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OFFICIAL RECORD of PROCEEDINGS Thursday, 26 LEGISLATIVE COUNCIL ─ 26 October 2006 973 OFFICIAL RECORD OF PROCEEDINGS Thursday, 26 October 2006 The Council continued to meet at Nine o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.S., J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. THE HONOURABLE ALBERT HO CHUN-YAN THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. DR THE HONOURABLE DAVID LI KWOK-PO, G.B.S., J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, S.B.S., J.P. THE HONOURABLE MARGARET NG THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, G.B.S., J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHAN YUEN-HAN, J.P. 974 LEGISLATIVE COUNCIL ─ 26 October 2006 THE HONOURABLE BERNARD CHAN, G.B.S., J.P. THE HONOURABLE CHAN KAM-LAM, S.B.S., J.P. THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE SIN CHUNG-KAI, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG, G.B.S. THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE HOWARD YOUNG, S.B.S., J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE LAU CHIN-SHEK, J.P. THE HONOURABLE LAU KONG-WAH, J.P. THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE MIRIAM LAU KIN-YEE, G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK, J.P. THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE TIMOTHY FOK TSUN-TING, G.B.S., J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. THE HONOURABLE LI FUNG-YING, B.B.S., J.P. LEGISLATIVE COUNCIL ─ 26 October 2006 975 THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. THE HONOURABLE VINCENT FANG KANG, J.P. THE HONOURABLE WONG KWOK-HING, M.H. THE HONOURABLE LEE WING-TAT THE HONOURABLE LI KWOK-YING, M.H., J.P. DR THE HONOURABLE JOSEPH LEE KOK-LONG, J.P. THE HONOURABLE DANIEL LAM WAI-KEUNG, S.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, S.B.S., J.P. THE HONOURABLE MA LIK, G.B.S., J.P. THE HONOURABLE ANDREW LEUNG KWAN-YUEN, S.B.S., J.P. THE HONOURABLE ALAN LEONG KAH-KIT, S.C. DR THE HONOURABLE KWOK KA-KI DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG THE HONOURABLE CHEUNG HOK-MING, S.B.S., J.P. THE HONOURABLE WONG TING-KWONG, B.B.S. THE HONOURABLE RONNY TONG KA-WAH, S.C. THE HONOURABLE CHIM PUI-CHUNG THE HONOURABLE PATRICK LAU SAU-SHING, S.B.S., J.P. 976 LEGISLATIVE COUNCIL ─ 26 October 2006 THE HONOURABLE ALBERT JINGHAN CHENG THE HONOURABLE KWONG CHI-KIN THE HONOURABLE TAM HEUNG-MAN MEMBERS ABSENT: IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, S.B.S., S.B.ST.J., J.P. THE HONOURABLE WONG YUNG-KAN, J.P. THE HONOURABLE FREDERICK FUNG KIN-KEE, S.B.S., J.P. THE HONOURABLE LEUNG KWOK-HUNG PUBLIC OFFICERS ATTENDING: THE HONOURABLE HENRY TANG YING-YEN, G.B.S., J.P. THE FINANCIAL SECRETARY THE HONOURABLE MICHAEL SUEN MING-YEUNG, G.B.S., J.P. SECRETARY FOR HOUSING, PLANNING AND LANDS PROF THE HONOURABLE ARTHUR LI KWOK-CHEUNG, G.B.S., J.P. SECRETARY FOR EDUCATION AND MANPOWER THE HONOURABLE JOSEPH WONG WING-PING, G.B.S., J.P. SECRETARY FOR COMMERCE, INDUSTRY AND TECHNOLOGY DR THE HONOURABLE PATRICK HO CHI-PING, J.P. SECRETARY FOR HOME AFFAIRS THE HONOURABLE STEPHEN IP SHU-KWAN, G.B.S., J.P. SECRETARY FOR ECONOMIC DEVELOPMENT AND LABOUR LEGISLATIVE COUNCIL ─ 26 October 2006 977 DR THE HONOURABLE SARAH LIAO SAU-TUNG, J.P. SECRETARY FOR THE ENVIRONMENT, TRANSPORT AND WORKS THE HONOURABLE FREDERICK MA SI-HANG, J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY THE HONOURABLE STEPHEN LAM SUI-LUNG, J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MRS VIVIAN KAM NG LAI-MAN, ASSISTANT SECRETARY GENERAL 978 LEGISLATIVE COUNCIL ─ 26 October 2006 PRESIDENT (in Cantonese): Clerk, please ring the bell. (After the summoning bell had been rung, a number of Members came into the Chamber) PRESIDENT (in Cantonese): A quorum is now present, the meeting starts now. We now continue with the second debate session of the Motion of Thanks. MEMBERS' MOTIONS MOTION OF THANKS Continuation of debate on motion which was moved on 25 October 2006 MR JEFFREY LAM (in Cantonese): Madam President, the item in this year's policy address that has been much discussed is the Chief Executive's proposal for the launching of a Wage Protection Movement in the cleansing and guarding services sectors. In fact, the Legislative Council of this term has had a number of discussions on minimum wage in the past two years, and the motion debate to be held next week is also about this. The business sector has all along stressed that a law should not be enacted forcibly, but Members from the labour sector seem to be sceptical, and they appear to not understand it after all. Coincidentally, an interview of this year's Nobel Prize Laureate in Economic Science, Prof Edmund S PHELPS, was published this Monday in Ming Pao. Prof PHELPS who has been studying the topic of wages and unemployment for over 40 years is an expert in the field. Perhaps Members should listen to his views on minimum wage carefully. He considers that upon the introduction of a minimum wage, employers will employ fewer workers, and non-skilled or low-skilled workers will definitely lose their jobs. As for investors, since the minimum wage will be altered from time to time, it has to be taken as an uncertain factor in the calculation of costs, and investors will thus choose to invest elsewhere. Therefore, he says that it is good not to legislate on a minimum wage. I have to stress that the implementation of a minimum wage will not only fail to help the unemployed to find a job but on the contrary impede economic LEGISLATIVE COUNCIL ─ 26 October 2006 979 development and affect competitiveness. As a result, more and more people will become unemployed. Sometime ago, some Members cried aloud that the Government should not intervene in the operation of the market. So I am really puzzled why some Members have now on the contrary requested the Government to legislate on a minimum wage? The situation of Hong Kong is unique; it is an externally-oriented society and a service-based economy. Though minimum wages have been implemented in some overseas countries, it may not necessarily be suitable for Hong Kong, so never ever try to follow blindly. The solution to the problem of unemployment and wages is a better economy. Madam President, if Hong Kong has to develop into a knowledge-based economy and promote creative industries, we have to attract more educated and highly skilled talents to come to Hong Kong to stimulate our economic development. The Government has introduced the Quality Migrant Admission Scheme, and I am glad that renowned pianist LANG Lang is also interested in the scheme and has submitted his application. However, Hong Kong must attract more talents in different fields to come to Hong Kong. I thus hope that more flexibility can be built into the Scheme, the upper limit of 1 000 persons per annum can be lifted and efforts to attract young talents aged between 18 and 24 will be made. If Hong Kong can secure the assistance of more elites from both the Mainland and overseas countries, I believe more investors will be willing to set up their companies in Hong Kong. Yesterday, I met with a foreign investor who indicated that he was interested in the recent abolition of the estate duty, the Mainland/Hong Kong Closer Economic Partnership Arrangement (CEPA) and the 11th Five-Year Plan in Hong Kong. I have already mentioned that to the Secretary. It is most likely that the investor will set up his headquarters in Hong Kong in the near future, using Hong Kong as the base of his company and the management centre of investment resources. I hope he will fulfil his plan soon and relocate his company's headquarters to Hong Kong. If more investors, like this friend of mine, are willing to come to Hong Kong and set up companies, I believe a lot more workers, ranging from the junior level to the senior level, will be recruited, thus bringing a significant increase in job opportunities. Definitely, to attract investors, business-friendly policies are very important. Recently, according to a report released by the International Finance Corporation of the World Bank, Doing Business 2007, Hong Kong 980 LEGISLATIVE COUNCIL ─ 26 October 2006 ranks the fifth while our neighbour Singapore is on the top of the chart. According to the report, the performance of Hong Kong in credit standing and investment protection is outstanding, but the time required for the application of licences is still too long. On the contrary, in Singapore, the country that ranks first on the list, most of the application procedures of the government can be carried out via the Internet. The required procedures can thus be completed quickly and at lower costs.
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