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OFFICIAL RECORD of PROCEEDINGS Wednesday, 8 LEGISLATIVE COUNCIL ─ 8 June 2011 11413 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 8 June 2011 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 IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, S.B.S., S.B.ST.J., J.P. THE HONOURABLE LEE CHEUK-YAN DR THE HONOURABLE DAVID LI KWOK-PO, G.B.M., G.B.S., J.P. THE HONOURABLE FRED LI WAH-MING, S.B.S., J.P. DR THE HONOURABLE MARGARET NG THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHAN KAM-LAM, S.B.S., J.P. THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, G.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG DR THE HONOURABLE PHILIP WONG YU-HONG, G.B.S. THE HONOURABLE WONG YUNG-KAN, S.B.S., J.P. 11414 LEGISLATIVE COUNCIL ─ 8 June 2011 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 ANDREW CHENG KAR-FOO THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, S.B.S., J.P. THE HONOURABLE LI FUNG-YING, S.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 AUDREY EU YUET-MEE, S.C., J.P. THE HONOURABLE VINCENT FANG KANG, S.B.S., J.P. THE HONOURABLE WONG KWOK-HING, M.H. THE HONOURABLE LEE WING-TAT DR THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P. THE HONOURABLE CHEUNG HOK-MING, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, B.B.S., J.P. THE HONOURABLE RONNY TONG KA-WAH, S.C. THE HONOURABLE CHIM PUI-CHUNG PROF THE HONOURABLE PATRICK LAU SAU-SHING, S.B.S., J.P. LEGISLATIVE COUNCIL ─ 8 June 2011 11415 THE HONOURABLE KAM NAI-WAI, M.H. THE HONOURABLE CYD HO SAU-LAN THE HONOURABLE STARRY LEE WAI-KING, J.P. DR THE HONOURABLE LAM TAI-FAI, B.B.S., J.P. THE HONOURABLE CHAN HAK-KAN THE HONOURABLE PAUL CHAN MO-PO, M.H., J.P. THE HONOURABLE CHAN KIN-POR, J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN DR THE HONOURABLE LEUNG KA-LAU THE HONOURABLE CHEUNG KWOK-CHE THE HONOURABLE WONG SING-CHI THE HONOURABLE WONG KWOK-KIN, B.B.S. THE HONOURABLE IP WAI-MING, M.H. THE HONOURABLE IP KWOK-HIM, G.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. DR THE HONOURABLE PAN PEY-CHYOU THE HONOURABLE PAUL TSE WAI-CHUN DR THE HONOURABLE SAMSON TAM WAI-HO, J.P. THE HONOURABLE ALAN LEONG KAH-KIT, S.C. 11416 LEGISLATIVE COUNCIL ─ 8 June 2011 THE HONOURABLE LEUNG KWOK-HUNG THE HONOURABLE TANYA CHAN THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE WONG YUK-MAN MEMBERS ABSENT: THE HONOURABLE TIMOTHY FOK TSUN-TING, G.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, S.B.S., J.P. THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE HENRY TANG YING-YEN, G.B.M., G.B.S., J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE JOHN TSANG CHUN-WAH, G.B.M., J.P. THE FINANCIAL SECRETARY THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE MS JULIA LEUNG FUNG-YEE, J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY THE HONOURABLE MRS CARRIE LAM CHENG YUET-NGOR, G.B.S., J.P. SECRETARY FOR DEVELOPMENT DR KITTY POON KIT, J.P. SECRETARY FOR THE ENVIRONMENT LEGISLATIVE COUNCIL ─ 8 June 2011 11417 THE HONOURABLE EVA CHENG, J.P. SECRETARY FOR TRANSPORT AND HOUSING MR GREGORY SO KAM-LEUNG, J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT MR YAU SHING-MU, J.P. UNDER SECRETARY FOR TRANSPORT AND HOUSING CLERKS IN ATTENDANCE: MS PAULINE NG MAN-WAH, SECRETARY GENERAL MRS CONSTANCE LI TSOI YEUK-LIN, ASSISTANT SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, ASSISTANT SECRETARY GENERAL MRS PERCY MA, ASSISTANT SECRETARY GENERAL 11418 LEGISLATIVE COUNCIL ─ 8 June 2011 PRESIDENT (in Cantonese): There are less than 20 Members in the Chamber. 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. Assumption of Responsibility for Markets Notification 2011........................................................................ 99/2011 Mutual Legal Assistance in Criminal Matters (India) Order (Commencement) Notice ....................................... 100/2011 Other Papers No. 96 ─ Securities and Futures Commission Annual Report 2010-11 Report No. 24/10-11 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments ORAL ANSWERS TO QUESTIONS PRESIDENT (in Cantonese): First question. As Mr WONG Yuk-man who is going to raise this question is absent and Chairman of the House Committee has not yet attended the meeting, I now call upon Mr Fred LI, Deputy Chairman of the House Committee, to raise this oral question on his behalf. LEGISLATIVE COUNCIL ─ 8 June 2011 11419 Handling of Illicit Cigarettes Forfeited by the Government 1. MR FRED LI (in Cantonese): President, on 8 April this year, when the Panel on Security of this Council discussed at its special meeting the item of "Enforcement against the smuggling and sale of illicit cigarettes", the authorities indicated that the Government had disposed of illicit cigarettes forfeited by auction or destruction. In this connection, will the Government inform this Council: (a) when the authorities formulated the policy of disposing of forfeited illicit cigarettes by auction, and what the justifications were; according to the authorities' estimation, whether the general public are aware of that policy; whether the authorities had carried out any consultation or made any announcement in formulating such a policy; (b) how the authorities ensure that the illicit cigarettes disposed of by auction are of good quality, and that law-breakers did not add to those illicit cigarettes any substance which is hazardous to health; of the respective market values of the illicit cigarettes forfeited from 2000 to 2007; among the illicit cigarettes forfeited by the authorities in the past 10 years, of the respective quantities of those being disposed of by auction and the proceeds generated, and the quantities of those destroyed; the places where the auctioned illicit cigarettes were shipped to, and the percentages of the illicit cigarettes shipped to the various places in the total quantity of illicit cigarettes being disposed of by auction in that year; whether the authorities have assessed if the auction of forfeited illicit cigarettes is ethical, if it encourages smoking and if it deviates from the policy of anti-smoking and tobacco control over the years; if they have assessed, of the outcome; and (c) how the authorities destroyed illicit cigarettes in the past 10 years; given that some experts have pointed out that as illicit cigarettes contain heavy metal and carcinogenic substances, incineration is not appropriate, and have therefore suggested that the authorities should dispose of the illicit cigarettes by landfilling, what measures 11420 LEGISLATIVE COUNCIL ─ 8 June 2011 the authorities have to ensure that the destruction of illicit cigarettes is safe and will not affect environmental hygiene? SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): President, (a) According to the Dutiable Commodities Ordinance (Cap. 109), seized illicit cigarettes will be forfeited by the Customs and Excise Department (C&ED) after an order of forfeiture is granted by the Court or on the condition that no legal claim is made. To increase government revenue, it has been the government policy to sell confiscated items with resale value by auction or tender. However, certain categories of confiscated items are not suitable for resale due to their special nature. The Government will therefore destroy such items, including prohibited items, perishable goods, controlled chemicals, and so on. In the 1990s, taking into consideration the increasing number of seized illicit cigarettes and that cigarettes were not prohibited, the Government had disposed of confiscated cigarettes by limited auctions with the condition that all the auctioned illicit cigarettes had to be used for export only. Subsequently, as most of the seized illicit cigarettes are of unknown ingredients and from unknown sources, coupled with the possibility that the conditions of the illicit cigarettes have changed either in the course of smuggling and confiscation or before the completion of legal proceedings, the Government has not sold confiscated illicit cigarettes since 1999 based on consideration of health risks. All illicit cigarettes are destroyed after completion of relevant procedures for the cases concerned. (b) The quantities and market values of illicit cigarettes forfeited from 2002 to 2007 are set out below: Year* Number of illicit cigarettes forfeited Market values 2002 176 million sticks $265 million 2003 143 million sticks $215 million LEGISLATIVE COUNCIL ─ 8 June 2011 11421 Year* Number of illicit cigarettes forfeited Market values 2004 153 million sticks $229 million 2005 90 million sticks $137 million 2006 69 million sticks $105 million 2007 108 million sticks $161 million Note: * Computer records of the C&ED can only show the relevant figures after 2002. Between 2002 and April 2011, the C&ED has forfeited approximately a total of 993 million sticks of illicit cigarettes, of which 85% have been destroyed without any auctions.
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