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Official Record of Proceedings LEGISLATIVE COUNCIL ― 8 November 2017 1385 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 8 November 2017 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. 1386 LEGISLATIVE COUNCIL ― 8 November 2017 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 CHARLES PETER MOK, 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 KWOK WAI-KEUNG, J.P. THE HONOURABLE DENNIS KWOK WING-HANG THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. LEGISLATIVE COUNCIL ― 8 November 2017 1387 DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG DR THE HONOURABLE HELENA WONG PIK-WAN THE HONOURABLE IP KIN-YUEN DR THE HONOURABLE ELIZABETH QUAT, B.B.S., J.P. THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P. 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 ALVIN YEUNG 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 1388 LEGISLATIVE COUNCIL ― 8 November 2017 DR THE HONOURABLE PIERRE CHAN THE HONOURABLE CHAN CHUN-YING THE HONOURABLE CHEUNG KWOK-KWAN, J.P. THE HONOURABLE HUI CHI-FUNG 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 MEMBERS ABSENT: THE HONOURABLE CHU HOI-DICK THE HONOURABLE TANYA CHAN THE HONOURABLE KWONG CHUN-YU PUBLIC OFFICERS ATTENDING: THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.M., G.B.S., J.P. CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE PAUL CHAN MO-PO, G.B.M., G.B.S., M.H., J.P. FINANCIAL SECRETARY LEGISLATIVE COUNCIL ― 8 November 2017 1389 THE HONOURABLE NICHOLAS W. YANG, G.B.S., J.P. SECRETARY FOR INNOVATION AND TECHNOLOGY THE HONOURABLE LAU KONG-WAH, J.P. SECRETARY FOR HOME AFFAIRS 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 FRANK CHAN FAN, J.P. SECRETARY FOR TRANSPORT AND HOUSING 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 THE HONOURABLE PATRICK NIP TAK-KUEN, J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS DR DAVID CHUNG WAI-KEUNG, J.P. UNDER SECRETARY FOR INNOVATION AND TECHNOLOGY MR ANDY CHAN SHUI-FU, J.P. UNDER SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS MR JOSEPH CHAN HO-LIM, J.P. UNDER SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY DR RAYMOND SO WAI-MAN, B.B.S., J.P. UNDER SECRETARY FOR TRANSPORT AND HOUSING 1390 LEGISLATIVE COUNCIL ― 8 November 2017 CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, DEPUTY SECRETARY GENERAL MS ANITA SIT, ASSISTANT SECRETARY GENERAL MS DORA WAI, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL LEGISLATIVE COUNCIL ― 8 November 2017 1391 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. 19 ― Hong Kong Council on Smoking and Health Annual Report 2016-2017 Report No. 3/17-18 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments WRITTEN ANSWERS TO QUESTIONS Technology Voucher Programme 1. MR JIMMY NG (in Chinese): President, in November last year, the Innovation and Technology Commission launched, on a pilot basis, the Technology Voucher Programme with a commitment of $500 million to subsidize local small and medium enterprises ("SMEs") in using technological services and solutions to enhance productivity, or upgrade or transform their business processes. As at the end of September this year, 184 funding applications were approved under the Programme; the average amount of funding for each approved application was about $130,000, involving a total funding of about $23.8 million (which accounted for only 4.76% of the commitment for the Programme). Some SMEs have indicated that the modus operandi of the Programme has failed to meet their needs. In this connection, will the Government inform this Council: (1) as the authorities pointed out in reply to a question raised by a Member of this Council on the Estimates of Expenditure 2017-2018 that they would review the effectiveness and modus operandi (such 1392 LEGISLATIVE COUNCIL ― 8 November 2017 as funding scope, funding amount and vetting procedures) of the aforesaid Programme two years after its launch, or when the commitment was forecast to reach $500 million, whichever was the earlier, whether the authorities will conduct the relevant review earlier in the light of the lukewarm response to the Programme so far; if so, of the details; if not, the reasons for that; (2) whether the authorities will consider extending the funding scope of the Programme, so that SMEs receiving a grant may apply for funding again when they update the information technology facilities or systems of the relevant projects in future, with a view to enhancing the attractiveness of the Programme; if so, of the details; if not, the reasons for that; and (3) whether the authorities will consider revising the funding mode of the Programme by setting different funding ceilings for different industries, such as maintaining the cumulative funding ceiling for services sectors at $200,000 while raising that for non-services sectors (including manufacturing and industrial sectors) to $400,000, so as to assist the latter in accelerating their digitalization and automation, and enhancing their productivity and competitiveness; if so, of the details; if not, the reasons for that? SECRETARY FOR INNOVATION AND TECHNOLOGY (in Chinese): President, we launched the $500 million Technology Voucher Programme ("TVP") in November last year as a pilot to subsidize local small and medium enterprises ("SMEs") in using technological services and solutions to improve productivity, or upgrade or transform their business processes. TVP provides cumulative funding of up to $200,000 for each eligible SME on a 2:1 matching basis to carry out a maximum of three approved projects. Our reply to the three parts of the question is as follows: (1) About 670 enterprises submitted applications under TVP since its launch. Of these, 223 applications have been assessed by the TVP Committee ("the Committee"), with 207 of them (i.e. 93%) supported for funding. Separately, around 130 applications could LEGISLATIVE COUNCIL ― 8 November 2017 1393 not be processed and need to be re-submitted due to missing key documents (e.g. company incorporation documents or business registration certificates of the applicant enterprises). Another 100 applications were still awaiting supplementary information, and the remaining 220 applications were under eligibility checking and preliminary screening by the Committee Secretariat. Since the launch of TVP, the Innovation and Technology Commission has from time to time fine-tuned the implementation details in the light of its operation experience, and provided clear and concrete guidelines to applicants through briefing sessions and the programme website. As at end October 2017, over 2 500 SMEs have registered on the programme website and some 1 500 applications are under preparation. Furthermore, the 41 briefing sessions have attracted around 4 000 participants. These show that TVP was well received by SMEs. We will continue to monitor closely the implementation of TVP and collect the relevant data. We aim to conduct a comprehensive review of its effectiveness and modus operandi in the second half of 2018. We consider that the review would be more comprehensive and meaningful when TVP has been in operation for some time so that sufficient data and experience can be accumulated.
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