But this is not going to work now. It has been four years and the Government has yet to publish any relevant report. As no railway project is expected to commence this year, construction workers are likely to become unemployed, and the Government will then say that there is a labour shortage. I think this is a very undesirable situation. If we want to promote cross-border logistics, we must take the long view. I therefore hope the Financial Secretary will understand that since the Government has decided to make Hong Kong the economic leader of the Bay Area and promote cross-border logistics, it is necessary to conduct a comprehensive transport study. I hope the Government can conduct the study strategically instead of indulging in empty talk without having any strategy, proposal or plan.

Next, I wish to talk about Chinese medicine. This year, the Government has done a very good job in that it has listened to our opinions and is willing to set up a dedicated department to develop Chinese medicine and coordinate the implementation of relevant measures. This is something that the Government 8932 LEGISLATIVE COUNCIL ― 25 April 2018 was unwilling to do in the past, but we can see this in the latest Policy Address and Budget. For many years, the Chinese medicine sector has been blaming the Government for not allocating any resources to develop the industry. This year, at long last, the Government is willing to allocate $500 million to promote the development of Chinese medicine and support certain research projects. We greatly welcome this initiative.

Over the years, the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") has strongly advocated developing Chinese medicine. We consider it worthwhile for the Financial Secretary to allocate $500 million for this purpose, but there is still a long way to go if we are to genuinely develop Chinese medicine. At present, there are 18 Chinese Medicine Centres for Training and Research in Hong Kong, providing Chinese medicine services to members of the public under a tripartite collaboration model involving the Hospital Authority ("HA"), non-governmental organizations and local universities. As a result of such services being provided under this tripartite collaboration model rather than by the Government alone, members of the public need to spend over $200 on each Chinese medical consultation, and a higher fee is to be charged if additional services such as physiotherapy and acupuncture are sought as well. We consider it necessary to provide public Chinese medicine outpatient services, but under the aforesaid circumstances, it is very hard for Chinese medicine services to become popular or work their way into mainstream society.

We note that the Budget proposes to set up a district health centre with a brand new operation mode in Kwai Tsing District, so as to strengthen primary health care services. I think it is very correct to do so. In Hong Kong, primary health care is awful; one can even say that it is stuck at the starting point. While the vast majority of our health care resources have gone to HA, our primary health care services (such as certain enhancement or preventive work) have never been taken forward. It is a pity that the proposed district health centre will not provide Chinese medicine services. In fact, Chinese medicine is one of the "big health" concepts. If the Government can leverage Chinese medicine services by incorporating them into the primary health care system, I think the public will be greatly benefited. It would be utterly ludicrous for the Government to think that funding the establishment of a district health centre would readily make primary health care a success. I hope our primary health care services can be provided partly by the Government and partly by different community organizations. The Government should also encourage different community organizations to engage in "big health" and primary health care services, as well as preventive medicine.

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Also, the Government has stated in this Budget that it will provide eligible patients with subsidies for the purchase of ultra-expensive drugs, including those for treating rare diseases. In the past, many patients suffering from rare diseases told us tearfully that they could not afford to buy the drugs, and that their diseases had impoverished their families. DAB welcomes the willingness expressed by the Government this time around to offer this service to rare disease patients in collaboration with different organizations through the Community Care Fund.

Speaking of rare diseases, we should pay attention to prenatal check-ups as well. In Hong Kong, some 50 000 babies are born every year, and there are many advanced prenatal DNA tests on offer in the community, each costing about $7,000. We estimate that basically, only some $500 million would be enough for all pregnant women to undergo such DNA tests. Nonetheless, there has been no improvement in the prenatal check-up services provided by the Government since the 1980s. We hope the Government can consider improving the existing prenatal check-up services. If every couple can be provided with proper prenatal check-up services, they can know prenatally whether the foetus has any genetic disease. This can preclude the possibility of not knowing the problem until after the baby is born. There are even cases where such diseases manifest themselves only when the patients are in their forties or fifties; the entire treatment process has a huge impact on their families and the community. In view of this, we hope the Government can allocate additional resources for prenatal check-up services.

Another recent hot topic in the community is attention deficit/hyperactivity disorder ("ADHD"), which is not a rare disease. The golden period for treating ADHD is between six and nine years old. Patients who only receive treatment after this period may experience psychological trauma and fall prey to inadequate interpersonal communication while growing up, causing problems for themselves and society. This is not good for the children suffering from the disorder and their families. Currently, there are some 40 000 children with ADHD in Hong Kong, and about 30 000 of them are receiving treatment from public hospitals, but there are only 37 full-time child psychiatrists in the territory. The relevant psychiatrist-to-patient ratio is 1:873. Due to the shortage of child psychiatrists, children with ADHD have to wait for an unduly long time for consultation and may easily miss the golden period for treatment. We therefore suggest that the authorities should make good use of the public-private partnership model and allocate additional resources to enable some children who have been waiting for a relatively long time to receive treatment in the private sector. This can shorten their waiting time and allow them to receive early treatment, thereby preventing their conditions from deteriorating.

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Deputy President, lastly, I wish to talk about Hong Kong's mental health policy. In April last year, the SAR Government announced the Mental Health Review Report and put forward 40 recommendations in 20 areas in the hope of enhancing the overall health services and fostering the development of mental health services in Hong Kong. In fact, DAB and I have been demanding that the Government expeditiously allocate additional resources to enhance Hong Kong's mental health services. I have personally visited some extremely understaffed psychiatric hospitals, in which each nurse has to take care of 20-odd psychiatric patients every night; worse still, some patients receiving treatment in hospitals are forced to leave prematurely because of a shortage of beds. As we all know, if psychiatric patients whose conditions are unstable are discharged prematurely, they will need to be hospitalized again. Repeated episodes of mental illness are seriously detrimental to the patients' health, their families and the community.

Therefore, we hope the Government can undertake long-term planning for psychiatric services. Psychiatric rehabilitation centres in various districts are now saying that they do not have enough resources. We hope the Government can further review whether the resources allocated under the Budget are sufficient to enable district organizations to provide support services for psychiatric patients and their families.

Deputy President, that concludes my speech on health care and transport issues.

MR LAU KWOK-FAN (in Cantonese): Deputy President, the surplus of the SAR Government has repeatedly set new highs in recent years and it is as high as $138 billion for this year. Just as many colleagues have said, it is probably a "happy problem" to plan for the future or make estimates with so much money in hand. And yet, do members of the public really feel happy?

Why would there be such a huge surplus of $138 billion this year? It is mainly composed of non-recurrent revenue, which includes land sales and stamp duties on stock transactions. This kind of tax revenue or special non-recurrent revenue is actually earned in blood and sweat at the expense of high property prices or exorbitant rents, which has imposed a heavy burden on members of the public and affected their quality of life. It is therefore hard to say whether the problem is a happy one. Given that the revenue is earned in blood and sweat, the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") LEGISLATIVE COUNCIL ― 25 April 2018 8935 thinks that the Government should make good use of these resources, such as investing in, for example, education, health care and housing in the future, with a view to improving people's quality of life in the long run.

Furthermore, the Government should return wealth to the people. Given that members of the public are currently facing exorbitant rents and high commodities prices, the Government should therefore introduce some relief measures and DAB has put forward a comprehensive proposal on the Budget. Of course, the Government is already working towards this direction and has devoted substantial resources to health care and for the future, but it has not done well in returning wealth to the people. A number of discussions have been conducted previously with the Government in this regard. In the past, the Government did introduce a number of initiatives to return wealth to the people; some were very direct whereas some were pretty complicated. It is true that excessive ploys would … So long as members of the public have not pocketed the money, they will continue to use a calculator to find out how much they are going to receive or ponder whether they are eligible for the cash handouts. In that case, their expectations of the Government would naturally become lower, or they may even feel very perplexed. Therefore, we have indicated right at the beginning that the Government should not employ too many ploys but should return wealth to the people by directly handing out money.

At last, after some hiccups, the Government has finally taken heed to good advice and plugged the gaps by handing out $4,000 to each eligible person. However, the present proposal is more complicated than the previous ones. Whenever I visit the district, many people ask me how much they will receive if they have paid rates or have received Old Age Living Allowance. Noting that members of the public would need to spend time on their calculation and the Government's approval procedures also take time, the present proposal is very complicated both in terms of administration and timing. According to the Government, the recipients will only get the payment next year at the earliest, which is indeed too long.

When the Government dished out $6,000 to each one of all 6.1 million Hong Kong people back then, the administrative cost incurred was only about $200 million. Although the number of beneficiaries under the present "gap-plugging" proposal has reduced by half to only 2.8 million people, the administrative cost incurred is nearly doubled, amounting to $330 million. Is this an optimal efficiency? As Mr Vincent CHENG said just now, the extra 8936 LEGISLATIVE COUNCIL ― 25 April 2018 administrative cost could actually be distributed to many Hong Kong people as cash handouts. If the Government really wants to return wealth to the people next time, my advice is that it should not employ too many ploys. Instead, it should consider adopting the most effective approach and think more about Hong Kong's policies or investment strategies in the future, which I believe would be of greater help. This is the point that I would like to highlight about the Budget on the whole.

Furthermore, I also want to express the views of DAB and I on the parts concerning development and home affairs in the Budget. First of all, I will talk about development, which is inextricably linked with land. In this year's budget speech, there is a section entitled "Land Resources", but apart from stating from the outset that "Land and housing supply has been a long standing problem in Hong Kong" and giving a brief account of the progress of the 210 sites identified for rezoning in these few years, the remaining part of the section is about the supply of housing units. The entire section simply gives people an impression that "both land and buildings are inadequate", but the Government is at its wits' end.

As I am aware, the Task Force on Land Supply will kick off what the Chief Executive described as "a big debate on land" tomorrow. Regardless of what the outcome of this big debate is (which may come up with a number of land supply options), land resumption and the rezoning of land use will certainly be two of the options in the light of the past experience in development in Hong Kong. I have previously raised a question time and again in the Council, i.e. even if a number of land lots could be identified by the Government, could development proceed right away? Just take a look at the development proposal of the North East New Territories ("NENT"), or the meeting of the Subcommittee to Follow Up the Issues Related to the Wang Chau Development Project held this morning, the development schedules have been delayed time and again due to constraints in respect of land resumption, compensation and rehousing. To be specific, the problems include allocating public rental housing ("PRH") units to occupants affected by clearance on a non-means-tested basis and adjusting the relevant compensation or ex gratia allowances. As long as these two problems remain unresolved, even if the Government can identify a lot of land lots, development cannot be carried out and the project may drag on year after year. In the case of the NENT development proposal, the authorities advised that no progress would be made until 2019. Hence, in respect of compensation and rehousing, the LEGISLATIVE COUNCIL ― 25 April 2018 8937

Government must be ready to think out of the box so as to tie in with the "big debate on land", or else the debate will become empty talks without making any achievement.

After discussing rehousing and compensation, I would like to talk about land resumption. The land that the Government intended to resume in the past, especially those in the new development area, was indeed very huge in size. Therefore, instead of resuming in one go, it was done by phases, but this has affected the livelihood of the local residents. For example, if construction works is carried out in phase 1 of a housing estate, residents living in the neighbouring phase 2 will have to tolerate the dusty environment. According to the financial arrangement of the Government, a development project must be gazetted before seeking funding approval for compensation or rehousing. This practice is undesirable. I therefore consider it necessary to change the relevant financial arrangement. Taking the NENT development as an example, if the Government is aware of the plan to develop Kwu Tung North or Fanling North in advance, it should properly deal with the rehousing and compensation issues in the first place before proceeding to the resumption of land. In my opinion, this is good for the Government after all. It can, at least, resume the entire piece of land as reserve before making careful decision on the need for adjustment or making better land use planning. I therefore consider it necessary to change the relevant financial arrangement so that land resumption will be carried out in one go but not by phases.

Given the limited supply of land, even if land is made available for development after the big debate, it is still a scarce resource in the case of Hong Kong and there will surely be bottlenecks in its supply. Apart from identifying new sites, will the Government consider constructing taller buildings by adjusting the building heights or plot ratios?

In 2014, the Government increased the plot ratio of urban areas and new towns by 20%, but unfortunately this only applied to domestic plot ratio. Today, land is not only needed for residential purpose, but also for recreational and community facilities. I hope that the Government will conduct a study on land use planning, plot ratio and building height. For example, community facilities, which we often mentioned, include elderly facilities and residential care homes for the elderly ("RCHEs") in particular. As a matter of fact, a large number of land sites in the New Territories are suitable for the elderly to spend their twilight years because of the fresh air and good environment. However, has the existing 8938 LEGISLATIVE COUNCIL ― 25 April 2018

Residential Care Homes (Elderly Persons) Regulation imposed any restriction on the supply of RCHEs? Yes, it surely has, for the Regulation provides that the height of RCHEs should be no more than 24 m. I understand that there are safety and fire safety considerations behind the Regulation, but since the law was enacted many years ago, there have been significant development in firefighting techniques and improvements in the relevant policies. Should the Regulation keep abreast of the times? Should the Government conduct a review to see if the height restriction has become a bottleneck or a barrier that impedes an increase in the number of RCHEs? I very much hope that the Labour and Welfare Bureau will discuss with the Development Bureau how land can be used in a more effective way.

After discussing the elderly issue, I will continue to talk about community facilities, which involve home affairs. I highly commend the Government for setting aside $8 billion in the Budget for the provision of community facilities in the 18 districts of Hong Kong, and earmarked $20 billion for the improvement and construction of a series of cultural facilities in future. These initiatives, together with the 26 sports and recreation projects proposed by the former Chief Executive in his Policy Address, can genuinely help expedite the development of many district facilities, thereby enhancing the living quality of the residents. However, we should also note that the facilities to be provided with $8 billion and the 26 sports and recreation projects only represent a part of the community facilities requested by the local people, and many of the outstanding leisure and cultural services projects of the former municipal councils have yet to be launched.

Under the existing mechanism of fragmentation of the Government, even if a works project has been endorsed by the relevant District Council ("DC") and supported by members of the public, it was in no way easy for the project to be tabled at this Council because before the tabling, different departments have to compete for resources. Given that the Government has to "cook with a limited amount of rice", very often only one works project can be tabled at this Council each year and the progress is therefore not satisfactory at all. Will the Government consider making the $8 billion provision or the 26 projects a standard practice? DAB proposes that the Government should establish a community building fund and inject money into it on an annual basis for the implementation of outstanding works projects in the districts.

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On the other hand, in respect of DCs, any works projects involving district facilities which exceed $30 million are subject to the approval of the Legislative Council. Do you have any idea of how much $30 million is today? It may not be enough to provide a cover for a walkway, not to mention the construction of a footbridge which costs hundreds of millions of dollars. It is therefore extremely difficult to implement district works that can genuinely help the residents. It has been a long while since the funding ceiling was last revised, during which the costs of works and inflation have increased drastically. Therefore, DAB thinks that the $30 million threshold is already outdated. The Legislative Council needs to consider whether appropriate adjustment should be made to the relevant funding ceiling in the light of the inflation level. In my opinion, the Government should propose to make the relevant adjustment as $30 million is not enough to implement many district works projects.

Last of all, as a Legislative Council Member of the DC subsector, I think many DC members have been keeping very close tabs on the sentiments of local residents and there is a trend that many DC members are becoming more professional, younger in age and working full-time. Yet, the remuneration package has failed to go in tandem with this trend. Putting aside the salaries of DC members, the wages of their assistants and office rentals have been increasing, which is a headache for many DC members. As I am aware, many DC members have to recruit new assistants or relocate their ward offices every year or two due to rental increase. Under such circumstances, how can DC members provide quality and stable district services for the local residents?

Therefore, I eagerly hope that the Government will seriously review the powers and responsibilities of DCs and consider whether appropriate adjustment should be made to the Operating Expenses Reimbursement for DC members (including staff remuneration and office rental), so that DC members can better serve the community.

Due to time constraints, my comments on the Budget relating to home affairs and development will stop here.

Deputy President, I so submit. Thank you.

8940 LEGISLATIVE COUNCIL ― 25 April 2018

MR STEVEN HO (in Cantonese): Today, I express the views on the Government's Budget on behalf of the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") and the agricultural and fisheries sector to which I belong. After the delivery of the Budget, most of the discussions have focused on how the Government should give cash handouts. I believe the focus is distracted to a certain extent. We should examine the Budget with a fair perspective. Generally speaking, each budget has its own merits, e.g. the Budget has reinstated that the Government will invest for the future of Hong Kong. No one will consider that this direction is wrong; the question is how to implement the principle and the specific details. Regarding the demands of the grass roots and the industries, how should the Government meet their needs in the next couple of years? To be fair, I think the Budget really has its merits and demerits.

I will now talk about the agriculture and fisheries industries. The biggest problem faced by us now is the problem of land supply which plagues all Hong Kong people. Mr LAU Kwok-fan mentioned the problem of land resumption compensation earlier and I will give a more specific example now. Whenever the Government talks about the development of North East New Territories, Kam Tin South and Yuen Long South, etc., agricultural land will surely be involved. In this regard, the British Hong Kong Government and the first two terms of Government after the reunification introduced some undesirable policies. Former Chief Executive LEUNG Chun-ying did a better job in allocating $500 million to establish a compensation fund. However, no fundamental adjustments have been duly made to the compensation system in Hong Kong.

At present, if the Government wants to resume land from a farmer and asks him to move out, no help will be given to help the farmer find another piece of land. If the Government resumes a well, it will offer a compensation of $20,000. If I gave the Secretary $60,000 and asked him to dig a well for me, he would realize that the work could not be done. The levels of compensation have not been adjusted for more than 30 years and no upward adjustment has been made in line with inflation. If the law provides that the compensation payable is $20,000, that amount will be offered. Over the years, $30 will be offered to compensate for each chicken culled because that is the amount provided by the law. However, people are well aware that inflation over the decades has diminished the value of compensation. Thus, the Government should comprehensively review the policy so that the people affected by land resumption can be rehoused and adequately compensated. If the Government cannot think of any innovative ideas to change this policy, all the 18 land supply options LEGISLATIVE COUNCIL ― 25 April 2018 8941 proposed by the SAR Government and the Task Force on Land Supply will become fruitless. That is a fundamental problem which the Government must face.

Let me talk more about the fisheries sector. The Government is definitely desperate for land and among the 18 options, resumption of agricultural land and reclamation will surely be involved. Simply put, I have never advocated the proposal of no removal and no demolition. I just want to tell the Government: if it can formulate a policy to properly solve the fishermen's livelihood problems, establish a clear direction for development, provide fishermen with huge room for development, or even allow their development outside Hong Kong, I will support reclamation. However, the Government has not put forward any win-win proposal. Whenever I put questions to the Directors of Bureaux, they will decline any responsibility and say that another Policy Bureau should be held responsible. For example, I once asked the Secretary for Development how the authorities would help farmers since their agricultural land was affected by government policy. The Secretary for Development asked me to make enquiries with the Food and Health Bureau, but when I did so, the Food and Health Bureau suggested that fishermen should engage in offshore fishing, but the Bureau is not responsible for monitoring offshore matters. No matter what the issue is, it does not concern any Policy Bureau. When will public officers stop shifting responsibilities onto others? Eventually, when the Government has to implement policy, the stakeholders will rise in opposition.

Why do some people who initially opposed certain government policies―I do not mean those who intended to topple the Government―eventually join the opposition camp and support Members sitting on the other side of the Chamber? In fact, the Government should be held culpable and we cannot completely blame them. The opposition camp creates social dissension to increase the number of its supporters. This is a point which the Government must carefully consider. Members of the pro-establishment camp are the majority in the Legislative Council. While I understand that the Government often says that it has to treat both camps fairly, in fact, if the Government wants to secure enough votes in the Legislative Council, it should listen more to pro-establishment Members and serve us. If we receive more support from the Government, we will support it with greater vigour. That is a fundamental base of the Government. The Government should not only listen to one side and show favour to it. It is useless to donate even $300,000 to the opposition camp; the Government has walked in the wrong direction and it should reflect on its actions.

8942 LEGISLATIVE COUNCIL ― 25 April 2018

I will now talk about illegal fishing and leave aside the problem of land supply because great disagreements are involved. The Task Force on Land Supply has commenced consultation on the 18 options and asked members of the public to make a choice. This will certainly arouse great disagreement. After the public have made their choice, the Government will shirk its responsibility and claim that it has nothing to do with the disagreement because the consultation is not weighed to favour any particular option and it is conducted in an open-ended manner for public consideration. After the people have fought bitterly with one another over the options, the Government will pick the remaining options. Eventually, while land can be provided with every option, the question is how conflicts of interests among the stakeholders can be resolved in the process of land acquisition. The Government has not provided any good solution. I will say no more; otherwise I will go on and on and become even more furious.

Regarding illegal fishing, the Government introduced a new piece of legislation in 2012 to implement a policy on banning trawling and prohibit certain fishing methods which involve the use of electricity, poison, explosives, dredging and suction devices within Hong Kong waters. However, while the Government has introduced the laws, it has not effectively enforced them. As a result, we can often see vessels fishing illegally within Hong Kong waters over the past few years. Some of these vessels may not have fishing permits while others may be fishing with improper methods. Fishermen who have legally obtained their permits see people fishing illegally every day. The situation is comparable to law-abiding fishermen, holding spears, cannot compete with the law breakers who are equipped with bombs. Members of the industry have thus experienced serious emotional struggles. They query why they, who comply with the law and work diligently, earn less than those who fish illegally. In the past few years, the Agriculture, Fisheries and Conservation Department ("AFCD") has commissioned the Marine Police to deal with vessels fishing illegally, but the Government has not allocated additional resources for the Hong Kong Police Force under the Security Bureau. The Marine Police has not been given any additional police launch or manpower. Perhaps additional manpower will only be provided to the Police during Occupy Central.

In the past few years, AFCD has only been provided with one additional launch to help in managing Hong Kong waters, covering 1 600 sq km; is that enough? Every time I asked the Government for figures, the authorities would LEGISLATIVE COUNCIL ― 25 April 2018 8943 say that AFCD patrolled 1 400 to 1 700 times on average and arrested people who fished illegally. These people were then fined $2,000 to $3,000 after trial. Will fishermen be satisfied with such a response? The maximum sentence of the offence is imprisonment for six months, but only suspended sentences have been given in the past. No one has ever been imprisoned and the fine imposed was only some $2,000. As tens of thousands of dollars can be earned in a single illegal fishing exercise, the huge amount of profits bear no comparison with the level of fines. I think the Government really needs to consider allocating additional resources in this area.

A few years ago, when Dr KO Wing-man was the Secretary for Food and Health, he created nine posts to deal with illegal fishing. Nevertheless, no additional equipment was provided correspondingly. Did Dr KO pray in his office that people engaging in illegal fishing would be arrested the next day to solve the problem? If so, it would be better for the matter to be under the purview of the Home Affairs Bureau. The Home Affairs Bureau would then organize a religious ceremony to pray for the successful arrest of illegal fishermen and it would then be unnecessary to allocate any resources to AFCD. The actual results indicate that the Government has performed poorly and the people are not convinced. I hope that the SAR Government will ponder on this matter. I will say no more on agriculture and fisheries industry; otherwise I will not have time to express DAB's views on food safety and environmental hygiene in general. I will skip one page of my speaking notes and stop talking about the agriculture and fisheries industry.

First I will talk about the issue of columbarium niches ("niches") and express some views on behalf of DAB. Given the serious shortage of land resources in Hong Kong, not only do we face an insufficient supply of housing, we also find it hard to find a place to bury our ancestors. As a result, there is no rest for the living and no peace for the dead. Mr Wilson OR made the point earlier that the waiting time for public housing is four to five years. In fact, there is also a waiting time of 46 months for a niche. Is the Government very pleased with the situation? While the waiting time for public housing for the living is five years, the waiting time for housing the dead is only four years, which is shorter and that seems fair. The problem is, since the Government has performed poorly in implementing the entire policy, the demand for private niches is great and the price is high. While the size of a public rental housing unit for which the public is now waiting may be 200 sq ft to 300 sq ft, the size of 8944 LEGISLATIVE COUNCIL ― 25 April 2018 a niche is much smaller, but people still have to wait for years to get one. That is out of proportion and therefore unreasonable. People have to spend several ten thousand dollars to several hundred thousand dollars to get a private niche. Even though they have paid for the niche, there is no guarantee that they can enjoy peace of mind in the future and that is ridiculous.

The expiry date for applying for a private columbarium permit is 29 March. A total of 144 private columbaria have submitted their applications and about 10 columbaria operating at present have decided not to renew their permits. According to a rough estimation of some representatives and experts of the trade, at most two thirds of the existing private columbaria can have their permits renewed, while the remaining one third which cannot comply with the requirements may have to close down. If so, how will the Government deal with the ashes kept in the columbaria which will cease operation? In this regard, the Government has proposed some corresponding measures which I think are not long-term solutions. In respect of compensation, many people did not pay attention to whether the columbarium was operating legally when they purchased a niche and they might not even have signed any contract of sale. If the columbarium ceases to operate, these people can hardly obtain any compensation. In this connection, DAB hopes that the Government can collect information of the aggrieved consumers and proactively help them obtain compensation, so that the urns of their ancestors which have been compelled to be removed will be rehoused.

In fact, the problem is hard to solve. To solve the shortage of niches in the long term, the first and foremost solution is to bring about changes in customs and traditions and promote green burial. As at December 2017, about 12.9% of all Hong Kong people have adopted green burial for the deceased which is a relatively low figure. I hope that the Government can strengthen its promotion on green burial, for it is really difficult to bring about changes in customs and traditions. In the Qin Dynasty, Qin Shi Huang built a huge underground tomb in which the Terracotta Army was buried with him. In the Tang Dynasty, Tang sancai wares were buried with the dead. Some farmers told me that in the old days in the Republic of China before 1949, they could unearth very valuable Tang sancai wares from time to time, but since those were burial items, they would immediately dispose of them. Considering the history of development of the Chinese nation, burial items have changed from the Terracotta Army to the Tang sancai wares to paper items; and burial methods have changed from coffin burial LEGISLATIVE COUNCIL ― 25 April 2018 8945 to cremation. Places for housing the dead have become smaller and smaller and the ashes of the deceased can now be compressed even to the size of a diamond with new technology. However, this process of development is long and painful. If I ask the Government to raise the percentage of green burial from 12.9% to 50% in a couple of years, it will be very difficult or even impossible. However, can the Government set an objective in expediting the progress of its work in this regard?

Finally, I would like to discuss the issues of building new markets and improving existing markets. The Government has injected $2 billion for implementing a Market Modernisation Programme over the next 10 years. I certainly welcome the Government's determination in solving the problems of markets and introducing reform proposals. However, I hope that Government will pay attention to a few salient points. We notice that the Government has proposed locations, sizes, ancillary services, management modes and implementation timetables for the new markets. In particular, the Government proposed last year to build new markets in Tung Chung, Tin Shui Wai and Hung Shui Kiu in response to the residents' demand of not having to travel to other districts to buy food. However, up till now, the Government has not set any specific timetable for implementing its plans. Will the Food and Environmental Hygiene Department manage the new markets? Will the Government encourage stall operators in old markets with low visitor flows or in markets pending redevelopment to move to the more spacious stalls in the redeveloped markets? Will the Government give these stall operators priority in relocating them to the new markets, or give them more incentives when inviting them to move to the new markets? The Government needs to consider these questions with a new mindset.

Second, we are also concerned about the works of installing air-conditioning facilities in markets. The progress of the entire works is slow and consensus has not been reached on a number of issues. Many stall operators cannot make a living when the market ceases operation for the works. Although the Government says that some stall operators can take a break when the market is undergoing refurbishment, only a small number of stall operators in society can afford to do so. The Government cannot let the views of the minority hinder it from solving the problems faced by the majority of the stall operators. A market may have to cease operation for a year to install air-conditioning facilities and no 8946 LEGISLATIVE COUNCIL ― 25 April 2018 help is available for members of the public. Members of the public cannot buy food in the market during this period and their needs cannot be met. I hope the Government can consider the problem.

As I understand it, many markets owned by the Link Real Estate Investment Trust ("Link REIT") are old markets in which refurbishment works and installation of air-conditioning facilities have been done before. Although people often criticize Link REIT for its frequent increase in rent, its works are often completed in only three months to half a year. The main reason is that Link REIT knows how to use market forces. Link REIT adopts a target-oriented approach and strictly stipulates the date of commencement and the duration of works in the tender contracts of its works. That may push up the tender price, but it can also ensure that the works will be completed within a short time.

I have finished expressing my views on markets and niches. Finally, I would like to advise the Government on the issue of handing out money. The issue may have nothing to do with the Secretary for Security as it falls within the purview of the Financial Secretary. In fact, the Government leaves many gaps when it delivers the Budget every year. Then, it will ask Hong Kong people what they think of the gaps and the neglected areas in the Budget. After that, Members will certainly criticize the Government and eventually, the Government will put forward some proposals, e.g. plugging the gaps through the Community Care Fund. But why should the Government present a budget with gaps and be reprimanded by Members every year? The Government is not Hua Tuo, a legendary surgeon in ancient China; why should it treat poison by scrapping bones, or beat up the patient before curing him? That does not make sense at all.

In future when the Government draws up the Budget, can it incorporate the so-called "gap-plugging" proposal so that members of the public can fairly assess and review how the Government has cared for different sectors of society? The Government should try to minimize the problems arising from the Budget and will only plug the gaps, if there are gaps, in the end. Take this year's Budget as an example. There are big gaps in it. For example, residents of public rental housing estates cannot obtain any financial benefits from the Government, but recipients of the Comprehensive Social Security Assistance can get "triple pay". This big difference has created great discord in society. Although the Government has subsequently proposed some remedial measures, the public will not be grateful. My speaking time is almost up now and my final comment is that the Government should seriously review all the setbacks concerning this LEGISLATIVE COUNCIL ― 25 April 2018 8947

Budget. The Budget may not be the worst so far, but in respect of the government practice, measure, means and publicity, I think the Government has taken the wrong path.

Thank you, Deputy President. I so submit.

(Mr CHAN Chi-chuen stood up)

DEPUTY PRESIDENT (in Cantonese): Mr CHAN Chi-chuen, what is your point of order?

MR CHAN CHI-CHUEN (in Cantonese): Deputy President, is the Financial Secretary in the Chamber now?

DEPUTY PRESIDENT (in Cantonese): I believe you can see that the Financial Secretary is not in the Chamber.

MR CHAN CHI-CHUEN (in Cantonese): I have not worn my glasses and cannot see clearly.

DEPUTY PRESIDENT (in Cantonese): The Financial Secretary is not in the Chamber and your question is not a point of order.

MR CHAN CHI-CHUEN (in Cantonese): I request a headcount.

DEPUTY PRESIDENT (in Cantonese): Mr CHAN Chi-chuen has requested a headcount.

Will the Clerk please ring the bell to summon Members back to the Chamber.

(While the summoning bell was ringing, a number of Members returned to the Chamber, but some Members did not return to their seats)

8948 LEGISLATIVE COUNCIL ― 25 April 2018

DEPUTY PRESIDENT (in Cantonese): Will Members please return to their seats so that we can do a headcount.

(After the summoning bell had been rung, a number of Members returned to the Chamber)

DEPUTY PRESIDENT (in Cantonese): A quorum is now present in the Chamber. Will Members please keep quiet. Mr POON Siu-ping, please speak.

MR POON SIU-PING (in Cantonese): Deputy President, strictly speaking, the 2018-2019 Budget is the first budget drafted from scratch by the Financial Secretary to manifest his financial management style. Members of the public have expectation of the new financial management style of the Financial Secretary, hoping that the Government, with a surplus of $100 billion and reserves of $1,000 billion, will implement practical and effective relief measures to reduce wealth gap, return wealth to the people and ease social grievances.

When I spoke on last year's budget, I praised the Financial Secretary, who took up his current post halfway through the term of Government, for being able to mediate between the two options by planning the budget of the Government on the basis of past budgets while abandoning some outdated policies of his predecessor. Therefore, just like many other people, I had high hopes on his 2018-2019 Budget.

In paragraph 47 of the Budget, the Financial Secretary has stated a new fiscal philosophy, saying: "The Chief Executive has put forward a new fiscal philosophy for the current-term Government. It envisages that on the premise of ensuring the health of our public finance, the Government should adopt forward-looking and strategic financial management principles in optimizing the use of surplus to invest for Hong Kong and relieve our people's burdens." Yet, in the Budget, I fail to see the new-term Government having the courage to take bold actions to practically solve the structural social conflicts. Regarding the non-means-tested Public Transport Fare Subsidy Scheme announced in the Policy Address, I have time and again criticized it as an initiative to help the rich rather than the poor, but I am not going to repeat my views here.

LEGISLATIVE COUNCIL ― 25 April 2018 8949

High-income middle-class families with properties are the ones who benefit the most from this Budget as they are entitled to tax reduction, rates concession, higher allowances for children and dependent parents, and so on. These initiatives actually slant towards well-off families. If the so-called new fiscal philosophy is meant to support well-off middle-class families, there is no way that I will agree with this development direction.

Deputy President, a number of proposals in this Budget have great bearings on the well-being of workers. The Budget has set aside $15 billion for abolishing the arrangement for "offsetting" severance payment or long service payment against the Mandatory Provident Fund ("MPF") contributions, and the latest news from the Secretary for Labour and Welfare is that the Government has earmarked a commitment of $17.2 billion for this purpose. The labour sector support the preliminary proposal currently put forward by the Government for abolishing the MPF "offsetting" arrangement. We hope that the Government will consult the community about this proposal and proceed with the advance work for the abolition of the MPF "offsetting" arrangement when working on the legislation so as to ensure that the abolition proposal will be put into practice within the current Government term.

It is stated in the Budget that the employment rights of non-skilled workers employed by government service contractors is a matter of great concern to the Government. When this Council reviewed the Government's service outsourcing policy last year, I gave three suggestions, including: requiring outsourced service contractors to stipulate in the employment contract the number of working hours at 44 per week and compensation for overtime work at 1.5 times of the wage rate; having the Government bearing the ultimate responsibility of protecting the rights and benefits of employees of outsourced service contractors; and assigning greater weighting to employees' rights and benefits and remuneration. I consider these requests fair and reasonable and urge the working group tasked with reviewing the outsourcing system under the Labour and Welfare Bureau to accept my suggestions. I also hope that the Financial Secretary will provide the necessary resources to support their implementation.

Deputy President, occupational safety is always my concern. Last year, there were 29 fatal industrial accidents in Hong Kong, with 22 occurring in the construction industry. Basically, fatal industrial accidents occur once every two weeks on average in Hong Kong and many of them happen in the construction industry. In the Budget, the Financial Secretary has stated that Hong Kong's 8950 LEGISLATIVE COUNCIL ― 25 April 2018 construction industry is acclaimed for high efficiency. On this point, I must remind the Financial Secretary that the high efficiency of the construction industry comes at the expense of workers' lives. Hong Kong should stop trading workers' lives for construction efficiency. While the Financial Secretary said that "wider adoption of innovative technology to enhance productivity, built quality, environmental performance and site safety" would be necessary, "site safety" was the last point mentioned by the Financial Secretary in his various upgrading initiatives. The high industrial fatality rate in the construction industry was glossed over by these few words in the Budget. I have all along asked the Government to review the industrial safety and compensation policies. The Government should at least increase resources for recruiting more construction safety officers and supervisors to improve the supervision of industrial safety.

On labour issues, I must point out that the Financial Secretary has stated in the Budget: "The latest unemployment rate of below three per cent reflects a tight labour market in Hong Kong. With a rapidly ageing population, our workforce will fall from its peak in the coming few years. On the premise that local workers' priority for employment will be safeguarded, we should consider increasing imported labour in a timely manner and on an appropriate scale to address the specific needs of individual sectors." Let me reiterate, the Government cannot use the safeguarding of local workers' priority for employment as a shield to push through an increase in imported labour. When minimum wage cannot even safeguard the livelihood of grass-roots workers, there is no point talking about safeguarding local workers' priority for employment.

In respect of additional provisions, there are two points that I must raise. Firstly, it is noted that the Government has committed an additional recurrent expenditure of $2 billion on education in this Budget after increasing the same expenditure by $5 billion last year. Regrettably, the Government's education system does not cover vocational and professional education. This year, the estimated expenditure on vocational and professional education is about $3 billion but the expenditure on post-secondary education is nine times this figure. The last-term Government accepted the recommendations of the Task Force on Promotion of Vocational Education and undertook to support the development of vocational education in terms of hardware and software with the aim of changing the social perception that vocational education was a second choice. However, I think the Government has still positioned vocational LEGISLATIVE COUNCIL ― 25 April 2018 8951 education as alternative education different from grammar education in its allocation of education resources. This approach is not conducive to the development of vocational education in Hong Kong and will hold back the provision of diversified training necessary for supporting the development of different industries.

Secondly, to tackle the recent influenza surge, the Hospital Authority ("HA") has deployed $500 million for implementing relief measures to alleviate the work pressure on frontline health care personnel. I am not sure how many junior frontline staff members can benefit from the provision of the $500 million. At the special meeting of the Finance Committee for discussing the Budget, I enquired about the manpower of allied health care supporting grades, only to learn that there was a serious wastage of manpower in these grades owing to the failure to retain experienced staff. I hold that HA should conduct a comprehensive review on the remuneration for health care supporting grades to reduce staff wastage.

Last but not least, in discussing the Budget, I must talk about the Financial Secretary's proposal to plug gaps by handing out $4,000 in response to the strong public demand for cash handouts. I would describe this initiative as trivial, mean and over-cautious. Its administrative procedure is so complicated that the application and vetting processes will cause great inconvenience. Eventually, this initiative will not be able to ease social grievances. My advice is that the Financial Secretary should consider simplifying this "gap-plugging" proposal by handing out $4,000 to all tenants in Hong Kong to relieve the housing pressure of shell-less snails. As this initiative will have a wide coverage and is simple to execute, it is believed to be the right remedy for easing social conflicts effectively. I urge the Financial Secretary to consider this suggestion.

Deputy President, I so submit.

MR CHAN CHI-CHUEN (in Cantonese): Deputy President, today we resume the debate on the Second Reading of the Appropriation Bill 2018 ("the Bill"). The public officer responsible for the Bill is Financial Secretary Paul CHAN, but he is not in the Chamber now. I have made enquiries with the Legislative Council Secretariat; the response received is that it is uncertain whether the Financial Secretary will return to the Chamber or when he will show up. I would like to say that I am very disappointed about this. I believe not only me, 8952 LEGISLATIVE COUNCIL ― 25 April 2018 but the majority of Members of the Legislative Council who intend to express their views on the Budget would like to directly exchange their views with the Financial Secretary in the Chamber. The Financial Secretary knows that he will surely obtain enough votes to pass the Bill, but I very much hope that he will listen to Members' views despite our different political stances. Thus, I hope that he will return as soon as possible. Even though he may not like listening to CHAN Chi-chuen, I hope he will return and listen to the speeches of other Members to be delivered later.

Deputy President, when Paul CHAN delivered the Budget on 28 February, my comment was that he had to redo it and eventually, he really had to redo the Budget. Dr KWOK Ka-ki said earlier that the Financial Secretary's Budget has torn Hong Kong people apart. It is indeed true. But at the same time the Financial Secretary has also united Hong Kong people; and why do I say so? The reason is that Members of different political parties and groupings criticize the Budget in unison; or at least all Members think that the Budget fails in respect of "sharing".

I remember that in the afternoon after the Budget was delivered, various political parties held press conferences separately. I spoke for a few minutes at the press conference and unexpectedly, the short video clip lasting only a few minutes was viewed hundreds of thousands of time. I was most impressed by the remark made by someone: "'Slow Beat', though I do not see eye to eye with you, I support you this time. You have rightly rebuked Paul CHAN, give him a stern rebuke on my behalf". Some of my supporters even come from the "blue ribbon" camp. Paul CHAN's Budget has united members of the "yellow ribbon" camp and the "blue ribbon" camp. They set aside political differences and focus on discussing livelihood-related issues. They jointly criticize this poorly prepared Budget. In fact, it is very difficult to prepare such a poor Budget. People often say, "Even a clever wife cannot cook a meal without rice". However, we have a surplus amounting to hundreds of billions of dollars and a fiscal reserve reaching thousands of billions of dollars; and the public coffers are flooded with cash. Thus, a Member said that if there were problems, they should be happy problems … Deputy President, I notice that the Financial Secretary has returned to the Chamber now.

The Budget prepared by the Financial Secretary is considered unsatisfactory by many members of the public and Members of different political parties and groupings. It can be said that the Budget is widely condemned, LEGISLATIVE COUNCIL ― 25 April 2018 8953 causing widespread indignation and being ridiculed internationally. The Financial Secretary said that the surplus for the last financial year was $138 billion. That is only an estimated figure and actually he had underestimated the amount of surplus. As at the end of February, the surplus was some $160 billion. Although there might be a deficit in March, I think the total surplus will inevitably add up to about $150 billion. Let me assume that the surplus is $138 billion, how much is that amount of money? If the money is distributed to all 7 million Hong Kong people, each person will get $20,000; and $138 billion also represents one third of the fiscal reserve of the former British Hong Kong Government in 1997.

When the Government has a surplus of more than $100 billion, does it mean that Hong Kong people will have better living conditions and higher incomes? Simply put, the answer is in the negative. On the contrary, a large part of the huge surplus is built on the sufferings of the general public. Regarding the fiscal surplus, the government revenue in the last financial year is 20.6% higher than the original estimate, mainly due to much higher-than-expected revenues from land premium and stamp duties. The revenue from land sales is $62.6 billion higher than expected, representing an increase of 62%; while the revenue from stamp duties is $39.7 billion higher than expected, representing an increase of 75%. Both the revenues from land sales and stamp duties are related to property speculation; and rampant property speculation is in turn related to the Government's high land premium policy. Certainly, the Financial Secretary will say that the Government has not adopted high land premium policy and I will not argue with him. The high land premium policy has affected each and every member of the public in respect of food, clothing, accommodation and transportation. Thus, the huge surplus is built on the sufferings of the general public. Here, I will once again explain to you publicly the reasons for my above remark.

As land premium is high, people can hardly afford to buy property; and high rental will add to the burden of the public. High rentals for shops and offices will push up commodity prices. These are the costs to be borne by all Hong Kong people. Thus, People Power has advocated offering refund to all people all these years. I think it is only fair to offer a refund of $10,000 to all people because they have to pay a high price for the huge surplus. When there is a huge surplus, the Government should return wealth to the people to relieve the burden imposed on the whole society or even to compensate for the harm inflicted as a result of the high land premium policy. The refund of $10,000 to 8954 LEGISLATIVE COUNCIL ― 25 April 2018 each person will only cost $70 billion, which is one half of the surplus of the financial year. Nonetheless, the SAR Government and the Financial Secretary have done just the opposite. They are returning wealth to the rich, or as some put it, they are even "robbing the poor to pay the rich".

Let me give an example. The Government does not set a limit to the number of properties that an owner can enjoy rates waiver. Hence, an owner with one property will pay $10,000 less for rates; an owner with 10 properties will pay $100,000 less for rates; and an owner with 100 properties will pay $1 million less for rates. For the 10 biggest consortia in Hong Kong, the waiver of rates will amount to a total of $256 million. Do Members know that for a property to have its rates waived for $10,000, the rateable value is $200,000 and the price of that property will be around $10 million? For large chain stores, supermarkets, famous brand stores, goldsmith shops, cosmetic shops and the like, the rates to be waived for each shop will be $10,000. Will owners of these shops use the money saved to offer discounts to the public or increase the salaries of their employees?

Since the Budget returns wealth to the rich, ordinary people can hardly get any benefit. Some members of the public even feel insulted. Thus, the Budget scores a record low of 48.2 points. The popularity of the Financial Secretary also drops from -11% to -24%. This is only part one of the Budget; and I have talked about it for eight or nine minutes.

What about part two of the Budget? Part two is the "gap-plugging" proposal announced on 23 March. According to the Financial Secretary, the proposal is a targeted caring scheme under which an eligible person would receive $4,000. If a member of the public gets less than $4,000 in rates waiver, tax concession and "triple pay" in respect of the Comprehensive Social Security Assistance ("CSSA") payment, he will receive the shortfall. The administrative costs of this "remedial" proposal will be $311 million, and $40 million will be incurred for merely renting offices for implementing the scheme. On the face of it, the Financial Secretary introduced the "remedial" scheme in response to public opinion, but has he considered why people still seriously rebuke the Budget? The reasons include the slow pace of handing out cash, high administrative costs and complicated application procedures causing inconvenience to the public. Some people even feel insulted. The popularity rating of the Financial Secretary has thus dropped to -44% and Carrie LAM's popularity has fallen to a negative rating for the first time. Deputy President, Jasper TSANG, former President of LEGISLATIVE COUNCIL ― 25 April 2018 8955 the Legislative Council and founder of your political party, derided the "gap-plugging" proposal as being more complicated than quantum theory. If even Jasper TSANG, who is good at mathematics, finds the proposal complicated, do you think it is normal for the general public to be perplexed and confused?

Nevertheless, up to this date, the Financial Secretary has refused to acknowledge failure or admit mistakes. According to him, the proposal is targeted so that resources can be properly utilized. Since the applicants have to meet certain criteria, their applications have to be processed and naturally, that will incur costs. Moreover, as this is the first time that such a proposal is implemented, it is only reasonable that it will incur an administrative cost of $30 million. The Financial Secretary even said that John TSANG spent more than $30 billion to hand out $6,000 to everyone back then, whereas the current "gap-plugging" proposal at a ceiling of $4,000 will only incur an expenditure of $11 billion-plus including administrative costs. Even an old lady will know that the Financial Secretary's argument is deceptive. On the last occasion, each person received $6,000, but this time, each person will receive at most $4,000. The costs incurred will certainly be lower, how dare the Financial Secretary say that he has saved government expenditure.

Furthermore, since there is little time left, I will only give one more example to indicate the ineptitude of the Budget. Initially, the Government would pay the examination fees for all candidates sitting for the Hong Kong Diploma of Secondary Education Examination ("HKDSE") in the coming year, but now only school candidates and not private candidates will benefit. Deputy President, you have also made this point at a meeting of the Legislative Council. According to the Government, after the delivery of the Budget, many people said that they would sit for HKDSE and some even said that they would stir up trouble. We know that these online comments were made to give vent to one's sentiment at the time. As people thought that property owners could benefit from rates waiver of $10,000, while they, who had not applied for CSSA, have no benefit at all; a waiver of the examination fees would still be regarded as a kind of benefit. Many people had expressed their anger against this backdrop. We do not know how many people will actually sit for HKDSE. After the Government has put forward the "gap-plugging" proposal, these people may find that they can get some benefits; will they, for the reason of not having to pay the examination fee, still take leave to sit for HKDSE to stir up trouble and vent their grievances? 8956 LEGISLATIVE COUNCIL ― 25 April 2018

The Government originally intended to help private candidates, but now, in order to avoid trouble, it adopts a broad-brush approach not to offer any help. I think private candidates will certainly be very disappointed.

I once said to the Secretary for Education, if many netizens felt very angry and decided to sit for HKDSE at their own expenses to stir up trouble, school candidates sitting for the examination in the coming year would be very disturbed, hence would the Government go so far as to revise its policy to disallow private candidates to sit for the examination? No, it would not. Moreover, the Government is unwilling to reveal its policy intent and the process of policy formulation and discussions. I also heard the hearsay that the Education Bureau initially did not want to introduce the policy, but the Financial Secretary wanted to benefit the people. Yet, he failed to give due consideration to the above mentioned issue and did not expect that the policy would generate such great public criticism. Thus, at present, it would be better not to introduce the policy so as to alleviate the concerns. Certainly, some parents prefer not to waive the examination fees for fear that their children may be affected by the uncertainties involved. Mr IP Kin-yuen echoes the same view and I fully understand their concerns. The Government has not thoroughly considered the policy before its introduction. Then, owing to certain public sentiment or some online remarks, the Government has adopted a broad-brush approach to exclude private candidates from getting the benefit. It has forgotten its original policy intent to help private candidates. Private candidates should certainly get some help. They repeat their studies, or study and work at the same time; they want to sit for the examination again to get better results because they did not perform well last time. It is disappointing that they cannot obtain the benefit.

Finally, I would like to explain that the "wok" in front of me is not mine; the Alliance for Universal Pension asked me to bring it into the Chamber to show the Financial Secretary. I dare not display the "wok" in that place for a long time, for fear that it would fall and hit Ms YUNG Hoi-yan. Certainly, the wok mocks the Financial Secretary's "remedial" proposal, can it really plug the gaps and improve social conditions?

Some people ask me: You people always strive for a direct refund of cash to all people, in case Paul CHAN really offers a refund of $10,000, will you vote for the Appropriation Bill? My answer is in the negative. In my view, returning wealth to the people is the basic measure to be taken by the Government. If the Government does not hand out cash this year, it has to do so LEGISLATIVE COUNCIL ― 25 April 2018 8957 next year. Next year will be the year for election, and so is the year after next. If the Government still has a surplus of $150 billion next year and only waives rates and offers tax concessions, and the general public still has to undergo complicated procedures to apply for benefits, then members of the public and the political parties will not let the Government off. Thus, I have told the public to relax, for they may receive benefits for the coming year even before they receive those for this year.

Nevertheless, I would like to say that people who will be affected are elderly men and women, some of whom are in their eighties or nineties. Financial Secretary, if you offer a direct refund to all people, or implement the current "gap-plugging" proposal, these people will receive cash immediately. I have made enquiries with the Labour and Welfare Bureau and the officials told me that after the passage of the Appropriation Bill, even if the elderly people passed away before receiving the benefit, the money would be incorporated into their estate. But that is not what the elderly want; what they want most is universal retirement protection. Even if they cannot witness the implementation of the policy during their lifetime, they still hope that their children or grandchildren and all elderly people in Hong Kong can have retirement protection in future. If the Government refuses to seriously consider implementing a universal retirement protection system when we have a surplus of hundreds of billions of dollars and a fiscal reserve of thousands of billions, when will universal retirement protection be implemented? The Financial Secretary may not be the only person responsible for the problem. In fact, the SAR Government and Carrie LAM are responsible too. Carrie LAM is afraid of anything "universal". To her, universal means lack of focus, handing out money arbitrarily to all people, poor and rich alike. However, many of our welfare policies, education policies and health care policies are universal. Therefore, if the Government really wants our support, (The buzzer sounded) it has to introduce a universal retirement protection system.

DEPUTY PRESIDENT (in Cantonese): Mr CHAN, your speaking time is up.

MR AU NOK-HIN (in Cantonese): Deputy President, this is the first Budget since Chief Executive Carrie LAM assumed office and the second Budget since Paul CHAN became the Financial Secretary. Carrie LAM has always wanted to show that she is somewhat different from "689" and she likes to add the word 8958 LEGISLATIVE COUNCIL ― 25 April 2018

"new" to different terms, e.g. a new fiscal philosophy. Expressions such as "new Carrie LAM" and "New Paul CHAN", etc. may be used in the future. But no matter how new things are, they are actually new wine in old bottles. The Government knows not how to use money, and the public cannot be benefited.

In this year's Budget, Financial Secretary Paul CHAN projects that the Hong Kong Government will have a record-high budget surplus of $138 billion. However, he may again be wrong because many private accountancy firms have projected that the surplus will reach $160 billion and it can be said that the public coffers are overflowing in a once-in-a-century manner. Of course, the overflowing public coffers will not smash the sea wall, but will deal a blow to the relatively low popularity of Financial Secretary Paul CHAN―pardon me, I know Financial Secretary Paul CHAN is present. According to an opinion poll conducted by the University of Hong Kong, after the delivery of the Budget, the popularity rating of Financial Secretary Paul CHAN has substantially dropped by 12% and his support rate has become -24%. It can be said that he does not know how to spend money, and he is even worse than the second generation of the rich.

(THE PRESIDENT resumed the Chair)

While the governments in various parts of the world are troubled by deficits and financial difficulties, the Hong Kong Government is troubled by how money should be spent. As a matter of fact, when compared with the finance ministers of many other countries, Financial Secretary Paul CHAN has actually won at the starting line. His work is much easier because there is really a lot of money to be spent. However, the public booed after the announcement of the Budget for they generally considered that Paul CHAN has done a poor job. Why can't he improve people's livelihood under such favourable circumstances? He has failed to capitalize on the favourable opportunity and he has done a lousy job. The only answer is that the entire Budget is not designed for 90% of the public but only for 10% of people who have vested interests and who are very wealthy.

The public have high hopes that the Government will resolve problems of the wealth gap, public housing allocation and young people's lack of upward mobility opportunities through an effective redistribution of wealth. The latest Gini Coefficient in Hong Kong is 0.539, the highest in 45 years; the wealth gap is LEGISLATIVE COUNCIL ― 25 April 2018 8959 even larger than that in Singapore, our major competitor. Hong Kong is not as good as Singapore in many respects but we have surpassed Singapore in this area. Moreover, according to the result of a housing affordability survey this year, for the eighth year in a row, Hong Kong is the least affordable housing market in the world. Hong Kong households can only afford to buy a residential unit if they go without meals for 19.4 years. Is there a solution to these problems in this year's Budget? I believe many people are very pessimistic.

Financial Secretary Paul CHAN said that this year's Budget has three main objectives: diversified economy, investing for the future and caring and sharing. Please allow me to make some severe and harsh comments. In fact, I think the objectives of the Budget are maintaining monopoly, indulging in infrastructure development and returning wealth to the wealthy. First, I would like to talk about returning wealth to the wealthy. The most popular term of this year's Budget must be "plugging gaps". Just like the recent distortion of history in many history textbooks―pardon me, Secretary Nicholas YANG is here. Chief Executive Carrie LAM and Financial Secretary Paul CHAN have taught us once again the meanings of "gaps" and "omissions". President, I believe you also know that there are 7.4 million people in Hong Kong and more than 6 million are adults; Financial Secretary Paul CHAN has taught us that we have omitted nearly half of them, i.e. around 3 million people.

In fact, I think the Government is lying when it claims that these people have been omitted. How is it possible that the Government did not know during policy formulation that around 3 million people could not be benefited? How could government officials not be provided with the relevant data under such a large bureaucratic system? In fact, the Government has not omitted these people; it has simply ignored them. The Government has not carelessly failed to take these people into account; it has deliberately deprived them of benefits. Why? It is because these people do not have votes and they are not functional constituency electors. Facing the pressure of a large number of people demanding cash handouts to all people and a number of public relations disasters, the Government decided to hand out cash to 3 million people amidst public resentment, so as to plug gaps. Even the pro-establishment camp does not want to support the Budget and be condemned together with the Government. They thus jointly criticized the Budget for its inadequacies. This shows that the Budget is really awful.

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The caring and sharing initiatives mentioned by Financial Secretary Paul CHAN will most likely benefit property owners. The middle class in Hong Kong are under livelihood pressure and we understand why they are provided with rates concession and tax rebate, but why doesn't the Government limit the number of properties for which rates can be reduced? There is a simpler approach i.e. the Government can just reduce the rates for owner-occupied properties. How come some people can enjoy unlimited concession? According to a document provided by the Government in response to a Member's question, the first top 10 ratepayers are expected to receive rates concession of $260 million, and the ratepayer who will receive the largest amount of rates concession will save $100 million.

Of course, the Government can defend itself by saying that over 80% of the tenancies of the top 10 ratepayers that receive the highest amount of rates concession can benefit from the rates concession. However, in another government document in response to the questions raised by Mr James TO and Mr WU Chi-wai, it is stated that only 4% of tenants of the domestic tenancy pay rates and more than 50% of tenants of non-domestic tenancy, such as shops, pay rates. This shows that the Government has cited the case of these 50% of tenants to absolve itself of the blame for returning wealth to the wealthy. Anyone who has learnt the tax incidence concept should know that landlords will eventually get the benefit.

Regarding the welfare initiatives in this year's Budget, how much money will be given to social security recipients? The Government will make an additional provision of only $36 million to provide extra allowances to social security recipients, including Comprehensive Social Security Assistance payments, Old Age Allowance, Old Age Living Allowance, Disability Allowance and Low-income Working Family Allowance. Nevertheless, the government expenditures on reducing salaries tax, profits tax and rates will amount to $29.2 billion. Will the wealth redistribution of $29.2 billion versus $3.6 billion be sufficient to really solve the wealth gap problem? This is what we call returning wealth to the wealthy. Money is unreasonably distributed to those who do not need it but not to the needy. The caring and sharing initiatives may ultimately be caring the high-end population only.

The Government also advocates economic development. Before discussing this issue, I recall that Mr Joseph YAM, a member of the Executive Council, once said that government expenditures should be spent on projects with a greater multiplier effect. Yet, for the current-term Government, expenditures LEGISLATIVE COUNCIL ― 25 April 2018 8961 proposed in this year's Budget are still based on the obsolete idea of promoting economic growth through infrastructure development. Financial Secretary Paul CHAN has left the Chamber probably because of my harsh criticisms. The expenditures on infrastructure development exceeded $100 billion this year, but we are all aware of the inferior quality of the "white elephant" projects being constructed, including the artificial island of the Hong Kong-Zhuhai-Macao Bridge and the Guangzhou-Shenzhen-Hong Kong Express Rail Link. We also know pretty well whether these projects can really help Hong Kong people.

As far as economic effects are concerned, we virtually have full employment right now and investing large amounts of public money in infrastructure will eventually push up construction costs. As regards the projects invested, the Government has ignored the spillover effect, and eventually, the projects will only be conducive to the import of raw materials or heavy machinery. It is questionable whether such investments will increase our Gross Domestic Product ("GDP") as they may have already gone overseas. If this is the new fiscal philosophy, the Government has acted rather indiscriminately. Investing the surpluses in infrastructure will not increase returns. Last year, some people already pointed out upon computation that the Government might not be able to generate $30 billion economic benefits after investing $30 billion.

I am also very worried about an idea in the Budget on innovation and technology. The Government has set aside $20 billion for the Hong Kong-Shenzhen Innovation and Technology Park in the Lok Ma Chau Loop, which accounts for 40% of the total expenditure on innovation and technology. Let us not talk about whether infrastructure projects do have a multiplier effect, as evident in the past, the Cyberport, the Science Park and the West Kowloon Cultural District have eventually become property development projects. If the Government really wants to develop innovation and technology, will it consider whether the nature of the projects may eventually change due to property development? In addition, is the Government aware that start-up enterprises do not necessarily need the construction of various types of parks, and their difficulty may be not being able to open bank accounts and having to take more than five years to tide over the start-up period? Does investing $20 billion in the Innovation and Technology Park really have the greatest multiplier effect?

Most ridiculous still, this year's Budget also states that it is necessary to provide the Financial Services Development Council ("FSDC") with recurrent grants, deeming it a company limited by guarantee. The Budget also asks the 8962 LEGISLATIVE COUNCIL ― 25 April 2018

Hong Kong Monetary Authority ("HKMA") to make plans to set up an academy of finance in collaboration with FSDC for talent training. In fact, no one opposes the Government in training talent, but I remember another comment made by Mr Joseph YAM in 2012. When Chief Executive candidate LEUNG Chun-ying proposed the establishment of FSDC, Mr Joseph YAM expressed concern and pointed out that HKMA had already performed its functions and be vigilant. He queried whether FSDC could act as the direct counterpart with central banks and the relevant regulatory bodies and he opined that the proposal would lead to duplication. President, I will make good use of my speaking time in future debates on the Budget to elaborate on the problems that FSDC has brought to Hong Kong people.

The Government also said that it is essential to invest for the future. I believe it will be most beneficial to our society if resources can be invested in policy areas such as education and health care. It is true that this year's Budget is more aggressive than the previous budgets and money has been provided to increase the recurrent expenditures on education and health care. Nonetheless, I still think that the provisions are inadequate. The Government is obviously sitting on a huge surplus and it is in a better position than many governments in the world to solve the problems, but the percentages of the relevant expenditures to GDP are still lower than that in many neighbouring cities.

On investing for the future, we must mention tertiary education which specialized in nurturing talent. Universities nurture the future pillars of society and students should have community care spirit and humanistic spirit. However, for more than a decade, funding from the University Grants Committee has constantly been used to pursue internationalization and research rankings. Tertiary institutions have increasingly neglected education and local research. To increase income and reduce expenditures, many universities cease to offer certain degree programmes this year. The City University of Hong Kong announced last week that it would cease to offer part-time undergraduate programme on social work, depriving the social welfare sector of an important pathway to pursue further studies. In addition, a number of part-time tutors in the Department of Applied Social Sciences of The Hong Kong Polytechnic University were dismissed apparently because the Department wanted to boost research. I think such a teaching ecology is highly perverted.

In addition to improving tertiary education, the Government should enable students to have an international vision. Regarding the Funding Scheme for Youth Exchange in the Mainland, the Audit Commission criticized that the LEGISLATIVE COUNCIL ― 25 April 2018 8963 exchange programmes organized by the Home Affairs Bureau had placed too much emphasis on the Mainland programmes to the neglect of international programmes. Moreover, the biggest problem was the slipshod approval procedure as if money was poured into the sea. The exchange and internship programmes in the Mainland are respectively allocated $41 million and $71 million while the international exchange programmes are only allocated $6 million, a seven-fold difference. When some students go north, do some other students want to go overseas? I will propose amendments on some related issues in the course of deliberation of the committee of the whole Council.

President, I reiterate my description of the Budget that it knows not how to use money, and the public cannot be benefited. Despite a record-high surplus this year, all the problems mentioned above still exist. The Government has even adopted a rather complicated system to deal with handing out cash directly, making simple things complicated. The Government is duty-bound to assist the public and relieve their difficulties. Our affluent society has so many social problems, which proves that without a mechanism to keep the Government in check, the Government will not be accountable to the public and officials will not work for the people. I remember a slogan during the "five geographical constituencies referendum" eight years ago, i.e. "without democracy, people's livelihood cannot be improved". I believe this slogan can still be applied to this Budget.

Lastly, I would like to remind everyone to participate in the march on 1 May. (The buzzer sounded)

PRESIDENT (in Cantonese): Mr AU, please stop speaking immediately.

MR AU NOK-HIN (in Cantonese): President, I so submit.

MR WONG TING-KWONG (in Cantonese): As we always say, a stable society should be olive-shaped with a large middle class, which can serve as a strong buffer against the wealth gap and conflicts of interest in society. Yet in reality, the middle class is usually the sandwich class in society, bearing a heavy burden but rarely able to enjoy social benefits. If this situation persists, it will be very detrimental to social stability. In this year's Budget, we are pleased to see that the current Government has come to realize the severity of this problem.

8964 LEGISLATIVE COUNCIL ― 25 April 2018

This year's Budget sets forth a number of policies to help and support the middle class, such as waiving rates, refining the salaries tax regime and widening the tax bands. The Government proposes to widen the tax bands from $45,000 to $50,000 and increase the number of tax bands from four to five, so as to ease the tax burden on the middle class. It will also raise the child allowances and the deduction ceiling for elderly residential care expenses. This fully embodies the policy's aim to safeguard the core values of traditional families in society, enabling middle-class people to take better care of their families and alleviating their overall burden. It can be said that the Budget's policies on caring for the middle class seek to repay middle-class people for their contributions to society. I hope that all future budgets will continue this philosophy to genuinely ease the burden on the middle class.

In Hong Kong, small and medium enterprises ("SMEs") account for 98% of all enterprises in the industrial and commercial sectors. In the light of this, creating a good business environment for SMEs should be a focus of the Budget with respect to industry and commerce. We are glad to see that the Budget has put forth a number of measures conducive to the development of SMEs, such as breaking down for the first time the profits tax barrier by lowering the tax rate for the first $2 million of profits of enterprises from the current 16.5% to 8.25%; injecting $1.5 billion into the Dedicated Fund on Branding, Upgrading and Domestic Sales (or the BUD Fund for short) and $1 billion into the SME Export Marketing and Development Funds; and introducing enhancement measures such as increasing the amounts of funding and extending the scope of funding. It is believed that these measures will facilitate the operation of SMEs.

Innovation and research and development ("R&D") will be the lifeline for enterprises on their future path of development. In this year's Budget, an extra $50 billion is set aside to propel the development of innovation and technology. Apart from introducing measures to increase financial aids, the Government also proposes to provide additional tax deductions for domestic expenditure on R&D incurred by enterprises, so that enterprises will enjoy a 300% tax deduction for the first $2 million qualifying R&D expenditure and a 200% deduction for the remainder. Furthermore, the Government will relax the eligibility criteria for the Technology Voucher Programme. It is believed that the implementation of these measures will help enhance the innovation and R&D capabilities of local SMEs, and further accelerate the pace of "re-industrialization" in Hong Kong. These measures are a bright spot in the Budget.

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That said, the most serious flaw in this year's Budget is that despite an exceptionally substantial fiscal surplus, the Government's care for the grass roots is actually worse than before. Although the Budget proposes to give "triple pay" to the underprivileged, provide a one-off grant of $2,000 to each student in need, and pay the examination fees for school candidates sitting the 2019 Hong Kong Diploma of Secondary Education Examination, overall it has indeed missed out grass-roots people and families. That is why the Government now considers it necessary to plug the gaps by launching a new Caring and Sharing Scheme. According to a document submitted by the Administration to this Council earlier, the administrative cost of this Caring and Sharing Scheme is estimated to be as high as $311 million, which is $110 million higher than the administrative cost of the scheme to hand out $6,000 to every citizen seven years ago.

I therefore hope that when preparing budgets in the future, the Government will learn from this experience. It must never ever adopt a piecemeal approach to taking on board public opinion and proposals from the Democratic Alliance for the Betterment and Progress of Hong Kong. It should consider the effectiveness and cost of policy implementation in a more in-depth and careful manner, and comprehensively gauge public reactions to the budgets, so as to avoid having to make substantial revisions as a result of certain measures falling far short of public expectations after the presentation of the budgets. Such abrupt changes in policies would not only increase the Government's administrative cost of policy implementation but also adversely affect its governing authority.

President, since the 2003-2004 Budget, the Government has adopted the "operating expenditure envelope" resource allocation approach whereby individual Bureau Directors may flexibly redeploy resources among policy areas under their purview, having regard to their policy objectives, in order to address the issues considered to be most pressing by the public. After considering the resource allocation proposals submitted by the Bureau Directors, the Financial Secretary will issue operating expenditure envelopes to the Bureau Directors for the next financial year.

Regarding the use of public funds in the Budget, I wish to point out that while the envelope approach certainly has its merits, it does have an obvious demerit, that is, under this mechanism, Policy Bureaux have, over the years, made funding applications only for their own policy areas and then deposit the funds in 8966 LEGISLATIVE COUNCIL ― 25 April 2018 their respective "safes" for taking forward their policies for the year concerned, resulting in each Policy Bureau only caring about its own business without regard to the affairs of other bureaux. This was perhaps not a serious problem in the past, but given that new circumstances, new demands and new economies have been springing up in recent years, and that the policy areas to which such issues relate are often not confined to the purview of one Policy Bureau but require interdepartmental and cross-sectoral collaboration, government officials are often unable to effectively deal with the newly emerged economic activities, models or demands under the resource allocation arrangement of the current envelope approach. As these new issues and activities usually involve a number of Policy Bureaux and regulatory bodies, no one is to be held responsible in the end. Is the allocation of resources in the Budget through the envelope approach still in line with the Government's current policy objectives? In my opinion, the Administration should conduct a review on this, and study how to increase the flexibility of interdepartmental collaboration and how to take complementary measures for resource allocation, so as to break down the barriers among Policy Bureaux in a bid to provide the public and the community with better and timely services.

President, I wish to stress that the Government should not only consider "transfusing blood" but also attach importance to "making blood" when it comes to governance and fiscal management at all times and in all circumstances. As a result of the substantial increase in revenues from land sales and stamp duties, the SAR Government has recorded an enormous fiscal surplus of over $100 billion this year. Before the announcement of the Budget, many media outlets had been forecasting that the government coffers would be overflowing with cash, leading to rising expectations in society and an incessant clamour for cash handouts from the Government. However, I do not think that good times can last very long. A strong financial position today does not mean that it will be this good forever. So in addition to keeping the present situation in view, the Government should always look to the future, plan ahead, get prepared for a rainy day, and equip itself to enhance its competitiveness.

The Government must make good use of its huge surplus, which must not be used up all at once. Not only should the Government share the surplus with the public, return wealth to the people, assist the poor and ease their hardships, but it should also introduce targeted measures to alleviate the problems facing those in need, especially the livelihood burden on the grass roots. Meanwhile, LEGISLATIVE COUNCIL ― 25 April 2018 8967 the Government should also allocate a certain amount of resources to develop the economy, nurture talent and invest for the future, including improving community facilities and developing infrastructure, with a view to maintaining the conditions for development and wealth creation so as to prepare the ground for the future sustainable development of Hong Kong.

President, I so submit.

MR GARY FAN (in Cantonese): President, the Financial Secretary's wrong estimation of surplus in this year's Budget has broken the record. The fiscal surplus for 2017-2018 is as high as $138 billion―probably more―an excess of more than $121.7 billion over last year's projection. Given that the Treasury is overflowing with cash, and in particular, the Government has persistently lacked long-term planning and undertaking for various policies, it is reasonable to return wealth to the people in this year's Budget.

Since the Government has not made financial commitment to social problems, it should return wealth to the people directly. However, the measure proposed in the Budget to hand out $4,000 is simply ineffective; the proposal to pay the examination fees for candidates of the Hong Kong Diploma of Secondary Education Examination is cancelled at the last moment; and the provision of 10 000 free Ocean Park tickets is not only a fancy move to divert attention, but also being queried by the public for transfer of benefits. The so-called "gap-plugging" measure to hand out money is actually a remedial measure, yet the procedures are very complicated and harsh. Just the administration costs alone will amount to over $300 million, so the objective of returning wealth to the people cannot be achieved at all.

President, after the announcement of this year's Budget, many Hong Kong people who did not support handing out money in the past have changed their attitude and support handing out money to return wealth to the people. Why is it so? As the Government fails to do its part, more and more Hong Kong people no longer have any expectations, and they do not believe that the Government will put in place practical measures and policies to solve the social problems faced by members of the public, such as an ageing population, long-term shortage of medical manpower, home purchase issues of young people, etc. Some even believe that the Government has simply not accorded top priority to Hong Kong people's interests, such that it does not put in resources to address issues that 8968 LEGISLATIVE COUNCIL ― 25 April 2018

Hong Kong people are concerned about. In their view, as they are so disappointed with the Government and have even given up all hope, it would be better for the Government to return wealth to the people by giving money back to them directly, so that people can solve the problems by themselves.

President, such a change in mentality is actually very sad, which also indicates that the Government has failed to perform its due function. The Budget fails to properly respond to people's aspirations; in particular, it fails to address the difficulties faced by young people and the elderly, and has not formulated long-term measures to help the grass roots and alleviate various social conflicts faced by Hong Kong currently. Excluding the foreign currency reserve of more than $3,000 billion, the Government has already accumulated a fiscal reserve exceeding $1,000 billion, which is equivalent to the amount of government expenditures for over 24 months. The Government absolutely has the means to make a greater financial commitment for tackling deep-rooted conflicts in society, such as an ageing population and the disparity between the rich and the poor.

President, the Gini Coefficient of Hong Kong rose to 0.539 in 2017, the second highest amongst the world's developed economies. What was the fiscal philosophy adopted by the Hong Kong Government a decade ago? It was the trickle-down effect. That is to say, if the Government promoted economic development, each sector of the community might be benefited when the "pie" had been made bigger. However, in effect, wealth disparity in Hong Kong has not been narrowed. The last-term Government started to change by claiming time and again that money should be spent proactively; the current-term Government even claims that a new fiscal philosophy should be adopted to make good use of the surplus for investing for the future. Nonetheless, all these are merely political rhetoric that is pleasant to the ear. But practically, the public money of Hong Kong has not been spent properly.

President, the Legislative Council Secretariat prepared a research brief on the Budget this year. It is pointed out in the research brief that owing to the budget surplus and hefty fiscal reserve, the Government has time and again set aside money in the past for specific purposes and has established designated funds. However, some of the funds have been under-utilized. For instance, the Future Fund was established in 2016 with $220 billion, yet so far, the Hong Kong Monetary Authority, responsible for the management of the Fund, only used half of the amount for investment. Actually, the remainder of the fund is already LEGISLATIVE COUNCIL ― 25 April 2018 8969 enough to set up a seed fund for the universal retirement protection system. Likewise, the Housing Reserve, established in 2016, has a cumulative fund reaching $78.8 billion so far; yet the Housing Authority stated that it should be able to promote public housing development in the next five years without resorting to the Housing Reserve at all. Furthermore, $200 billion has been earmarked for the first ten-year hospital development plan, and only 4% of the fund has been used so far.

In the Budget of last year, $10 billion was set aside to support the development of innovation and technology in Hong Kong. However, only 6% of the fund is included in the Budget and the Medium Range Forecast of the current year. As the Government fails to make good use of the fund for specific purpose, we cannot help querying that it is in fact concocting various pretexts. When the Government is faced with the public demand for better use of the hefty surplus to make long-term planning, it resorts to financial tactics to ease the media pressure. The Government appears to have allocated plenty of resources by exploiting such tricks, but it has practically done nothing.

President, the resource allocation in certain policy areas is indeed rather problematic. The estimated expenditure on education this year increases by 28% as compared to that of last year; but in fact, the percentage of our recurrent expenditure on education as a share of government expenditure has been reducing over the years, such that the year-on-year increase is only 5.6% this year. Such an increase is the second from the bottom amongst the various policy areas. The slow growth of recurrent expenditure on education reflects that the Budget fails to have long-term planning and commitments in the allocation of education resources.

At present, 18% of the students of the appropriate age group are enrolled in funded undergraduate programmes in Hong Kong. However, the number of undergraduate places funded by the University Grants Committee each year has been maintained at around 15 000 only since 1994. The Government has all along been unwilling to increase the number of funded undergraduate places, thus a large number of young students meeting university entrance requirement in Hong Kong can only opt for associate degree programmes. The inadequate funding of the Government has hindered the development of young people and their upward mobility.

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President, apart from education, the share of elderly services expenditure in recurrent social welfare expenditure has likewise increased at a snail's pace over the past decade from 9.7% in 2007-2008 to around 11% at present. What does this increase rate reflect? It reflects that the Government has not made adequate preparation for tackling an ageing population in Hong Kong, not to mention implementing more forward looking initiatives, such as establishing a retirement protection system and ageing at home.

Moreover, although the two successive ten-year hospital development plans will bring about some new health care facilities, the current public health care system is simply overloaded. During the peak season of influenza several months ago, patients died and the accident and emergency departments were packed with patients awaiting treatment. The Government cut the recurrent expenditure of the Hospital Authority ("HA") twice in the past two years. The recurrent allocation of $61.5 billion to HA this year has increased by 11% as compared to last year. In fact, a portion of the current allocation merely makes up the reduced amount of funding to HA in the past two years. In the past year, the overall wastage rate of doctors in HA is 5.9%, a record high over the past decade. Given the continuous loss of experienced doctors, and coupled with the need to cope with increased hospital beds and operate new health care facilities, the Government simply cannot relieve the overloading condition in the public health care system within a short period of time if it is still unwilling to provide more resources and recurrent allocations to HA. Do not tell us that the Government needs to put in some $100 billion or $200 billion to implement the ten-year hospital development plans. It does not help to improve the situation.

While being slow to increase the recurrent expenditures in various policy areas, the Government is very generous in policies promoting the integration between Hong Kong and the Mainland. In the Budget, $20 billion is allocated to the first phase of the Hong Kong-Shenzhen Innovation and Technology Park ("the Park") in the Lok Ma Chau Loop for site formation, infrastructure and superstructure. The Government appears to be putting a lot of resources in developing innovation and technology, but practically this is another infrastructure projects coming one after another. In this year's Budget, the total amount of expenditure on infrastructure reaches $85.6 billion, taking up a high proportion of 15.4% to the overall expenditure, which is much higher than the expenditure on education. At present, people of Hong Kong are suffering from the disastrous and bitter consequences of these Mainland-Hong Kong integration projects at sky-high prices, such as the Guangzhou-Shenzhen-Hong Kong LEGISLATIVE COUNCIL ― 25 April 2018 8971

Express Rail Link ("XRL") and the Hong Kong-Zhuhai-Macao Bridge ("HZMB"). The expenditure of the SAR Government on infrastructure grew persistently at a high level in the past decade. For instance, XRL, HZMB, and the boundary control point at Liantang/Heung Yuen Wai are all products of this overall strategy of Hong Kong-Shenzhen integration, the purpose of which is to realize regional integration. But, is it truly what Hong Kong people need? I do not think so. Rather, the Beijing Government has extended its visible or invisible hand to interfere directly with the governance of the Hong Kong SAR Government. The concept of regional integration is precisely the biggest force to push such a "white elephant" cross-boundary infrastructure project.

President, the final project cost of the Park mentioned in this Budget will at least be as high as $75 billion, excluding the loss caused by the inevitable cost overrun and delay. Why are cost overrun and delay inevitable? That is because over the past decade, which one of the large-scale infrastructure projects and "white elephant" infrastructure projects in Hong Kong has not been overspent and delayed? The Park is jointly developed by Hong Kong and Shenzhen. The Government claims that the Park will pave the way for promoting the development of the Guangdong-Hong Kong-Macao Bay Area ("the Bay Area"). As the Park is in geographical proximity to Shenzhen, and Hong Kong will provide convenient immigration arrangement for recognized Shenzhen staff, coupled with Hong Kong's advantage in its legal system, the Bay Area will definitely attract many Shenzhen technology research enterprises. However, President and fellow Hong Kong citizens, while all these projects are to be financed by Hong Kong people, their benefits to Hong Kong are doubtful; yet the Government disallows us to back off by earmarking $20 billion to implement the advance works. Hong Kong people once again see that the Government does not accord top priority to considering our interests in promoting such policies.

Therefore, on behalf of the Neo Democrats, I declare that I cannot support this year's Budget. Over the years, the government budgets have allocated short-sighted and non-recurrent provisions to solve problems. The one-off measure of "handing out candies" is a case in point. The Neo Democrats requests that the Government should, given its hefty surplus, make longer-term financial commitments in livelihood areas such as education, elderly services and public health care. It should increase the recurrent expenditure on education, further increase the recurrent expenditure of HA, and set up a seed fund for universal retirement protection immediately. These are the work that the 8972 LEGISLATIVE COUNCIL ― 25 April 2018

Government should undertake. The Government is definitely capable of returning wealth to the public on the one hand, and making long-term planning and commitments on the other.

President, I shall further elaborate on my amendment later. I so submit.

PRESIDENT (in Cantonese): Does any other Member wish to speak?

(No Member indicated a wish to speak)

NEXT MEETING

PRESIDENT (in Cantonese): If no other Member wishes to speak, I now adjourn the Council until 11:00 am on Wednesday, 2 May 2018.

Adjourned accordingly at 3:58 pm.