LEGISLATIVE COUNCIL ─ 11 February 2015 6007 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 11 February 2015 The Council met at Eleven o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE ALBERT HO CHUN-YAN THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHAN KAM-LAM, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG DR THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, S.B.S., J.P. THE HONOURABLE FREDERICK FUNG KIN-KEE, S.B.S., J.P. THE HONOURABLE VINCENT FANG KANG, S.B.S., J.P. 6008 LEGISLATIVE COUNCIL ─ 11 February 2015 THE HONOURABLE WONG KWOK-HING, B.B.S., M.H. PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P., Ph.D., R.N. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, S.B.S., J.P. THE HONOURABLE RONNY TONG KA-WAH, S.C. THE HONOURABLE CYD HO SAU-LAN, J.P. THE HONOURABLE STARRY LEE WAI-KING, J.P. DR THE HONOURABLE LAM TAI-FAI, S.B.S., J.P. THE HONOURABLE CHAN HAK-KAN, J.P. THE HONOURABLE CHAN KIN-POR, B.B.S., J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. DR THE HONOURABLE LEUNG KA-LAU THE HONOURABLE WONG KWOK-KIN, S.B.S. THE HONOURABLE IP KWOK-HIM, G.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. THE HONOURABLE PAUL TSE WAI-CHUN, J.P. THE HONOURABLE ALAN LEONG KAH-KIT, S.C. LEGISLATIVE COUNCIL ─ 11 February 2015 6009 THE HONOURABLE LEUNG KWOK-HUNG THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE WONG YUK-MAN THE HONOURABLE CLAUDIA MO THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. THE HONOURABLE NG LEUNG-SING, S.B.S., J.P. THE HONOURABLE STEVEN HO CHUN-YIN THE HONOURABLE FRANKIE YICK CHI-MING THE HONOURABLE YIU SI-WING THE HONOURABLE GARY FAN KWOK-WAI THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P. THE HONOURABLE CHARLES PETER MOK, J.P. THE HONOURABLE CHAN CHI-CHUEN THE HONOURABLE CHAN HAN-PAN, J.P. DR THE HONOURABLE KENNETH CHAN KA-LOK THE HONOURABLE CHAN YUEN-HAN, S.B.S., J.P. THE HONOURABLE LEUNG CHE-CHEUNG, B.B.S., M.H., J.P. THE HONOURABLE KENNETH LEUNG THE HONOURABLE ALICE MAK MEI-KUEN, J.P. 6010 LEGISLATIVE COUNCIL ─ 11 February 2015 DR THE HONOURABLE KWOK KA-KI THE HONOURABLE KWOK WAI-KEUNG THE HONOURABLE DENNIS KWOK THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. THE HONOURABLE SIN CHUNG-KAI, S.B.S., J.P. DR THE HONOURABLE HELENA WONG PIK-WAN THE HONOURABLE IP KIN-YUEN DR THE HONOURABLE ELIZABETH QUAT, J.P. THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P. THE HONOURABLE POON SIU-PING, B.B.S., M.H. THE HONOURABLE TANG KA-PIU, J.P. DR THE HONOURABLE CHIANG LAI-WAN, J.P. IR DR THE HONOURABLE LO WAI-KWOK, B.B.S., M.H., J.P. THE HONOURABLE CHUNG KWOK-PAN THE HONOURABLE CHRISTOPHER CHUNG SHU-KUN, B.B.S., M.H., J.P. THE HONOURABLE TONY TSE WAI-CHUEN, B.B.S. MEMBERS ABSENT: THE HONOURABLE CHEUNG KWOK-CHE THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. LEGISLATIVE COUNCIL ─ 11 February 2015 6011 THE HONOURABLE WU CHI-WAI, M.H. DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG PUBLIC OFFICERS ATTENDING: THE HONOURABLE JOHN TSANG CHUN-WAH, G.B.M., J.P. THE FINANCIAL SECRETARY PROF THE HONOURABLE ANTHONY CHEUNG BING-LEUNG, G.B.S., J.P. SECRETARY FOR TRANSPORT AND HOUSING PROF THE HONOURABLE K C CHAN, G.B.S., J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY THE HONOURABLE GREGORY SO KAM-LEUNG, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT THE HONOURABLE LAI TUNG-KWOK, S.B.S., I.D.S.M., J.P. SECRETARY FOR SECURITY THE HONOURABLE WONG KAM-SING, J.P. SECRETARY FOR THE ENVIRONMENT THE HONOURABLE PAUL CHAN MO-PO, M.H., J.P. SECRETARY FOR DEVELOPMENT MR GODFREY LEUNG KING-KWOK, J.P. UNDER SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT MR JAMES HENRY LAU JR., J.P. UNDER SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY 6012 LEGISLATIVE COUNCIL ─ 11 February 2015 CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MRS JUSTINA LAM CHENG BO-LING, DEPUTY SECRETARY GENERAL MS ANITA SIT, ASSISTANT SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL LEGISLATIVE COUNCIL ─ 11 February 2015 6013 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: Subsidiary Legislation/Instruments L.N. No. Allowances to Jurors (Amendment) Order 2015 ................ 29/2015 Pharmacy and Poisons (Amendment) Ordinance 2015 (Commencement) Notice ........................................ 30/2015 Other Papers No. 66 ─ Education Scholarships Fund Trustee's Report on the Administration of the Fund and Financial Statements for the year ended 31 August 2014 No. 67 ─ Employees' Compensation Insurance Levies Management Board Annual Report 2013/2014 No. 68 ─ Employees Compensation Assistance Fund Board Annual Report 2013-2014 No. 69 ─ Occupational Deafness Compensation Board Annual Report 2013/2014 No. 70 ─ Pneumoconiosis Compensation Fund Board Annual Report 2013 6014 LEGISLATIVE COUNCIL ─ 11 February 2015 No. 71 ─ Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2014 and the Results of Value for Money Audits (Report No. 63) (February 2015 ─ P.A.C. Report No. 63) Report No. 12/14-15 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments ADDRESSES PRESIDENT (in Cantonese): Address. Mr Abraham SHEK will address the Council on the "Public Accounts Committee Report No. 63". Mr Abraham SHEK. Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2014 and the Results of Value for Money Audits (Report No. 63) (February 2015 ― P.A.C. Report No. 63) MR ABRAHAM SHEK: President, on behalf of the Public Accounts Committee (the Committee), I have the honour to table our Report No. 63 today. The Committee has, as in the past, decided to hold hearings on those chapters covered by the Director of Audit's Report No. 63 which, in our views, contained more serious allegations of irregularities and shortcomings. The Committee's Report tabled today covers our conclusions and recommendations on three of the four chapters selected. The Committee has decided to defer the tabling of the full report for the selected chapter on "Administration of the air traffic control and related services" to allow ourselves more time to consider the issues raised in the Audit Report, and also in view of the information provided by the witnesses. I now succinctly report the conclusions and recommendations on the three chapters covered in this Report No. 63. LEGISLATIVE COUNCIL ─ 11 February 2015 6015 First, I would like to speak on the new Civil Aviation Department (CAD) headquarters. The Committee considers it inexcusable and condemns the CAD and the Architectural Services Department (ASD) that in the implementation of the new CAD headquarters, the CAD had deliberately overridden the Administration's internal mechanism to regulate the use of public money. The ASD had failed to perform its role as the project director of the project to ensure the CAD's compliance with the relevant regulations and guidelines, undermining the Administration's internal mechanism of checks and balances. This is evidenced by the numerous incidents of non-compliance with the approved schedule of accommodation and the requirements of the relevant Government circulars in the procurement of new furniture and equipment in the headquarters. The Committee also deplores the Director-General of Civil Aviation who has wilfully neglected his responsibilities and duties to provide complete, accurate and not misleading information to the Legislative Council for funding approval. It is evidenced by the fact that the CAD had turned a future provision of 1 500 sq m of area which was reserved for future expansion beyond 2025 into a present construction in the new headquarters. This piece of material information has never been mentioned in the papers to the relevant Legislative Council Panel, Public Works Subcommittee and Finance Committee. The Committee notes that in addition to the improvement measures undertaken and to be undertaken by the CAD and the ASD to strengthen internal control to ensure compliance with the relevant Government regulations and guidelines in the future, the Secretary for Transport and Housing has requested the Director-General of Civil Aviation to provide a detailed report to review the irregularities on the implementation of the project. The Transport and Housing Bureau will look into details of events in depth to see if there is room for procedural improvements apart from those recommended in the Audit Report.