LEGISLATIVE COUNCIL ― 8 July 2020 9079

OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 8 July 2020

The Council met at Eleven o'clock

MEMBERS PRESENT:

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

THE HONOURABLE KUN-SUN

THE HONOURABLE LEUNG YIU-CHUNG

THE HONOURABLE LAI-HIM, G.B.S., J.P.

THE HONOURABLE YU-YAN, G.B.S., J.P.

PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P.

THE HONOURABLE KIN-FUNG, G.B.S., J.P.

THE HONOURABLE WONG TING-KWONG, G.B.S., J.P.

THE HONOURABLE 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 MEI-FUN, S.B.S., J.P.

THE HONOURABLE WONG KWOK-KIN, S.B.S., J.P.

9080 LEGISLATIVE COUNCIL ― 8 July 2020

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

THE HONOURABLE WAI-CHUN, J.P.

THE HONOURABLE CLAUDIA MO

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

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

THE HONOURABLE 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, B.B.S., J.P.

THE HONOURABLE LEUNG CHE-CHEUNG, S.B.S., M.H., J.P.

THE HONOURABLE KENNETH LEUNG

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

LEGISLATIVE COUNCIL ― 8 July 2020 9081

DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG

DR THE HONOURABLE PIK-WAN

THE HONOURABLE IP KIN-YUEN

THE HONOURABLE , B.B.S., J.P.

THE HONOURABLE CHEUNG-KONG, G.B.S., J.P.

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

DR THE HONOURABLE CHIANG LAI-WAN, S.B.S., 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 CHU HOI-DICK

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

DR THE HONOURABLE KWAN-YIU, J.P.

THE HONOURABLE LAM CHEUK-TING

THE HONOURABLE HO-DING

THE HONOURABLE SHIU KA-FAI, J.P.

THE HONOURABLE SHIU KA-CHUN

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

THE HONOURABLE YUNG HOI-YAN, J.P.

9082 LEGISLATIVE COUNCIL ― 8 July 2020

DR THE HONOURABLE

THE HONOURABLE CHAN CHUN-YING, J.P.

THE HONOURABLE TANYA CHAN

THE HONOURABLE CHEUNG KWOK-KWAN, J.P.

THE HONOURABLE LUK CHUNG-HUNG, J.P.

THE HONOURABLE LAU KWOK-FAN, M.H.

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

THE HONOURABLE KWONG CHUN-YU

THE HONOURABLE JEREMY TAM MAN-HO

THE HONOURABLE VINCENT CHENG WING-SHUN, M.H., J.P.

THE HONOURABLE WAI-CHUEN, B.B.S.

THE HONOURABLE CHAN HOI-YAN

MEMBERS ABSENT:

THE HONOURABLE ANDREW WAN SIU-KIN

THE HONOURABLE HUI CHI-FUNG

DR THE HONOURABLE CHENG CHUNG-TAI

PUBLIC OFFICERS ATTENDING:

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

LEGISLATIVE COUNCIL ― 8 July 2020 9083

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

THE HONOURABLE EDWARD YAU TANG-WAH, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT

THE HONOURABLE MICHAEL WONG WAI-LUN, J.P. SECRETARY FOR DEVELOPMENT

THE HONOURABLE CHRISTOPHER HUI CHING-YU, J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY

DR CHUI TAK-YI, J.P. UNDER SECRETARY FOR FOOD AND HEALTH

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

CLERKS IN ATTENDANCE:

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

MISS ODELIA LEUNG HING-YEE, DEPUTY SECRETARY GENERAL

MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL

MS DORA WAI, ASSISTANT SECRETARY GENERAL

9084 LEGISLATIVE COUNCIL ― 8 July 2020

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)

LAYING OF PAPERS ON THE TABLE OF THE COUNCIL

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

Subsidiary Legislation Legal Notice No.

Compulsory Quarantine of Certain Persons Arriving at Hong Kong (Amendment) (No. 4) Regulation 2020 ...... 137 of 2020

Prevention and Control of Disease (Prohibition on Group Gathering) (Amendment) (No. 6) Regulation 2020 ...... 138 of 2020

Other Papers

The Standing Committee on Legal Education and Training Annual Report 2019 1 January 2019 to 31 December 2019

Hong Kong Export Credit Insurance Corporation Annual Report 2019-20 (including Financial Statements and Independent Auditor's Report)

Hong Kong Trade Development Council Annual Report 2019/20 (including Finances and Independent Auditor's Report)

LEGISLATIVE COUNCIL ― 8 July 2020 9085

Prisoners' Welfare Fund Report by the Commissioner of Correctional Services on the administration of the Fund for the year ended 31 March 2020 (including Financial Statements and Report of the Director of Audit)

Report of changes made to the approved Estimates of Expenditure during the fourth quarter of 2019-20 Public Finance Ordinance : Section 8(8)(b)

Sir Robert Black Trust Fund Report of the Trustee on the Administration of the Fund, Financial Statements and Report of the Director of Audit for the year ended 31 March 2020

Independent Commission Against Corruption, Hong Kong Special Administrative Region Annual Report 2019 and Reports of ICAC Advisory Committees

ICAC Complaints Committee Annual Report 2019

The Ombudsman, Hong Kong Annual Report 2019/20 (including Financial Statements and Independent Auditor's Report)

Finance Committee Report on the examination of the Estimates of Expenditure 2020-2021

Report of the Legislative Council Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon Holden CHOW Ho-ding

Minority report on the investigation into the matter stated in the motion moved under Rule 49B(1A) of the Rules of Procedure to censure Hon Holden CHOW Ho-ding

Report of the Legislative Council Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon HUI Chi-fung

9086 LEGISLATIVE COUNCIL ― 8 July 2020

Minority report on the investigation into the matter stated in the motion moved under Rule 49B(1A) of the Rules of Procedure to censure Hon HUI Chi-fung (English version only)

Report of the Bills Committee on Mandatory Provident Fund Schemes (Amendment) Bill 2019

Report of the Bills Committee on Pharmacy and Poisons (Amendment) Bill 2019

Report of the Bills Committee on Statute Law (Miscellaneous Provisions) Bill 2019

Report of the Bills Committee on Evidence (Amendment) Bill 2018

Report of the Bills Committee on Broadcasting and Telecommunications Legislation (Amendment) Bill 2019

Report of the Bills Committee on Road Traffic Legislation (Parking Spaces) (Amendment) Bill 2019

Report of the Panel on Environmental Affairs 2019-2020

Report of the Panel on Security 2019-2020

Report of the Panel on Development 2019-2020

Report of the Panel on Welfare Services 2019-2020

Report of the Panel on Housing 2019-2020

Report of the Panel on Economic Development 2019-2020

Report of the Panel on Public Service 2019-2020

Report of the Panel on Constitutional Affairs 2019-2020

LEGISLATIVE COUNCIL ― 8 July 2020 9087

ADDRESSES

PRESIDENT (in Cantonese): Addresses. Mr Martin LIAO will address the Council on the "Independent Commission Against Corruption, Hong Kong Special Administrative Region Annual Report 2019 and Reports of ICAC Advisory Committees".

(Mr CHU Hoi-dick indicated his wish to raise a point of order)

PRESIDENT (in Cantonese): Mr CHU Hoi-dick, what is your point of order?

MR CHU HOI-DICK (in Cantonese): President, since the inception of the National Security Law for HKSAR, the Legislative Council has been in session for a week, but so far, actually no one can tell Members whether the protection of immunity from criminal prosecution in relation to Members' remarks under Article 77 of the Basic Law and sections 3 and 4 of the Legislative Council (Powers and Privileges) Ordinance are still valid after the inception of the law. May I know President's position on this issue?

PRESIDENT (in Cantonese): The National Security Law for HKSAR is now in effect. As to whether the Legislative Council (Powers and Privileges) Ordinance can protect Members' freedom of speech or debate in Council meetings, I note that the Secretary for Justice already explained to Members in a joint Panel meeting held yesterday.

In fact, whether the remarks made by a Member in a meeting violate the National Security Law for HKSAR should be decided by the Court instead of the President of the Legislative Council, but I wish to remind Members that they have to evaluate for themselves the possible legal consequences of their remarks.

Mr Martin LIAO, please speak.

9088 LEGISLATIVE COUNCIL ― 8 July 2020

Independent Commission Against Corruption, Hong Kong Special Administrative Region Annual Report 2019 and Reports of ICAC Advisory Committees

MR MARTIN LIAO (in Cantonese): In my capacity as the Chairman of the Advisory Committee on Corruption, I hereby brief Members on the Independent Commission Against Corruption, Hong Kong Special Administrative Region Annual Report 2019 tabled in the Council today on behalf of the Independent Commission Against Corruption ("ICAC").

The year 2019 marked the 45th year of the establishment of ICAC. In this year, ICAC organized an array of activities to rekindle its commitment to the fight against corruption and enlist the continued support of all sectors of society …

(Dr Fernando CHEUNG indicated his wish to raise a point of order)

PRESIDENT (in Cantonese): Dr Fernando CHEUNG, what is your point of order?

DR FERNANDO CHEUNG (in Cantonese): President, the issue raised by Mr CHU Hoi-dick just now does have great implications, including how Members of the Legislative Council should handle their own speeches after the implementation of the National Security Law for HKSAR. I have just heard President say that, in your view, the Secretary for Justice's narrative you heard is that it is up to Members to determine whether their speeches will violate the National Security Law for HKSAR. Do you mean that the National Security Law for HKSAR will now override the protection of immunity from criminal liability in relation to Members' remarks under the Basic Law and the same protection under the Legislative Council (Rights and Privileges) Ordinance? In addition to a clear explanation from you here, I think we need a written statement. Otherwise, all Members will have nothing to go by when they speak here. Could President do this?

LEGISLATIVE COUNCIL ― 8 July 2020 9089

PRESIDENT (in Cantonese): First of all, I do not consider this to be a point of order. Secondly, the Legal Adviser of the Legislative Council is assessing what implications the National Security Law for HKSAR has for the Legislative Council, and the relevant work will take time. Moreover, as ever, Members should be accountable for their words and actions in Council meetings. This is not the responsibility of the President of the Legislative Council. If you come up with any questions, you should seek legal advice yourself.

Mr Martin LIAO, please continue with your speech.

MR MARTIN LIAO (in Cantonese): President, my speech had been interrupted twice before I reached the end of one paragraph. I hope that all of us refer back to the Rules of Procedure. A Member's speech shall not be interrupted except for a point of order―a genuine point of order, that is. President, the two points of order raised just now had nothing to do with my speech. It is my hope to be free from further interruptions.

PRESIDENT (in Cantonese): Please start your speech all over again.

MR MARTIN LIAO (in Cantonese): In my capacity as the Chairman of the Advisory Committee on Corruption, I hereby brief Members on the Independent Commission Against Corruption, Hong Kong Special Administrative Region Annual Report 2019 tabled in the Council today on behalf of ICAC.

The year 2019 marked the 45th year of the establishment of ICAC. In this year, ICAC organized an array of activities to rekindle its commitment to the fight against corruption and enlist the continued support of all sectors of society for its work. Over the past 40-odd years, ICAC has been through many difficult times with Hong Kong. Last year even saw a series of public protests and social events which brought tremendous challenges to our society as a whole. However, regardless of the social environment, ICAC will, as before, remain perseverant in discharging its duties and continue its anti-corruption mission through the three-pronged strategy of law enforcement, prevention and education. With the support of the Government and the public, it will sustain a culture of integrity and contribute to maintaining strong rule of law in Hong Kong.

9090 LEGISLATIVE COUNCIL ― 8 July 2020

Law enforcement

ICAC has always been discharging its enforcement duties without fear or favour, making corruption a high-risk crime with strong deterrent effect on the corrupt. In 2019, Hong Kong continued to have a low level of corruption. The ICAC Annual Survey 2019 showed that 98.1% of the respondents had not encountered corruption personally in the past 12 months.

As for corruption complaints, ICAC received a total of 2 297 non-election-related corruption complaints in 2019, representing a decrease of 14% compared to 2018. Complaints concerning the private sector, the government sector and public bodies accounted for 64%, 28% and 7% respectively, a pattern that has been maintained for years.

The year 2019 saw the beginning of a new cycle of public elections. ICAC received 623 complaints related to the Elections (Corrupt and Illegal Conduct) Ordinance, including 518 complaints concerning the District Council Election held in November. Although the District Council Election had ended, ICAC proactively reviewed the election processes with the Constitutional and Mainland Affairs Bureau and would propose further preventive measures and education efforts to enhance the electoral arrangements for future elections.

Prevention

As regards corruption prevention, ICAC actively assists public and private organizations to improve their rules and systems, plug corruption loopholes and eliminate opportunities for corruption.

In 2019, ICAC completed 70 assignment reports, with detailed review of the relevant systems and practices in government departments and public bodies, as well as recommendations on corruption prevention measures for plugging loopholes. In addition, ICAC gave corruption prevention input to the Government more than 600 times in relation to new policy initiatives and regulatory regimes. There was a very wide scope for the review and the provision of corruption prevention input. Some examples are the Government's new procurement policy, the Development Bureau's system for managing the List of Approved Contractors for Public Works, the Police Force's procedures for the investigation of money laundering cases and the Hong Kong Monetary Authority's procedures for processing applications for virtual banking licences.

LEGISLATIVE COUNCIL ― 8 July 2020 9091

Moreover, ICAC offered advisory service to private sector entities on 730-odd occasions upon request, and handled over 800 public enquiries through the Corruption Prevention Advisory Service hotline. ICAC also conducted corruption prevention training for over 13 700 persons in both public and private sectors.

Education

ICAC has long held the belief that the success in fighting against corruption cannot be sustained without the support of the whole community and keeping the public alert to the grave harms corruption will cause to society. ICAC thus continued its robust effort to entrench the culture of probity in society through public engagement, education and publicity in 2019.

A major part of ICAC's work included working through a network of Ethics Officers in government departments to manage integrity, conducting regular anti-corruption training for government officers at all levels, providing tailored business ethics training for different trades and professions (e.g. launching the "Integrity for Success" Ethics Promotion Campaign for the Insurance Industry in collaboration with the industry), organizing widespread community engagement activities and making good use of different multimedia channels to disseminate anti-corruption messages (including such "edutainment" products as the television drama series ICAC Investigators 2019, online programmes and animations).

In addition, ICAC remains committed to nurturing the younger generation with integrity values and inspiring them to carry the anti-corruption baton into the future through education and involvement programmes for the youth, such as producing animated teaching resources on moral education for kindergarteners and junior primary students, staging interactive drama performance and the iTeen Leadership Programme for secondary students, and organizing lectures on Personal Ethics Module and the ICAC Ambassador Programme for tertiary students.

International and local social recognition

President, colleagues, a number of international and local surveys in 2019 confirmed the effectiveness of Hong Kong's anti-corruption work and the culture of integrity firmly rooted in Hong Kong society. Our city was ranked the 10th 9092 LEGISLATIVE COUNCIL ― 8 July 2020 among 200 economies and the first in Asia in the 2019 TRACE Bribery Risk Matrix as compiled by TRACE International. ICAC's annual survey revealed, among the public, a high level of determination to uphold the core value of integrity, a nearly zero tolerance for corruption and a high degree of trust in ICAC's anti-corruption work, and the majority of the respondents expressed their willingness to report corruption.

International and cross-boundary collaboration in the fight against corruption

Corruption has always been a global concern. International cooperation was instrumental to the effective fight against corruption. In May last year, the 7th ICAC Symposium jointly organized by ICAC and the World Justice Project provided a platform for over 500 participants from more than 50 jurisdictions to exchange ideas, experiences and best practices in fighting corruption and enhancing the rule of law. Immediately after the Symposium, an inaugural capacity building training programme jointly organized by ICAC and the International Association of Anti-Corruption Authorities was hosted for some 180 anti-corruption experts in Hong Kong.

ICAC assists anti-corruption agencies of other jurisdictions to build up their anti-corruption capacity within the framework of the United Nations Convention Against Corruption ("UNCAC"). In 2019, ICAC provided nine customized capacity building training programmes for eight countries reaching a total of 160 participants. For the first time, ICAC hosted a special event during the Eighth Session of the Conference of the States Parties to UNCAC to introduce Hong Kong's time-tested anti-graft public education strategy and training practices thereby opening new fronts of exchange and collaboration with our counterparts.

ICAC would strengthen cooperation on combating and preventing corruption with the anti-corruption agencies in Guangdong and Macao under the framework of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. At a tripartite meeting held in May last year, the heads of ICAC, the Guangdong Provincial Commission of Supervision and the Commission Against Corruption of Macao agreed in principle to join hands to strengthen efforts in combating cross-boundary corruption, promoting integrity culture, organizing capacity building programmes for graft-fighters, and holding regular meetings to review the progress of the collaboration.

LEGISLATIVE COUNCIL ― 8 July 2020 9093

Conclusion

President, colleagues, Hong Kong has come a long way in fighting corruption since the establishment of ICAC. There is a consensus in society to keep Hong Kong corruption-free for sustained development and to maintain a level playing field. The keys to keeping Hong Kong corruption-free are a solid and sound foundation of the rule of law, a robust anti-corruption system and professional graft-fighters. Of course, what is indispensable is the supervision and valuable advice of the ICAC advisory committees, as well as the unremitting support of this Council, the Government and the general public. Here, I would like to express sincere thanks on behalf of the Commissioner of ICAC.

Members, over the past decades, our city has faced many challenges and difficulties but we have come out stronger every time. As an institution that has developed with our city and surmounted different turbulences together, ICAC will continue to discharge its anti-corruption duties independently. Looking forward, I truly believe that ICAC will continue to unwaveringly uphold its mission to help keep Hong Kong fair, just, stable and prosperous.

President, I so submit.

PRESIDENT (in Cantonese): Mr Jeffrey LAM will address the Council on the "ICAC Complaints Committee Annual Report 2019".

ICAC Complaints Committee Annual Report 2019

MR JEFFREY LAM (in Cantonese): President, as the Chairman of the Independent Commission Against Corruption Complaints Committee ("the Committee"), I hereby table the Independent Commission Against Corruption Complaints Committee Annual Report 2019 on behalf of the Committee.

This is the 25th annual report of the Committee, which provides an account of our work for the year 2019. The Committee's major responsibility is to monitor the handling by the Independent Commission Against Corruption ("ICAC") of non-criminal complaints lodged by anyone against ICAC and its officers. Moreover, the Committee does not only handle the complaints against 9094 LEGISLATIVE COUNCIL ― 8 July 2020 the officers concerned, but also carefully examines the ICAC procedures and practices that require enhancement or updating to guard against similar problems in the future.

The Committee held 3 meetings in 2019 and deliberated on 13 complaint investigation and assessment reports prepared by the internal investigation and monitoring unit of ICAC. Of the 13 complaints covering 68 allegations, 3 allegations in 2 complaints were found to be substantiated or partially substantiated. The allegations concerned a total of 3 ICAC officers who were as a result given advice respectively by their senior officers. Moreover, the Committee considered and endorsed 3 assessment reports. The Committee agreed that such cases were irrational or repeated complaints previously disposed of through the Committee therefore no formal investigative actions would be taken.

Together with ICAC management, we also looked into areas where ICAC officers need to strengthen themselves based on the lessons learnt from the complaints considered, with a view to keeping abreast of the times and striving to excel themselves. After a careful examination of the issues identified in the investigation reports considered during 2019, ICAC organized a number of briefing sessions and strengthened the training programmes for frontline officers with a view to enhancing their vigilance in conducting search operations, maintaining records of seizures and handling of incoming correspondences. Briefings were also given to all officers to heighten their professional sensitivity when dealing with election-related matters. Furthermore, ICAC had initiated a review on the format of the standard form used for recording the statement made by a complainant or witness particularly to ensure that the personal data collected from the complainant/witness are necessary and adequate but not excessive.

The Committee endeavours to ensure the professional and proper handling of relevant complaints by the ICAC. The Committee reports it work on a regular basis through annual reports in order to enhance the transparency and accountability of the Committee. Members are welcome to offer us their views and suggestions through the Committee Secretariat. I appreciate the support of Members of this Council and members of the public for the work of the Committee. Thank you, President.

LEGISLATIVE COUNCIL ― 8 July 2020 9095

PRESIDENT (in Cantonese): Mr CHAN Kin-por will address the Council on the "Finance Committee Report on the examination of the Estimates of Expenditure 2020-2021".

Finance Committee Report on the examination of the Estimates of Expenditure 2020-2021

MR CHAN KIN-POR (in Cantonese): President, on behalf of the Finance Committee, I submit its Report on the examination of the Estimates of Expenditure 2020-2021.

The Finance Committee held a total of 21 sessions of special meetings in early April this year to examine the Estimates of Expenditure 2020-2021, with the aim to ensure that the authorities are seeking a provision no more than is necessary for the execution of the policies approved.

Before the commencement of the special meetings, 66 Members submitted about 6 700 written questions on the Estimates of Expenditure to the Government, in which a relatively larger number of questions were focused on welfare, women affairs, security, education, health and home affairs. The Administration, according to the undertaking it made earlier, submitted replies to a total of the first 3 300 questions before the special meetings. As for the remaining written questions that were compliant with the Rules of Procedure, as well as the supplementary questions raised by Members during the special meetings, the Administration's replies to these questions were submitted before the third Budget meeting on 29 April 2020. The questions and replies were uploaded onto the website of the Legislative Council.

At the special meetings, Members raised questions on various expenditure items, and they also expressed concerns and views on measures closely related to economic development and people's livelihood referred to in the Budget. The proceedings of the special meetings are set out in the report.

Following the passage of the Appropriation Bill 2020 on 6 May 2020, the Finance Committee started to examine the funding requests submitted by the Financial Secretary for changing the approved Estimates of Expenditure.

9096 LEGISLATIVE COUNCIL ― 8 July 2020

President, the Finance Committee spent a total of approximately 31 hours completing the examination of the Estimates of Expenditure, the process of which was smooth in general. In this regard, I would like to extend my gratitude to Members for their enthusiastic participation and to the various Policy Bureaux and departments of the Government for their cooperation.

I so submit.

PRESIDENT (in Cantonese): Mr Abraham SHEK will address the Council on the "Report of the Legislative Council Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon Holden CHOW Ho-ding".

Report of the Legislative Council Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon Holden CHOW Ho-ding

MR ABRAHAM SHEK: President, the Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon Holden CHOW Ho-ding ("the Committee") has completed its work and tabled its report in the Council at today's meeting. In my capacity as the Chairman of the Committee, I now give a brief account of the work and findings of the Committee.

At the Council meeting on 7 June 2017, Ms Claudia MO moved a motion under Rule 49B(1A) of the Rules of Procedure ("RoP") to censure Mr Holden CHOW under Article 79(7) of the Basic Law ("BL 79(7)"). The allegations particularized in the Schedule to the censure motion include, among others, the following:

(a) Mr CHOW had attempted to obstruct and pervert the inquiry of the Select Committee to Inquire into Matters about the Agreement between Mr LEUNG Chun-ying and the Australian firm UGL Limited ("the Select Committee") by accepting the request of Mr LEUNG Chun-ying, the former Chief Executive, to amend the proposed major areas of study of the Select Committee;

LEGISLATIVE COUNCIL ― 8 July 2020 9097

(b) the proposed amendments submitted by Mr CHOW for discussion at the open meeting of the Select Committee on 25 April 2017 were in fact made by Mr LEUNG, and Mr CHOW intentionally and repeatedly made false representations at the said Select Committee meeting over the origin of the proposed amendments with the intention to mislead the Select Committee into believing that these amendments were proposed by himself; and

(c) Mr CHOW's behaviours amount to contempt of the Legislative Council as well as "misbehaviour" and "breach of oath" under the Basic Law.

In accordance with RoP 49B(2A), as no motion was moved at the said Council meeting that no further action should be taken on the censure motion, the debate on the censure motion was adjourned and the matter stated in the censure motion was referred to the Committee.

As stipulated in RoP 73A(2), the Committee is responsible for establishing the facts stated in the censure motion and giving its views on whether or not the facts as established constitute grounds for the censure. To ensure that the investigation procedures are fair and seen to be fair to all the parties involved, the Committee has strictly observed due process throughout the investigation.

The Committee held a total of eight closed meetings between 20 November 2017 and 23 June 2020, including two closed hearings attended by six witnesses, for its investigation work and deliberations on its findings. In discharging its responsibility under RoP 73A(2), the Committee has studied the relevant constitutional and statutory requirements, and the relevant procedures and guidelines of the Legislative Council and its committees. The Committee has also taken the relevant overseas parliamentary rules and practices and comparable cases of inquiry as reference during the course of investigation.

Based on the allegations as set out in the censure motion, the Committee has identified four facts to be established, and has considered whether the allegations under each of the identified facts can be established having regard to the evidence and information available and by applying the standard of proof in disciplinary proceedings as adopted by the Committee, i.e. the more serious the allegation or criticism, the more compelling the evidence is required to establish the allegation or criticism.

9098 LEGISLATIVE COUNCIL ― 8 July 2020

After thorough consideration, the Committee is of the view that parts of the allegations about the First and Third Facts are established, and these established facts are:

(a) Mr CHOW had discussed with Mr LEUNG the proposed major areas of study of the Select Committee, accepted Mr LEUNG's request to amend the major areas of study and, therefore, submitted the proposed amendments to the Select Committee for discussion at its meeting on 25 April 2017; and

(b) the proposed amendments were made by Mr LEUNG.

The Committee, however, by applying the adopted standard of proof, does not consider that the other factual allegations are established. The Committee's considerations and findings of all the allegations detailed in the censure motion are set out in the report. Here, I wish to highlight the Committee's findings in respect of two such allegations which are indeed grave allegations against Mr CHOW.

First, I would like to mention the allegation that Mr CHOW intentionally and repeatedly made false representations in relation to the origin of the proposed amendments at the meeting of the Select Committee on 25 April 2017 in order to mislead the Select Committee and the public into believing that those amendments were proposed by himself.

The Committee holds the view that members of the Select Committee should not be restricted from accessing or receiving information from a broad range of sources which they consider useful for them to form the basis of their amendments to the proposed major areas of study of the Select Committee, and that members of the Select Committee are not obliged to make representations as to who have helped them form their views or prepare amendments to be proposed. The Committee notes that neither RoP nor the Select Committee's Practice and Procedure expressly prohibit private communications between its members and witnesses, including the subject of inquiry. The Committee also notes that the Procedure and Privileges Committee under the Legislative Assembly of the Parliament of Western Australia held the same view in handling the John BOWLER case in 2007. The Committee considers that Mr CHOW, as LEGISLATIVE COUNCIL ― 8 July 2020 9099 a member and Deputy Chairman of the Select Committee, should have the right to propose amendments to the proposed major areas of study, and in the course of formulating his amendments, he should have the right to consider views from any persons, including the subject of inquiry, and should have the right to agree with or adopt the views of such persons. The Committee notes that the proposed major areas of study was an set out in an open document uploaded onto the Legislative Council website for public viewing which does not contain any confidential information. The Committee further considers it plausible that Mr CHOW genuinely subscribed to Mr LEUNG's views and thus had already adopted the proposed amendments as his own when he submitted them to the Select Committee for discussion and presented them at the said open meeting. On account of the above considerations, the Committee does not find that the aforesaid allegation is established.

Another allegation I wish to mention here is that Mr CHOW's behaviours as set out in the established facts have damaged the dignity, autonomy and independence of the Legislative Council, and such damage amounts to contempt of the functions and powers of the Legislative Council, has brought shame on the Legislative Council and seriously undermined the public's confidence in the Legislative Council and its Members.

The Committee has also taken the John BOWLER case as reference to facilitate its consideration of the above allegation. Mr BOWLER was found guilty of contempt of the Legislative Assembly of the Parliament of Western Australia in the unauthorized disclosure of confidential proceedings and was censured for his actions which had diminished public trust in parliamentary institutions and processes. In drawing reference from this case, the Committee has borne in mind that the document involved in the John BOWLER case was a confidential draft committee report comprising the relevant committee's observations and outcome of the subject inquiry, while in Mr CHOW's case, the Select Committee's document on the proposed major areas of study to which Mr CHOW's proposed amendments were made was openly available for public viewing on the Internet, which did not contain any confidential observations or deliberations made by the Select Committee at its meetings or hearings held behind closed doors. Moreover, while Mr BOWLER was found guilty of contempt of the House (i.e. the Legislative Assembly) for the unauthorized disclosure of confidential proceedings, the House did not impose any other 9100 LEGISLATIVE COUNCIL ― 8 July 2020 penalties on Mr BOWLER for his non-disclosure of the source of the comments or his attempt to mislead the House about the origin of those comments. Indeed, it was noted by the Procedure and Privileges Committee in that case that (I quote) "Members source information for debates and amendments in the House and in committee from a broad range of areas. They are not required to say who has drafted those amendments or helped them form their views." (unquote)

The Committee notes that when speaking of his way of handling the proposed amendments at the media session on 16 May 2017, Mr CHOW apologized and admitted that he was politically insensitive, and that it had led to the public's negative perception of the incident.

In the Committee's opinion, whilst Mr CHOW's behaviours as described in the established facts might have impacted on the public perception of Members of the Legislative Council, his such behaviours are not sufficiently grave as to amount to contempt of the functions and powers of the Legislative Council nor to bring shame on the Legislative Council, and his behaviours are not of such gravity as to have undermined the public's confidence in the Legislative Council and its Members as a whole. The Committee therefore does not find that the above allegation can be established based on the evidence and information available.

President, in order to give views on whether the established facts constitute grounds for the censure of Mr CHOW in accordance with RoP 73A(2), the Committee has considered whether the two allegations made in the censure motion about "breach of oath" and "misbehaviour" under the Basic Law can be established.

On the allegation that Mr CHOW's behaviours as described in the established facts are in breach of the Legislative Council Oath taken by him at the Council meeting on 12 October 2016 under Article 104 of the Basic Law and the Oaths and Declarations Ordinance, the Committee considers that it likely that Mr CHOW's relevant behaviours would have led the public to cast doubt on his ability as a member of the Select Committee to make independent and objective judgment as a result of his contacts with the subject of inquiry, and led to the public's negative perception of the incident. Yet, his behaviours have no meaningful impact one way or another on his promise to serve the Hong Kong LEGISLATIVE COUNCIL ― 8 July 2020 9101

Special Administrative Region conscientiously, dutifully, honestly, with integrity and in full accordance with the law. Quite apart from this, the Committee bears in mind that the proposed amendments which, according to Mr CHOW, also reflected his own views and were considered appropriate by himself as a whole. He was just making proposals to amend an open document and their adoption or otherwise was for the Select Committee to decide after deliberation at open meetings. For these reasons, the Committee does not opine that the said allegation can be established based on the evidence and information available.

As regards the second allegation that Mr CHOW's behaviours as set out in the established facts constitute "misbehaviour" under BL 79(7), the Committee shares the view of previous Investigation Committees that the sanction of disqualification should only apply when a Member was found to have committed extremely serious misconduct and that a Member's misconduct should have seriously affected the reputation of the Legislative Council as a whole. The Committee is also of the view that in considering whether a particular conduct should constitute a Member's "misbehaviour" under BL 79(7), bringing serious discredit upon the Legislative Council and acting contrary to the generally assumed standard of conduct expected of a Member of the Legislative Council as described in paragraph 2 of the "Advisory Guidelines on Matters of Ethics in relation to the Conduct of Members of the Legislative Council of the Hong Kong Special Administrative Region in their capacity as such" ("the Advisory Guidelines") issued by the Committee on Members' Interests should be factored in.

The Committee considers that Mr CHOW's relevant behaviours have impacted on the public's perception of Members to a certain extent. That said, on account of the facts that have been established, the Committee opines that there is no sufficient basis to conclude that Mr CHOW's behaviours are serious enough to affect the reputation of the Legislative Council as a whole. Nor is the Committee satisfied that, based on its findings, Mr CHOW's behaviours have brought serious discredit upon the Legislative Council or that he has acted contrary to the generally assumed standard of conduct expected of a Member of the Legislative Council as described in the Advisory Guidelines. As such, the Committee considers that Mr CHOW's behaviours do not amount to "misbehaviour" under BL 79(7) and is not satisfied that the second allegation can be established.

9102 LEGISLATIVE COUNCIL ― 8 July 2020

President, in view of the above findings, the Committee is not satisfied that Mr CHOW's behaviours as set out in the established facts constitute "misbehaviour" and/or "breach of oath" under BL 79(7). The Committee has come to the conclusion that the facts as established are not sufficient to constitute grounds for the censure of Mr CHOW.

The Committee's report has been uploaded onto the Legislative Council website for public viewing.

Thank you, President.

PRESIDENT (in Cantonese): Mr Dennis KWOK will address the Council on the "Minority report on the investigation into the matter stated in the motion moved under Rule 49B(1A) of the Rules of Procedure to censure Hon Holden CHOW Ho-ding".

Minority report on the investigation into the matter stated in the motion moved under Rule 49B(1A) of the Rules of Procedure to censure Hon Holden CHOW Ho-ding

MR DENNIS KWOK (in Cantonese): President, I speak on behalf of two members of the Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon Holden CHOW Ho-ding ("the Investigation Committee"), namely Mr James TO and I myself, and present to the Council the Minority Report on the investigation.

On 3 February 2017, the House Committee of the Legislative Council ("LegCo") nominated and elected Members for appointment to the Select Committee to Inquire into Matters about the Agreement between Mr LEUNG Chun-ying and the Australian firm UGL Limited ("the Select Committee"), which was tasked to investigate into matters concerning an agreement signed between Mr LEUNG Chun-ying, the former Chief Executive, and UGL Limited ("UGL") in 2011 ("the Agreement"). The Agreement was related to UGL's takeover of DTZ Holdings, PLC, a real estate services company listed in the United Kingdom in which Mr LEUNG had a direct stake, and UGL undertook in the Agreement to pay Mr LEUNG £4 million subject to specific conditions. Mr LEUNG received LEGISLATIVE COUNCIL ― 8 July 2020 9103 the relevant payments during his term of office as the Chief Executive between 2012 and 2017, thus prompting public concerns over the issues of conflict of interests, taxation implications and declaration of interests. A total of 11 Members were elected, including Mr Holden CHOW who was elected Deputy Chairman of the Select Committee.

However, when the Select Committee met to discuss its proposed major areas of study, Mr CHOW submitted a document with amendments edited by the subject of inquiry (i.e. Mr LEUNG Chun-ying). During the meeting, Mr CHOW never disclosed that Mr LEUNG was the author of the proposed amendments, and repeatedly claimed that those amendments were his own opinions. Subsequently, Mr LEUNG met with the media and admitted that he had provided views and comments on the amendments submitted by Mr CHOW to the proposed major areas of study. When Mr CHOW separately met with the media, he also admitted that he had discussed the proposed major areas of study of the Select Committee with Mr LEUNG.

At the Council meeting of 7 June of the same year, Ms Claudia MO moved a motion under Rule 49B(1A) of the Rules of Procedure to censure Mr CHOW ("the censure motion"). Mr CHOW was accused in the censure motion of: (a) improperly interfering with and obstructing the Select Committee's inquiry; (b) acting in contempt of LegCo; (c) making false representations in LegCo; and (d) committing misbehaviour and breaching his LegCo oath.

The Investigation Committee has set out the investigation findings and recommendations in its report presented to the Council ("the Report"), but having failed to reach a consensus with the majority members on some of the investigation findings and judgments contained therein, we the above mentioned two members of the Investigation Committee cannot totally agree with the contents of the Report, and would therefore like to present the Minority Report separately to give the public a clearer picture of the divergent views among members of the Investigation Committee.

The difference between our opinions and those of the majority members lies mainly in our judgment as to whether the acts of Mr CHOW constitute the four types of misbehaviour as prescribed in the censure motion. When establishing whether the acts of Mr CHOW fall within the descriptions of these 9104 LEGISLATIVE COUNCIL ― 8 July 2020 four types of misbehaviour, a crucial point is to determine if he has committed such acts to mislead the House.

The McGee test is adopted in the Minority Report to assess if the conduct of Mr CHOW constitutes the act of misleading the House. The McGee test is recognized by numerous overseas parliaments and it has the following three prongs: Firstly, the statement concerned must be factually misleading. Secondly, it must be established that at the time when the statement was made, the Member making the statement knew that it was incorrect. Thirdly, in preparing for the making of the statement, the Member must have the intention to mislead the House.

Mr CHOW has not accepted invitation to attend the inquiry of the Investigation Committee, but the disclosed facts and public statements of the case have already provided adequate evidence to prove that his acts were committed with the intention of misleading the House. These facts and statements include: Firstly, Mr CHOW submitted to the Select Committee a document with proposed amendments edited by the user "CEO-CE" (i.e. the subject of inquiry, Mr LEUNG). Secondly, Mr CHOW repeatedly claimed at the meeting of the Select Committee that the proposed amendments were his own opinions. Thirdly, on the basis of the statements made by Mr CHOW, members of the Select Committee mistook that the proposed amendments were his own work-product, and did not know that Mr LEUNG had directly participated in the drafting of these amendments. Fourthly, before the case was revealed in media reports, Mr CHOW had not clarified to the Select Committee, its members, any Member or staff member of LegCo that instead of himself, Mr LEUNG was the author of the proposed amendments. Fifthly, after the case had been disclosed by the media, Mr CHOW admitted that the amendments were proposed by Mr LEUNG, while Mr LEUNG also admitted that he had participated in the drafting of the document containing these proposed amendments.

The Select Committee knew nothing about the fact that Mr CHOW had communicated with Mr LEUNG, the subject of inquiry, and it had never or could not have possibly given an authorization for Mr CHOW to do so. Yet, Mr CHOW communicated with the subject of inquiry privately, submitted on behalf of the subject of inquiry a document with amendments proposed to the scope of investigation, and hid the facts about their private communication as LEGISLATIVE COUNCIL ― 8 July 2020 9105 well as the editing of the proposed amendments by the subject of inquiry. No matter from what perspective do we view the issue, a conclusion will definitely be drawn to suggest that the acts were committed with the intention of misleading the House. Once it is established that Mr CHOW has committed certain acts with the intention of misleading the House, we can then establish the fact that with such acts committed, Mr CHOW has improperly interfered with and obstructed the Select Committee's inquiry, acted in contempt of LegCo, made false representations and/or committed misbehaviour in LegCo.

As a matter of fact, misleading the House is an act of serious misconduct, because a Member committing certain acts to mislead the House is actually trying to deceive other Members, leading them to make and/or take incorrect or inappropriate decisions and/or actions. We take absolute exception to the fact that other members of the Investigation Committee do not consider that the acts committed by Mr CHOW would cause such a serious negative impact on himself as well as other Members, and we therefore cannot agree with the contents of the Report.

With these remarks, President, and on behalf of the two Members who did not sign the Report of the Investigation Committee, I present to the Council the Minority Report on the investigation.

PRESIDENT (in Cantonese): Ms Alice MAK will address the Council on the "Report of the Legislative Council Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon HUI Chi-fung".

(Mr CHU Hoi-dick indicated his wish to raise a point of order)

PRESIDENT (in Cantonese): Mr CHU Hoi-dick, what is your point of order?

MR CHU HOI-DICK (in Cantonese): I request a headcount.

9106 LEGISLATIVE COUNCIL ― 8 July 2020

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

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

PRESIDENT (in Cantonese): Ms Alice MAK, please speak.

Report of the Legislative Council Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon HUI Chi-fung

MS ALICE MAK (in Cantonese): President, the Legislative Council Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon HUI Chi-fung ("the Investigation Committee") has already finished its work and is reporting to the Legislative Council today. In my capacity as Chairman of the Investigation Committee, I shall address the Council on the Report.

First of all, I would like to briefly mention the background of the establishment of the Investigation Committee. In the morning of 24 April 2018, when the Bills Committee on Guangzhou-Shenzhen-Hong Kong Express Rail Link (Co-location) Bill was holding its meeting, Mr HUI Chi-fung was claimed to have grabbed the mobile phone and documents of a female officer of the Security Bureau at the four-lift lobby on the second floor of the Legislative Council Complex.

In the light of the behaviour of Mr HUI Chi-fung, at the Council meeting of 23 May 2018, Mrs Regina IP moved a motion under Rule 49B(1A) of the Rules of Procedure ("RoP") to censure Hon HUI Chi-fung under Article 79(7) of the Basic Law ("the censure motion"). Pursuant to RoP 49B(2A), the debate on the censure motion was adjourned and the matter stated in the censure motion was referred to the Investigation Committee.

Under RoP 73A(2), the Investigation Committee is responsible for establishing the facts stated in the censure motion, and giving its views on whether or not the facts as established constitute grounds for the censure of LEGISLATIVE COUNCIL ― 8 July 2020 9107

Mr HUI Chi-fung. After the election of seven Members, including me, for appointment to the Investigation Committee at the House Committee meeting on 22 June 2018, the Investigation Committee held its first meeting on 17 July 2018 and has hitherto conducted a total of 10 meetings, including two hearings to obtain evidence from three witnesses.

In order to enhance the transparency of the Investigation Committee's work, as Chairman of the Investigation Committee, I have conducted briefings for the media and answered media enquiries after a number of meetings, so that the public could be aware of the work progress of the Investigation Committee. The Investigation Committee has also uploaded its Practice and Procedure onto the website of the Legislative Council for perusal by the public.

The Investigation Committee considers that it must be fair to Mr HUI Chi-fung and observe the due process, including the principles of natural justice. The Investigation Committee invited Mr HUI twice to attend its hearing to give evidence. However, Mr HUI only said that he would not attend the hearing in his reply to the first invitation and did not respond to the second invitation. Mr HUI has neither produced his written statement to the Investigation Committee nor signed the confidentiality undertaking of the Investigation Committee. Given Mr HUI's decision that he did not elect for hearings to be held in public, all hearings of the Investigation Committee were held in private in accordance with RoP 73A(4).

Besides, in response to the criminal proceedings instigated by the Department of Justice ("DoJ") against Mr HUI Chi-fung in respect of his grabbing of the mobile phone and documents of a female officer of the Security Bureau, in order to be fair to the parties involved in the investigation and to avoid possible prejudice to a person's interest in pending legal proceedings, soon after it was established, the Investigation Committee requested DoJ to keep it informed of the development of any pending legal proceedings related to the subject of its inquiry in accordance with the Practice and Procedure. The Investigation Committee learnt from DoJ that Mr HUI Chi-fung was convicted of three offences in the case of Hong Kong Special Administrative Region v HUI Chi-fung after trial. DoJ further informed the Investigation Committee that Mr HUI lodged an appeal against conviction in that case and the hearing had been scheduled for 24 March 2020. DoJ later informed that the hearing had been rescheduled for 13 October 2020.

9108 LEGISLATIVE COUNCIL ― 8 July 2020

The Investigation Committee is mindful that the court is responsible for adjudicating on the criminal liability of Mr HUI Chi-fung, whereas the Investigation Committee's investigation is to ascertain whether Mr HUI's relevant conduct amounted to misbehaviour under Article 79(7) of the Basic Law. The Investigation Committee considers it not necessary to put on hold its work in view of the above legal proceedings. Pursuant to paragraph 19(d) of the Practice and Procedure, the Investigation Committee requested DoJ to comment whether the draft findings and observations of the Investigation Committee might prejudice the pending criminal proceedings of the above appeal case. Having considered DoJ's reply, the Investigation Committee considered that this Report would not prejudice the pending criminal proceedings of the appeal case.

In the collection of information in relation to the censure motion for the purpose of investigation, the Investigation Committee considered it necessary to request for the closed-circuit television footage covering the alleged incident stated in the censure motion for viewing at the closed meetings, and also making reference to the video footage of Mr HUI Chi-fung's media interviews on the alleged incident related to the censure motion. After considering the information in relation to the censure motion, the Investigation Committee decided to invite seven persons to attend its hearings to give evidence to assist it in establishing the facts in relation to the censure motion. Among them, only three persons agreed to be witnesses and did attend the Investigation Committee's hearings.

The investigation findings of the Investigation Committee, including the established facts and conclusion, have already been stated in detail in this Report, which has also been uploaded to the website of the Legislative Council. I now highlight the key aspects of the Investigation Committee's conclusion.

Based on the Schedule to the censure motion, the Investigation Committee has identified six facts to be established. First, whether Mr HUI Chi-fung, in the morning of 24 April 2018 when the Bills Committee on Guangzhou-Shenzhen-Hong Kong Express Rail Link (Co-location) Bill was holding its meeting, grabbed the mobile phone and documents of a female officer of the Security Bureau at the four-lift lobby on the second floor of the Legislative Council Complex. Second, whether the female officer of the Security Bureau followed Mr HUI Chi-fung and demanded him to return the mobile phone to her, but to no avail, and whether the officer burst into tears when reporting the LEGISLATIVE COUNCIL ― 8 July 2020 9109 incident. Third, whether Mr HUI Chi-fung, after grabbing the mobile phone and documents of the female officer of the Security Bureau, quickly hid himself in a men's toilet on the second floor of the Legislative Council Complex and stayed there for 10-odd minutes. Fourth, whether Mr HUI Chi-fung admitted openly that he had browsed the information contained in the mobile phone of the female officer of the Security Bureau and recorded the information therein "by his own means". Fifth, whether the mobile phone was provided by the Government, and whether it might contain sensitive internal information of the Government. And finally, whether the acts of Mr HUI Chi-fung were acts of ramming the female officer of the Security Bureau.

On the basis of the information garnered, the Investigation Committee considers that the material parts of the above six facts to be established have been established, while the parts which could not be completely established are immaterial and they do not affect the Investigation Committee's view as to whether Mr HUI should be censured. Details of the Investigation Committee's considerations and views are set out in Chapter 4 of this Report.

In accordance with RoP 73A(2), the Investigation Committee needs to give its views on whether or not the facts as established constitute grounds for the censure of Mr HUI Chi-fung. In doing so, the Investigation Committee bases its views on the facts established and considers whether the three allegations stated in the censure motion are substantiated.

The first allegation is that Mr HUI Chi-fung's acts are unacceptable, even when the perpetrator is an ordinary citizen. The Investigation Committee considers that the facts established have clearly shown that the acts of Mr HUI Chi-fung are unacceptable wherever they take place and whether they are committed by a Member or an ordinary citizen. The Investigation Committee is of the view that the allegation has been substantiated.

The second allegation is that Mr HUI Chi-fung showed no respect for public officers, acted violently and seriously infringed upon the privacy of the female officer of the Security Bureau. The Investigation Committee agrees that there is no concrete evidence to substantiate that Mr HUI Chi-fung had infringed upon the privacy of the female officer of the Security Bureau according to the evidence given by witnesses. Based on the established facts, the Investigation Committee considers that the allegation that Mr HUI acted violently and showed 9110 LEGISLATIVE COUNCIL ― 8 July 2020 no respect to a public officer has been substantiated and, in fact, "showing no respect" is too mild an allegation.

The third allegation is that Mr HUI Chi-fung failed to fulfil the public's expectation of a Legislative Council Member and tarnished the Legislative Council's reputation. The Investigation Committee notes that the "Advisory Guidelines on Matters of Ethics in relation to the Conduct of Members of the Legislative Council of the Hong Kong Special Administrative Region in their capacity as such" clearly state that "a Member should ensure that his conduct must not be such as to bring discredit upon the Legislative Council", and "should conduct himself in such a way as not to place himself in a position which may be contrary to the generally assumed standard of conduct expected of a Member of the Council". Based on this principle and the first substantiated allegation, the Investigation Committee considers that the third allegation has been substantiated. Details of the Investigation Committee's considerations and views on the allegations above are set out in Chapter 4 of this Report.

By virtue of Article 79(7) of the Basic Law, a Member may be censured for misbehaviour. The Investigation Committee has found that the material parts of the allegations in the censure motion have been substantiated and the acts of Mr HUI Chi-fung as established amount to misbehaviour under Article 79(7) of the Basic Law. In the Investigation Committee's view, Mr HUI's acts have brought discredit upon the Legislative Council, and he has conducted himself in a way that has placed himself in a position which may be contrary to the generally assumed standard of conduct expected of a Legislative Council Member. The Investigation Committee comes to the view that the facts stated in the Schedule to the censure motion as established constitute grounds for the censure of Mr HUI.

President, although the progress of work has been slowed down due to the havoc wrought to the Legislative Council Complex after it was stormed by some protesters on 1 July last year and also to the impact of the COVID-19 pandemic, the Investigation Committee can still finish its work and submit the Report to the Legislative Council today. In this regard, I sincerely thank members for their support, and thank all witnesses, especially the Legislative Council Secretariat, for their assistance, so that the work of the Investigation Committee can be accomplished smoothly.

President, I so submit.

LEGISLATIVE COUNCIL ― 8 July 2020 9111

PRESIDENT (in Cantonese): Mr Kenneth LEUNG will address the Council on the "Minority report on the investigation into the matter stated in the motion moved under Rule 49B(1A) of the Rules of Procedure to censure Hon HUI Chi-fung".

Minority report on the investigation into the matter stated in the motion moved under Rule 49B(1A) of the Rules of Procedure to censure Hon HUI Chi-fung (English version only)

MR KENNETH LEUNG: President, at the Council meeting of 23 May 2018, Mrs Regina IP moved a motion under Rule 49B(1A) of the Rules of Procedure ("RoP") to censure Mr HUI Chi-fung under Article 79(7) of the Basic Law. Upon the moving of the censure motion at the above meeting, the debate on the censure motion was adjourned and the matter stated in the censure motion was referred to an investigation committee, as provided under RoP 49B(2A).

The Investigation Committee established under Rule 49B(2A) of the Rules of Procedure in respect of the motion to censure Hon HUI Chi-fung ("the Investigation Committee") is responsible for establishing the facts stated in the motion moved under RoP 49B(1A), and giving its view on whether or not the facts as established constitute grounds for the censure.

The Investigation Committee has completed its investigation and submits its Report to the Council. However, Mr Dennis KWOK and I as members of the Investigation Committee, cannot fully agree with the content of the Report. Therefore, we did not endorse the Report submitted by the Investigation Committee to the Council.

We, accordingly prepared a minority report to express our view and observations which differ from the Report submitted by the Investigation Committee in certain respects:

(a) We are mindful that Mr HUI Chi-fung lodged an appeal against conviction (HCMA 306/2019) in the case of Hong Kong Special Administrative Region v HUI Chi-tung (ESCC 2544/2018). We are 9112 LEGISLATIVE COUNCIL ― 8 July 2020

of the view that the sub judice principle must be respected. The Investigation Committee should not publish its Report before the appeal hearing in HCMA 306/2019 is heard and a decision is made.

(b) We do not agree with the finding of the Investigation Committee stated in paragraph 4.18 of the Report. We are of the view that although Ms LEUNG was upset during the material time of the incident and shortly after the incident, we cannot draw a clear conclusion whether Ms LEUNG burst into tears when reporting the incident to Mr FU while relying on Mr FU's evidence alone without any corroborating evidence from either Ms LEUNG or other witness.

(c) We do not agree with the finding of the Investigation Committee stated in paragraph 4.32 of the Report. We are of the view that it is difficult to draw even an observation or inference whether the mobile phone "might" contain sensitive internal information of the Government.

(d) We do not agree with the comment made by the Investigation Committee in paragraph 4.34 of the Report which stated, "IC is of the view that his acts were in fact more serious than acts of ramming as stated in the sixth fact". We are of the view that this comment is irrelevant to the Report.

Thank you, President.

PRESIDENT (in Cantonese): Mr Steven HO will address the Council on the "Report of the Panel on Environmental Affairs 2019-2020".

Report of the Panel on Environmental Affairs 2019-2020

MR STEVEN HO (in Cantonese): In my capacity as Deputy Chairman of the Panel on Environmental Affairs ("the Panel"), I submit the report on the work of the Panel for 2019-2020, and outline several major areas of work of the Panel.

LEGISLATIVE COUNCIL ― 8 July 2020 9113

In respect of improving air quality, the Panel urged the Government to undertake review of Air Quality Objectives ("AQOs") with the primary goal of protecting public health, including withdrawing its proposal of relaxing the allowable exceedances for 24-hour average concentration of fine suspended particulates, as well as tightening the AQOs for respirable suspended particulates and ozone at the same time. In addition, the Panel continued to monitor measures for the development of green transport. Members supported the implementation of the pilot schemes for electric public light buses and electric ferries by the Administration expeditiously, as well as the phasing out of Euro IV diesel commercial vehicles.

Members suggested that the Administration should consider phasing out conventional vehicles powered by fossil fuels, and set specific targets for the policy of promoting the use of electric vehicles ("EVs"). In this connection, the Subcommittee to Study Issues Relating to the Development of Electric Vehicles formed under the Panel has commenced work to review and study in a focused manner the policy objectives and support measures to promote the use of EVs.

As regards conservation, the Panel discussed the updated holistic fisheries management strategy in marine parks, including the scope of commercial fishing ban imposed in marine parks with a view to striking a balance between the conservation of marine parks and the sustainable development of the fisheries industry. Members put forward a number of suggestions on the plan to enhance the recreation and education potential of country parks, especially on the improvement of the environmental hygiene conditions of country parks, and the provision of such facilities as new roads and new bike trails. Members also supported the Administration's efforts to strengthen its measures to manage invasive alien species (including Mikania micrantha and Leucaena leucocephala).

The Panel received briefings by the Government on the progress of its work on the management of waste plastics, food waste and yard waste. Members noted that the Administration had already rolled out the Pilot Scheme on Collection and Recycling Services of Plastic Recyclable Materials, and urged the Administration to increase the recycling outlets in the territory for waste plastics, as well as consider setting work targets and implementation timetables for banning the use of disposable plastic tableware and plastic shopping bags.

9114 LEGISLATIVE COUNCIL ― 8 July 2020

The Panel expressed support for the Government's plan to implement the Minamata Convention on Mercury ("the Minamata Convention") in Hong Kong, under which a two-phase approach will be adopted to introduce regulation on mercury trading. While immediate control of import and export of mercury trading will be imposed in Phase One, a new piece of legislation will be introduced in Phase Two to deal with all obligations under the Minamata Convention.

President, I would also like to take this opportunity to thank members of the Panel and colleagues of the Secretariat for their support and hard work over the past year. Thank you everyone. Thank you, President.

PRESIDENT (in Cantonese): Mr CHAN Hak-kan will address the Council on the "Report of the Panel on Security 2019-2020".

Report of the Panel on Security 2019-2020

MR CHAN HAK-KAN (in Cantonese): President, in my capacity as Chairman of the Panel on Security ("the Panel"), I submit to the Legislative Council the report on the work of the Panel in this legislative session. I will highlight to the Council several major areas of work of the Panel.

First of all, with regard to the continued protests and rallies triggered by the proposed amendments to the Fugitive Offenders Ordinance ("the Fugitive Offenders Bill") since June last year, the Panel was gravely concerned about their impact on public order and the Police's handling of such public order events. Given that there had been cases involving explosives and firearms with destructive power in recent months, members were also concerned that whether such cases showed signs of the breeding of local terrorism, which would threaten public safety. In the meantime, members noted that the crime figure in Hong Kong recorded an increase recently. Some members were concerned that the deteriorating law and order situation was attributable to the thinning out of crime prevention work and resources of the Police to cope with public order events, and it was therefore necessary for the Administration to deploy adequate resources for curbing violent acts and restoring social order as early as possible. These LEGISLATIVE COUNCIL ― 8 July 2020 9115 members also called on the Government to step up publicity and education efforts, with a view to enhancing the law-abiding awareness of members of the public, especially young people. Some other members, however, were concerned that when handling large-scale public order events, the Police had used unnecessary and excessive force against members of the public who participated in the events, inappropriately treated arrested persons and hindered the work of reporters. These members called on the Administration to set up an independent commission of inquiry to investigate the Police's handling of protests and rallies related to the Fugitive Offenders Bill, thereby addressing the public concern in this respect.

Besides, some members were concerned about cases of malpractice in a number of major public works projects, as well as the compliance and appropriateness of the procurement procedures of various initiatives on innovation and technology development which might involve substantial amount of public money. Members called on the Independent Commission Against Corruption to assist government departments and public bodies to draw up and implement effective corruption prevention measures as well as enhance the relevant supervision systems, so as to uphold Hong Kong's probity environment.

In addition, members supported the launching of the Fire Safety Improvement Works Subsidy Scheme to subsidize owners of target buildings in undertaking improvement works to enhance the fire safety of these buildings. Members also supported the continual efforts made by the Administration to enhance the management of correctional institutions, including the installation of new electronic locks security system in these institutions, thereby enhancing the efficiency of institutional management and level of security. The Administration undertook to keep the Panel informed of the progress of various improvement works.

With these remarks, President, I would like to thank the Secretariat for their assistance and members for their participation. Thank you.

PRESIDENT (in Cantonese): Mr Tony TSE will address the Council on the "Report of the Panel on Development 2019-2020".

9116 LEGISLATIVE COUNCIL ― 8 July 2020

Report of the Panel on Development 2019-2020

MR TONY TSE (in Cantonese): President, in my capacity as Chairman of the Panel on Development ("the Panel"), I submit to this Council the report on the work of the Panel for the current session. I will also highlight several major items of work of the Panel.

During the session, the Panel continued to monitor the Government's measures in increasing land supply. The Panel has discussed the findings of the Study on Existing Profile and Operations of Brownfield Sites in the New Territories ("the Brownfield Study") commissioned by the Planning Department and expressed views on the future uses and developments of brownfield sites. The Panel conducted detailed discussions on the proposed implementation details for the Land Sharing Pilot Scheme ("the Pilot Scheme") and received public views on the Pilot Scheme in a public hearing session. Moreover, regarding the funding request on the planning and engineering study for Lung Kwu Tan reclamation and replanning of Tuen Mun West Area. Members called on the Administration to properly examine the impact on various fronts in the Lung Kwu Tan area in the course of conducting the planning and engineering study and to ensure the provision of sufficient transport infrastructure to dovetail with the proposed reclamation project. Members were generally supportive of the Hung Shui Kiu/Ha Tsuen New Development Area project and had given various views on the Environmentally Friendly Transport Services between the new development site and the adjacent areas.

As to efforts in enhancing building safety and rehabilitation in Hong Kong, Members generally welcomed the Government's injection for enhancing all existing subsidy schemes, including the Operation Building Bright 2.0, Lift Modernisation Subsidy Scheme and Building Maintenance Grant Scheme for Elderly Owners; in addition to the launching of the Water Safety Plan Subsidy Scheme.

The Panel expressed grave concerns over the Government's initiatives to enhance the preparedness and resilience against typhoons and related natural disasters. As climate change went drastic, threats induced by extreme weather were expected to be more frequent and severe. Members anticipated the Government to enhance its efforts in the management of such risks as landslide and flood.

LEGISLATIVE COUNCIL ― 8 July 2020 9117

The Panel continued to monitor the Administration's work in conserving and revitalizing the heritage sites and buildings in Hong Kong, and raised no objection to the funding application for the Lung Tsun Stone Bridge Preservation Corridor at Kai Tak.

With regards to legislative proposals, the Panel examined a proposed Member's Bill to amend the Waterworks Regulations which aimed at prohibiting a consumer from profiteering from the sale of water provided by the Water Authority from the waterworks. Members in general supported the proposed Member's Bill.

The details of the work of the Panel in other areas are set out in its report.

President, I wish to take this opportunity to appreciate the support of Panel Members and the efforts of secretariat staff over the past year. President, I so submit.

PRESIDENT (in Cantonese): Mr KWONG Chun-yu will address the Council on the "Report of the Panel on Welfare Services 2019-2020".

Report of the Panel on Welfare Services 2019-2020

MR KWONG CHUN-YU (in Cantonese): President, in my capacity as the Chairman of the Panel on Welfare Services ("the Panel"), I now submit to the Legislative Council the report of the Panel for the current legislative session. I will highlight the work of the Panel in a number of aspects.

With regards to social security, members were concerned that the existing levels of the Comprehensive Social Security Assistance ("CSSA") Scheme payments were inadequate in meeting the basic needs of CSSA recipients. Members were advised that the Administration had completed a review of the pro-employment measures and looked into all supplements and special grants under the CSSA Scheme. The Administration would improve the related measures to increase supplements and special grants with a view to strengthening 9118 LEGISLATIVE COUNCIL ― 8 July 2020 the support for CSSA recipients. Members urged the Administration to study the basic living expenses of households under the CSSA Scheme and to conduct a comprehensive review of the CSSA Scheme.

Regarding the services for the elderly, members urged the Administration to remove the cap for the Pilot Scheme on Home Care and Support for Elderly Persons with Mild Impairment ("Pilot Scheme") and increase the provision of meal service under the Pilot Scheme. As to the on-site pre-school rehabilitation services, members were concerned that due to serious shortage of places in special child care centres, many children with special educational needs had no alternative but to study at ordinary kindergartens. Members urged the Administration to provide additional special child care workers for these kindergartens, so as to enhance rehabilitation training and assist such kindergartens in providing suitable support for these children with severe disabilities and special educational needs.

With regards to social welfare planning, members were concerned about the lengthy process of implementing welfare facility projects under the Lotteries Fund and the Special Scheme on Privately Owned Sites for Welfare Uses. Members urged the Administration to review the current procedures and adopt concrete measures to speed up the implementation progress of the relevant projects.

Moreover, members urged government departments and welfare service units to employ more ethnic minorities as frontline staff to strengthen language support services for ethnic minorities. Members also urged the Administration to strengthen the support, including financial, medical and employment support, for street sleepers, and formulate homeless-friendly policies. Members also called on the Administration to set up three "one-stop crisis support centres", one each in three public hospitals with a view to providing a comfort, secure and private environment for sexual violence victims.

Lastly, I wish to take this opportunity to thank Members for taking part in the work of the Panel over the past year and the large number of deputations for providing the Panel with their valuable advice.

LEGISLATIVE COUNCIL ― 8 July 2020 9119

PRESIDENT (in Cantonese): Mr Wilson OR will address the Council on the "Report of the Panel on Housing 2019-2020".

Report of the Panel on Housing 2019-2020

MR WILSON OR (in Cantonese): President, in my capacity as Chairman of the Panel on Housing ("the Panel"), I submit the work report of the Panel for the year 2019-2020 and brief the Council on several key pieces of work of the Panel.

Members expressed disappointment with the performance of the Government in catching up with the housing supply target since it formulated the Long Term Housing Strategy. Members were especially concerned about the land supply for public housing in 2024-2025 and beyond. In order to increase public housing supply, members called on the Administration to set a timetable for redeveloping aged estates; study various propositions of land development; and increase public housing production with a long-term supply target for transitional housing.

Regarding transitional housing, members supported the Government's proposal to allocate $5 billion to assist non-governmental organizations in taking forward transitional housing projects. However, members were concerned that these organizations, which were mainly of a social welfare nature, were not specialized in housing projects. They thus urged the Administration to actively engage statutory organizations such as the Hong Kong Housing Authority ("HA"), Hong Kong Housing Society ("HS") and Urban Renewal Authority in constructing and providing transitional housing.

Members expressed support for the initiative announced in the Policy Address to accelerate the sale of the 42 000 unsold flats in the 39 Tenants Purchase Scheme ("TPS") estates. Members requested HA to consider providing additional repair works subsidies to the TPS estates. Members were of the view that many families in public rental housing ("PRH") did aspire to buy the flats in which they resided. Members thus urged the Administration to relaunch TPS to rekindle the hope of low and middle-income families to become home owners. The Administration advised that relaunching TPS would reduce the number of PRH units available for allocation in the short term, which would lengthen the waiting time for PRH. However, the Chief Executive undertook in the Policy Address that the Government would look into the subject of re-launching TPS when the housing supply was more stable.

9120 LEGISLATIVE COUNCIL ― 8 July 2020

The plight of the grassroots residing in subdivided units has been a subject of concern of the Panel. We advised the Government since long time ago to initiate study on introducing tenancy control. The Panel expressed great disappointment that the Administration only appointed the Task Force for the Study on Tenancy Control of Subdivided Units as late as in April 2020, and the Task Force would need another 18 months to make recommendations on tenancy control; and that its membership did not contain representatives of grass-roots households of subdivided units and concern groups on grass-roots housing. In view of the rapidly deteriorating economic condition since last year end and the data time lag of the rent review mechanism, which resulted in rent increases being imposed against the market trend, members requested the Housing Department and HS to pay rents for or freeze rents of PRH tenants and to offer rent concessions to carpark tenants of PRH estates. In the long run, the Panel urged the Administration to review the rent adjustment mechanism, relax the threshold of the Rent Assistance Scheme and streamline the vetting and approval procedures.

President, this is my last time in this legislative session to report the work of the Panel in my capacity as Panel Chairman to this Council. I thank all Panel members, the Secretariat and the Administration for having provided views and strategies to the Government in a communicating, accommodating and sensible manner. And I would advise the Government to continue to work hard and to listen more to the views of different stakeholders, so as to work concertedly in providing a desirable environment for people to live and work. I hope I will have the opportunity to meet you all again.

President, I so submit.

PRESIDENT (in Cantonese): Mr CHUNG Kwok-pan will address the Council on the "Report of the Panel on Economic Development 2019-2020".

Report of the Panel on Economic Development 2019-2020

MR CHUNG KWOK-PAN (in Cantonese): President, in my capacity as Chairman of the Panel on Economic Development, here I submit this year's work report and brief the Council on our major work items.

LEGISLATIVE COUNCIL ― 8 July 2020 9121

The social events in 2019, coupled with the outbreak of the novel coronavirus disease and the border control implemented to contain the outbreak, have posed unprecedented challenges to the affected industries, especially the Hong Kong tourism industry. The Panel repeatedly discussed tourism-related matters. We studied the post-pandemic promotional events that the Hong Kong Tourism Board planned to launch and reviewed the operation of the Hong Kong Disneyland and the strategic repositioning of Ocean Park, etc. Members called on the authorities concerned to formulate a holistic strategy to restore the confidence of visitors in Hong Kong, to control costs during the pandemic and avoid staff layoff by focusing on the local market and to expeditiously roll out effective promotional measures after the pandemic to revive the tourism industry.

The Panel held a joint meeting with the Panel on Financial Affairs to discuss the Government's decision to invest in Cathay Pacific Airways Limited ("Cathay Group") through the Land Fund. Some members expressed their understanding of the Government's decision which sought to uphold Hong Kong's status as an international aviation hub. Some members, however, expressed their dissatisfaction that the Government had by-passed the vetting and approval mechanism of the Council to inject funds into a private enterprise. They were worried that the Government might fall into a financial crisis if the investment failed to yield the intended return. Members noted that the Government had no intention to interfere with the operation of Cathay Group and had a mechanism in place to safeguard its investment return.

The Panel continued to monitor the implementation progress of the three-runway system ("3RS") project of the Hong Kong International Airport and urged the Airport Authority Hong Kong ("AAHK") to implement contingency measures to catch up with the delay and avoid cost overrun of the project caused by the pandemic. AAHK advised that with the supply of fill materials from multiple sources secured and rephasing measures implemented, it anticipated that the reclamation works could proceed according to the planned schedule and within the estimated budget and that the entire 3RS would meet the commissioning target in 2024.

The Panel received a briefing by the Competition Commission and followed up the competition condition of the auto-fuel market in Hong Kong. To reduce the commuting costs of the public and the operating costs for commercial vehicles, the Panel requested the Administration and the Competition Commission to look into the problem of high auto-fuel prices in Hong Kong, so 9122 LEGISLATIVE COUNCIL ― 8 July 2020 as to address the situation that auto-fuel prices were "quick to rise and slow to drop". The Administration undertook to adopt an open attitude when reviewing this matter.

The details of the other work items of the Panel are set out in the written report. I so submit.

PRESIDENT (in Cantonese): Mr KWOK Wai-keung will address the Council on the "Report of the Panel on Public Service 2019-2020".

Report of the Panel on Public Service 2019-2020

MR KWOK WAI-KEUNG (in Cantonese): President, in my capacity as Chairman of the Panel on Public Service, here I submit the work report of this year and highlight the work of the Panel in several key areas.

In this year, the Panel held a meeting on the grade structure review of the disciplined services and exchanged views with representatives of the staff unions and associations concerned. Some Panel members shared the views of the deputations and requested the Administration to conduct a grade structure review for the disciplined services grades once every five years to catch up with the rapidly changing work environment of the disciplined services.

The Panel held a public hearing on 19 June 2020 to receive views from members of the public on employing persons with disabilities ("PWDs") in the civil service. Panel members expressed concern about the diminishing number of PWDs employed in the civil service and called on the Administration to put an extra effort in facilitating the employment of PWDs in the civil service and consider setting an employment quota system for PWDs in the Government, statutory bodies, government-funded public bodies and public service organizations.

The Panel continued to keep in close view the medical and dental benefits for civil service eligible persons ("CSEPs"). The Administration launched a pilot scheme in March 2020 to provide free Chinese medicine general consultation and acupuncture services for CSEPs at two Civil Service Chinese Medicine Clinics set up at the Chinese Medicine Clinics cum Training and LEGISLATIVE COUNCIL ― 8 July 2020 9123

Research Centres located respectively at the Pamela Youde Nethersole Eastern Hospital and Yan Chai Hospital. The annual service quota was set at around 63 000. The scheme would be reviewed in one year after its commencement. Panel members called on the Administration to expeditiously expand the scope of the Chinese medicine service by increasing the service quota and service points, so as to meet the pressing service demand of CSEPs.

The Administration regularly briefed the Panel on the implementation of five-day week ("FDW") in the Government. Panel members expressed concern that after 14 years since the implementation of the FDW initiative, around 25% of the civil service strength was still unable to work on a FDW work pattern. In this connection, Panel members called on the Administration to provide assistance to the Bureaux and departments which were yet to fully implement this family-friendly measure, so as to benefit more civil servants.

Panel members expressed concern over the subject of requiring civil servants and staff of subvented organizations to swear allegiance to the Hong Kong SAR Government and adhere to political neutrality. The Panel would hold a meeting on 10 July to discuss this subject with the Administration.

President, the details of the work of the Panel are set out in the report. I so submit.

PRESIDENT (in Cantonese): Mr CHEUNG Kwok-kwan will address the Council on the "Report of the Panel on Constitutional Affairs 2019-2020".

Report of the Panel on Constitutional Affairs 2019-2020

MR CHEUNG KWOK-KWAN (in Cantonese): President, in my capacity as Chairman of the Panel on Constitutional Affairs ("the Panel"), I now highlight to this Council the Panel's deliberations in this legislative session.

The Panel kept a close watch on public election arrangements. Speaking of the 2020 Legislative Council General Election, members generally supported the Administration's proposal of increasing the subsidy rate of the financial assistance for candidates and election expenses limits on the basis of the estimated cumulative inflation rate from 2017 to 2020. The Panel also discussed the Proposed Guidelines on Election-related Activities in respect of the 9124 LEGISLATIVE COUNCIL ― 8 July 2020

Legislative Council Election, and also the practical arrangements and publicity for the election. Members put forth various recommendations on the arrangements for the election, including requesting the authorities to set up an adequate number of additional polling stations to cope with the increasing number of registered voters. Besides, members urged that the authorities must formulate an election contingency plan having regard to the outbreak of the coronavirus disease 2019. Members also urged the authorities to adopt measures to ensure that the election could be conducted in a peaceful and safe environment.

The Panel discussed the Report on the 2019 District Council Ordinary Election. Members were concerned that many voters had to wait a long time before they could cast their votes in that election. Members urged the authorities to learn from experience, with view to making better voting arrangements. The Panel also urged the authorities to proactively study ways to use information technology in different aspects of future election process, so as to enhance the efficiency of the election process.

Protection of personal data was always an issue of major concern to the Panel. The Panel discussed the preliminary direction for amending the Personal Data (Privacy) Ordinance and raised a number of amendment proposals with the Government. The Government undertook that it would carefully examine the Panel's proposals, conduct more in-depth studies with the Office of the Privacy Commissioner for Personal Data, and consult the relevant stakeholders when appropriate.

Furthermore, the Panel received the authorities' briefing on the Government's progress of work in tackling discrimination on the grounds of sexual orientation and gender identity. Members noted that the authorities were drawing up a charter on non-discrimination of sexual minorities for voluntary adoption by providers of goods, facilities and services, with a view to enhancing acceptance and friendliness towards sexual minorities among the personnel of the relevant organizations. The Administration advised that after receiving the Panel's views, the authorities would hold discussions with stakeholders, examine those anti-discrimination proposals that were suitable for implementation in Hong Kong, and put forth a working direction later on.

President, I so submit.

LEGISLATIVE COUNCIL ― 8 July 2020 9125

PRESIDENT (in Cantonese): Questions.

(Dr Helena WONG indicated her wish to speak)

PRESIDENT (in Cantonese): Dr Helena WONG, what is your point?

DR HELENA WONG (in Cantonese): In accordance with Rule 16(2) of the Rules of Procedure, I now propose an adjournment motion.

On 30 June 2020, the Standing Committee of the Thirteenth National People's Congress adopted the addition of the Law of the People's Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region ("HKNSL") to the list of national laws in Annex III to the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China ("the Basic Law"). On 6 July, the Government of the Hong Kong Special Administrative Region ("the SAR Government") promulgated seven Implementation Rules pertaining to HKNSL by gazettal.

President, the proposal put forth by the National People's Congress on 28 May to add HKNSL to Annex III to the Basic Law has remained a concern to Hong Kong society all along, including Members present here now, the Central Government and also the SAR Government. We are concerned about the respective responsibilities of the Central Government and the SAR Government, the rule-of-law principle, the institutions to be established and their duties, the categories of crimes and their penalties, case jurisdiction and procedures, the functions and duties of the office to be established by the Central Authorities in Hong Kong for safeguarding national security, and so on. Following the successive commencement of HKNSL and the seven measures under the relevant Implementation Rules, the Hong Kong community remains gravely concerned about the coverage and effects of the law, the functions and duties of the Committee for Safeguarding National Security of the Hong Kong Special Administrative Region and also the Office for Safeguarding National Security of the Central People's Government in the Hong Kong Special Administrative Region, the various specific statutory provisions, and also the implications on Hong Kong's human rights and rule of law. For this reason, I think HKNSL will 9126 LEGISLATIVE COUNCIL ― 8 July 2020 have far-reaching, profound implications on Hong Kong society, and Members of the Legislative Council are duty-bound to hold in-depth discussions on the provisions of HKNSL and the relevant rules, so as to enable the public to understand the changes brought by HKNSL to the Hong Kong community.

Now that the law has already taken effect, it will affect all people in Hong Kong. While a joint meeting involving three Panels was held yesterday for Members to put questions to officials, many Members who had pressed the "Request to speak" button were unable to get an opportunity to ask questions because the meeting merely spanned around two hours. Besides, owing to insufficient meeting time, officials and Members were unable to offer a clear account on the relevant issues and put forth their views respectively.

In this connection, I propose an adjournment motion in accordance with Rule 16(2) of the Rules of Procedure. The wording of the motion is as follows:

"That this Council do now adjourn for the purpose of debating the following issue: the addition of the Law of the People's Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region ('HKNSL') to the list of national laws in Annex III to the Basic Law of the Hong Kong Special Administrative Region of the People's Republic of China as adopted by the Standing Committee of the Thirteenth National People's Congress on 30 June 2020, and the promulgation of the rules pertaining to HKNSL by the Government of the Hong Kong Special Administrative Region through gazettal on 6 July."

PRESIDENT (in Cantonese): I now suspend the meeting to consider Dr Helena WONG's request for moving an adjournment motion in accordance with Rule 16(2) of the Rules of Procedure.

12:53 pm

Meeting suspended.

LEGISLATIVE COUNCIL ― 8 July 2020 9127

1:20 pm

Council then resumed.

PRESIDENT (in Cantonese): Dr Helena WONG, I understand that the issue for debate in your request is of grave concern to various sectors. But as Members all know, three Panels of this Council already held a joint meeting yesterday on the issue concerned, and officials already offered an account to Members at the meeting. Besides, Members may still follow up the issue through various channels, without having to resort to an adjournment motion for debate at this Council meeting.

As Members all know, only two meetings remain in the current legislative session, including this meeting. But large numbers of agenda items are pending our expeditious handling.

Based on the above considerations, I rule that the motion proposed by Dr Helena WONG does not meet the requirements under Rule 16(2) of the Rules of Procedure. I cannot grant your request.

(Dr Helena WONG indicated her wish to raise a question)

PRESIDENT (in Cantonese): Dr Helena WONG, what is your point?

DR HELENA WONG (in Cantonese): I hope the President has listened to my speech just now. I wish to propose an adjournment motion because the joint meeting held by the three Panels as mentioned by the President just now actually spanned only two hours from 4:30 pm yesterday …

PRESIDENT (in Cantonese): Dr Helena WONG, I have heard your grounds clearly. You argue that many queries have not been addressed. But the Council meeting is not a suitable occasion for dealing with those queries. You may request other committees to hold further meetings to follow up the issue you have mentioned.

9128 LEGISLATIVE COUNCIL ― 8 July 2020

ORAL ANSWERS TO QUESTIONS

PRESIDENT (in Cantonese): Questions. First question.

Police officers' use of force in the form of chokeholds

1. MR CHU HOI-DICK (in Cantonese): In 2012, a police officer dragged a taxi driver into a police car by means of a chokehold, causing him to suffer from a cervical vertebra dislocation, and the man subsequently died. In handling the activities against the proposed legislative amendments in recent months, police officers often subdued demonstrators by means of kneeling on their necks. In May this year, a man who had been knelt on the neck died a day after his arrest. Regarding police officers' use of force in the form of chokeholds such as kneeling on one's neck, will the Government inform this Council:

(1) of the number of occasions, since January last year, on which police officers used force in the form of chokeholds to subdue arrestees, and the number of persons who sustained injuries or died consequently;

(2) whether the Police has stipulated the circumstances under which police officers may use force in the form of chokeholds; if so, of the liabilities to be borne by a police officer for inappropriate use of such form of force which causes injuries or death to an arrestee; and

(3) given that an incident in May this year in which an African American died after being knelt on the neck by a police officer in the United States has sparked nationwide protests, and the relevant authorities of a number of states and cities in the United States have subsequently banned the use of force in the form of chokeholds by police officers, whether the Hong Kong Government has plans to ban, by way of an executive order or enactment of legislation, the use of force in the form of chokeholds by police officers; if so, of the details; if not, the reasons for that?

LEGISLATIVE COUNCIL ― 8 July 2020 9129

SECRETARY FOR SECURITY (in Cantonese): President, the preamble of the question mentions two cases. Regarding the case in 2012, as there is an ongoing judicial review, it is inappropriate for us to draw any conclusion about or discuss its outcome. As regards the case in May this year, the subject was searched for committing criminal damage. He resisted and struggled strongly. Police officers, with the help of passers-by, brought him under control and arrested him for suspected possession of drugs, criminal damage and attack on police officers. He was sent to the hospital as he was feeling unwell and died in the hospital on the following day. The autopsy by the Forensic Pathologist indicated neither fractures nor damages to the internal organs. The cause of death is subject to further toxicological testing and investigation. The Police will submit an investigation report to the Coroner for handling and scrutiny after completing the investigation. We should not make any speculation on the cause of death at this stage.

My consolidated reply to the question is as follows:

According to section 10 of the Police Force Ordinance (Cap. 232), the Police have the responsibility to adopt lawful measures to maintain public safety, public order, as well as safeguard people's life and property. The Police will, in light of the circumstances at the scene, make assessments and exercise professional judgment to take appropriate actions, including using the necessary force, to ensure public safety and public order.

Police officers must comply with the use of force principles when using force, i.e. they may use minimum force as appropriate only when such an action is absolutely necessary and there are no other means to accomplish the lawful duty. Police officers will give warning prior to the use of force as far as circumstances permit, while the person(s) involved will be given every opportunity, where practicable, to obey police orders before force is used.

Every newly recruited or serving police officer has to go through rigorous training on the use of force. The purpose of the training is to allow officers to fully understand how to use different levels of force in a safe and effective manner, including the use of verbal advice/verbal control, empty-hand control, oleoresin capsicum foam, batons and firearms, as a means to achieve the relevant lawful purpose. Police officers will exercise a high level of restraint at all times and cease to use force once the purpose is achieved.

9130 LEGISLATIVE COUNCIL ― 8 July 2020

According to the Police's guidelines, if an arrestee is injured at the scene of crime or during arrest, treatment will be arranged for that person. In addition, as prescribed under the Coroners Ordinance (Cap. 504), there are 20 types of deaths which must be reported to the Coroner, including deaths which occurred during the course of arrest or detention. The Police have always strictly complied with the statutory requirements. Regarding the two cases mentioned in the preamble of the question, the Police precisely follow the Coroners Ordinance in carrying out detailed investigation, and making a report to the Coroner for his consideration and decision in respect of whether a death inquest is required.

The question raises enquiries about the so-called "chokeholds". As I have said earlier in the main reply, the force used by police officers under all circumstances must comply with the use of force principles. Details of the use of force (including the methods and equipment etc.) should not be disclosed in order not to affect the efficacy of the Police's operation. However, the force used by police officers must be for the purpose of accomplishing lawful duties in order to respond to the prevailing situation at the time. The force used by police officers should adhere to the two important principles of proportionality and necessity. Every police officer must be responsible for the force he/she uses. Due consideration should be given to these elements when using force.

It is inappropriate for us to disclose the operational details of the Police's use of force. I must reiterate that the level of force to be used by police officers under a particular circumstance depends on the facts and situation at that time. The necessary force to be used depends on the threat and resistance faced by police officers under the circumstances at the time.

If any police officer is found to have used inappropriate force which is in breach of the law and police guidelines, the management of the Police will follow up in a serious manner.

The Police have always reviewed the guidelines and code of practice on the use of force from time to time. Factors for consideration include the principles of proportionality and necessity, as well as how to strike a balance among various factors such as the risks to suspects, threats to police officers' personal safety, operational needs, the gears being equipped with at the time, how many police officers are available for assistance at the scene, etc. With regard to "the use of force in the form of chokeholds" as mentioned in the question, currently the Police do not have any plans to ban such use by police officers. The considerations and decisions regarding the use of force by police officers in different places are made in accordance with the actual circumstances.

LEGISLATIVE COUNCIL ― 8 July 2020 9131

Besides, there is no death case in relation to the circumstances mentioned in part (1) of the question. As regards the other figures mentioned in the question, the Police do not keep the statistics.

MR CHU HOI-DICK (in Cantonese): President, you mentioned that you had also noticed the joint meeting we held yesterday. I now put it in the way as John LEE did yesterday: His main reply is worse than nonsense.

Quite simply, I asked about the specifics of the use of force by the Hong Kong police but he said he would not publicly disclose the specific details. However, President, the current situation is just the opposite in that police officers have been filmed dozens of times over the past months subduing demonstrators by kneeling on their necks, and they are even suspected of killing someone in May. Therefore, rather than being unsuitable to be made public, the incidents have now taken place in broad daylight and in full view of the public. It is because of an awareness of great danger that members of the public have asked him the question, referring to the situation in the United States. Given that the Chinese Communist Party in Mainland China often criticizes the United States for the use of violence by "bad cops" but the United States police have already been banned from using this dangerous method to deal with demonstrators, when will the Hong Kong Government actually revert to some civilized actions and prohibit this act of kneeling on a neck?

SECRETARY FOR SECURITY (in Cantonese): President, we have all seen how the United States handled the demonstrations and how many citizens died during the process. The relevant information is also available for viewing in the media. So far since June last year, the Hong Kong police have not caused any deaths in the course of enforcement actions. On the contrary, as a result of the atrocities committed by rioters, one person was killed by a brick hurled at him and another was severely injured by burning.

Even though Hong Kong police officers have repeatedly used force in the face of numerous physical threats, they have not caused multiple deaths of citizens as seen in foreign countries. I understand, of course, that the governments in those places have to take certain measures to control the process of law enforcement by police officers, but this exactly reflects that members of the Hong Kong Police Force stick to their posts. Despite physical threats, they 9132 LEGISLATIVE COUNCIL ― 8 July 2020 are capable of curbing violence and controlling social disorder. Their performance, in our view, is the best in the world. We should thank the Police Force for outperforming foreign countries in dealing with difficult problems.

MR JEREMY TAM (in Cantonese): I hope that Secretary John LEE ascertains for himself that what we are discussing now is this very dangerous action, rather than the chokehold. I have no idea whether the "chokehold" he referred to is done by hand but we are now homing in on "neck kneeling", that is, pressing down on someone's neck with a knee. Over the past few days, we have all seen someone driving a motorcycle bearing the "Liberate Hong Kong, the revolution of our times" banner. A photojournalist captured him on camera being uninjured at the moment of arrest but several days later he was unable to appear in court because of multiple fractures in his body. It is only natural to wonder: was it that someone had carried out vigilantism? In the past, we have also seen how the Police have carried out vigilantism in front of cameras. There is no need to argue about it. Why should we bother to argue about "only one or two camera shots"? Had there been no vigilantism, those one or two camera shots should not have appeared. If someone has broken the law, it is not a problem to make an arrest. The question now is simply: why is it necessary to kneel on a neck? Anyone being pressed down would certainly struggle to escape. This scene is commonplace. What is outlandish about struggling to escape when pressed down by four or five people? But is the struggle so aggressive that it poses a danger to the police officers? Of course, that is not the case. Why then is it still necessary to kneel on a neck? The request now is very simple. We wish to follow up this question: can we ask the Police not to allow kneeling on the neck anymore? It is as simple as that. As kneeling on the neck can kill, can they refrain from kneeling on the neck? Secretary, please do not tell me: "No one has died because of this, so now we can continue kneeling on the neck without any problem." What does this mean? This behaviour is dangerous. I urge the Secretary to ask the Police to stop kneeling on necks.

PRESIDENT (in Cantonese): Mr Jeremy TAM, you have raised your supplementary question.

Secretary, please reply.

LEGISLATIVE COUNCIL ― 8 July 2020 9133

SECRETARY FOR SECURITY (in Cantonese): President, in fact, I have pointed out in the main reply, as well as the earlier reply to Mr CHU Hoi-dick's supplementary question, that whatever method is used, including what was described just now as "neck kneeling"―in Mr TAM's words―or other methods whatsoever, how to use the force appropriately is of utmost importance. As every approach may carry risks, striking a balance is essential when it comes to the use of force. I have fully explained earlier in the main reply what factors the Police will consider in using force.

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

In fact, we now see that police officers would face life threats. When they make an arrest, the suspect may struggle to escape, resist and even be snatched away by others. Under such circumstances, the use of appropriate force is both legitimate and necessary. Anyone dissatisfied with the Police's approach may lodge a complaint, which will be handled in a fair and impartial manner. In addition, when the Police arrest any suspects, there are specific procedures on how to take those who need medical assistance to hospital and how to have them under guard throughout their hospitalization. Therefore, the crux of the matter rests on the fact that, whichever method is used, force must be used appropriately according to the actual situation, with a balance struck between risks and needs. We can see from the past results that the Police's approach in this respect meets our requirements, achieves the purposes and complies with the law.

DEPUTY PRESIDENT (in Cantonese): Mr Jeremy TAM, which part of your supplementary question has not been answered? Please point it out clearly.

MR JEREMY TAM (in Cantonese): The point now is that the Police are not using ordinary force, but lethal force. Why do the Police use lethal force to stop the demonstrators?

DEPUTY PRESIDENT (in Cantonese): Mr Jeremy TAM, you just need to point out the part of your supplementary question that has not been answered.

9134 LEGISLATIVE COUNCIL ― 8 July 2020

MR JEREMY TAM (in Cantonese): My question is: given that the police officers just want to subdue the demonstrators, why do they need to use lethal force instead of ordinary force? They can always press down on other body parts of the demonstrators. Why must they kneel on their necks?

DEPUTY PRESIDENT (in Cantonese): Mr Jeremy TAM, this is not the supplementary question you asked earlier. Please sit down.

Secretary, do you have anything to add?

SECRETARY FOR SECURITY (in Cantonese): I object to Mr Jeremy TAM's narrative. This is not a kind of lethal force. Any kind of force will have risks if used inappropriately. We should not pointedly talk about a certain method only. We see that the force and approaches used by the Hong Kong Police Force in the past 12 months were all necessary. They could deal with the situations faced by the Police and were appropriate in the cases concerned. I have made it very clear just now that anyone dissatisfied may lodge a complaint, which will be investigated in a fair and impartial manner.

MR CHAN HAK-KAN (in Cantonese): Deputy President, the Secretary mentioned in the main reply that every newly recruited or serving police officer has to go through rigorous training on the use of force, so that they master these skills in a safe and effective manner. However, I have noticed that, amid the recent "black-clad violence", many extremely violent demonstrators in fact used specifically purposed or dangerous weapons to attack police officers as well, and there were certainly incidents of arrestees being snatched away as mentioned just now. That being the case, will the Secretary add some elements to the training so that police officers know how to deal with such violent demonstrations? These may be something they have never learned during their training in the police academy. How can they avoid being attacked and injured when left alone?

SECRETARY FOR SECURITY (in Cantonese): Deputy President, the above mentioned training on the use of force for police officers is very reasonable, and the management of the Police Force has proactively stepped up measures in the light of some points raised earlier. In fact, the Police Force's latest approach is LEGISLATIVE COUNCIL ― 8 July 2020 9135 to provide a great deal of training. Among others, additional guidelines and training on the use of force are given to police officers upon their entry into service and during their re-training several years later. In particular, there is some real-life simulation training. Some rooms, for example, are equipped with projectors to make police officers feel like being on the spot to deal with some violent incidents.

Of course, from the perspective of continuous improvement, more efforts should be put into training to make it better. In fact, among the 52 recommendations made in the report of the Independent Police Complaints Council, there is also a request that the Police Force should enhance training in this area, and the Police Force has tasked a police officer at the rank of Assistant Commissioner to conduct a study on the guidelines and training on the use of force to see how they can do better. Real-scenario training is indispensable; so is tactical training. In this regard, I would like to thank Members for their suggestions. I will relay them to the Police Force for serious follow-up.

MS ELIZABETH QUAT (in Cantonese): Deputy President, had those Members of the "mutual destruction camp" not kept on conniving at the use of violence by members of the public to vent their frustration or express their views, heroizing them for their violent behaviour, or telling them that being in jail or having a criminal record will make their life more exciting, I believe that not so many people would have committed such extreme acts of violence in the riots against the legislative amendment.

Now we often see arrestees being blatantly snatched away in some riot situations. I have also seen many people suffer lethal injuries over the past year. I have kept visiting Uncle LEE, who was injured by fire in Ma On Shan. He is about to undergo the fifth and sixth skin grafts. The recovery time is very long. Worse still, Uncle LAW was killed by a brick. Therefore, I would also like to know how many police officers have suffered egregious bodily harm during this period. When confronted with circumstances where extreme violence is used, how can police officers keep themselves from becoming fair game for unfair accusations of brutality?

The Police previously said that each police officer would be equipped with a body-worn video camera ("BWVC"). At present, does every police officer in the riot scenes wear a BWVC? Is the BWVC functional enough to record 9136 LEGISLATIVE COUNCIL ― 8 July 2020 sufficient evidence showing how dangerous it is in the split second of the moment? For example, we often see some lone police officers being gang-beaten, cold-bloodedly attacked or even killed by demonstrators …

DEPUTY PRESIDENT (in Cantonese): Ms QUAT, you have raised your supplementary question.

MS ELIZABETH QUAT (in Cantonese): I wish to know whether there are currently sufficient BWVCs and training for police officers to cope with the present scenarios of such extreme violence.

DEPUTY PRESIDENT (in Cantonese): Secretary, please reply.

SECRETARY FOR SECURITY (in Cantonese): Deputy President, I am also very concerned about Uncle LEE's injury conditions that were just mentioned and hope that he recovers soon. Inflicting injury on a person by burning on account of differences in opinion is indeed extremely cruel, inhumane and cold-blooded behaviour.

Regarding BWVCs, the Police Force currently has more than 3 300 sets and plans to add 4 500 sets in the coming year, which means more than doubling the quantity, with a view to enhancing police officers' evidence-collection and improving their operational efficiency, as previous cases clearly show that BWVCs, if available, are very helpful in collecting evidence. This is a fair practice because it protects not just the police officers, but also the parties concerned. The current objective is to equip every frontline uniformed police officer with a BWVC in 2021 for higher effectiveness in law enforcement.

As regards the training that the Police have to provide in relation to the use of BWVCs and handling of violent scenes, I have already explained in detail when answering an earlier question that we will further strengthen training in various areas, including at real scenes, in classes and about tactics and use of equipment.

LEGISLATIVE COUNCIL ― 8 July 2020 9137

DEPUTY PRESIDENT (in Cantonese): Second question.

Contraventions relating to residences or properties of public officers

2. MR TONY TSE (in Cantonese): Deputy President, in recent years, unauthorized building works ("UBWs"), unauthorized occupation of government land or breach of the conditions of Government Land Licence in respect of the residences of politically appointed officials, senior officers of the Police Force, Executive Council Members, Legislative Council Members and District Council members or properties under their names, have been uncovered from time to time, raising doubts on the integrity of public officers and the credibility of the Government. In this connection, will the Government inform this Council:

(1) as the Chief Secretary for Administration stated in January 2018 that the Chief Executive would remind all accountability officials that they must inspect their properties to see if illegal or UBWs issues were involved, whether such reminders are issued regularly or only at the time when the officials assume office;

(2) given that in 2011, the Buildings Department ("BD") introduced a set of special procedure for handling celebrities' UBWs cases (i.e. expeditiously sending staff to inspect the sites and conducting investigations, so as to allay public concern), whether BD still adopts the procedure at present; if so, whether BD has assessed its effectiveness; if it has ceased to adopt the procedure, of the reasons for that; and

(3) whether it will set up an inter-departmental task force comprising representatives of government departments such as BD, the Lands Department, the Hong Kong Fire Services Department and the Rating and Valuation Department to expedite the handling of alleged contravention cases involving the residences of the aforesaid public officers or properties under their names, as well as proactively inspect such residences and properties, so as to ascertain if there is contravention of the law?

9138 LEGISLATIVE COUNCIL ― 8 July 2020

SECRETARY FOR DEVELOPMENT (in Cantonese): Deputy President, the Government has always attached great importance to building safety and land administration in Hong Kong, and takes enforcement actions according to the relevant laws and established policies.

When formulating and implementing policies in dealing with unauthorized building works ("UBWs"), the Government has always put building safety as the first priority and adopted a pragmatic approach to handle the matter impartially according to the priority and category of the UBWs concerned. The Building Authority (i.e. the Director of Buildings) is responsible for taking enforcement actions against UBWs in accordance with the Buildings Ordinance (Cap. 123) ("BO"). The Buildings Department ("BD") has for that purpose formulated clear enforcement policies and arrangements and has been handling UBWs cases in accordance with BO and the enforcement policies impartially in accordance with the law.

Generally, BD adopts a risk-based approach in determining the priority of enforcement actions against UBWs. For "actionable" UBWs, unless the owners have proactively handled the relevant UBWs, BD will issue a removal order requiring the owners concerned to remove the UBWs within a specified period of time. BD will also register the removal order against the record of the premises concerned at the Land Registry ("LR"), commonly known as "imposing an encumbrance". BD will consider instigating prosecution actions against owners who could not rectify the situation within the specified time without reasonable excuse.

Regarding land administration, whether a building is in violation of the land lease depends on the terms of the land lease and the actual conditions of the land and the building thereon. In case there is a breach of the land lease, the Lands Department ("LandsD") will take appropriate enforcement actions according to priority.

In general, in respect of breach of land lease, LandsD will first issue a warning letter requiring the owner concerned to rectify the lease breach within a specified period. If the owner does not rectify the breach by the deadline, LandsD may register the warning letter at LR. If the situation of the breach is serious, for instance if it poses a serious threat to public safety, LandsD will consider re-entry of the lot or vesting the relevant interest to Government. In respect of breach of conditions of government land licence, LandsD will first LEGISLATIVE COUNCIL ― 8 July 2020 9139 issue a warning letter to the licencee requiring rectification of the breach within a specified period. If the nature of the breach is serious, LandsD will consider cancelling the licence. In respect of the unlawful occupation of government land, LandsD will take enforcement actions in accordance with the Land (Miscellaneous Provisions) Ordinance (Cap. 28), posting of statutory notice at the relevant location requiring the occupier to cease occupation of the land. If the occupation of land does not cease by the deadline, LandsD may instigate prosecution.

Regarding some recent reports which have caused public concern over UBWs, unauthorized occupation of government land or breaches of land licences, BD and LandsD have, upon receipt of the reports, followed up the cases according to the relevant laws and established policies. The departments have proceeded with investigations and enforcement actions impartially in accordance with the law in a fair and equitable manner without varying the enforcement standards depending on the identities of those involved.

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

(1) Any property owner, being the one who owns the property, regardless of his or her identity, must ensure that the property under his or her name complies with the relevant laws and the terms of the relevant land lease. Property owners should appoint a professional Authorized Person to inspect the properties and seek professional advice as needed.

Besides, in view of the public expectation of senior government officials, the Chief Executive has reminded the politically appointed officials ("PAOs") should be vigilant at all times and observe the highest standards of personal conduct and integrity, striving for safeguarding the reputations of the Government and all public officers.

(2) and (3)

In response to the keen concern of the community, BD has since mid-2011 adopted a set of special procedures where priority would be accorded by BD in conducting site inspection for investigating existence or otherwise the suspected UBWs for clearing public 9140 LEGISLATIVE COUNCIL ― 8 July 2020

concerns as soon as practicable if the owners involved in the UBWs cases under media inquiry or media reporting are senior government officials or community celebrities (including the Chief Executive, secretaries of departments and directors of bureaux, other PAOs, permanent secretaries and heads of departments; Executive Council Members, Legislative Council Members and influential people in the community (i.e. those who have a direct influence on public policy)). If any UBWs are identified in the site inspection, BD will take appropriate actions in accordance with BO and the prevailing enforcement policies impartially without adopting different enforcement standards because of the identities of those involved. These special procedures have proven effective and has not been changed.

When handling cases involving private properties, other government departments also adhere to the principles of impartiality and equal treatment for all. For instance, if LandsD identifies any suspected irregularities in relation to violation of land leases or unauthorized occupation of government land, it will follow up the cases in accordance with the established mechanism regardless of the identities of the involved persons. When conducting fire safety inspection, the Fire Services Department will do so impartially taking into account actual situation. The Rating and Valuation Department will adhere to the requirements of the Rating Ordinance (Cap. 116) when assessing the rateable value of a property on the basis of the actual use and occupation status of the property for assessment and collection of rates.

As stated in my reply to part (1) of the question, it is the owners' responsibility to ensure that their properties are in compliance with the relevant land lease conditions and laws, including but are not limited to the laws regarding building safety, fire safety and taxation. The relevant departments take follow-up actions in accordance with relevant laws and established policies in an equitable and impartial manner regardless of the owners' identities. Departments have consistently handled media enquiries with a high degree of transparency to allay public concern as far as possible. At present, all departments take enforcement action under their prerogative effectively and the mechanism is running effectively. The LEGISLATIVE COUNCIL ― 8 July 2020 9141

Government has no plan to change these policies or to establish a task force for taking special enforcement arrangements against the properties owned by aforementioned public officers.

MR TONY TSE (in Cantonese): Deputy President, the Secretary has stressed in the main reply that in regard to irregularities concerning UBWs, unauthorized occupation of government land or breaches of land licences, the Bureau will proceed with investigations and enforcement actions impartially, without varying the enforcement standards due to the identities of those involved. I approve of this approach because all people should be equal before the law. However, I also think that public officers, be they government officials or Legislative Council Members, should set good examples with their deeds for the community. Besides, Deputy President, due to the existence of UBWs, the buildings concerned may have some negative impact on public safety. As an architect and surveyor, and also a Member representing the Architectural, Surveying, Planning and Landscape functional constituency, I am certainly rather concerned about the issue of UBWs.

I would hereby like to ask the Secretary whether sufficient manpower is currently available to deal with the work in relation to the irregularities concerned, including UBWs. Besides, how many cases can be handled each year? May I ask whether the Bureau can provide the data and publish them on a regular basis so that the public can understand the impact of UBWs in terms of safety?

SECRETARY FOR DEVELOPMENT (in Cantonese): I thank Mr TSE for his supplementary question. Our manpower is always tight. In BD, for example, the workload in this aspect is rather heavy. In fact, additional manpower has already been recruited over the years. Currently, over 700 staff members in BD are engaged in dealing with the related work, representing an increase of nearly 20% when compared with the number three years ago. Hence, we have been increasing the manpower.

As regards the number of cases that we can handle each year, we are able to issue over 10 000 removal orders. As for the detailed figures, I think I can provide them as supplement to Members after the meeting (Appendix I). In my view, certain figures can prove that our mechanism is indeed effective. In 2001, 9142 LEGISLATIVE COUNCIL ― 8 July 2020 it was estimated that Hong Kong had over 800 000 UBWs. A decade later, after some massive operations being taken, the number of UBWs was reduced to 400 000. At present, there are some 47 000 UBWs which are yet to be removed after receiving the removal orders. When compared with those of two to three years ago, the number is smaller. We can thus see that the current mechanism has been effective.

DEPUTY PRESIDENT (in Cantonese): Mr Tony TSE, which part of your supplementary question has not been answered?

MR TONY TSE (in Cantonese): Will the data cited by the Secretary just now be made public on a regular basis so that the public can know about the details concerning UBWs?

DEPUTY PRESIDENT (in Cantonese): You have already pointed out the part of your supplementary question which has not been answered. Secretary, do you have anything to add? Will the Bureau make the data public on a regular basis?

SECRETARY FOR DEVELOPMENT (in Cantonese): Deputy President, I thank Mr TSE for his supplementary question. We are delighted to share the data with the public in various ways so that they can understand the present situation more. We will study how to do better in this aspect after the meeting.

MR LAU KWOK-FAN (in Cantonese): Deputy President, I recognize that it is very important to publish these data. However, the figure just cited by the Secretary is somewhat different from the figure that I am aware of. In 2011, BD estimated that there were over 2 million UBWs in Hong Kong. This surely might only be an estimated figure, while the one cited by the Secretary just now referred to the cases with warning letters or removal orders issued. Anyway, we can see a discrepancy between the estimate and the actual prosecution figure.

LEGISLATIVE COUNCIL ― 8 July 2020 9143

Nonetheless, with the estimate of 2 million UBWs in Hong Kong but 700 colleagues in BD capable of handling 10 000 cases per year, the capacity is actually far from being sufficient to handle all UBW cases in the territory. Of course, some UBW cases are very serious and will affect the safety of the buildings, whereas some cases are very trivial or even understandable but unlawful. At present, the legal provisions and even enforcement policies specifically for UBWs are very complicated. Some structures with merely slight alterations may be defined as UBWs. Due to some outdated legal provisions, the public may find it difficult to comprehend and will easily fall foul of the law. Therefore, I would like to ask the Secretary whether he will, in addition to increasing manpower, review some outdated or impractical stipulations in response to the present situation. I think this will be more in line with the current needs.

SECRETARY FOR DEVELOPMENT (in Cantonese): Thank you, Mr LAU Kwok-fan. The figure quoted by Mr LAU is also correct, but we are not referring to the same issue, just like one referring to an apple while the other talking about an orange. In 2011, since the Government had already conducted some massive operations for a decade, what we did at that time were visual inspections to estimate the number of possible UBWs instead of really identifying those UBWs to which issuance of removal orders was warranted. We were only conducting an estimation to form a basis for the Government to assess the effectiveness of our work in the previous decade and consider our upcoming approach. Some specific cases showed that a large majority of those UBWs were minor and residential, such as supporting frames for air-conditioners, small canopies or drying racks. At that time, there were approximately 400 000 cases of external UBWs which genuinely needed handling, and I hope that Mr LAU can understand this figure.

Besides, I agree with Mr LAU that we cannot merely resort to punishment when dealing with UBWs. In recent years, the approach of the Government has been strict and impartial enforcement of the laws. While this approach will continue, we will put more efforts in two aspects. On the one hand, we will study how to enforce the laws more effectively. During the Legislative Council meeting two to three weeks ago, I also highlighted that LandsD and BD would make use of technology more often. For instance, we will make use of the drone technology nowadays to take three-dimensional pictures, which can facilitate more effective law enforcement by us.

9144 LEGISLATIVE COUNCIL ― 8 July 2020

On the other hand, we attach great importance to education and subsidy. Not every owner is in a strong financial situation, and some owners of old buildings may need help. Works of this kind were under the purview of the Hong Kong Housing Society in the past and they are carried out by the Urban Renewal Authority ("URA") in recent years. URA has introduced various schemes. While some schemes are providing direct subsidies, some are providing loans for owners to have the opportunities to improve the quality of the old building structures and enhance the safety of the structures, as well as dealing with the UBWs. As for education, the Government actually has very detailed information on the measures that can be rolled out on many platforms with URA in regard to different UBWs. Anyway, we will continue our efforts in this aspect.

MR JIMMY NG (in Cantonese): Deputy President, we notice that many UBWs are scattered in different districts and I have no idea how they are categorized by BD. Can the Secretary tell us about the proportions of UBWs in the New Territories and the urban areas respectively among the approximately 10 000 cases to be handled per year as mentioned by him just now? Do the authorities have special teams to remove UBWs on their own initiatives in the New Territories but not in the urban areas? Is that really the case? I would like the Secretary to tell us about it, thank you.

SECRETARY FOR DEVELOPMENT (in Cantonese): Thank you, Mr NG. Perhaps I can give a brief explanation here. Quite often, small houses are not under the purview of BO but UBWs may still exist. The situation of small houses in recent years can actually be traced back to 2011 or 2012 when, in response to the UBWs among small houses, we introduced a special registration scheme under which the owners could register their UBWs with BD. If, in our view and also the experts' after inspection, the UBWs do not pose any safety hazards, we will allow their existence.

For rural areas or villages, BD takes some targeted actions because after all, we need to use resources effectively. In villages, there may be some special situations, such as adjourning small houses. Facing the difficulties in removing the UBWs, we take appropriate actions according to the actual situations. In recent years, some owners have installed certain facilities which are not UBWs, such as those facilitating environmental protection. We allow an owner to LEGISLATIVE COUNCIL ― 8 July 2020 9145 install solar panels on the roof as long as they do not occupy more than half of the area and are not over 2.5 m high. Without breaching any related regulations, an owner can make use of the space to install such facilities.

The situation in the urban areas is different because there are many multi-storey buildings. We can trace back to 2011 when Mr Paul TSE also asked me a question about this aspect. We have arrangements of upper, middle and lower levels. In respect of rooftop structures/flat roof structures/yards/private-lane structures, some of them are classified as "actionable" UBWs.

As I highlighted in my main reply, if that structure is "actionable", we will notify the owner and ask them to remove the UBW concerned. If they refuse to do so, it is likely that they will receive a removal order. The procedures are rather complicated, and our respective ways to handle UBWs in the rural areas and urban areas are somewhat different. We will make efforts in both aspects, and I hope that this brief introduction can answer Member's question.

DEPUTY PRESIDENT (in Cantonese): Mr CHUNG Kwok-pan, please raise your question.

(Mr CHUNG Kwok-pan is not present)

DEPUTY PRESIDENT (in Cantonese): Mr CHUNG Kwok-pan is not present. Ms Elizabeth QUAT, please raise your question.

MS ELIZABETH QUAT (in Cantonese): Deputy President, as I have heard from the Secretary, BD will prioritize site inspections on suspected UBWs whose owners are community celebrities, and it will then take appropriate actions impartially. I believe we all agree that community celebrities have great influence on society and we certainly do not encourage constructing UBWs. Hence, if there are UBWs at the residences of community celebrities, I believe we all agree that it will be reasonable for the Government to accord priority to site inspections on those UBWs without delay and then take actions impartially, requiring the owners to remove the UBWs. However, we have indeed seen some cases like Ms Claudia MO's converting her garage into an apartment 10 years 9146 LEGISLATIVE COUNCIL ― 8 July 2020 ago. We have asked BD many times about the case of Ms Claudia MO, who is a celebrity. Why have we seen no action after the existence of UBW at her residence was proven by the site inspection of BD? The Secretary says that appropriate actions will be taken impartially, though.

We do not approve of the existence of UBWs at the residences of community celebrities or government officials, and thus we think the authorities should take actions and ask them to remove the UBWs. Nevertheless, this case is precisely posing a very negative impact on our society to the effect that certain people really have the privilege to keep their UBWs intact.

SECRETARY FOR DEVELOPMENT (in Cantonese): I thank Ms QUAT for her supplementary question. I respect her for airing her personal views, even though I do not agree with them. Both BD and LandsD are under the purview of the Development Bureau, and indeed, we proceed with actions impartially in a fair and equitable manner. It is hard for me to comment on individual cases here. But when it comes to law enforcement, I believe my colleagues have been working very hard to deal with such cases with the approach just mentioned. If further legal advice is needed, they will approach the authorities concerned as well. Therefore, I do not think that this case has revealed any disrespect from the departments for the impartial and equitable manner in handling these cases. I am confident that our departments can deal with these cases in this manner.

DEPUTY PRESIDENT (in Cantonese): Ms QUAT, which part of your supplementary question has not been answered?

MS ELIZABETH QUAT (in Cantonese): In the main reply, the Secretary says that these cases will be handled in an impartial and equitable manner. But in my view, practical actions need to be taken and also be seen by the public. The case of a celebrity has been reported numerous times in the newspaper and enquired by many citizens …

DEPUTY PRESIDENT (in Cantonese): Ms QUAT, you only need to point out the part of your supplementary question which has not been answered by the Secretary.

LEGISLATIVE COUNCIL ― 8 July 2020 9147

MS ELIZABETH QUAT (in Cantonese): In fact, I hope that the Bureau can really take actions in an impartial manner against those UBWs which need to be removed.

DEPUTY PRESIDENT (in Cantonese): You have already pointed out the part which has not been answered.

Secretary, do you have anything to add?

SECRETARY FOR DEVELOPMENT (in Cantonese): Deputy President, I will give a brief response. Indeed, the Bureau and the department are also handling the cases in this manner.

DEPUTY PRESIDENT (in Cantonese): Third question.

Demand-side management measures for the property market

3. MR JIMMY NG (in Cantonese): Owing to the economic downturn in Hong Kong, various trades are now facing tremendous operating pressure, and the banks also tend to be more prudent in commercial lending. Some owners of enterprises intend to sell their properties to meet cash flow needs. However, the various demand-side management measures for the property market (commonly referred to as "harsh measures") have greatly increased the difficulty in cashing out. In this connection, will the Government inform this Council:

(1) as it is learnt that the Singapore Government intends to relax its demand-side management measures for the property market to attract international capital to invest in Singapore, thereby boosting its economy, whether the authorities have assessed this situation and considered, before this major competitor in the Asian region launches the relevant measures, lowering the rates of ad valorem stamp duty to the previous levels to enhance Hong Kong's competitiveness; and

9148 LEGISLATIVE COUNCIL ― 8 July 2020

(2) as some business operators have suggested that even if the Government does not immediately "withdraw the harsh measures" in one go for fear of affecting the opportunities for members of the public to buy their own homes, it should at least implement the following three measures: (i) gradually lowering the ad valorem stamp duty rate from the current 15% to the previous levels; (ii) revising the arrangement under which a person, who replaces his/her property by acquiring a new residential property before disposing of his/her only original residential property, is required to pay the stamp duty first before they may apply for refund for the stamp duty paid; and (iii) "withdrawing the harsh measures" for non-residential property transactions, whether the authorities will implement these measures; if so, of the details; if not, the reasons for that?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): Deputy President, one of the important objectives of the Government's housing policies is to maintain the healthy development of the property market. Over the past few years, in light of the actual situation of the local property market, the Government has adopted a two-pronged approach by striving to increase both land and housing supply to meet demand, and introducing several rounds of demand-side management measures to combat short-term speculative activities and reduce investment and external demands. These measures aim to prevent further exuberance in the property market which may pose significant risks to our macroeconomic and financial stability, to ensure the healthy development of the property market, and to accord priority to home ownership needs of Hong Kong permanent residents amidst the prevailing tight housing supply. When formulating policies related to the property market, different countries and regions put in place appropriate measures based on their local economic and property market conditions as well as their own policy considerations.

Mr NG suggested that lowering the rates of stamp duty on property might help attract foreign investments and enhance Hong Kong's competitiveness. But the Government reckons that investors will consider a wide range of factors when identifying a location to set up business, including business environment and opportunities, tax regime and tax rates, and cost of operation. Given the actual situation of Hong Kong's property market at present, demand-side management LEGISLATIVE COUNCIL ― 8 July 2020 9149 measures can ensure the healthy development of the property market, which is conducive to a stable business environment, thus maintaining Hong Kong's competitiveness as an international financial and business centre.

The Government understands that enterprises may face greater cash flow pressure under the current economic conditions. Thus, in this year's Budget and under the two rounds of Anti-epidemic Fund, the Government has launched a series of relief measures totalling over $280 billion to alleviate the financial burden of enterprises. These include the launch of the Special 100% Loan Guarantee for small and medium enterprises and the Employment Support Scheme for eligible enterprises to ease their cash flow difficulties.

In consultation with the Transport and Housing Bureau, my consolidated reply to the two parts of the question raised by Mr NG is as follows:

In considering whether stamp duty rates concerning residential properties should be adjusted, the Government must carefully take into account the impact of relevant arrangements on the property market as a whole. Owing to global and local factors, the residential property market has turned quieter since the second half of 2019. Property prices, though retreated slightly, have shown signs of rebound recently. Overall property prices remain at a level beyond the affordability of the general public. The home purchase affordability ratio(1) in the first quarter of 2020 still stayed at a high level of 73%, well above the 20-year long-term average of 45% from 2000 to 2019.

Any move to relax demand-side management measures or to lower stamp duty rates may be speculated by the market as a signal for adjustments to the Government's policies on the property market. It may also stimulate demand for local residential properties from some citizens, and lead to a counter-productive result of pushing up property prices when the current housing supply still lags behind demand. Therefore, the Government must act prudently.

For non-residential properties, the Government's objective of introducing the doubled ad valorem stamp duty is to forestall the spread of the overheating in the residential property market to the non-residential property market. Although

(1) Home purchase affordability ratio refers to the ratio of mortgage payment for a 45-square metre flat to median income of households (excluding those living in public housing), at the prevailing mortgage rate for a tenure of 20 years. 9150 LEGISLATIVE COUNCIL ― 8 July 2020 the prices of non-residential properties have been trending downwards since 2019, they still stood at relatively high levels. The Government will continue to monitor the market situation closely.

Under the existing mechanism, if a Hong Kong permanent resident acquires a new residential property to replace his/her only original residential property, he/she has to pay the relevant stamp duty first and claim partial refund of the stamp duty paid after disposing of the original property. The Government acknowledges that the arrangement may increase the acquisition costs for persons replacing their residential properties. However, if the relevant requirements are relaxed, it may invite some owners without genuine intention to dispose of their original properties to, under the guise of property replacement, defer payment of stamp duty or hold more than one residential property for a longer period with a view to making profits. This is at variance with the policy intent of introducing demand-side management measures and goes against taking care of the practical needs of Hong Kong permanent residents in replacing their properties.

The Government will, as always, keep watch on the market conditions and take timely and appropriate measures in response to market changes by making reference to a series of indicators, including property prices, the home purchase affordability ratio, transaction volume and supply of properties, and local and global economic changes, with a view to ensuring the healthy development of the property market.

MR JIMMY NG (in Cantonese): In his reply just now, the Secretary did not directly respond to my question about the Singapore's approach. Of course, I understand that the specificities of the two places are different. But at least we are certain about one point, and that is, the Singapore Government is working towards relaxation of its "harsh measures". The Government should pay serious attention to this trend. Besides, the Secretary still chose to dodge a core question in his main reply, and that is, the "harsh measures" on the property market have become a constraint on enterprises which intend to cash out to save their business.

The "harsh measures" on the property market were launched originally to suppress property speculation. However, recent statistics show that the property market is cooling down. Transactions of non-residential properties for commercial or industrial purpose or flats in industrial buildings in particular are LEGISLATIVE COUNCIL ― 8 July 2020 9151 dwindling rapidly. All sectors are in dire straits under this sharp economic downturn in Hong Kong. If this moment were not the opportune time to withdraw the "harsh measures", when would it be, Secretary? Would the Secretary please answer this question directly?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): Perhaps I can answer Mr NG's supplementary question from several perspectives. First, I will respond to his supplementary question just now concerning retail property prices, that is, those of non-residential properties. Indeed, a downward trend in the retail property prices was observed in the middle to the end of last year. To a certain extent, it reflects the present atmosphere of the retailing market. The social incidents last year have, as Mr NG described, weakened local and tourist spending. As compared with the first quarter of last year, the retail property prices in the fourth quarter of last year have dropped roughly by 11%. However, our experience earned in the past few years has witnessed the phenomenon that retail property prices would pick up gradually after a downward adjustment. Inevitably, a property may be left vacant when the property owner looks for a new buyer or tenant or during price negotiation or property renovation. When the business environment starts to revive, the vacancy rate of retail properties may adjust accordingly. Hence, we will keep monitoring the economic conditions and the latest change of the property market so as to launch appropriate policies timely. This is the first point.

Secondly, Mr NG mentioned the situation in Singapore just now. I will say a few words here based on our understanding. As far as we know, because of the epidemic, the Singapore Government has tentatively relaxed the time requirement on exempting the additional buyer's stamp duty for local married couples who purchase a new residential property to replace their original residential property. Originally, if they sell their first property within six months, they are exempted from paying the additional buyer's stamp duty, and they are now given another six months to do so. Hong Kong permanent residents who purchase a new residential property to replace the residential property they merely own can have part of their stamp duty returned if they sell the original property within 12 months after acquisition of the new one.

Members may also understand that in formulating property market policies, different countries and regions will consider their local economy, property market conditions and their own policies before launching appropriate measures. 9152 LEGISLATIVE COUNCIL ― 8 July 2020

Hence, we cannot make generalization for all places, and it is inappropriate to make direct comparisons. Coming back to the situation in Hong Kong, in fact, since the launch of our different demand-side management measures, short-term speculative activities have been effectively curbed. Just now, Mr NG mentioned how we should stimulate or attract foreign companies to start their business here. In fact, they will not consider this factor alone. They will consider a basket of factors. I hope this can answer Mr NG's supplementary question.

MR CHUNG KWOK-PAN (in Cantonese): I do not know if the Secretary has ever worked in the business world or whether he has ever engaged in any commercial business. Today, many people do not have any cash. Their only hope is to cash out their properties so that their business can be maintained. If they go to the banks for a loan, the banks will probably undervalue their properties by 30%, 50% or even 60%. We notice bankruptcies have been on the rise recently, and businesses that have wound up are also increasing. Banks would often take over their mortgaged properties and sell them at low prices on behalf of the mortgager.

In view of the present economic environment, why does the Government not allow the "harsh measures" to be relaxed? According to the Secretary's reply just now, the demand on residential properties is still enormous. But we can see that the demand on commercial properties and shop premises has dropped a lot. The prices of shop premises have dropped by 50%. Why does the Secretary not relax the "harsh measures" on commercial properties or shop premises, so as to enable people doing business to have a chance to sell their properties for cash to save their business, keep their companies and retain their employees?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): I thank Mr CHUNG for his supplementary question. Just now, he mentioned a point. He asks why the "harsh measures" on non-residential properties are not relaxed. Actually, I have briefly answered this question in the main reply. The objective of introducing the doubled ad valorem stamp duty on non-residential properties is that we are concerned … or we want to forestall the spread of the overheating in the residential property market to the non-residential property market.

LEGISLATIVE COUNCIL ― 8 July 2020 9153

We are well aware of and we understand the situation Mr CHUNG just now. Enterprises are now beset with short-term cash flow difficulties. So, apart from the proposal he just mentioned, there are actually many other means or options which can help enterprises ease their cash flow difficulties caused by the epidemic and the global economic changes at present.

I wish to take this opportunity to provide some information to Members. Early this year, the two-rounds of measures launched under the Anti-epidemic Fund and those announced in the Budget amount to some $287 billion. They seek to help the affected enterprises and people. For small and medium enterprises ("SMEs") mentioned by Mr CHUNG just now, we also have specific measures to ease their cash flow pressure. For instance, the Special 100% Loan Guarantee under the SME Financing Guarantee Scheme seeks to alleviate the pressure arising from the failure of the reduced revenue to cover the salary and rental.

Also, for industries hard hit by the epidemic, such as the retailing, catering, tourism and travelling industries, we will provide financial assistance relevant to these industries. On a more macro scale, or from the employment perspective, we have provided time-limited financial supports to employers through the Employment Support Scheme, so as to help them pay their staff salary and retain their employees who may otherwise be laid off.

Here, I will briefly explain the present status of the Special 100% Loan Guarantee. The Special 100% Loan Guarantee is applicable to SMEs in different sectors and industries. The maximum amount of the loan for an eligible SME is the total amount of employee wages and rents for six months, with a cap of HK$4 million. An interest rate of the Prime Rate minus 2.5% per annum (i.e. current interest rate at about 2.75%) will be charged. All guarantee fees will be waived. Enterprises may opt for principal moratorium for the first year to lessen their immediate repayment burden …

(Mr CHUNG Kwok-pan stood up)

DEPUTY PRESIDENT (in Cantonese): Secretary, please hold.

9154 LEGISLATIVE COUNCIL ― 8 July 2020

MR CHUNG KWOK-PAN (in Cantonese): The Secretary has not answered my supplementary question. He has only read out the policy initiative. I can recite it myself …

DEPUTY PRESIDENT (in Cantonese): Mr CHUNG Kwok-pan, please point out the part of your supplementary question that has not been answered.

MR CHUNG KWOK-PAN (in Cantonese): I ask him why the Government cannot relax the "harsh measures" on non-residential properties first. The Secretary does not need to read out the policies. We have already learnt them by heart.

DEPUTY PRESIDENT (in Cantonese): Mr CHUNG, you have clearly pointed out the part of your supplementary question that has not been answered. Secretary, do you have anything to add? Can you answer Mr CHUNG's question directly?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): In short, what I said just now is the reason why we cannot relax or exempt the measures on commercial properties. The original objective of the measures is relevant to the present situation. That is, when the supply is tight, we are concerned that the demand on residential properties may transfer to the non-residential property market. This is the first point.

Second, to help the SMEs, many measures can in fact be considered. The situations I mentioned just now do not come from a script. I wish to take this opportunity to explain the measures available to help SMEs ease their pressure from cash flow. Regarding Mr CHUNG's question, I believe no matter how the measures vary, the ultimate aim is to help SMEs deal with their cash flow difficulties now. So, measures such as selling properties for cash, which Member mentioned just now, serve the same purpose. The differences lie only in the manner or the focus being considered.

LEGISLATIVE COUNCIL ― 8 July 2020 9155

MR JEFFREY LAM (in Cantonese): Deputy President, in fact Mr Jimmy NG has raised a timely question. We have repeatedly raised questions on the "harsh measures", including the Double Stamp Duty. And we always get the same answer in return, and that is, "What should be done if property prices hike again after withdrawing this tax?" I can provide the Secretary with a solution. Even if the Government does not withdraw the "harsh measures" now, it can suspend them for two years. If the market remains stable in the two years, the Government can withdraw the "harsh measures"; but if problems arise in the two years, the Government can stop the suspension after the two year period.

I want to read out a piece of news I just read. The United Kingdom is considering a proposal, which is to "exempt the first £500,000 of all property sales from the tax … is expected to announce a temporary stamp duty holiday to stimulate property market". Due to the impact of the epidemic on the property market, the United Kingdom will roll out timely tax relief. And here is the question I wish to ask the Secretary. Will the Secretary consider my proposal by making reference to the proposed measure in the United Kingdom? The Secretary should not consider it for as long as one or half year. Instead, he should decide expeditiously whether or not to suspend the "harsh measures" for two years.

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): I thank Mr LAM for his supplementary question. I believe Members can understand that the property market is very elastic and sensitive to prices and government policies. So, we must be prudent in every step we take. We need to consider thoroughly because our decision has an extensive impact and is closely related to the life and assets of the general public.

In fact, we keep monitoring Members' views and other factors of the market every day to see if it is necessary to roll out timely policies in the face of the changing conditions. However, the prevailing supply on the whole is tight. We are concerned that the overheating in the residential property market will transfer to the non-residential property market. A bigger problem we need to address is how to resolve the cash flow problem and the pressure facing SMEs. This can be tackled by a number of measures. We have listened to Mr LAM's view and will take it into consideration when necessary.

9156 LEGISLATIVE COUNCIL ― 8 July 2020

DEPUTY PRESIDENT (in Cantonese): Mr Jeffrey LAM, which part of your supplementary question has not been answered?

MR JEFFREY LAM (in Cantonese): Deputy President, I asked the Secretary not to spend too long on considering the suspension of the "harsh measures". He should respond to us expeditiously. When can he give us a reply on whether he will suspend the "harsh measures" or not?

DEPUTY PRESIDENT (in Cantonese): Mr LAM, you have clearly pointed out the part of your supplementary question that has not been answered. Secretary, do you have anything to add?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): I have nothing to add.

MR ABRAHAM SHEK (in Cantonese): The Secretary has assumed his post lately. His replies are the same as those of his predecessor. I certainly hope that he will not leave his post. But the issue is that he needs to learn to face the problems in society and not to be too distant from it. This is the first point.

Second, the Secretary has not at all responded to the problem Mr CHUNG Kwok-pan raised just now. I wonder if the Secretary has ever been to the area around Percival Street and Hennessy Road, where numerous vacant shops can be found. The Secretary takes charge of financial affairs. Does he want to tackle the problem belatedly after seeing the re-appearance of negative equity, instead of looking at the overall situation in advance? This is the second point.

Third, as Mr LAM pointed out just now, the United Kingdom is aware of the imminent flood while the Secretary still gives old replies to answer questions vaguely. Does he know how much the "harsh measures" have pushed up property prices? On the one hand, the Secretary says that property prices are too high, but on the other hand, the Government keeps implementing the high land price policy. Does the Secretary know how many pieces of government land were withdrawn from land sale last year? It was because the prices proposed by buyers were far lower than your upset prices. If the price of flour LEGISLATIVE COUNCIL ― 8 July 2020 9157 is high, will that of bread not be exorbitant as well? If the Secretary wants to control the bread price, he should restrain his first. Deputy President, I do not ask the Secretary to answer me so that I will not be annoyed by him.

DEPUTY PRESIDENT (in Cantonese): Mr Abraham SHEK, are you sure that you do not intent to put a supplementary question? Secretary, do you have anything to add?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): I hope Mr SHEK will not be so angry. I am as keen as he is to help SMEs through different means. Today enters the third month since I assumed the post, and I always bear in mind how to be more down to earth. In this regard, we must seek advice from Members; and we must also listen to views in the market. However, just now, I only pointed out our present situation. The decision is truly hard to make. But we will keep the situation in view in due course. We will surely consider making adjustment if there is any room to do so. I hope Mr SHEK will not be so angry.

DEPUTY PRESIDENT (in Cantonese): Mr SHEK, since you did not raise a supplementary question just now, the Secretary just provided a supplement.

MR ABRAHAM SHEK (in Cantonese): Deputy President, the problem is he is completely ignorant of the market situation. I very much hope that he will spend two days with me walking around the market, will he not?

DEPUTY PRESIDENT (in Cantonese): Fourth question.

Measures to boost the economy

4. MR KWOK WAI-KEUNG (in Cantonese): The Coronavirus Disease 2019 epidemic has dealt a heavy blow to Hong Kong's economy. In the first quarter of this year, the Gross Domestic Product contracted by a record of 8.9% in real terms from a year earlier and the unemployment rate also soared, hitting 9158 LEGISLATIVE COUNCIL ― 8 July 2020 a new high in 10 years. Given that the epidemic has subsided recently, quite a number of members of the public hope that the Government can unite society and boost the economy. In this connection, will the Government inform this Council:

(1) as the Chief Executive has indicated that she has appealed for a number of times to the landlords of private shop premises to reduce rents so as to ride out the hard times with their tenants but to little avail, of the Government's new measures to prompt those landlords to reduce rents, so as to lower the operating costs of the tenants;

(2) whether it will consider, by drawing reference from the approach adopted by the Government when the Severe Acute Respiratory Syndrome epidemic was over in 2003, setting up an economic relaunch strategy group comprising government officials and non-government individuals, so as to bring together the strengths of the Government, the business sector and the community to jointly boost the economy; and

(3) given that inbound tourism has come to a complete halt due to the epidemic, of the Government's new measures and strategies to promote local consumption so as to sustain the economic heat; whether it will launch a second-round of Cash Payout Scheme and consider afresh issuing consumption vouchers or providing consumption subsidies, so as to step up efforts to boost the economy?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, since the outbreak of COVID-19, Hong Kong's economy has been hard-hit. In order to provide support to enterprises and people affected by the pandemic, the Government has rolled out three rounds of relief measures, totalling $287.5 billion, under the 2020-2021 Budget and two rounds of Anti-epidemic Fund ("AEF"), with a view to supporting enterprises and safeguarding jobs. However, all economic recovery measures can only be effective on the basis that the pandemic situation is under control, and that the general community continues to abide by the public health protective measures, fights the pandemic together and is supportive of each other. At the same time, we will work tirelessly and in a timely manner to pave the way for economic recovery as soon as the pandemic situation stabilizes.

LEGISLATIVE COUNCIL ― 8 July 2020 9159

Having consulted the Financial Secretary's Office and the Financial Services and the Treasury Bureau, the consolidated reply to Mr KWOK's question is as follows:

(1) To alleviate the pressure arising from the pandemic on businesses, the Government has on the one hand appealed to landlords in the private sector to offer rental concessions to their tenants so as to sail through the difficult period together. On the other hand, we have also, led by example, proactively offered rental concessions to eligible business/organizations operating in government premises and other related properties. For the period from April to September 2020, rental concessions for eligible tenants have been increased from 50% to 75%, and the scope of rental concessions has been extended to cover more businesses. As for businesses operating in government premises and other related properties which have to completely cease operation due to anti-epidemic measures imposed by the Government, they will receive a full rental waiver during the closure period. Public bodies, including the Airport Authority, the Hong Kong Housing Society, the Mass Transit Railway Corporation Limited, the Urban Renewal Authority, etc., have also followed suit.

The Chief Executive has repeatedly mentioned in public that she has appealed to the real estate sector that, as landlords, they should ride out the difficult times with their tenants together. I believe that the Chief Executive and other government officials will continue the appeal in this respect.

Apart from rental concessions, the Government has also strived to lower operating costs for enterprises. The Government has announced a series of measures in the Budget and the two rounds of AEF, including waiving of profits tax, rates for non-domestic properties and business registration fees; subsidizing electricity charges; and reduction of water and sewage charges, etc. These measures aim to benefit enterprises from different sectors and of all sizes.

9160 LEGISLATIVE COUNCIL ― 8 July 2020

(2) The Chief Executive, the Financial Secretary and other relevant government officials have been engaging different sectors and professionals through various channels and advisory bodies to discuss the current economic situation, with a view to mapping out the strategy for economic development and recovery. For example, the Council of Advisers on Innovation and Strategic Development chaired by the Chief Executive and, for the Commerce and Economic Development Bureau, the Trade and Industry Advisory Board and the recently established Task Force on External Relations chaired by myself discussed extensively and took forward economic support measures together with the trade. The support measures rolled out in the past two years, in response to either the United States-China trade conflict or the recent pandemic outbreak, are all the results of the close liaison with various sectors of the community. The Government will continue to maintain partnerships with different sectors in forging the way forward to revive the economy.

(3) To restart the economy and encourage local consumption, the Government has introduced the $10,000 Cash Payout Scheme with a view to reinvigorating the local economy. As the Financial Secretary wrote in his blog this week, more than $40 billion funding will be disbursed to the respective bank accounts in the coming week, and for those who register later will also receive their payment in turn. We believe that the Scheme will boost local consumption, driving the demand in other services sectors. The Financial Secretary also responded to media enquiry earlier that there are different ways to stimulate local consumption, and the Government introduced the Scheme to let people decide on spending the money according to their needs. The Government considers that the Scheme is a more appropriate measure, and that cash payout can reach the public earlier when compared with consumption vouchers.

With regard to tourism, as cross border restrictions are still in place, we will begin with local tourism so as to rebuild the city's vibrant atmosphere and stimulate consumption. To this end, the Hong Kong Tourism Board ("HKTB") launched the Holiday at Home campaign in mid-June to encourage Hong Kong people to be tourists in our own city. With the staunch support of the local tourism, retail and catering industries, etc., the campaign provides different LEGISLATIVE COUNCIL ― 8 July 2020 9161

offers to boost overall local consumption. HKTB will also roll out offers later so that residents can redeem free local tours through spending. In the meantime, the Government enhanced in June 2020 the Green Lifestyle Local Tour Incentive Scheme which was announced late last year. Through enhancing cash incentives for travel agents, the Scheme has contributed to the revival of the tourism sector and supported the food and beverage and transport sectors.

For the convention and exhibition sector, the Government has, through AEF, subsidized convention and exhibition activities organized by the Hong Kong Trade Development Council ("HKTDC") and other organizers. HKTDC will organize the Hong Kong Book Fair next week in which participants will be eligible for full subsidy for their participation fees. In the coming months, HKTDC and other organizers will host a range of exhibitions targeting the local market. These exhibitions will benefit from the government subsidy, bringing more business opportunities to local exhibitors and enterprises and creating an atmosphere for consumption.

In sum, the Government will continue to monitor the pandemic development and the economic situation, and keep in close contact with various sectors. We will also provide timely support for different industries and sectors to revive Hong Kong's economy.

MR KWOK WAI-KEUNG (in Cantonese): Given that the epidemic situation remains unstable, local consumer sentiment stays low. The Secretary mentioned in the main reply that $40 billion funding would flow into the community under the scheme launched to hand out $10,000 cash per person, but in anticipation that the epidemic will persist for some time, most people will save up the $10,000 received and may not be willing to spend the money. This is the reason why we have suggested issuing consumption vouchers.

Deputy President, my supplementary question is: What views does the Secretary for Commerce and Economic Development have on the current epidemic situation and the community economy of Hong Kong, and what can we do to strike a reasonable balance between the two? We, together with 9162 LEGISLATIVE COUNCIL ― 8 July 2020 representatives of trade unions from various sectors and industries engaged in sea, land or air businesses, met with the Chief Secretary for Administration yesterday to reflect the plight faced by trade members. If we cannot achieve a revival in the local community economy, they will remain unemployed and this is exactly what we are concerned about. How, in the opinion of the Secretary, can we achieve a balance in this respect? I am of the view that only by expediting the implementation of a system for recognition of health codes can we help wage earners of various sectors and industries in the three aspects mentioned above to resume work. In this connection, what are the views of the Secretary and what does he intend to do to address the issue?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, I share the views of many Members, including Mr KWOK's, that in the face of the epidemic, we have to deal with matters relating to two major areas. On the one hand, we should of course step up our efforts first in preventing and controlling the epidemic, because failing to do so will only cause us a lot of difficulties, regardless of the economic revival measures we plan to launch. Certainly, while making efforts to tackle the epidemic, attention should also be paid to the need for social recovery, and that is why I have cited some examples as illustration just now in the main reply.

For this reason, since the Government rolled out a series of relief measures under the Budget and two rounds of AEF from the end of last year to the beginning of this year, we have been following a very important guiding principle when carrying out the related work. We aim to make sure that we not only "support enterprises" but also "safeguard jobs". As we can see from the measures rolled out under the previous rounds of AEF, most of the expenditures aim to stabilize the overall economic situation. Efforts are made at the same time to achieve the goal of encouraging consumption indirectly through some other measures, such as allocating a funding of $71 billion on the scheme of handing out $10,000 to each Hong Kong resident.

As for the local epidemic situation at present, although things have become a bit unpredictable during the past couple of days, the overall situation is relatively stable, and hopefully it will keep on. Under such circumstances, the relief measures introduced in the past two weeks or so can indeed stimulate a gradual revival of local consumption, but this must tie in with and complement the epidemic prevention work. It is hoped that with the implementation of some LEGISLATIVE COUNCIL ― 8 July 2020 9163 economic measures set out just now, as well as the initiatives taken in response to the epidemic, members of the public can heave a sigh of relief and will then be encouraged to make consumption, thereby revitalizing the economy of Hong Kong.

DEPUTY PRESIDENT (in Cantonese): Mr KWOK, which part of your supplementary question has not been answered?

MR KWOK WAI-KEUNG (in Cantonese): Deputy President, I asked the Secretary earlier what could be done to strike a balance, but he replied that priority should be given to the prevention and control of the epidemic. If the epidemic drags on for another six months, should the numerous wage earners stay jobless for half a year more?

DEPUTY PRESIDENT (in Cantonese): Secretary, do you have anything to add?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, Mr KWOK may have misunderstood what I said just now. I did not mean that priority should be given to handling matters in respect of a particular aspect, but as I have already pointed out on many occasions, striking a balance is exactly what we have to do now, and just like what the English phrase "fighting twin battles" suggests, we are actually facing two battles at the same time. If we cannot strike a balance between the two, we may be rendered taking two steps backward every time when a forward one is made.

Hence, when adopting any government policy, be it formulated on epidemic prevention or economic affairs, the entire government team must join efforts to address the need to ensure public health and prevent the spread of the epidemic while introduce economic recovery measures at the same time. Judging from what we saw in the past two weeks, initiatives in these two aspects have been taken forward simultaneously.

(Mr KWOK Wai-keung stood up and intended to ask again)

9164 LEGISLATIVE COUNCIL ― 8 July 2020

DEPUTY PRESIDENT (in Cantonese): Mr KWOK Wai-keung, you may not ask again.

MR MICHAEL TIEN (in Cantonese): Secretary, when it comes to "safeguard jobs", it would not be enough to just hand out cash to employers and ask them not to lay off employees; assistance should also be rendered so that they can maintain their business operations. In this connection, rent payment is a very important factor. I have been negotiating with landlords over the issue since February. Do the Secretary know what answer have I got? They claimed themselves investors who were executing a tenancy agreement, and that it would be impossible for them to do anything that would benefit others at their own expense, unless they had gone insane. I refuted by saying that the current epidemic situation was serious, but they conversely suggested that as a Member of this Council, I should strive to get the Government involved. They even claimed that should subsidies be granted by the Government, they would be willing to compromise and seek a triple-win option.

Therefore, I have proposed since March that there would be room for negotiation if the Government could provide all landlords with tax credits. I can tell the Secretary that in actual case, while some real estate developers reduced rents between February and April, some other did not offer even a single cent of rent relief. From May onwards, not a single real estate developer has ever provided any rent reduction, and I believe there were even rent increases in June. We are now faced with a third wave of epidemic outbreak, but the total retail sales volume has already dropped by 36% and 32% in April and May respectively as compared with the same month of last year, and I am sure the figure recorded in June would definitely not be encouraging, while that in July would be even worse. Although the Chief Executive has appealed to landlords for their support, no one has taken heed of the request after the period from February to April …

DEPUTY PRESIDENT (in Cantonese): Mr Michael TIEN, please raise your supplementary question directly.

LEGISLATIVE COUNCIL ― 8 July 2020 9165

MR MICHAEL TIEN (in Cantonese): My question is thus as follows: The Secretary has never told me why the Government could not consider providing assistance through the introduction of tax credits. Regarding this question to which he has never given a reply, I wonder if he can offer us a clear response today.

DEPUTY PRESIDENT (in Cantonese): Mr TIEN, you have already raised your supplementary question. Secretary, please answer.

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): I have received the above mentioned suggestion put forward by Mr TIEN on some past occasions in this Council, and have already referred it to the taxation department for consideration. First of all, as I mentioned in the main reply, we agree that rents definitely account for a major part of the operating costs for enterprises, and this is the reason why the Government, leading as a role-model, has offered rental concessions at a very high rate of even up to 75% to all eligible tenants of government premises, while some other public bodies have also followed suit.

As for the actual situation in the local community, we have looked into the issue and found that various landlords may have to face the blatant fact: Should they offer not even a single cent of rent relief and thereby killing the goose that lays the golden eggs, tenants may encounter difficulties in operating their business. As some Members have suggested, the problem of an increasing number of vacant shops may arise, thus rendering it not possible for landlords to generate any rental income over a long period of time. However, to my knowledge, owners of many large shopping malls have under certain circumstances adopted the mode of profit splitting and determined the level of rental on the basis of the business turnover of shop tenants, meaning that the rental value of commercial premises is directly linked to the business performance of their tenants.

According to what I have learned from trade members over the past period of time, rent reduction has indeed been granted by some landlords, but certain individual landlords might not be able to meet the request of their tenants in this respect. There is a need to continue our work in this regard, and the Government will maintain the existing approach in handling the issue while 9166 LEGISLATIVE COUNCIL ― 8 July 2020 discussing the matter with major real estate developers. However, in the meantime, we must also respect the fact that as enterprises in a commercial society, landlords may address the issue in their own way, but I am sure they definitely understand what the current social situation is.

Yet, rents only account for a part of the operating costs, and I have therefore stated in the main reply just now that many other measures, apart from handing out cash, were rolled out by the Government with a view to alleviating the operating difficulties and costs for commercial tenants as far as possible. Measures will also be introduced to facilitate economic recovery in society as a whole, and work in this respect will proceed in parallel with efforts made to tackle the epidemic.

DEPUTY PRESIDENT (in Cantonese): Mr TIEN, which part of your supplementary question has not been answered?

MR MICHAEL TIEN (in Cantonese): Although much has been said, do you think he has answered my question? My question is very simple: About introducing a tax credit scheme, why does the Government say no to it?

DEPUTY PRESIDENT (in Cantonese): Mr TIEN, you have already pointed out clearly the part of your supplementary question that has not been answered. Secretary, can you answer Mr TIEN's question directly?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, I have already referred the matter to the Financial Secretary and the departments concerned for examination. I think it involves not only taxation issues but also the most appropriate measure we should adopt among many different initiatives to address the current situation, and the relevant government departments will give the matter due consideration.

DEPUTY PRESIDENT (in Cantonese): Does any other public officer wish to reply?

(Mr Michael TIEN stood up and spoke loudly)

LEGISLATIVE COUNCIL ― 8 July 2020 9167

DEPUTY PRESIDENT (in Cantonese): Mr TIEN, you may follow up the related matters on other occasions.

Mr Jeremy TAM, please ask your question.

(Mr Michael TIEN kept standing and speaking loudly)

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

Mr Jeremy TAM, please ask your question.

MR JEREMY TAM (in Cantonese): Ms LEE, I originally had no intention to raise a supplementary question in respect of this oral question, but with regard to the suggestion made by Mr Michael TIEN concerning the introduction of tax credits, I have heard about it previously for three or four times in different occasions, and the Government has only responded by saying that it would consider and examine it, but no concrete reply has been available so far. It has been quite some time since the proposal was put forward, but a reply from the Government is still pending. It is fine that you disagree with the proposal, but you should after all give reasons to explain why you do not agree to do so. The Government has never given any reply although I have listened to it for so many times.

The rationale behind the suggestion is actually very simple: The Government should provide landlords with concessions or tax relief, which will then serve as incentives for them to grant rent reduction. However, the Government has only kept urging landlords to reduce rents. It has already been a few months since the appeal was first made, but how many landlords are really willing to grant rent reduction? I wonder if the authorities have maintained the relevant figures of the percentage of landlords granting rent reduction over the past period of time, as well as the percentage of rent reduction offered. Have the authorities maintained such figures?

Regardless of the desirability of the suggestion on introducing tax credits, the Government has the responsibility to explain why it does not accept such a proposal put forward by a Member. This is after all where the problem lies. Nevertheless, why should I stand up to raise my queries on the issue today when I 9168 LEGISLATIVE COUNCIL ― 8 July 2020 was not to ask a supplementary question? It is because when replies were previously given in this connection on several occasions, the Government has always been evading the issue. Hence, Ms LEE, I hope the Government will give us a concrete answer, and if a verbal reply cannot be given by the Financial Secretary …

DEPUTY PRESIDENT (in Cantonese): Mr Jeremy TAM, you have already raised your supplementary question clearly, please stop speaking.

MR JEREMY TAM (in Cantonese): … I understand. If a verbal reply cannot be given by the Financial Secretary, can the Secretary go back and ask him to provide this Council with a written reply explaining why it is not feasible to put the proposal into practice?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): I would like to ask the representative from the Financial Services and the Treasury Bureau to reply to this question.

UNDER SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): I thank the Member for his supplementary question. First of all, with regard to the question raised just now by the Member on the issue of rental level, I would like to share some relevant data here. According to the latest rental indices provided by the Rating and Valuation Department, the rental index for private retail properties in May this year has recorded a year-on-year decline of 12%. It can thus be seen that there is in fact a downward trend in the market rent at present. Under such a circumstance, we do not consider it desirable to encourage the granting of rent reduction by landlords through the provision of tax concessions with public money.

Moreover, I would also like to point out that the provision of tax concessions can only be effected with legislative amendments introduced to the Inland Revenue Ordinance, and it may therefore not be possible to alleviate the rent pressure faced by enterprises within a short period of time. I would also LEGISLATIVE COUNCIL ― 8 July 2020 9169 like to take this opportunity to point out once again that as the Secretary has stated just now …

(Mr Michael TIEN spoke loudly in his seat)

DEPUTY PRESIDENT (in Cantonese): Mr TIEN, please stop speaking when the Under Secretary is answering the supplementary question.

UNDER SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Cantonese): As pointed out by the Secretary just now, we understand that rents account for a part of the operating costs for enterprises. As a matter of fact, the SAR Government is very much concerned about the situation faced by small and medium enterprises ("SMEs"), and has therefore striven to lower operating costs for enterprises. I am not going to repeat, but a series of measures have already been rolled out by the authorities to benefit various kinds of enterprises. These measures include waiving profits tax, rates for non-domestic properties and business registration fees; subsidizing electricity charges; and reducing water and sewage charges, etc. We will keep monitoring closely the pandemic development and the economic situation, and timely introduce different measures to provide continuous support for SMEs and enterprises.

DEPUTY PRESIDENT (in Cantonese): Mr Jeremy TAM, which part of your supplementary question has not been answered?

MR JEREMY TAM (in Cantonese): He has not answered my supplementary question. He said that there was a downward trend in the market rent …

DEPUTY PRESIDENT (in Cantonese): You only need to point out the part of your supplementary question that has not been answered.

9170 LEGISLATIVE COUNCIL ― 8 July 2020

MR JEREMY TAM (in Cantonese): … I was trying to do so but has not been given the chance to continue speaking …

DEPUTY PRESIDENT (in Cantonese): Please point out the part of your supplementary question that has not been answered.

MR JEREMY TAM (in Cantonese): He pointed out that the rental index in May had recorded a year-on-year decline of 12%, but this does not necessarily mean that landlords have reduced the rents. It can be attributed to the fact that there has been a downward adjustment of rents when properties were leased out again after their ex-tenants have closed down their business. My supplementary question is: How do the authorities know that the decline of 12% recorded in the rental index was not brought about by the leasing out of properties again after the closing down of business of their ex-tenants, and rent reduction has really been granted by landlords …

DEPUTY PRESIDENT (in Cantonese): Mr TAM, this is not the supplementary question raised by you earlier. Please sit down.

Secretary, do you have anything to add?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, let me reiterate that first of all, apart from the data provided just now by the Under Secretary for Financial Services and the Treasury, efforts have also been made to confirm the actual situation through our daily contact with commercial tenants in the local community as well as spot checks carried out among tenants operating chain stores. We have found that as revealed from the big data collected, there has indeed been a general downward trend in market rental level over the past period of time. Secondly, as I mentioned earlier, the rental value of commercial premises in many large shopping malls is currently linked to the business turnover of shop tenants. Therefore, as confirmed by another Member just now, with a drop in business turnover, a downward adjustment of rents will also be made accordingly.

LEGISLATIVE COUNCIL ― 8 July 2020 9171

Certainly, I believe this is after all a shared responsibility of our society. When Mr KWOK Wai-keung decided to ask this oral question, he was doing so with the objectives of uniting society and boosting the economy, and I hope the message can be conveyed to each one of us very clearly. We need to ride out the difficulties together, rather than placing the responsibility solely on one particular aspect of the social economy.

DEPUTY PRESIDENT (in Cantonese): Fifth question.

Revitalizing the tourism industry

5. MR YIU SI-WING (in Cantonese): As the Coronavirus Disease 2019 ("COVID-19") epidemic has subsided recently, the authorities of Macao and Zhuhai have, since May this year, implemented a system for mutual recognition of health codes to facilitate residents' commuting between the two places. Meanwhile, the governments of some Southeast Asian countries, such as Thailand, have relaxed or planned to gradually relax the compulsory quarantine measures imposed on arrivals. On revitalizing the tourism industry, will the Government inform this Council:

(1) whether it has studied the ways to relax the entry restrictions imposed on Mainland and overseas residents, so as to permit the entry of residents from regions adjacent to Hong Kong where the epidemic has been brought under control; if so, of the details; if not, the reasons for that;

(2) of the Government's latest strategies to revitalize inbound and outbound tourism, and the timetable for the relevant work; and

(3) given that the current fees payable by residents of Macao, Zhuhai and Shenzhen for undertaking the nucleic acid tests on COVID-19 are only $180, $75 and $160 (in local currencies), of the Government's measures to lower the test fees in Hong Kong which are over $1,000, so as to avoid the high fees impeding the re-activation of Hong Kong's inbound and outbound tourism?

9172 LEGISLATIVE COUNCIL ― 8 July 2020

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, the local social incidents last year and the coronavirus disease 2019 ("COVID-19") outbreak this year have taken an unprecedented heavy toll on the tourism sector of Hong Kong and the number of visitor arrivals of Hong Kong plummeted. In May 2020, the number of visitor arrivals plunged by 99.9% year-on-year, with an average daily arrivals of only about 260.

In the past six months, through the concerted effort of the Government and the community, the epidemic situation in Hong Kong is relatively stable. Nonetheless, as stated by the Secretary for Food and Health yesterday at the media session, with new local cases reported in Hong Kong in the past few days, we should not let down our guard in facing the epidemic. Hence, in exploring and implementing the relaxation of quarantine arrangement, the Government must strike a balance between the considerations for enhanced disease prevention and control and the considerations for economic recovery; and be guided by science and objective evidence in maintaining various anti-epidemic measures on the one hand while allowing room and be prepared for gradual resumption of normal operation and activities in society when the situation permits on the other hand.

Having consulted the Food and Health Bureau and the Constitutional and Mainland Affairs Bureau, my reply to the question raised by Mr YIU Si-wing is as follows:

(1) In view of the close connection among Guangdong, Hong Kong and Macao and the development of the epidemic situation, we are adopting the "suppress and lift" strategy in controlling the epidemic. The Hong Kong Special Administrative Region ("SAR") Government is in active discussion with the governments of Guangdong Province and Macao SAR under the framework of joint prevention and control, to explore arrangement of exempting cross-boundary travellers from compulsory quarantine within certain limits, subject to specific conditions on a pilot scheme basis so as to facilitate people who need to travel between Guangdong and Hong Kong or between Hong Kong and Macao. The preparatory work has been ongoing and has reached its final stage and subject to the epidemic situation, we will implement and announce the details in due course.

LEGISLATIVE COUNCIL ― 8 July 2020 9173

For overseas, we are now exploring with places which have stabilized their epidemic situation on how to resume cross-border travel in a gradual manner and establish the mutual arrangement as soon as possible. We have already had some initial discussion with various governments, among them, the government of Thailand is going to commence discussion with Hong Kong on the ways of relaxing border control. An inter-departmental team established and led by the Commerce and Economic Development Bureau will follow up with the Government of Thailand.

(2) In reviving Hong Kong's tourism sector, we will start with local tourism with the aim of energizing the local community in order to send a positive message worldwide and enhance visitors' confidence in visiting Hong Kong. The two theme parks in Hong Kong have reopened in June and provided a range of concessionary packages which received positive response from the community. As mentioned in my reply to Question 4, the Hong Kong Tourism Board ("HKTB") has launched the Holiday at Home campaign to encourage Hong Kong people to take initiatives and be tourists in our own city. With the support of the tourism, retail, catering and other industries, the campaign provides different offers to boost the economy. Moreover, once individual source markets have the conditions for resuming travelling to Hong Kong, HKTB will also team up with the Government and different partners to create a travel platform to welcome back visitors with enticing offers and exciting experiences.

Furthermore, the Government enhanced in June the Green Lifestyle Local Tour Incentive Scheme, which was announced late last year, increasing the incentive for travel agent in organizing local tours, and benefiting sectors such as food and beverage and transport.

(3) To dovetail the pilot scheme among Guangdong, Hong Kong and Macao, the HKSAR Government has been encouraging and helping local private laboratories to enhance their testing capabilities for COVID-19. At present, there are already 15 private laboratories in Hong Kong which can provide the relevant service and the cost has 9174 LEGISLATIVE COUNCIL ― 8 July 2020

been dropping gradually. We believe as demand surges and with market competition, the quality and the cost of testing would also improve.

MR YIU SI-WING (in Cantonese): Deputy President, my question this time was originally intended to ask how the quarantine measures imposed on inbound and outbound passengers can be relaxed with a view to speeding up the recovery of Hong Kong's tourism industry. However, as we see a rebound of the epidemic in the community yesterday, it seems that the recovery of Hong Kong's tourism industry is a far-fetched dream. The industry is very much concerned about the situation. Over the past five months, the income of travel agencies was zero, no matter whether they were conducting inbound or outbound tours. The entire industry is in dire difficulty. I believe no industry in Hong Kong is suffering the same bleak situation as the tourism industry. May I ask the Secretary: In view of the dire situation that the tourism industry is facing, will the Government launch more supportive measures specifically for the tourism sector with a view to helping the industry to tide over the difficult period before introducing a new round of anti-epidemic and disease prevention measures, so as to prevent massive layoffs and shakeouts in the tourism industry?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, I wish to thank Mr YIU for raising the supplementary question. At the same time, I agree with him that the tourism sector is facing the most difficult time among all industries, given that the number of visitors is virtually zero. This is also the reason why the Government has, after consulting the tourism sector, introduced several rounds of measures to support it during this period of time and on top of the impact caused by the social unrest in the latter part of last year. I have done a very simple calculation. Excluding the subsidy under the Employment Support Scheme, which is a voluntary participation scheme for travel agencies, the Government has already injected more than $1,360 million through the Anti-epidemic Fund and similar measures to disburse the subsidies to the sector. In addition, based on the consultation with the relevant sector, the Government hopes that every measure launched, despite their scale and size, can meet the need of the sector. For example, the Government aimed initially to help the travel agencies, while further LEGISLATIVE COUNCIL ― 8 July 2020 9175 measures also benefited their employees and related industries, such as the transportation sector.

Recently, seeing that no new visitors are coming to visit Hong Kong recently, the Government is considering whether local tourism schemes can be promoted by making them a selling point to address the current bleak business situation of the tourism industry before new visitors come. In this regard, we are raising the stakes in the relevant work. We will continue adopting the approach and discuss with Mr YIU and representatives of the trade. We will make joint efforts to minimize the impact on the tourism sector if there is any room for us to do so.

MR POON SIU-PING (in Cantonese): Deputy President, the Secretary also admits that the social incidents and COVID-19 outbreak have taken an unprecedented heavy blow on the tourism industry, resulting in a significant plummet of visitor arrivals by 99.9% in May this year. This has had serious impact on the livelihood of the people working in the tourism industry, especially tour guides and tour leaders, as they are virtually having zero jobs and zero income. For that reason, when I met with deputations of certain tourism unions yesterday, they indicated that their members were under tremendous livelihood pressure. Of course, we are concerned about the Government's supportive measures targeting the tourism industry in order to find ways to restore the livelihood of people working in the tourism industry. Meanwhile, we also note the recent media report on Thailand and some other Southeast Asian countries. Discussions would be held with Hong Kong about the development of travel bubble schemes. Just now the Secretary also mentions in the main reply that initial discussions have been conducted with various governments, including the government of Thailand, and the Government has set up an inter-departmental team led by the Commerce and Economic Development Bureau to conduct discussion with the Thai government. My supplementary question is: What is the progress of discussion? When will we have any result and what will the specific arrangement be?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): As I indicated in my main reply just now, we have discussed with a few countries consecutively in this regard. Please allow me to say here that 9176 LEGISLATIVE COUNCIL ― 8 July 2020 there is division of labour as far as legislation on mandatory quarantine is concerned. The anti-epidemic work on Mainland and Macao visitors is done under one ordinance, while the quarantine work on overseas visitors is done under another. The former is dealt with under Cap. 599C of the Laws of Hong Kong, which is led by the Constitutional and Mainland Affairs Bureau. The liaison work of the latter is led by the Commerce and Economic Development Bureau. In the past few months, some governments of other places have inquired about the possibility to put in place certain bilateral arrangements to exempt the quarantine requirements on visitors from both sides, that is, to exempt the 14 days testing period of inbound visitors. We have also taken the initiative to inquire about such arrangement with some other governments. The places selected by us are mostly stable as far as the spreading of the epidemic is concerned, because the prerequisite is―as I stated in the previous question session, that is, in replying Question 4―that we should only start the negotiation on the premise that the situation of the epidemic is not getting worse. For that reason, we will see whether these places warrant our sitting down together with the health authorities, namely the Food and Health Bureau and the Department of Health, to conduct the negotiation. Furthermore, of course the governments of these places will also examine Hong Kong's situation before deciding if they would sit down and talk with us.

At this stage, we have conducted a closer discussion with the Thai government since last week. The two governments held a discussion session via video conferencing and we have set up an inter-departmental team. The team will contact the Thai side next week again and see if we can proceed with the work.

In simple terms, the relevant exchange scheme is that if both sides wish to establish the so-called "travel bubble" or the "bilateral channel", we should first meet some prerequisites. Such prerequisites could be measures requiring any traveller who is travelling between the two places to complete a set of testing procedures before boarding the plane, for verifying that the virus test result of the relevant passenger is negative―that is to say, he or she is not infected with the virus. In addition, the relevant test is recognized by the two sides as a prerequisite before any contact could be reinstated. Moreover, we may need to start with a relatively smaller area and a smaller number of passengers at the very beginning so as to ensure that the two sides can cope with the increased flow of passengers.

LEGISLATIVE COUNCIL ― 8 July 2020 9177

Certainly, the governments of the two places may reserve their powers to require visitors to go through other forms of testing upon arrival. Nevertheless, the prerequisite is that a mutually recognized pre-boarding test should be put in place as this will give us peace of mind, which it is also the focal point at the first stage of our discussion. Certainly, different places will impose different requirements; therefore we will sit down and talk with these governments according to different situations.

MR MA FUNG-KWOK (in Cantonese): The Secretary has not responded to the question raised by Mr YIU Si-wing in part (3) of the main reply. As a matter of fact, the test is very important. Yet the Government only relies on 15 private laboratories. This does not help increase the number of tests being conducted nor reduce the price. However, since Hong Kong is a world city, it is impossible for us to lockdown our border checkpoints permanently. We need to find ways to open them up and in the meantime to guarantee the safety. In this connection, what measures or attempts have the Government taken to increase the number of tests on a larger scale? It is because both sides can have peace of mind only if a prior test can be conducted before or upon arrival. However, as the new round of outbreak took place before a full reopening of all border checkpoints; can we find other ways to increase the number of tests on a larger scale? Besides, as the prices of virus test reagents produced in the Mainland are relatively cheap and widely accepted by the international community, why can we not consider using these virus test reagents?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, I wish to make a brief reply. Should any more supplementary questions be raised, I will ask the Deputy President to ask the Under Secretary for Food and Health to reply. First, about the two aspects raised by Mr MA, we have taken some follow-up actions. Firstly, as for testing, the Government does not rely solely on commercial institutions. The Government's quarantine work is done with the resources of the Hospital Authority or universities. As for the testing work outside the Government, when future exchanges of tourists or other social needs arise, the Government will allow some laboratories to conduct the quarantine work under an accreditation scheme. As to the figures I have at hand, I mentioned in the main reply that 9178 LEGISLATIVE COUNCIL ― 8 July 2020 there were 15 laboratories, but actually the figures were rising constantly. Some time ago, there were just 11 or 12 or 13 to 14 laboratories, now we have 15 laboratories. The testing capacity is thus gradually increasing.

Secondly, with regards to the price, as I have explained in the main reply, the price is going down gradually in view of the rising demand and the emergence of suppliers outside Hong Kong. I also hope that the price will go down further due to such factors as market adjustment or competition. I know the Food and Health Bureau has been making continuous efforts in this regard.

MR CHAN CHUN-YING (in Cantonese): Deputy President, in view of the relapse, I agree with what the Secretary explains in the main reply, and that is, the Administration adopts the "suppress and lift" strategy in controlling the epidemic. However, with regards to relaxing the policy concerning the quarantine of arrivals, the Secretary has just mentioned that a pilot scheme was established to facilitate people who needed to travel between Guangdong and Hong Kong or between Hong Kong and Macao. He has also mentioned that negotiation with Thailand was being carried out. However, what is the Government's yardstick? Is it based on the distance from Hong Kong or stability of the epidemic situation in the places concerned? Actually we do not know that too well. Or both factors are considered? Some people from my constituency tell me that they need to travel from Hong Kong to Mainland cities such as Shanghai, Nanjing, Suzhou, Hangzhou, and so on, and the distance and stability of the epidemic situation of these places should have met the two conditions. May I ask the Secretary when the Government will relax its inbound quarantine policy on these neighbouring cities with a stable epidemic situation?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): As I have explained just now, the discussion with Mainland and Macao is led by the Constitutional and Mainland Affairs Bureau. My answer to Mr CHAN's supplementary question is that our consideration has nothing to do with the distance of these places. Our consideration mainly focuses on the two points that I have mentioned earlier, because anti-epidemic measures are as important as economic recovery. For that reason, our first consideration is whether or not the epidemic outbreak of those places is stable―if it is under control and if it is relatively stable. We will weigh the situation through figures LEGISLATIVE COUNCIL ― 8 July 2020 9179 we have obtained as well as information gathered by our health authorities from their counterparts or international organizations. Therefore, it is apparent that we will select places which can meet the above criteria for discussion.

To make it simple, the situations of Macao and Mainland are getting stable, and that is also the reason why we have started the work in his regard for one or two months. As to overseas places, we will be very prudent in selecting our partner. Even when we have identified a place for negotiations, we will not finalize everything through one discussion session only. Adjustments will possibly be made in the course of discussion. Therefore, first, we will carry out the work according to the severity of the epidemic situation. Second, we will certainly consider places which have closer economic and trade ties with us. But the latter should not override the former, which I have mentioned just now.

As far as the discussions are concerned, I believe any bilateral discussion can only be implemented after both parties have given their consent. As I said just now, when we are examining the situation of the other party, the other party may also weigh our situation. The virus does not need any passport to reach the farthest destination that it can reach, regardless of the distance between the two places. For that reason, it really depends on the epidemic situation. The "suppress and lift" strategy in controlling the epidemic that we adopt is based on the fact that we should address the outbreak situation by taking into account the economic recovery of society.

MR VINCENT CHENG (in Cantonese): Deputy President, Secretary, this Sunday I strolled through Temple Street and the "Women's Street". I am not sure if the Secretary has visited those places. At present, only 4 to 5 out of 10 stalls at Temple Street are doing business. They claimed that they only sold a pair of sun glasses every night. Therefore, some of them would work as taxi driver in the daytime to make a living and will only open the stall by night fall. I am concerned that some of Hong Kong's streets with very local characters will fade out gradually. Local guesthouses are meeting the same fate.

The Secretary mentioned in the main reply about "the Holiday at Home campaign" launched by HKTB. I support that idea. However, I am concerned that the campaign is only for middle to high class visitors. Some tourism-related businesses which are more grass-rooted are facing a very difficult time. For 9180 LEGISLATIVE COUNCIL ― 8 July 2020 example, some stall owners told me that the $5,000 subsidy handed out to them by the Government earlier did not help them much. Before introducing a longer-term scheme, will the Government introduce any short- to medium-term schemes to stimulate the tourism with a view to helping them to tide over the difficult time?

SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): Deputy President, first, the local tourism scheme is funded by HKTB. It targets on projects of green lifestyle local tour. However, the relevant schemes or the scheme introduced by HKTB do not focus on a specific class of people. The objective is to attract Hong Kong residents to make spending through local tourism projects, with a view to creating a better tourism environment or even assisting the trade to upgrade the quality of tour guides, and so on. Actually, regardless of the scale and size, these projects will play their respective roles. We need high or middle-class projects as well as those for the general public. Moreover, the Government's funding input is based on the number of people participating in the scheme, and there is no class restriction at all.

I believe that over the past two years, after we have introduced our tourism blueprint, everyone can see that we attach great importance to local tourism. It aims not only at promoting local community economy. From the global tourism mode and trend, we can see that after the revival of the tourism industry in the future, a more localized trend will develop, with visitors interested in visiting places where the local people enjoy going. For example, some places about local folklores, located in big avenues or small alleys in town, or featured with local characteristics, will become tourist attractions. Perhaps Mr CHENG also knows that relevant events we have introduced in Sham Shui Po and Wan Chai over the past two years are all heading towards this direction. They have taken into account certain local characteristics and features of the districts which may have been overlooked by the general public or common visitors. For that reason, we hope that we can provide a more inspirational experience to visitors through this approach when revival of the tourism industry comes.

DEPUTY PRESIDENT (in Cantonese): Last oral question.

LEGISLATIVE COUNCIL ― 8 July 2020 9181

The Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities

6. MR MICHAEL TIEN (in Cantonese): The Government commissioned a consultant at the end of 2018 to conduct a comprehensive review on the Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities ("the $2 transport fare concession scheme"), which is expected to be completed in the middle of this year. The Government announced in January this year that the eligible age threshold for the Scheme would be lowered from 65 to 60, and that it had requested the consultant to draw up implementation options in the review report. In this connection, will the Government inform this Council:

(1) whether the Government has received the review report; if so, of the specific recommendations and other details in the report; whether it will make public the report; if so, of the date; if it will not, the reasons for that;

(2) given that the Government has had eight years of experience in implementing the $2 transport fare concession scheme, why the initiative of merely lowering the age threshold cannot be implemented immediately but has to wait for the consultant to put forward implementation options; whether there is a definite implementation date for the initiative; and

(3) whether, prior to the implementation of the initiative, it will consider taking other measures to reduce the transport expenses of persons aged between 60 and 64, e.g. allowing them to use the Elder Octopus for enjoying the elderly fare concessions?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, since the Government Public Transport Fare Concession Scheme for the Elderly and Eligible Persons with Disabilities ("the Scheme") was introduced in 2012, the number of eligible elderly persons has increased from 980 000 that year to 1 320 000 in 2019, representing an increase of about 35%. Having considered the trend of an ageing population in Hong Kong, the Government expects the number of eligible elderly to rise further to more than 1.75 million by 9182 LEGISLATIVE COUNCIL ― 8 July 2020

2025. At the same time, the recurrent expenditure for reimbursing public transport operators under the Scheme reached $1.3 billion in 2019-2020, or 5.7 times the sum in 2012. The recurrent expenditure is expected to increase substantially to about $3 billion in 2025-2026. Taking into account the proposal to lower the eligible age of the Scheme to 60, the number of eligible persons in 2025 will increase by about 620 000 and on this basis, the estimated recurrent expenditure required for the Scheme is expected to be as high as $7 billion in 2025-2026.

The estimated government expenditure mentioned above has not covered the proposal from relevant industries of extending the Scheme to red minibuses and other modes of public transport. At the same time, as the number of beneficiaries continues to rise, public expenditure will increase substantially. Hence, the Government needs to consider seriously effective measures to prevent abuses of the Scheme in order to ensure that public funds are used properly. All these factors will affect each other and are included in the review of the Scheme by the consultant commissioned by the Government. The consultant has completed a public consultation exercise and is in the process of compiling the final report. The Government will carefully consider the analysis and recommendations of the consultant's report, especially the implementation arrangements and financial commitment of the optimization proposals.

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

(1) The Government engaged a consultancy firm in 2018 to conduct a comprehensive review of the effectiveness and sustainability of the Scheme and carry out in-depth studies on relevant areas, including whether other public transport modes should be covered, whether eligibility criteria of beneficiaries should be adjusted, how abuses can be prevented effectively, and the application of new technologies. The consultancy firm is also required to assess the feasibility and long-term financial impact of proposed recommendations. The consultant has completed the public consultation and collected views of the industry, and is now compiling the final report. The Government will carefully consider the analysis and recommendations set out in the consultant's report and assess the implementation arrangements and financial commitment relating to the various optimization measures. The final report will be made public.

LEGISLATIVE COUNCIL ― 8 July 2020 9183

(2) and (3)

Following the announcement by the Chief Executive in January 2020 of the Government's proposal to lower the age eligibility of the Scheme from the current 65 to 60, the Labour and Welfare Bureau and the Transport Department have immediately requested the consultant to accord priority to studying practical options to implement the proposal in the comprehensive review being conducted. In fact, during the consultation exercise for the review of the Scheme, the consultant has listened to and collected a number of optimization proposals from the industry and the public. As I have briefly mentioned earlier in this reply, the lowering of the age eligibility and the addition of more public transport modes will have a significant impact on the financial commitment of the Government in the face of the general trend of an ageing population in Hong Kong. Upon receipt of the consultant's report, it is necessary for the Government to consider carefully the feasibility, detailed arrangements, timing of implementation, financial assessment, and so on, of the optimization measures proposed in the report. If the eligible age is lowered to 60 before a decision is made on how other public transport modes could be included, public transport modes that have not been included in the Scheme may lose a large number of passengers and therefore face financial difficulty. According to available information, in 2018, a total of 3.6 million anonymous Elder Octopus cards and Personalised Octopus cards for elderly aged 65 or above were issued and had been used within past three years, and this figure increases by about 300 000 per year, whilst there were only around 1.25 million elderly aged 65 or above in 2018 and the annual increase is only around 50 000. Failure to prevent abuse effectively will cause substantial waste of public money.

Noting the public concern about the Scheme and expectation to lower the age eligibility to 60 as soon as possible, the Government has undertaken to make public the consultant's report and give detailed accounts of its decision on the various recommendations and implementation timetable after the review is completed.

9184 LEGISLATIVE COUNCIL ― 8 July 2020

MR MICHAEL TIEN (in Cantonese): The Secretary is an aesthetician cherishing lofty ideals with a super high IQ (intelligence quotient). Actually, I find him quite admirable. The authorities want to take this opportunity to revoke the "green card" that allows unlimited rides at $2 and replace all "green cards" with Personalised Octopus cards in the long run. I think this is advisable. After the Government proposes to lower the threshold from 65 to 60 years of age, all elderly people aged 65 or above will switch to Personalised Octopus cards in the future because the "green card" allowing unlimited rides at $2 will be revoked sooner or later. The Government has also stated that the review has been completed.

I have enquired with the two bus companies and discussed with the MTR Corporation Limited ("MTRCL"). They say, if an order is made today to adjust the age setting in all card readers downward from 65 to 60, the process will take around half year only. All these large companies have invariably said that this will take around half year only. I have also enquired with Octopus Cards Limited, which indicates they have started accepting applications for Personalised Octopus cards, and people aged 60 to 65 may make applications anytime. This is new information.

The original deadline set by the Government was that this measure could be implemented only at the end of next year. As the review has now been completed, it is actually possible to enable all elderly people aged between 60 and 64 to enjoy this preferential measure within six months (that is, during the period from the end of this year to early next year) if the Government decides to actualize this proposal. Will the Secretary expeditiously implement the measure based on this timetable?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, as I said in my main reply, we are aware of the particular concern about the implementation timetable in society, so we will do our best. But we have not received the final report yet. Once we have, we will study it carefully, with a view to bringing the relevant recommendation to expeditious implementation in the next financial year.

(Mr Michael TIEN spoke in his seat)

LEGISLATIVE COUNCIL ― 8 July 2020 9185

DEPUTY PRESIDENT (in Cantonese): Mr Michael TIEN, you only need to point out the part of your supplementary question that has not been answered.

MR MICHAEL TIEN (in Cantonese): I merely want to ask about one thing. It is not necessary to wait until the end of next year before this measure is implemented, and the progress can be accelerated now, so that the measure can perhaps be implemented early next year, right? The Secretary has not precluded this possibility, has he?

DEPUTY PRESIDENT (in Cantonese): Mr TIEN, you have clearly pointed out the part of your supplementary question that has not been answered. Please stop speaking. Secretary, do you have anything to add?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, as I have said repeatedly just now, we hope to implement this measure as soon as possible in the next financial year.

DR FERNANDO CHEUNG (in Cantonese): Deputy President, in reply to Mr Michael TIEN's supplementary question just now, the Secretary talked about the authorities' wish to implement―to strive to implement, to be exact―this measure in the next financial year. But the point is that this measure was announced by the Chief Executive in January this year. I find this very baffling.

The Secretary's main reply points out that the authorities already commissioned a consultant to review the Scheme in 2018. This measure represents a new policy direction involving drastic changes. The Government proposes to lower the threshold from 65 to 60 years of age but the proposal lacks statistical basis and has been announced well before completion of the review. Then, we will have to wait over a year before we stand a chance to see its implementation. What kind of policy formulation is this, may I ask? I thought that the Government formulated its policies with an evidence-based approach―meaning that it bases on statistics―and that it would not make a decision until factors such as the actual costs involved and social implications were assessed, and no announcement would be made until everything was ready. 9186 LEGISLATIVE COUNCIL ― 8 July 2020

In the past, the Government seldom made an announcement in advance before proceeding to … I do not know whether such a prolonged delay is due to deliberate procrastination or any other needs.

Deputy President, when the Government formulated this policy … when the Chief Executive announced this measure in January this year, what was her basis? Has this measure been announced in advance, totally without any empirical basis? Why will it not be implemented as soon as possible?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, my main reply is already very detailed, so I will not repeat its contents. But let me give a brief reply to the supplementary question put by the Honourable Member.

In lowering the age eligibility from 65 to 60, one of the Government's considerations was its long-term financial commitment. Over the past few years, the number of people aged between 60 and 65 has remained at around 600 000, and it will increase slightly in the future. But 40 years later, the number of people aged between 60 and 64 will drop to less than 250 000. So, in terms of long-term financial commitment, the 60 to 64 age cohort alone will not constitute a major burden in our financial commitment to this measure.

MR JEREMY TAM (in Cantonese): Ms LEE, I only want to ask about one thing. As far as I can see, the Policy Bureau in charge is the Labour and Welfare Bureau. But to a certain extent―not to a certain extent, actually―this is a transport issue which is quite important.

I want to talk about one issue. At a Panel meeting some time ago, I asked whether MTRCL had any statistics showing a fixed pattern of travel timeslots among users of the $2 fare concession aged 65 or above. Why did I ask this question? We certainly encourage elderly people to use the $2 fare concession and hope that they can travel more often. But we also hope that instead of travelling mainly during rush hours, they can choose to travel at non-rush hours. Nevertheless, if they need to deal with urgent matters and therefore have to travel during rush hours, then this is certainly unavoidable.

LEGISLATIVE COUNCIL ― 8 July 2020 9187

But after asking my question that day, I was baffled to hear MTRCL's reply that it did not have such statistics. I believe MTRCL probably meant to say that they possessed the relevant statistics but they had not conducted any analysis for this purpose. My suggestion is that before actualizing this measure to lower the threshold to 60 years of age, the Government must consider whether the measure will add to the crowdedness of public transport during rush hours. Or, will they offer other concessions at the same time, such as reducing the fare to $1 or $1.5 for people aged 65 or above but they must travel during non-rush hours to enjoy the privilege, or else their fares will remain at $2. Can the Government promise me that it will resort to such fare differentiation to induce elderly people avoiding travelling during rush hours as far as possible?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, regarding the views put forth by Mr TAM in his supplementary question, I wish to say that we also received similar views during our consultation with the public and the industry. This is a direction we have explored. But I can give Mr TAM a preliminary reply. The preliminary information we have obtained shows a discrepancy between the main timeslot when elderly people use the $2 fare concession under the Scheme and the usual rush hours when people travel to work or to school. This has produced the indirect effect of evening out the use of public transport throughout the day. Of course, about detailed analyses, Members may refer to the statistics concerned after we have received and published the report.

MR VINCENT CHENG (in Cantonese): Deputy President, the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") has been striving for the provision of a $2 fare concession to people aged 60 to 64 for quite some time. Actually, DAB has been advocating the issuance of a "silver-age card" for elderly people to enjoy more different services with it.

Secretary, the existing $2 fare concession is very important to people aged 60 to 64 because many elderly people have become unemployed amidst the current epidemic. This initiative can help relieve their pressure, so I hope the Government can implement it expeditiously.

9188 LEGISLATIVE COUNCIL ― 8 July 2020

My supplementary question is this. Apart from the $2 fare concession, will the Government consider the idea of introducing further measures in various respects? For example, speaking of such measures as physical check-ups that DAB has been advocating over all along, as well as the provision of shopping discounts for holders of "silver-age cards" as a means to encourage or drive consumption, can the Government give consideration on a one-off basis in its master plan?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, all these initiatives are outside the scope of the Scheme's review.

MR SHIU KA-CHUN (in Cantonese): As I often say, the Chinese character "官" (meaning "officials") contains two "口" (meaning "mouths"). But the Chinese expression "特區官員 " (meaning "SAR officials") contains exceptionally many "口", and there are altogether five "口" in it. They honestly have all the say in everything.

I still remember that when the age threshold of the Comprehensive Social Security Assistance ("CSSA") for the elderly was tightened and raised from 60 to 65, the Government argued that the purpose was to encourage employment among people aged 60 to 64. Now, when the Government proposes to lower the age threshold of the Scheme from 65 to 60, it argues that the purpose is to alleviate the burden of transport expenses on people aged 60 to 64, and this is aimed as a measure to encourage employment among people aged 60 to 64. If this cannot be regarded as a self-contradiction, then I honestly cannot tell the meaning of "contradiction".

The Scheme's objective is to encourage elderly people and eligible persons with disabilities to integrate into the community and in turn build up a caring and inclusive society. Its objective is similar to that of the Transport Supplement under the CSSA Scheme. But even now, applications for the Transport Supplement are still confined to persons with severe disabilities aged between 12 and 64, and those aged 65 or above who are not severely disabled are not eligible LEGISLATIVE COUNCIL ― 8 July 2020 9189 for application. Isn't this a policy contradiction? As the Government intends to lower the age threshold of the Scheme, may I ask the Secretary whether the review concerned includes any adjustments to the Transport Supplement?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, the focus of the study is a review of the Scheme's coverage. The scheme in the Member's question is not included.

MR LEUNG YIU-CHUNG (in Cantonese): Deputy President, parts (2) and (3) of the Secretary's main reply reads, "… it is necessary … to consider carefully the feasibility, detailed arrangements, timing of implementation, financial assessment, and so on, of the optimization measures proposed in the report. If the eligible age is lowered to 60 before a decision is made on how other public transport modes could be included"―the line that follows warrants our particular attention―"public transport modes that have not been included in the Scheme may lose a large number of passengers and therefore face financial difficulty."

May I ask whether the Secretary can list out the transport modes that have not been included in the Scheme? As far as I know, the number is very small, and it cannot possibly get any smaller. In that case, why should the Secretary cater for the operational difficulties faced by those transport modes rather than taking account of the needs of elderly people aged 60 to 64? If they can enjoy the relevant concession, they may participate in social activities more often and in turn enhance economic operation in our domestic community because they will definitely spend money once they go out. This will also bring more benefits to society. Why should the Secretary refuse to give consideration from this perspective and only give thoughts to the circumstances of a handful of transport modes that have not been included in the Scheme? Let's take a step backward and ask why the Secretary does not admit those transport modes to the Scheme that are now excluded from it as far as possible, so as to maximize the function of the Scheme?

9190 LEGISLATIVE COUNCIL ― 8 July 2020

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, two modes of transport that are quite popular among elderly people―namely, red minibuses and trams―have not been included in the Scheme. If the age eligibility is relaxed to 60 before in-depth discussion is held with these two trades on how they can participate in the scheme effectively and in turn ensure that their fares will not get out of control, they may lose a number of loyal passengers aged 60 to 64 and face financial difficulty.

DEPUTY PRESIDENT (in Cantonese): Mr LEUNG Yiu-chung, which part of your supplementary question has not been answered?

MR LEUNG YIU-CHUNG (in Cantonese): Deputy President, the Secretary has not given a reply on the reason for not admitting the existing handful of transport modes to the Scheme that are now excluded from it in order to perfect the Scheme while encouraging elderly people aged between 60 and 64 to participate in social activities more often to stimulate the local economy.

DEPUTY PRESIDENT (in Cantonese): Mr LEUNG, you have clearly pointed out the part of your supplementary question that has not been answered. Secretary, do you have anything to add?

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, let me add one point very briefly. Red minibus fares are not subject to government regulation. If red minibuses are to be included in the Scheme, any discrepancies between their fares and the $2 fare will have to be borne by the Government in full amount. So, before red minibuses are included in the Scheme, we must draw up a detailed proposal that is acceptable to all, so that their fares are subject to reasonable regulation and agreement. Only in that way can our public money be put to appropriate use.

LEGISLATIVE COUNCIL ― 8 July 2020 9191

DR JUNIUS HO (in Cantonese): Deputy President, I wish to ask the Secretary one thing. The Government commissioned a consultant to conduct a study in 2018, and the Secretary mentioned earlier that when the review was completed, the consultancy report would be made public as soon as practicable.

But I do not quite understand one point. The Government possesses substantial data and many professional talents. Why is it necessary for the Government to commission a consultant to compute its additional financial commitment to the Scheme resulting from an ageing population? Besides, the consultant has spent almost one and a half years or even two years to complete the review. Is the progress not a bit too slow? According to paragraph one of the main reply, if the age eligibility of the Scheme is lowered from 65 to 60, the number of eligible persons will increase by some 600 000, and the additional expenses involved will be as much as $7 billion. But my computation based on an overall government expenditure of $400 billion shows that $7 billion actually accounts for 1.7% of this sum only. This amount of expenditure should not be too difficult to afford in practical terms.

As the Government has already grasped the overall figures, why is it always fond of commissioning a consultant to take charge of the task? This seems to show a talent shortage in the Government. Besides, the expenditure on civil servants' remuneration is not small either. After the Government pays the money, the consultant needs a long time to complete the report. Can the Government enhance its efficiency so that we can spend our money more happily? I wish to seek the Secretary's enlightenment on this.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, part (1) of the main reply contains a detailed account on the scope of this comprehensive review, so I am not prepared to read out the relevant parts again. As a matter of fact, the most time-consuming task in similar studies is public engagement. It involves an examination of the various views and proposals put forth by different stakeholders and feasibility of such proposals. The time spent on public engagement is particularly long.

DEPUTY PRESIDENT (in Cantonese): Oral questions end here.

9192 LEGISLATIVE COUNCIL ― 8 July 2020

WRITTEN ANSWERS TO QUESTIONS

Smart mobility

7. IR DR LO WAI-KWOK (in Chinese): President, the Financial Secretary ("FS") announced in this financial year's Budget that the Innovation and Technology Bureau would publish the Smart City Blueprint for Hong Kong 2.0 within this year, and that FS had earmarked about $1 billion for the Smart Traffic Fund ("the Fund") to provide funding support for enterprises or organizations to conduct research and application on vehicle-related innovation and technology. Besides, the Transport Department ("TD") published in July 2019 a Smart Mobility Roadmap for Hong Kong, putting forward five key objectives of smart mobility initiatives, namely "Safe", "Informative", "Green", "Mobile" and "Accessible". In this connection, will the Government inform this Council:

(1) given that the Government is taking forward pilot projects on automated parking systems in Tsuen Wan, Sham Shui Po, Sheung Wan and Chai Wan, and the Urban Renewal Authority is studying the introduction of underground smart parking systems in Yau Ma Tei and Mong Kok, of the progress of the relevant work, and whether it will expeditiously study the introduction of smart car parks in other districts;

(2) whether it will amend the relevant legislation and land leases to the effect that operators currently renting government land under short-term tenancies to operate public car parks are required to disseminate, before a specified deadline, real-time vacancy information of the car parking spaces of their car parks through "HKeMobility", a mobile application of TD; if so, of the details; if not, the reasons for that;

(3) given that quite a number of new-model vehicles are installed with various driver assistance systems (e.g. Collision Prevention Assist, Lane Keep Assist, Blind Spot Assist alerts, Stability Programme and Automatic Emergency Braking System), whether the Government will allocate funds from the Fund to subsidize vehicle owners to retrofit such systems in various types of existing vehicles in order to enhance road safety; if so, of the details; if not, the reasons for that;

LEGISLATIVE COUNCIL ― 8 July 2020 9193

(4) given that various road transport operators (including the operators of franchised buses, red minibuses and residents' buses, as well as the MTR Corporation Limited) have not yet fully opened up the real-time arrival information of their vehicles/trains, whether the Government will draw up a timetable for central dissemination of the relevant information by such operators through HKeMobility to facilitate members of the public to travel around; if so, of the details; if not, the reasons for that;

(5) given that in June 2019, TD kick-started the pilot intelligent traffic signal system project under which sensors were installed at signalized junctions to automatically detect real-time volume of vehicles and pedestrians flows so as to optimize signal time allocation, of the existing locations where intelligent traffic signal systems have been installed, and the effectiveness of such systems in improving the traffic flow so far; whether TD will expedite the installation of intelligent traffic signal systems at various road junctions; and

(6) whether the implementation of the various initiatives to promote smart mobility and the construction of the relevant infrastructure facilities will be incorporated into the planning work for new development areas, so as to expedite the taking forward of smart mobility initiatives; if so, of the details; if not, the reasons for that?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, the Government is actively taking forward various Smart Mobility initiatives. By leveraging technology, these initiatives will enable more effective management of traffic for the convenience of the commuting public. After consulting the Development Bureau and the Transport Department ("TD"), my reply to the various parts of the Ir Dr LO Wai-kwok's question is as follows:

(1) TD is taking forward pilot projects on automated parking systems ("APSs") so as to acquire and consolidate experience in building, operating and managing different types of APSs and the associated financial arrangements. This will pave the way for wider application of APSs in public car parks in future.

9194 LEGISLATIVE COUNCIL ― 8 July 2020

When identifying sites for the pilot projects, TD takes into consideration such criteria as parking demand, geographical environment, planning restrictions, impact on local traffic, etc. So far, TD has identified sites for four pilot projects. Regarding the pilot project at a short-term tenancy ("STT") site in Tsuen Wan, TD has already secured support from the Tsuen Wan District Council, and it is expected that tenders would be invited in mid-2020. As regards the pilot project in Sham Shui Po, TD is assessing its technical feasibility after obtaining support from the Sham Shui Po District Council. For the pilot projects in Sheung Wan and Chai Wan, TD will consult relevant District Councils in due course. In view of various districts' aspirations for APSs, after the commissioning of APS in Tsuen Wan, TD will conclude its experience and the effectiveness of APS for consideration of introduction of APSs to other districts.

Separately, the Urban Renewal Authority is conducting its "Yau Mong District Study", in which the concepts of Smart City (including Smart Mobility) will be covered. The feasibility of applying such concepts in the redevelopment districts in future would, however, be subject to relevant policies and regulatory control.

(2) Since mid-2018, the Government has incorporated provisions into new STT agreements of fee-paying public car parks, mandating the operators to provide real-time parking vacancy information and data of their car parks to the Government for dissemination to the public through TD's "HKeMobility" mobile application and the Public Sector Information Portal ("data.gov.hk"). As at end June 2020, TD disseminated real-time parking vacancy information of some 30 STT fee-paying public car parks.

(3) The Government welcomes the introduction of new driver assistance systems by vehicle manufacturers for various classes of vehicles so as to enhance driving and road safety. After assessing the technical details submitted by vehicle manufacturers in support of their applications for type approval, TD has already approved the installation of some of the systems on relevant vehicles registered in LEGISLATIVE COUNCIL ― 8 July 2020 9195

Hong Kong. Currently, the Government has no plan to subsidize vehicle owners to retrofit driver assistance systems in various classes of existing vehicles.

(4) Since August 2019, the New World First Bus Services Limited, the Citybus Limited, the New Lantao Bus Company (1973) Limited and the Mass Transit Railway Corporation Limited ("MTRCL") (in respect of Airport Express, Tung Chung Line, West Rail Line and Tseung Kwan O Line, which have relatively lower service frequency) have disseminated real-time information and data of their vehicles/trains through "HKeMobility" and data.gov.hk.

TD is funding the development of the real-time arrival information system for green minibuses ("GMBs"), and will install positioning devices on around 3 300 GMBs across the territory, so that the public can access the real-time arrival information and data of GMB routes via "HKeMobility" and data.gov.hk. TD targets to launch the real-time arrival information system for GMBs by phases starting from end 2020 for full implementation by 2022. Since the majority of red minibuses ("RMBs") do not operate on fixed routes and stops, TD will consider whether to further extend the system to RMBs that operate on fixed routes and stops in the light of the effectiveness of its full implementation on GMBs.

The Government understands that the community expects dissemination of more real-time public transport data and information. TD will continue to actively encourage public transport operators, including MTRCL, the Kowloon Motor Bus Company (1933) Limited and the Long Win Bus Company Limited, to open up more data. MTRCL has responded positively and is working on the details and the implementation schedule. As regards the residents' services, based on TD's understanding, there are currently no operators providing real-time arrival information.

(5) TD launched the Pilot Real-time Adaptive Traffic Signal System in June 2019, and has been installing the system at a total of five selected signalized junctions on Hong Kong Island, Kowloon and the New Territories. Upon the completion of the design and laboratory tests for the system, TD commenced the installation works at the 9196 LEGISLATIVE COUNCIL ― 8 July 2020

signalized junction of King Cho Road and Lim Cho Street in Lai King in June 2020. Consultation on and installation works at the remaining selected sites will be carried out progressively. When the system formally comes into operation, TD will assess its effectiveness based on the tailback length and waiting time concerned at the junctions for consideration of extending the project to other suitable road junctions.

(6) As for the ongoing projects in New Development Areas ("NDAs") and New Town Extensions, the introduction of Smart Mobility elements has already been explored during the planning and design process, with suitable measures adopted in the planning of NDAs, including the use of public transport to serve as the backbone for the community as well as the provision of comprehensive and convenient cycling and pedestrian networks for promoting Smart Mobility.

Immigration figures

8. MS CLAUDIA MO (in Chinese): President, regarding immigration figures, will the Government inform this Council:

(1) of the monthly number of travellers, since November last year, who entered and exited Hong Kong via the various boundary control points, with a breakdown by traveller type (namely Hong Kong residents, Mainland travellers and other travellers);

(2) of the respective numbers of applications submitted under the following schemes that the Government received and approved in each month since November last year: the Immigration Arrangements for Non-local Graduates, the Admission Scheme for Mainland Talents and Professionals, the Quality Migrant Admission Scheme, the Capital Investment Entrant Scheme, and the Technology Talent Admission Scheme; the number of approved applications the applicants of which have entered the territory and, among such applicants, the number of those who came from Hubei Province;

LEGISLATIVE COUNCIL ― 8 July 2020 9197

(3) of the monthly number of Mainland residents, since November last year, who came to Hong Kong for settlement on Permits for Proceeding to Hong Kong and Macao (commonly known as "One-way Permits"), with a breakdown by place of household registration;

(4) of the monthly number of Mainland travellers, since January this year, who visited Hong Kong, with a breakdown by the type of travel documents they held; and

(5) of the total number of person-times, since the implementation of the regulations under which persons arriving at Hong Kong shall be subject to 14-day compulsory quarantine, of persons coming from the Mainland, Macao and Taiwan to visit Hong Kong each month who were exempted from complying with the relevant requirement, and a breakdown of the number by such places?

SECRETARY FOR SECURITY (in Chinese): President, in consultation with the Food and Health Bureau, our reply to the question raised by Ms Claudia MO is as follows:

(1) The respective monthly figures of inbound and outbound passenger trips made by Hong Kong residents, Mainland visitors and visitors from other countries or places at various immigration control points between November 2019 and May 2020 are set out at Annex.

(2) The monthly statistics on applications received and approved for admission into Hong Kong under the Immigration Arrangements for Non-local Graduates ("IANG"), the Admission Scheme for Mainland Talents and Professionals ("ASMTP"), the Quality Migrant Admission Scheme ("QMAS"), the Capital Investment Entrant Scheme ("CIES") and the Technology Talent Admission Scheme ("TechTAS") between November 2019 and May 2020 are tabulated as follows:

9198 LEGISLATIVE COUNCIL ― 8 July 2020

IANG

2019 2020

November December January February March April May Number of 448 291 259 107 278 139 264 applications Number of applications 428 288 242 68 274 69 287 approved

Note:

The applications approved in a particular month may not be the ones received in the same month.

ASMTP

2019 2020

November December January February March April May Number of 1 202 866 883 481 665 485 884 applications Number of applications 1 006 658 917 0 452 41 982 approved

Note:

The applications approved in a particular month may not be the ones received in the same month.

QMAS

2019 2020

November December January February March April May Number of 696 618 239 346 282 434 308 applications Number of applications 0 237 0 0 0 293 0 with quota(s) allotted

LEGISLATIVE COUNCIL ― 8 July 2020 9199

Notes:

(1) The applications with quota(s) allotted in a particular month may not be the ones received in the same month.

(2) After completing preliminary processing of the applications, the Immigration Department ("ImmD") will submit them to the Advisory Committee on Admission of Quality Migrants and Professionals ("the Advisory Committee") for further advice. The Advisory Committee will conduct regular selection exercises on a quarterly basis and recommend to the Director of Immigration about quota allocation.

CIES*

2019 2020

November December January February March April May Number of 0 0 0 0 0 0 0 applications Number of applications 1 4 0 0 4 4 4 approved

Note:

* CIES has been suspended with effect from 15 January 2015. However, ImmD will continue to process the applications received before the suspension in accordance with the rules of CIES.

TechTAS

2019 2020

November December January February March April May Number of 3 7 2 6 11 3 14 applications Number of applications 1 5 3 0 8 2 22 approved

Note:

The applications approved in a particular month may not be the ones received in the same month.

Other statistics mentioned in the question are not regularly compiled and maintained by ImmD.

9200 LEGISLATIVE COUNCIL ― 8 July 2020

(3) Between November 2019 and May 2020, a total of 8 014 persons entered Hong Kong on the strength of One-way Permits ("OWPs") (i.e. Permits for Proceeding to Hong Kong and Macao). According to the information that they provided voluntarily upon entry into Hong Kong, the monthly numbers of these OWP holders by reference to their provinces of origin are as follows:

2019 2020Note

November December January February March April May Guangdong 1 375 1 673 1 976 106 0 0 0 Province Fujian 291 247 376 22 0 0 0 Province Guangxi 95 74 96 1 0 0 0 Zhuang Autonomous Region Hunan 70 82 102 4 0 0 0 Province Sichuan 63 68 99 6 0 0 0 Province Hubei 83 83 60 0 0 0 0 Province Hainan 32 50 35 3 0 0 0 Province Chongqing 31 37 37 3 0 0 0 Others 218 219 282 15 0 0 0 Total 2 258 2 533 3 063 160 0 0 0

Note:

Generally, OWP holders are allowed to enter Hong Kong via the Lo Wu Control Point only. In response to the development of COVID-19 epidemic, the HKSAR Government has suspended the passenger clearance services at the Lo Wu Control Point since 4 February 2020.

(4) The monthly numbers of arrivals of Mainland visitors between January and May 2020 by type of endorsement/travel document are tabulated as follows:

LEGISLATIVE COUNCIL ― 8 July 2020 9201

Month(1)

January February March April May Endorsement/ Travel Document "One trip per Endorsement week" 500 354 4 389 0 1(2) 0 for endorsement individual Single or visit double-entry 857 363 4 599 8(3) 3(3) 5(3) endorsement(3) Endorsement for group visit 425 989 1 729 13(4) 0 0 Endorsement for business 68 577 3 726 11(5) 1(5) 4(5) visit Endorsement for visiting 230 283 16 153 7 599 2 520 4 870 relatives Other endorsement 77 690 2 760 284 73 166 Chinese Passport 341 669 62 024 18 928 236 425 Other travel documents 18 669 1 336 682 111 153 Total 2 520 594 96 716 27 525 2 945 5 623

Notes:

(1) In response to the development of COVID-19 epidemic, the HKSAR Government has suspended passenger clearance services at most of the control points in phases with effect from end January 2020: - West Kowloon Station of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, Hung Hom, Man Kam To, Sha Tau Kok, China Ferry Terminal and Tuen Mun Ferry Terminal (with effect from 30 January 2020); - Lo Wu, Lok Ma Chau Spur Line, Lok Ma Chau and Macau Ferry Terminal (with effect from 4 February 2020); and - Kai Tak Cruise Terminal (with effect from the afternoon of 5 February 2020).

(2) Including one Mainland private air crew member arriving from the Mainland and disembarking at the Hong Kong International Airport ("HKIA") who was exempted from the 14-day compulsory quarantine arrangement ("the arrangement").

(3) Including 10 Mainland private air crew members arriving from the Mainland and disembarking at HKIA who were exempted from the arrangement, two Mainland visitors arriving from Macao via the control point at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port ("HZMB HKP") before the implementation of the compulsory quarantine measure on travellers arriving from Macao starting from 25 March 2020, one 9202 LEGISLATIVE COUNCIL ― 8 July 2020

Mainland visitor arriving from the Mainland via the control point at HZMB HKP who was exempted from the arrangement and three Mainland visitors arriving from the Mainland via Shenzhen Bay Control Point who were exempted from the arrangement.

(4) Including 11 Mainland private air crew members arriving from the Mainland and disembarking at HKIA who were exempted from the arrangement and two Mainland visitors arriving from Macao via the control point at HZMB HKP before the implementation of the compulsory quarantine measure on travellers arriving from Macao starting from 25 March 2020.

(5) Including five Mainland private air crew members arriving from the Mainland and disembarking at HKIA who were exempted from the arrangement, one Mainland visitor arriving from abroad via HKIA before the implementation of the new immigration control measure on 25 March 2020, one Mainland visitor arriving from the Mainland via HKIA who was exempted from the arrangement, five Mainland visitors arriving from Macao via the control point at HZMB HKP before the implementation of the compulsory quarantine measure on travellers arriving from Macao starting from 25 March 2020 and four Mainland visitors arriving from the Mainland via Shenzhen Bay Control Point who were exempted from the arrangement.

(5) Pursuant to the Compulsory Quarantine of Certain Persons Arriving at Hong Kong Regulation (Cap. 599C) and Compulsory Quarantine of Persons Arriving at Hong Kong from Foreign Places Regulation (Cap. 599E), with the exception of persons exempted by the Chief Secretary for Administration according to the relevant regulation, all persons entering Hong Kong are currently subject to 14-day compulsory quarantine.

The Department of Health ("DH") will arrange 14-day medical surveillance for persons exempted under the above regulation during their stay in Hong Kong. Persons under medical surveillance are required to wear masks and check temperature twice daily, and should report to DH if they feel unwell. In addition, the exempted persons are also subject to temperature check and health declaration procedures performed by DH at the boundary control points during arrival clearance.

According to information provided by DH, the number of Notification of Medical Surveillance issued to exempted persons (including those exempted under Cap. 599C and 599E) at various boundary control points as at May 2020 are as follows:

LEGISLATIVE COUNCIL ― 8 July 2020 9203

Number of Notification of Medical Surveillance Month issued to exempted persons at various boundary control points in service February 2020 93 602 March 2020 39 211 April 2020 36 039 May 2020 40 220

Notes:

(1) Boundary control points in service include Hong Kong International Airport, Hong Kong-Zhuhai-Macao Bridge Hong Kong Port, Shenzhen Bay, Man Kam To, Lok Ma Chau and Sha Tau Kok.

(2) Exempted persons are issued with new Notification of Medical Surveillance every time when they enter Hong Kong (except in cases set out in note (3) below).

(3) "Crew members of aircraft who need to commute to and from foreign places, Mainland, Macao and Taiwan for performance of necessary duties" with valid Notification of Medical Surveillance issued in the past 14 days would not be issued new Notification of Medical Surveillance afresh every time they enter Hong Kong. In addition, from 25 February 2020 onwards, DH has streamlined the procedures for issuing Notification of Medical Surveillance to "cross-boundary goods vehicle drivers and necessary accompanying personnel". Those with valid Notification of Medical Surveillance issued in the past 14 days would not be issued with new Notification of Medical Surveillance afresh every time they enter Hong Kong.

DH does not maintain the breakdown figures of Notification of Medical Surveillance issued to the exempted persons by country/places.

Annex Number of inbound and outbound passenger trips at various immigration control points

2019 2020

November December January February Visitors Visitors Visitors Visitors Control from (1) from from Hong from Hong Point Hong Kong Mainland Hong Kong Mainland Mainland Mainland other other other Kong other Kong residents visitors residents visitors visitors visitors countries countries countries residents countries residents or or places or places or places places Airport 2 058 512 328 635 880 592 2 496 607 351 974 900 574 2 233 481 540 154 835 565 967 469 87 094 152 946 9204 LEGISLATIVE COUNCIL ― 8 July 2020

2019 2020

November December January February

Visitors Visitors Visitors Visitors Control from (1) from from Hong from Hong Point Hong Kong Mainland Hong Kong Mainland Mainland Mainland other other other Kong other Kong residents visitors residents visitors visitors visitors countries countries countries residents countries residents or or places or places or places places Lo Wu 3 694 407 868 619 48 792 5 110 858 1 222 416 63 969 4 105 326 1 187 816 52 294 97 187 11 742 1 528

Hung Hom 28 061 11 375 4 393 67 989 25 497 6 704 68 228 33 052 7 257 0 0 0

Lok Ma 2 411 651 841 656 25 325 2 873 800 1 083 166 28 990 2 268 714 1 090 636 25 878 76 203 10 805 1 134 Chau Spur Line West 641 698 353 052 49 621 657 455 429 283 44 522 492 662 444 086 39 149 0 0 0 Kowloon Station of the Guangzhou- Shenzhen- Hong Kong Express Rail Link Lok Ma 1 600 190 357 457 52 436 1 439 181 350 799 45 880 1 168 352 352 068 47 712 42 214 9 438 1 373 Chau Man Kam 213 120 74 053 2 379 181 210 88 334 1 490 153 114 88 673 1 415 0 0 0 To Sha Tau 157 680 33 771 5 535 164 604 39 289 5 009 143 276 42 128 5 642 0 0 0 Kok Shenzhen 1 885 641 707 128 77 748 2 045 786 875 951 74 150 1 620 476 988 760 77 015 276 390 79 343 15 818 Bay Hong 816 509 192 706 145 295 1 011 891 184 209 194 437 728 258 184 792 145 930 153 726 11 967 39 607 Kong- Zhuhai- Macao Bridge Hong Kong Port Harbour 396 733 2 502 449 1 299 3 037 862 1 266 3 498 287 321 1 655 Control Macau 508 785 26 681 110 394 593 068 31 619 128 763 459 724 32 376 106 176 18 867 608 3 153 Ferry Terminal China 128 997 36 210 38 683 154 623 45 872 40 572 112 679 53 945 30 109 0 0 0 Ferry Terminal Tuen Mun 36 379 392 1 110 37 623 419 1 348 27 225 387 1 112 0 0 0 Ferry Terminal LEGISLATIVE COUNCIL ― 8 July 2020 9205

2019 2020

November December January February

Visitors Visitors Visitors Visitors Control from (1) from from Hong from Hong Point Hong Kong Mainland Hong Kong Mainland Mainland Mainland other other other Kong other Kong residents visitors residents visitors visitors visitors countries countries countries residents countries residents or or places or places or places places River 0 7 14 0 2 3 0 5 7 0 0 1 Trade Terminal Kai Tak 53 900 17 577 11 942 72 605 38 271 36 023 62 176 22 333 39 622 6 883 227 4 623 Cruise Terminal(2) Total 14 235 926 3 850 052 1 456 761 16 907 749 4 768 400 1 575 471 13 644 553 5 062 477 1 418 381 1 639 226 211 545 221 838

2020 March April May Visitors Visitors Visitors from Control Point(1) Hong from Hong from Hong Mainland Mainland Mainland other Kong other Kong other Kong visitors visitors visitors countries residents countries residents countries residents or or places or places places Airport 308 998 24 954 59 923 25 857 702 2 510 29 753 690 3 621 Lo Wu 0 0 0 0 0 0 0 0 0 Hung Hom 0 0 0 0 0 0 0 0 0 Lok Ma Chau Spur 0 0 0 0 0 0 0 0 0 Line West Kowloon Station 0 0 0 0 0 0 0 0 0 of the Guangzhou-Shenzhen- Hong Kong Express Rail Link Lok Ma Chau 0 0 0 0 0 0 0 0 0 Man Kam To 0 0 0 0 0 0 0 0 0 Sha Tau Kok 0 0 0 0 0 0 0 0 0 Shenzhen Bay 86 085 29 770 11 793 24 491 4 646 162 41 865 6 256 449 Hong 272 297 4 142 38 692 2 086 205 134 3 550 226 289 Kong-Zhuhai-Macao Bridge Hong Kong Port 9206 LEGISLATIVE COUNCIL ― 8 July 2020

2020 March April May Visitors Visitors Visitors from Control Point(1) Hong from Hong from Hong Mainland Mainland Mainland other Kong other Kong other Kong visitors visitors visitors countries residents countries residents countries residents or or places or places places Harbour Control 717 823 1 396 443 231 471 379 477 904 Macau Ferry Terminal 0 0 0 0 0 0 0 0 0 China Ferry Terminal 0 0 0 0 0 0 0 0 0 Tuen Mun Ferry 0 0 0 0 0 0 0 0 0 Terminal River Trade Terminal 0 0 4 0 0 0 0 0 0 Kai Tak Cruise 0 0 0 0 0 0 0 0 0 Terminal(2) Total 668 097 59 689 111 808 52 877 5 784 3 277 75 547 7 649 5 263

Notes:

(1) In response to the development of COVID-19 epidemic, the HKSAR Government has suspended passenger clearance services at most of the control points in phases with effect from end January 2020. The details are as follows: - West Kowloon Station of the Guangzhou-Shenzhen-Hong Kong Express Rail Link, Hung Hom, Man Kam To, Sha Tau Kok, China Ferry Terminal and Tuen Mun Ferry Terminal (with effect from 30 January 2020); - Lo Wu, Lok Ma Chau Spur Line, Lok Ma Chau and Macau Ferry Terminal (with effect from 4 February 2020); and - Kai Tak Cruise Terminal (with effect from the afternoon of 5 February 2020).

(2) The numbers of inbound and outbound passenger trips also included trips made by passengers of cruise liners berthing at other anchorages, as well as trips made by passengers on board Hong Kong-based passenger liners running regular daily high seas trips.

Creation of time-limited jobs

9. MS ALICE MAK (in Chinese): President, Hong Kong's economy has been dealt double blows by a series of demonstrations and the Coronavirus Disease 2019 epidemic, resulting in the unemployment rate rising continuously in recent months. The seasonally adjusted unemployment rate from February to April this year was 5.2%, and the unemployment rates of individual trades exceeded 10%. In view of the above, the relief measures introduced by the Government in April this year included the creation of around 30 000 time-limited jobs in both the public and private sectors in the coming two years. LEGISLATIVE COUNCIL ― 8 July 2020 9207

Such jobs include more than 200 positions for fresh graduates and 3 300 positions to support the city in fighting the epidemic. In this connection, will the Government inform this Council:

(1) of the number of time-limited jobs that have been created so far, with a breakdown by trade, type of position, type of workplace and monthly salary range (each group spanning $5,000); among such jobs, the number of those created to support the fight against the epidemic;

(2) as there are comments that the around 200 time-limited jobs are just a drop in the bucket for tens of thousands of fresh graduates each year, whether the Government will consider afresh increasing the number of such jobs; if so, of the details; if not, the reasons for that;

(3) whether it has drawn up a timetable for the creation of those jobs which have yet to be created; if so, of the details; if not, the reasons for that; and

(4) of the to-date number of private organizations with which it has discussed the creation of time-limited jobs, with a breakdown by trade, type of position and outcome of discussion?

SECRETARY FOR THE CIVIL SERVICE (in Chinese): President, with a view to relieving the worsening unemployment situation due to the epidemic relating to COVID-19, the Government has earmarked $6 billion under the Anti-epidemic Fund to create around 30 000 time-limited jobs normally not exceeding 12 months in both the public and private sectors in the coming two years. Respective bureaux and departments are actively implementing related preparatory and recruitment work. Regarding the question raised by Ms Alice MAK, reply to the different parts of the question is as follows:

(1) As at end June, among the 30 000 time-limited jobs using the Anti-epidemic Fund to be created in the coming two years, the planning of around 20 000 time-limited jobs has reached an advanced stage. Among them, around 700 jobs have been filled while the recruitment of around 7 000 jobs has already commenced. These time-limited jobs will cover people of different skill sets and 9208 LEGISLATIVE COUNCIL ― 8 July 2020

academic qualifications, including fresh graduates, technical and supporting staff and seasoned professionals, etc. At present, there are around 4 000 time-limited jobs related to anti-epidemic work, for example, Contract Doctors, Nurses, Scientific Officers, Medical Laboratory Technologists and Dispensers of the Department of Health, time-limited positions required by the Office of the Government Chief Information Officer to provide technical support related to anti-epidemic work, and cleansing and supporting staff for enhancing the cleansing work in various districts for anti-epidemic purpose, etc.

The remuneration of the afore-mentioned time-limited positions varies depending on the requirements of the positions and the qualifications of appointees. As regards jobs created in the Government, departments will also arrange suitable job locations for employees according to operational needs.

(2) to (4)

The types of jobs and related numbers as stated in the paper submitted by the Government to the Finance Committee of the Legislative Council earlier for seeking funding approval were only some of the examples during the preparatory stage of the programme. Bureaux and departments are now conducting in full swing the preparatory and recruitment work for the creation of the time-limited jobs. The number of the various types of time-limited jobs, including positions provided for university degree holders and fresh graduates, will increase progressively with the planning work reaching an advanced stage gradually, so as to achieve the target of creating around 30 000 time-limited jobs in two years' time.

For example, various departments will create around 300 time-limited Executive Service Assistant ("ESA") (equivalent to Executive Officer II) positions, to provide various executive support services. These positions are suitable for university degree holders and fresh graduates to apply. To facilitate and expedite the procedures of recruiting ESAs, the Civil Service Bureau is coordinating the recruitment exercise for ESAs.

LEGISLATIVE COUNCIL ― 8 July 2020 9209

Besides, bureaux and departments concerned are engaging their stakeholders to formulate the plan of job creation in the non-governmental sector. Among others, around 3 000 jobs will be provided under the following three schemes, the recruitment exercises of which have already commenced:

(i) Development Bureau has launched a subsidy scheme for private companies to employ graduates and assistant professionals from the engineering, architecture, surveying, town planning and landscape architecture streams. The scheme is open for application from employers from 19 June 2020;

(ii) Environment Bureau has launched a subsidy scheme for private companies to employ graduates of environment-related disciplines. The scheme is open for application from employers from 26 June 2020; and

(iii) Financial Services and the Treasury Bureau has launched a job creation scheme to subsidize private companies and startups conducting Fintech related business in Hong Kong to employ additional staff. The scheme is open for application from 2 July 2020.

Minor Works Control System

10. MR LEUNG CHE-CHEUNG (in Chinese): President, the Minor Works Control System aims at facilitating building owners and occupiers to carry out small-scale building works lawfully and safely through simplified requirements. The Building Authority's prior approval of building plans and consent are not required before the commencement of minor works. In this connection, will the Government inform this Council, where a person who arranges for minor works to be carried out on any land (including property) is not the owner of the title to the land but merely an occupier, whether the person is required to, prior to commencement of the works, (i) obtain the consent of all owners of the titles to the land concerned, as well as (ii) consult nearby residents who will be affected by the works?

9210 LEGISLATIVE COUNCIL ― 8 July 2020

SECRETARY FOR DEVELOPMENT (in Chinese): President, "Minor Works Control System" ("MWCS") aims to provide building owners and occupiers a lawful, simple, safe and convenient way in carrying out small-scale building works. With MWCS, they can carry out minor works ("MW") through simplified requirements without the need for obtaining the prior approval and consent from the Buildings Department ("BD").

Under MWCS, a person who arranges for MW to be carried out can be an owner or occupier of the related private premises or an agent appointed by the aforesaid persons (for example, a consultancy company); if the private premises concerned is a common part of a building, the person can also be an owners' corporation ("OC"), management company or their appointed agent. The aforesaid persons are required to appoint a Prescribed Registered Contractor ("PRC")(1) to carry out MW according to the class, type and item of MW. If Class I MW is involved, a Prescribed Building Professional ("PBP")(2) should be appointed in order to ensure compliance with the Buildings Ordinance ("BO") and its subsidiary regulations.

MWCS does not require occupiers to obtain permission from the relevant owners. It also does not require the person who arranges for MW to be carried out to consult the affected residents before the commencement of works. Notwithstanding, any person who wishes to carry out MW in an existing building, specifically at the common parts of the building is obliged to carefully examine the relevant lease and the deeds of mutual covenant ("DMC") to ensure that the works do not contravene the relevant conditions. He/she should also consult the co-owners, OC or management company where necessary and seek legal advice if in doubt.

If the relevant MW involves the common part of a building, BD has made reminders regarding consultation arrangements. Firstly, BD has reminded in the specified form that persons arranging for MW to be carried out to pay attention to the provisions in DMC and consult the co-owners, OC and/or management

(1) PRC refers to Registered General Building Contractors, Registered Specialist Contractors qualified to carry out a category of works under BO or Registered Minor Works Contractors qualified to carry out the MW belonging to the class, type and item for which they are registered.

(2) PBP refers to Authorized Person or Registered Inspector, and (if applicable) Registered Structural Engineer or Registered Geotechnical Engineer under BO. LEGISLATIVE COUNCIL ― 8 July 2020 9211 company before the commencement of works. Secondly, BD has stated clearly in the acknowledgement letter issued upon receipt of a MW submission that per section 61 of the Building (Minor Works) Regulation, the acknowledgement of receipt does not confer any title to land or constitute a waiver of any term in any lease or license. The acknowledgment letter also reminds the relevant parties that if MW involves the common parts of a building, they should discuss with the co-owners, OC and/or management company and to adhere to DMC of the building. Otherwise, they may be in breach of DMC and are therefore liable to civil proceedings and may bear civil liabilities. In addition, BD has promulgated through various channels including practice notes, BD's website, mobile application, general guidelines and technical guidelines to remind PBP and PRC to obtain consent from building owners or OC before carrying out MW at the common parts of buildings.

The MTR Corporation Limited's overseas railway business

11. MRS REGINA IP (in Chinese): President, according to the Annual Report 2019 published by the MTR Corporation Limited ("MTRCL"), the financial performance of the South Western Railway of the United Kingdom last year continued to suffer for a number of reasons, and MTRCL therefore needed to set aside a provision of £43 million which amounted to its share of maximum potential loss under the relevant franchise agreement. In addition, while the MTR Express intercity railway service between Stockholm and Gothenburg, Sweden, operated by a wholly-owned subsidiary under MTRCL gained a steady patronage growth last year, it was still operating at a loss. Notwithstanding the unsatisfactory performance of the railway business it operated overseas, MTRCL continued to expand its overseas railway business, such as the Sydney Metro North West Line which commenced service in May last year. In this connection, will the Government inform this Council if it knows:

(1) the profits or losses of MTRCL's overseas railway business recorded in each of the past five years;

(2) the number of staff members sent overseas by MTRCL in the past five years to handle railway business, and their specific duties;

9212 LEGISLATIVE COUNCIL ― 8 July 2020

(3) the percentage of its management resources currently allocated by MTRCL to its overseas railway business; the specific measures in place to ensure that the senior management staff of MTRCL will stay focused on local railway business, so that MTRCL will not miss the opportunity for development and thereby affecting the shareholders' return; and

(4) how MTRCL assesses the return on its overseas railway business, and whether MTRCL has formulated any exit plan in respect of overseas railway projects that have recorded losses over a long period of time and are faced with bleak prospects; if MTRCL has, of the details; if not, the reasons for that?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, as the railway operator of Hong Kong, the MTR Corporation Limited ("MTRCL") is tasked with great responsibilities. Since its commencement of business in 1979, MTRCL has adhered to the management principle of maintaining its primary focus on local businesses. The development of railway businesses in Hong Kong has always been its core business. As for the businesses outside Hong Kong, the Corporation adopts "on-the-ground management" strategy such as establishing subsidiaries in, or setting up joint ventures with other companies of, those places, thereby continuing to develop its Mainland and overseas businesses in a steady manner. These subsidiaries or joint venture companies will then search for and employ suitable talents on-the-ground, who will be responsible for the construction or operation of railways in those places by working with a small number of suitable staff members deployed from Hong Kong.

Mindful of the public concern over the operating strategy of MTRCL, the Government has been actively fulfilling its responsibility as the majority shareholder of the Corporation. We have requested MTRCL to continue to review its governance structure and operation, and maintain the quality of local railway services and new construction projects.

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

LEGISLATIVE COUNCIL ― 8 July 2020 9213

(1) Profits gained from Mainland and overseas businesses in each of the past five years are shown below:

Profits* Year (HK$ million) 2019 525 2018 560 2017 631 2016 191 2015 152

Note:

* After deducting business development costs

(2) In developing Mainland and overseas businesses, a majority of MTRCL's staff are recruited on the ground, and not deployed from Hong Kong. The number of staff members sent overseas by MTRCL in the past five years to handle railway businesses is as follows:

Year Number of staff members sent overseas 2019 223 2018 246 2017 183 2016 138 2015 80

They were engaged in different professional disciplines such as engineering, operations, maintenance, safety and quality, and project consultancy. These staff were posted to a subsidiary or joint venture company on the Mainland or overseas primarily to provide support for the construction, daily operation and maintenance of local railways, including management of trains and E&M systems (including signalling system and other systems), as well as supervision of the operation, maintenance and refurbishment work after commissioning of the railways.

9214 LEGISLATIVE COUNCIL ― 8 July 2020

MTRCL employs over 17 000 staff in Hong Kong. In the past five years, an average of fewer than 200 of them a year (only about 1% of the overall staff number) were dedicated for railway businesses outside Hong Kong.

(3) To strengthen management and to ensure that the Corporation keeps its primary focus on local businesses, MTRCL has set risk management indicators for its Mainland and overseas investments. The total investment in Mainland projects (including all equity investment, shareholders' loans as well as financial and performance guarantees determined after risk assessment) shall not exceed 15% of the equity attributable to equity shareholders. As regards overseas investment, the total investment (including all equity investment, shareholders' loans as well as financial and performance guarantees) shall not exceed 5% of the equity attributable to equity shareholders. At present, MTRCL's investment on the Mainland and overseas has not reached the cap in relation to the above funds. MTRCL management team oversees the development and administration of all of the Corporation's day-to-day businesses (including local, Mainland and overseas businesses), and there is no breakdown of the management resources allocated to individual businesses.

(4) MTRCL, as a listed company operating according to commercial principles, shall carry out prudent study on the risk and return before confirming the participation in any potential investment project in the Mainland or overseas. This includes analysis of financial condition, local laws, market competition, and manpower required from Hong Kong and the local community. External consultants may also be engaged for advice where necessary.

As for projects already launched, MTRCL shall continue to review the risk and return, including the impact of the external economy and investment environment on the operation of individual projects, so as to examine if the projects are beneficial to the Corporation. MTRCL management team shall report to the Board of Directors regularly in this regard, and disclose relevant information to the public in accordance with the Listing Rules at suitable times and where appropriate.

LEGISLATIVE COUNCIL ― 8 July 2020 9215

Police officers' law enforcement actions involving the opposite sex

12. DR HELENA WONG (in Chinese): President, it has been reported that in November last year and May this year, a number of male police officers entered the female public toilets at Chatham Road South in Tsim Sha Tsui and at Fa Yuen Street in Mong Kok respectively, and arrested several women therein. In addition, quite a number of demonstrators and arrestees, who had participated in the movement of opposition to the proposed legislative amendments, alleged that they had been sexually harassed or sexually assaulted by police officers. In this connection, will the Government inform this Council:

(1) whether the guidelines issued by the Police to police officers have stipulated the circumstances under which they may enter toilets for the use of the opposite sex to enforce the law; if so, of the details, including whether it has been provided that they must be in the company of police officers of the opposite sex;

(2) as it is stipulated in section 7 of the Public Conveniences (Conduct and Behaviour) Regulation (Cap. 132 sub. leg. BL) that no male person shall enter any part of any public convenience which is allocated for the use of female persons, and no female person shall enter any part of any public convenience which is allocated for the use of male persons, whether such requirement is applicable to those police officers who are enforcing the law; if so, whether the Police will take disciplinary actions against the aforesaid police officers; if not applicable, of the reasons for that;

(3) of the number of incidents last year in which police officers entered public toilets for the use of the opposite sex to enforce the law, and the following details of each incident: (i) the date and time, (ii) the law enforcement action involved, (iii) the number of police officers involved, and the rank(s) and police district(s) to which they belonged, and (iv) whether the Police conducted any internal investigation subsequently (if so, of the latest progress);

(4) of the number of complaints received by the Police last year about police officers' committing acts of sexual harassment and sexual assault when enforcing the law, as well as the following details of each case: (i) the nature of the complaint, (ii) the number of police officers involved, and the rank(s) and police district(s) to which they belonged, and (iii) the number of victims involved; and

9216 LEGISLATIVE COUNCIL ― 8 July 2020

(5) whether it knows the number of complaints received by the Equal Opportunities Commission last year about police officers' committing acts of sexual harassment and sexual assault when enforcing the law, as well as the following details of each case: (i) the nature of the complaint, (ii) the number of police officers involved, and (iii) the number of victims involved?

SECRETARY FOR SECURITY (in Chinese): President, section 10 of the Police Force Ordinance (Cap. 232) stipulates that the duties of the police force include taking lawful measures for preserving public safety, preventing and detecting crimes and offences, as well as preventing injuries to life and property. The Hong Kong law applies to all places in the territory and nowhere is above the law. Therefore, if anyone contravenes the law anywhere in Hong Kong, it is the statutory duty of the Police to take actions.

My reply to various parts of Dr Helena WONG's question is as follows:

(1) to (3)

If a person is suspected to have committed a criminal offence or breached social peace in public or private premises (including areas in public toilets), the Police have the power to enter into such premises to take appropriate actions (and is not confined to arrest operations) to prevent a breach of social peace. Police officers will consider the actual situation at scene and purpose of the action, and take legal measures to save lives, protect the safety of citizens and police officers, prevent and detect crime, arrest suspects or perform other duties. As in the past, the Police will ensure actions taken to be appropriate, legal and justifiable, and will strike a balance between privacy protection and law enforcement. For example, in general, it would be for female police officers to take enforcement actions in female public toilets. Female officers may, in striking a balance between privacy protection and law enforcement, seek assistance from other police officers.

Anyone who is dissatisfied with the enforcement actions of the Police can lodge a complaint with the Complaints Against Police Office ("CAPO"). CAPO will investigate and handle the complaint in a fair and just manner. The Police do not maintain the information requested in the question.

LEGISLATIVE COUNCIL ― 8 July 2020 9217

(4) Sexual violence is a serious allegation. The complainant should formally provide the Police with the information, so that the Police may conduct a full investigation. This would not only protect the interests of the victim but also ensure that the complainee will not be falsely accused, which is fair to both the complainant and the complainee. Both parties shall bear the legal responsibilities and be protected.

The Government attaches importance to combating cases involving sexual offences. The Police have been handling all sexual violence cases with a serious and sensitive professional attitude and have formulated a series of relevant procedures and guidelines to ensure that the rights and safety of the victims are fully safeguarded, as well as to alleviate the stress and psychological trauma faced by the victims when assisting in the investigation.

When receiving reports of sexual harassment, the Police will examine whether there is any criminal offence involved. If yes, the case will be handled as criminal investigation. If no criminal offence is revealed, the Police will recommend the complainant to file a complaint with the Equal Opportunities Commission ("EOC").

The Police do not have the figures as requested in the question.

(5) EOC works towards the elimination of sexual harassment in accordance with the Sex Discrimination Ordinance (Cap. 480). Handling of criminal cases concerning sexual offences falls outside the scope of EOC's statutory functions. After consulting the Constitutional and Mainland Affairs Bureau, according to the information provided by EOC, EOC received two sexual harassment complaints involving police officers last year. The two complaints were lodged by the same female complainant and after investigation, EOC has confirmed both cases to be "lacking in substance" and the investigation had been discontinued. The two cases were handled by EOC and the case details fall outwith the purview of the Security Bureau.

9218 LEGISLATIVE COUNCIL ― 8 July 2020

Management of typhoon shelters

13. MR STEVEN HO (in Chinese): President, some vessel owners have relayed that the numbers of vessels of various types, particularly Class IV pleasure vessels, have been growing continuously in recent years. The authorities have stressed that the overall supply of sheltered spaces in Hong Kong waters is sufficient for meeting the estimated demand up till 2030, and the authorities have implemented several improvement measures. However, given the practices of the trade and a habit of berthing vessels at the homeport, most vessel owners choose to berth their vessels at the typhoon shelters within or near the urban areas, thus causing an acute shortage of berthing spaces in those typhoon shelters and conflicts among the persons-in-charge of different types of vessels from time to time over the use of such berthing spaces. On the other hand, the occupancy rates of some relatively remote typhoon shelters (e.g. Hei Ling Chau Typhoon Shelter and Yim Tin Tsai Typhoon Shelter) have all along been on the low side. Regarding the management of typhoon shelters, will the Government inform this Council:

(1) of the numbers of vessels berthing at the various typhoon shelters and sheltered anchorages during normal and inclement weather conditions in each month of the past three years, with a breakdown by type of vessel lengths permitted in the typhoon shelters;

(2) of the current utilization of the Kwun Tong Typhoon Shelter by various types of vessels; the effectiveness of the authorities' measure of setting up a non-pleasure vessel mooring area in this typhoon shelter to achieve better mooring management; whether it will consult the trade again to introduce improvement measures;

(3) of the details of the law enforcement actions taken in the past three years by the Marine Department ("MD") to combat the acts of profiteering from the berthing spaces in typhoon shelters, including (i) the number of inspections conducted, (ii) the number of complaints handled, (iii) the number of prosecutions instituted, and (iv) the number of convictions; whether MD has taken other measures to maintain the safe and orderly berthing of vessels within typhoon shelters;

LEGISLATIVE COUNCIL ― 8 July 2020 9219

(4) whether the authorities will review and amend the Merchant Shipping (Local Vessels) (Typhoon Shelters) Regulation (Cap. 548E) so that the Director of Marine will be vested with more powers to immediately dispose of those vessels that have breached the mooring requirements in typhoon shelters; if so, of the details; if not, the reasons for that; and

(5) given that some fishermen have relayed to me that recently some people have used float lifts in some typhoon shelters for stowing pleasure vessels which are not in use temporarily, and that such equipment has obstructed watercourses and posed safety hazards to other vessels, of the details of the regulatory measures currently taken by MD against such equipment?

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, in response to Mr Steven HO's question, in consultation with the Marine Department ("MD"), our reply is as follows:

(1) Typhoon shelters are established to provide sheltered spaces for local vessels during typhoons or inclement weather so as to ensure the safety of these vessels and their crew. MD does not maintain information on occupancy of typhoon shelters and sheltered anchorages in normal days, but keeps track of the highest occupancy of each typhoon shelter during typhoons to ensure that vessels' demand for sheltered spaces during inclement weather can be met. The highest occupancy of each typhoon shelter by class of vessels during typhoons in the past three years (i.e. between 2017 and 2019) is at Annex.

(2) MD has, on a trial basis, designated through administrative measures a specific area within the Kwun Tong Typhoon Shelter ("KTTS") since August 2017 for the exclusive mooring of non-pleasure vessels with a view to achieving better mooring management. Since the implementation of such measure, a total of about 15 hectares of mooring space at the south of KTTS has become available for the exclusive mooring of non-pleasure vessels. MD has been monitoring the situation closely, and our observation is that more water area is now available for use by non-pleasure vessels. We 9220 LEGISLATIVE COUNCIL ― 8 July 2020

will keep in view the effectiveness of the trial and have no plan to implement other measures for the time being. MD will maintain its regular patrols at KTTS and its communication with the sector to collect their views.

(3) MD patrols the Hong Kong waters including typhoon shelters from time to time. In the past three years (i.e. between 2017 and 2019), MD successfully prosecuted 191 vessels that were in breach of the relevant marine legislation. In addition, the Hong Kong Police Force ("HKPF") and MD have conducted 12 joint operations to curb any illegal activities within KTTS since November 2018. As at 23 June 2020, no report of illegal activities within typhoon shelters was received by MD.

MD will continue to work with HKPF to take appropriate action at typhoon shelters to ensure the safe and orderly berthing of vessels therein. If irregularities are found, MD will take follow up actions as appropriate. MD will also continue to maintain good liaison with the sector, and will distribute publicity leaflets during patrols to remind vessel operators to comply with marine legislation at all times.

(4) Under section 8 of the Merchant Shipping (Local Vessels) (Typhoon Shelters) Regulation (Cap. 548E), if a local vessel fails to take up a particular position as directed by the Director of Marine or to be berthed, moored, anchored or secured in accordance with the direction, the Director may, subject to relevant requirements, take possession of the vessel and remove it from the typhoon shelter or move it from the position in which it is lying. The Director shall give the owner of the vessel concerned, his agent or the coxswain of the vessel not less than 7 days' notice in writing of the exercise of his powers and the notice shall state the reason therefor. The Director may also exercise the above powers as the circumstances (such as inclement weather) require, notwithstanding that the period of the notice has not expired, or if the owner of the vessel concerned, his agent or the coxswain of the vessel cannot be found. Since the existing legislation has empowered the Director to handle such cases, we have no plan for any legislative amendment at the moment.

LEGISLATIVE COUNCIL ― 8 July 2020 9221

(5) MD patrols the Hong Kong waters including typhoon shelters from time to time, to ensure that fairways and passage areas in typhoon shelters are unobstructed. Regarding the use of float lifts, MD is examining and exploring the details involved, and will consult stakeholders on this matter in due course.

Annex

Table 1―Numbers and Types of Vessels Observed in Typhoon Shelters ("TS") during Typhoons in 2017 (The figures in the table refer to the highest occupancy of each typhoon shelter)

Class Class I Class II Class III IV

River

Gov't *

Trade Total % Launch Vessel Tug Ferry Others Others Launch P4 Sampan P4 Cargo Vessel Fishing Vessel Pleasure Vessel Stationary Vessel Stationary Dumb Steel Lighter Steel Dumb Dangerous Goods Carrier Goods Dangerous Aberdeen TS#(1) 13 47 55 1 35 2 0 88 103 753 0 690 0 12 1 799 82% Causeway Bay TS(1) 0 32 0 0 0 0 0 3 9 45 10 102 0 0 201 45% Cheung Chau TS(2) 4 4 5 0 6 0 4 6 12 107 55 34 0 4 241 45% Hei Ling Chau TS(3) 1 3 0 15 0 2 0 0 3 0 0 0 93 3 120 20% Kwun Tong TS(2) 3 4 0 5 0 1 0 0 10 4 0 25 56 5 113 65% New Yau Ma Tei TS(2) 22 36 38 106 31 42 0 1 51 27 0 41 51 3 449 95% Rambler Channel TS(2) 0 6 0 25 4 3 0 0 5 10 0 15 57 2 127 100% Sam Ka Tsuen TS(1) 0 3 0 0 0 0 0 2 1 6 50 12 0 0 74 40% Shaukeiwan TS(1) 3 16 0 0 3 0 0 28 12 110 130 40 0 0 342 80% Shuen Wan TS(1) 0 8 0 0 5 0 0 0 4 30 55 58 0 9 169 56% To Kwa Wan TS(2) 7 10 0 66 0 25 0 0 12 0 0 8 0 0 128 85% Tuen Mun TS(2) 0 42 0 140 10 36 6 4 50 233 20 35 19 6 601 100% Yim Tin Tsai TS(1) 0 0 0 0 0 0 0 0 0 0 0 7 0 2 9 8%

Notes:

* The % refers to the highest percentage of occupancy of each typhoon shelter

# Aberdeen South Typhoon Shelter and Aberdeen West Typhoon Shelter

(1) Permitted length of vessels is 30.4 m

(2) Permitted length of vessels is 50 m

(3) Permitted length of vessels is 75 m

9222 LEGISLATIVE COUNCIL ― 8 July 2020

Table 2―Numbers and Types of Vessels Observed in Typhoon Shelters ("TS") during Typhoons in 2018 (The figures in the table refer to the highest occupancy of each typhoon shelter)

Class Class I Class II Class III IV

River

Gov't *

Trade Total % Launch Vessel Tug Ferry Others Others Launch P4 Sampan P4 Cargo Vessel Fishing Vessel Pleasure Vessel Stationary Vessel Stationary Dumb Steel Lighter Steel Dumb Dangerous Goods Carrier Goods Dangerous Aberdeen TS#(1) 10 63 76 4 71 6 0 87 172 607 0 621 0 20 1 737 80% Causeway Bay TS(1) 2 20 0 2 0 0 0 3 23 102 0 173 0 0 325 50% Cheung Chau TS(2) 2 4 4 0 3 3 0 6 22 180 40 57 0 5 326 78% Hei Ling Chau TS(3) 0 2 0 20 0 6 0 0 0 0 0 2 115 1 146 50% Kwun Tong TS(2) 0 4 0 15 0 0 0 0 17 37 0 101 12 1 187 75% New Yau Ma Tei TS(2) 18 26 0 189 25 18 0 1 35 58 0 38 42 5 455 96% Rambler Channel TS(2) 0 5 0 20 9 3 0 0 0 15 0 10 60 1 123 100% Sam Ka Tsuen TS(1) 0 3 2 0 0 0 0 2 13 75 0 32 0 0 127 90% Shaukeiwan TS(1) 6 10 0 0 10 2 0 24 25 270 0 222 0 0 569 95% Shuen Wan TS(1) 0 9 0 0 2 0 0 0 4 14 64 92 0 5 190 55% To Kwa Wan TS(2) 2 12 0 103 0 3 0 0 24 0 0 4 0 2 150 100% Tuen Mun TS(2) 0 46 0 140 12 35 2 4 67 220 0 36 20 7 589 100% Yim Tin Tsai TS(1) 0 0 0 0 0 0 0 0 0 0 0 6 0 2 8 10%

Notes:

* The % refers to the highest percentage of occupancy of each typhoon shelter

# Aberdeen South Typhoon Shelter and Aberdeen West Typhoon Shelter

(1) Permitted length of vessels is 30.4 m

(2) Permitted length of vessels is 50 m

(3) Permitted length of vessels is 75 m

Table 3―Numbers and Types of Vessels Observed in Typhoon Shelters ("TS") during Typhoons in 2019 (The figures in the table refer to the highest occupancy of each typhoon shelter)

Class Class I Class II Class III IV

River

Gov't *

Trade Total % Launch Vessel Tug Ferry Others Others Launch P4 Sampan P4 Cargo Vessel Fishing Vessel Pleasure Vessel Stationary Vessel Stationary Dumb Steel Lighter Steel Dumb Dangerous Goods Carrier Goods Dangerous Aberdeen TS#(1) 5 34 34 2 27 0 0 88 38 448 0 648 0 7 1 331 60% LEGISLATIVE COUNCIL ― 8 July 2020 9223

Class Class I Class II Class III IV

River

Gov't *

Trade Total % Launch Vessel Tug Ferry Others Others Launch P4 Sampan P4 Cargo Vessel Fishing Vessel Pleasure Vessel Stationary Vessel Stationary Dumb Steel Lighter Steel Dumb Dangerous Goods Carrier Goods Dangerous Causeway Bay TS(1) 7 20 0 0 0 0 0 3 5 80 0 201 0 0 316 49% Cheung Chau TS(2) 5 15 10 0 9 3 2 6 30 110 60 47 0 3 300 45% Hei Ling Chau TS(3) 4 3 0 14 0 1 0 0 4 0 0 8 0 1 35 10% Kwun Tong TS(2) 0 3 0 28 0 2 0 0 23 3 0 212 0 2 273 78% New Yau Ma Tei TS(2) 16 32 0 132 28 38 0 1 20 32 0 106 31 4 440 90% Rambler Channel TS(2) 0 2 0 14 1 3 0 0 3 12 0 15 33 2 85 67% Sam Ka Tsuen TS(1) 0 5 0 0 0 0 0 2 8 37 0 17 0 0 69 42% Shaukeiwan TS(1) 6 12 0 0 1 3 0 24 34 282 0 200 0 0 562 94% Shuen Wan TS(1) 0 10 0 0 0 0 0 0 4 51 19 52 0 4 140 43% To Kwa Wan TS(2) 2 9 0 69 0 13 0 0 4 0 0 17 0 3 117 98% Tuen Mun TS(2) 0 33 0 141 3 33 5 4 24 227 50 37 32 12 601 100% Yim Tin Tsai TS(1) 0 0 0 0 0 0 0 0 0 0 0 8 0 2 10 10%

Notes:

* The % refers to the highest percentage of occupancy of each typhoon shelter

# Aberdeen South Typhoon Shelter and Aberdeen West Typhoon Shelter

(1) Permitted length of vessels is 30.4 m

(2) Permitted length of vessels is 50 m

(3) Permitted length of vessels is 75 m

Government outsourced service contracts

14. MR LUK CHUNG-HUNG (in Chinese): President, regarding those government outsourced service contracts ("contracts") that rely heavily on the employment of non-skilled employees, will the Government inform this Council:

(1) of the numbers and total value of the contracts awarded by various government departments and the numbers of non-skilled employees involved, in each of the past three years, with a breakdown by the category of services (i.e. cleansing, security, and others) procured under the contracts;

9224 LEGISLATIVE COUNCIL ― 8 July 2020

(2) of the following information from 1 May 2019 (i.e. the effective date of the prevailing statutory minimum wage rate) to 30 June 2020:

(A) the respective numbers of non-skilled employees employed by the outsourced service contractors ("contractors") under the four major procuring departments (i.e. (i) Leisure and Cultural Services Department, (ii) Housing Department, (iii) Food and Environmental Hygiene Department and (iv) Government Property Agency) (set out in Table 1);

Table 1 Procuring departments (i) (ii) (iii) (iv) Number of non-skilled

employees

(B) a breakdown of the numbers in (A) by the range to which the hourly wages payable to non-skilled employees belonged (i.e. hourly wage (a) at $37.5 [equal to the statutory minimum wage], (b) between $37.6 and $39.5, (c) between $39.6 and $41.5, (d) between $41.6 and $43.5, (e) between $43.6 and $45.5, (f) between $45.6 and $47.5, (g) between $47.6 and $49.5, (h) between $49.6 and $51.5, (i) between $51.6 and $53.5, (j) at $53.6 or more, and (k) at a rate higher than the statutory minimum wage rate [which is equal to the total of (b) to (j)]), as pledged by the contractors in the tenders, and their respective percentages (set out in Table 2); and

Table 2 Range (i) (ii) (iii) (iv) of Number of Number of Number of Number of hourly % % % % employees employees employees employees wages (a) … (k) Total 100 100 100 100

(C) in respect of each of the ranges of hourly wages mentioned in (B), a breakdown of the following figures by the category of services (i.e. cleansing, security, and others) provided by the LEGISLATIVE COUNCIL ― 8 July 2020 9225

non-skilled employees: the number of such employees employed by the contractors under each of such departments, the subtotals of these numbers and the relevant percentages, and (X) the year-on-year rates of change of such subtotals (set out in Table 3);

Table 3

Range Cleansing service Security service Other services

of %

hourly Total

wages (i) (ii) (iii) (iv) % (X) (i) (ii) (iii) (iv) % (X) (i) (ii) (iii) (iv) % (X) Subtotal Subtotal Subtotal (a) … (k) Total 100 100 100 100

(3) of the details of the re-tendering exercises for the outsourced services concerned which were/will be conducted by the four aforesaid major procuring departments last year and this year, including the names of the contractors before tenders were/are invited, the commencement dates of the new contracts and the service districts involved, as well as the names of the successful contractors;

(4) given that the Government announced on 10 October 2018 that it would introduce a number of new measures which aim at enhancing the protection of the employment terms and conditions as well as labour benefits of non-skilled workers, but these new measures and the transitional arrangements concerned are not applicable to contracts awarded before that date of announcement, of the number of such contracts which have not yet expired at present and the percentage of such contracts in the total number of contracts; of the expected completion dates of the re-tendering exercises for the outsourced services concerned;

(5) whether it will consider providing subsidies for the non-skilled employees employed under the contracts mentioned in (4), so as to compensate them for the differences between their remuneration packages and those stipulated under existing contracts; and

9226 LEGISLATIVE COUNCIL ― 8 July 2020

(6) given that at present, a non-skilled employee with no less than one year's continuous service under a Standard Employment Contract of a government outsourced service contract is entitled to a contractual gratuity, whether the Government will consider relaxing the relevant restrictions (e.g. affording those employees who have less than one year's service when their employment is terminated contractual gratuities calculated on a pro rata basis), so as to eradicate evasion of payment of contractual gratuities by employers through early termination of contracts?

SECRETARY FOR LABOUR AND WELFARE (in Chinese): President, having consulted the relevant Policy Bureaux and departments, my consolidated response to the Member's questions is set out below:

(1) In the past three years, the number and total value of the service contracts awarded by the four major procuring departments (i.e. (i) Leisure and Cultural Services Department, (ii) Housing Department, (iii) Food and Environmental Hygiene Department and (iv) Government Property Agency) and the number of non-skilled employees involved are set out at Annex 1.

(2) As at 31 May 2020 (the date when the most updated data are available in the four major procuring departments):

(A) Table 1 sets out the number of non-skilled employees employed by the outsourced service contractors in the four major procuring departments:

(i) Leisure (iii) Food and Procuring and Cultural (ii) Housing Environmental (iv) Government departments Services Department Hygiene Property Agency Department Department Number of 10 791 5 807 11 863 1 910Note non-skilled employees

Note:

Information on the numbers of non-skilled employees above is provided by relevant service contractors.

Reply to parts (B) and (C) are set out at Annex 2.

LEGISLATIVE COUNCIL ― 8 July 2020 9227

(3) The details of the outsourced services contracts tendered and awarded from 1 April 2019 (the commencement date of the improvement measures) to 31 May 2020 by the four major procuring departments and the names of last contractors is set out at Annex 3.

(4) The number of valid service contracts that were awarded before the commencement of the improvement measures (i.e., awarded before 10 October 2018) and the percentage of such contracts in the total number of contracts in the four major procuring departments are provided as follows:

Number of valid Percentage of contracts these contracts in Procuring departments awarded before the total number 10.10.2018 of contracts Leisure and Cultural Services 50 48% Department Housing Department 45Note 21% Food and Environmental 50 35% Hygiene Department Government Property Agency 1 14% Total 146

Note:

Nine Home Ownership Scheme ("HOS")/Green Form Subsidised Home Ownership Pilot Scheme ("GSH") property management contracts are excluded. For the Property Management Agency Contracts of the brand new HOS/GSH courts, upon expiry of the 2-year initial contract, the procurement of the subsequent service contracts shall be decided by a resolution of the owners passed as a general meeting/meeting of owners in accordance with the Building Management Ordinance (Cap. 344).

The expected completion dates of the re-tendering exercises for these outsourced services for the four major procuring departments are set out as follows:

9228 LEGISLATIVE COUNCIL ― 8 July 2020

(i) Leisure and Cultural Services Department

It is estimated that 26 and the remaining 24 out of the 50 contracts will be expired in 2020 and 2021 respectively. The tender exercises of the above contracts are expected to be completed before the end of the contracts concerned.

(ii) Housing Department

Among 45 contracts, 28 will be expired in 2020, 13 will be expired in 2021, 1 will be expired in 2022 whereas the remaining 3 will be expired in 2023. The tender exercises of the above contracts are expected to be completed before the end of the contracts concerned.

(iii) Food and Environmental Hygiene Department

It is estimated that 25, 18, 4 and 3 out of the 50 contracts will be renewed in 2020-2021, 2021-2022, 2022-2023 and 2023-2024 financial years respectively.

(iv) Government Property Agency ("GPA")

The above contract was awarded by Highways Department in the Financial Year 2017-2018 and has been taken over by GPA since 2020 for the provision of management, operation and maintenance services to the boundary crossing facilities at the Hong Kong-Zhuhai-Macao Bridge Hong Kong Port. The term of the service contract is until the end of 2020. GPA will carry out the retendering work in due course.

(5) If acceded to, this could have significant implications on all procuring Bureaux/departments in terms of their contract management duties as well as finances. The then inter-bureaux/departmental Working Group, when proposing the sets of improvement measures, have also considered this issue. In view of the principle of prudent use of public funds, the financial implications for top-up payments and the administrative cost in providing top-up payments in the form of reimbursement to LEGISLATIVE COUNCIL ― 8 July 2020 9229

government service contractors ("GSCs"), the improvement measures and the top-up payment as a one-off measure under the transitional arrangement are not applicable to service contracts awarded before 10 October 2018.

(6) Having considered the possible change of GSCs upon expiry of service contracts, the Government introduced contractual gratuity to forestall labour disputes between GSCs and non-skilled employees over payment of severance payment. The eligibility requirement for contractual gratuity (minimum 1 year of employment) is in fact more lenient than severance payment (minimum 24 months of employment).

The arrangement of contractual gratuity helps forestall labour disputes between GSCs and non-skilled employees over the termination compensation. Government service contracts engage a large number of non-skilled employees and GSCs have to provide sufficient manpower to fulfil the requirements of service contracts. The labour supply of these posts is still tight and we do not see the trend of GSCs dismissing their employees at will to evade payment of contractual gratuity. The Government will keep in view of the situation and will inform relevant procuring departments and conduct review as appropriate should GSCs be suspected of dismissing employees at will to evade payment of contractual gratuity.

Annex 1

Service Contracts Awarded by the Four Major Procuring Departments in the Past Three Years

(i) Leisure and Cultural Services Department

Number of service contracts Number of Non-Skilled Contract Value ($ million) awarded Employees Involved

Year total total total Others Others Others Security Security Security Sub - Sub - Sub - Cleansing Cleansing Cleansing 2017 13 15 8 36 1 077 192 245 1 514 2 725 690 428 3 843 9230 LEGISLATIVE COUNCIL ― 8 July 2020

Number of service contracts Number of Non-Skilled Contract Value ($ million) awarded Employees Involved

Year total total total Others Others Others Security Security Security Sub - Sub - Sub - Cleansing Cleansing Cleansing 2018 14 4 17 35 506 53 508 1 067 1 062 97 785 1 944 2019 14 20 6 40 686 365 72 1 123 2 390 2 587 200 5 177 Total 41 39 31 111 2 269 610 825 3 704 6 177 3 374 1 413 10 964

(ii) Housing Department

Number of service contracts Number of Non-Skilled Contract Value ($ million) awarded Employees Involved

Year total total total Others Others Others Security Security Security Sub - Sub - Sub - Cleansing Cleansing Cleansing

2017 21 9 12 42 262 164 724 1 150 851 464 908 2 223 2018 23 9 24 56 231 179 1 522 1 932 695 426 1 550 2 671 2019 29 30 26 85 400 723 3 213 4 336 951 1 454 2 792 5 197 Total 73 48 62 183 893 1 066 5 459 7 418 2 497 2 344 5 250 10 091

(iii) Food and Environmental Hygiene Department

Number of service Number of Non-skilled Contract Value ($ million) contracts awarded Employees Involved

Financial

Year total total total Others Others Others Security Security Security Sub - Sub - Sub - Cleansing Cleansing Cleansing

2017-2018 57 12 1 70 2 494 113 5 2 611 7 136 350 6 7 492 2018-2019 45 9 2 56 1 621 85 4 1 709 3 391 176 10 3 577 2019-2020 56 13 2 71 4 153 153 13 4 319 7 811 296 23 8 130 Total 158 34 5 197 8 267 351 21 8 639 18 338 822 39 19 199

Note:

The number of non-skilled employees is the number of functional posts specified in the contracts.

LEGISLATIVE COUNCIL ― 8 July 2020 9231

(iv) Government Property Agency

Number of service Number of Non-skilled Contract Value ($ million) contracts awarded Employees Involved

Financial

Year total total total Others Others Others Security Security Security Sub - Sub - Sub - Cleansing Cleansing Cleansing 2017-2018 0 0 0 0 0 0 0 0 0 0 0 0 2018-2019 0 0 0 0 0 0 0 0 0 0 0 0 2019-2020 0 0 6 6 0 0 Around Around 0 0 1 910Note 1 910Note 1 600 1 600 Total 0 0 6 6 0 0 Around Around 0 0 1 910Note 1 910Note 1 600 1 600

Note:

Information on the numbers of non-skilled employees involved in the service contracts is provided by relevant service contractors.

Annex 2

Number of non-skilled employees and its respective percentage broken down by committed hourly wages under the service contracts awarded as at 31 May 2020

(2) (B) Total number of non-skilled employees and its respective percentage broken down by committed hourly wages for the four major procuring departments

Food and Leisure and Housing Environmental Government Range of Cultural Services Department Hygiene Property Agency committed Department Department hourly wages Number of Number of Number of Number of % % % % employees employees employees employees (a) $37.5 3 008 28 20 1 1 935 16 0 0 (b) $37.6-$39.5 1 959 18 232 4 2 248 19 0 0 (c) $39.6-$41.5 1 116 10 339 6 2 629 22 300 16 (d) $41.6-$43.5 2 125 20 1 230 21 1 195 10 1 120 59 9232 LEGISLATIVE COUNCIL ― 8 July 2020

Food and Leisure and Housing Environmental Government Range of Cultural Services Department Hygiene Property Agency committed Department Department hourly wages Number of Number of Number of Number of % % % % employees employees employees employees (e) $43.6-$45.5 1 528 14 617 10 211 2 260 13 (f) $45.6-$47.5 356 3 641 11 774 7 0 0 (g) $47.6-$49.5 483 4 739 13 1 823 15 230 12 (h) $49.6-$51.5 94 1 412 7 829 7 0 0 (i) $51.6-$53.5 4 1 380 6 171 1 0 0 (j) $53.6 or 118 1 1 197 21 48 1 0 0 above (k) At a rate 7 783 72 5 787 99 9 928 84 1 910 100 higher than the statutory minimum wage rate Total 10 791 100 5 807 100 11 863 100 1 910Note 100

Note:

Information on the numbers of non-skilled employees above is provided by relevant service contractors.

(2) (C) Number of non-skilled employees and its respective percentage broken down by the categories of services and committed hourly wages for the four major procuring departments

Cleansing service Security service Other services

Range of Total % hourly wages (i) (ii) (iii) (iv) % (i) (ii) (iii) (iv) % (i) (ii) (iii) (iv) % Subtotal Subtotal Subtotal

(a) $37.5 1 453 20 1 700 0 3 173 17 722 0 231 0 953 19 833 0 4 0 837 12 4 963 16 (b) $37.6-$39.5 1 611 93 2 039 0 3 743 20 253 19 199 0 471 9 95 120 10 0 225 3 4 439 15 (c) $39.6-$41.5 495 50 2 563 0 3 108 16 298 78 66 0 442 9 323 211 0 300 834 12 4 384 14 (d) $41.6-$43.5 866 112 1 195 0 2 173 11 1 259 420 0 0 1 679 34 0 698 0 1 120 1 818 26 5 670 19 (e) $43.6-$45.5 1 412 189 205 0 1 806 10 116 326 0 0 442 9 0 102 6 260 368 5 2 616 9 (f) $45.6-$47.5 259 408 774 0 1 441 8 97 68 0 0 165 3 0 165 0 0 165 2 1 771 6 (g) $47.6-$49.5 27 187 1 823 0 2 037 11 387 305 0 0 692 14 69 247 0 230 546 8 3 275 11 (h) $49.6-$51.5 23 0 829 0 852 5 71 0 0 0 71 2 0 412 0 0 412 7 1 335 4 (i) $51.6-$53.5 0 0 137 0 137 1 0 0 34 0 34 1 4 380 0 0 384 6 555 2 (j) $53.6 or 0 0 35 0 35 1 0 0 0 0 0 0 118 1 197 13 0 1 328 19 1 363 4 above LEGISLATIVE COUNCIL ― 8 July 2020 9233

Cleansing service Security service Other services

Range of Total % hourly wages (i) (ii) (iii) (iv) % (i) (ii) (iii) (iv) % (i) (ii) (iii) (iv) % Subtotal Subtotal Subtotal

(k) At a rate 4 693 1 039 9 600 0 15 332 2 481 1 216 299 0 3 996 609 3 532 29 1 910 6 080 25 408 higher than (76%) (98%) (85%) (0%) (83%) (77%) (100%) (56%) (0%) (81%) (42%) (100%) (88%) (100%) (88%) (84%) the statutory minimum wage rate (%) Total 6 146 1 059 11 300 0 18 505 100 3 203 1 216 530 0 4 949 100 1 442 3 532 33 1 910 6 917 100 30 371 100

Notes:

(i) Leisure and Cultural Services Department

(ii) Housing Department

(iii) Food and Environmental Hygiene Department

(iv) Government Property Agency

Annex 3

Details of the outsourced services contracts tendered and awarded from 1 April 2019 to 31 May 2020 by the four major procuring departments, and the names of last contractors

(i) Leisure and Cultural Services Department ("LCSD")

Tender Category of Service Regions Contract Contract Contract Name of New Name of Last Issue Date Services Involved Start Date End Date Duration Contractor Contractor 12/4/2019 Cleansing Hong Kong Heritage 1/8/2019 31/7/2022 36 months Baguio Johnson Museum Cleaning Cleaning Services Co. Services Co. Ltd. Ltd. 12/4/2019 Security Kowloon Public 1/8/2019 31/7/2022 36 months Sky Wise Sky Wise Library, Ma On Shan Services Services Public Library, Yuen Management Management Chau Kok Public Limited Limited Library and Sha Tin Public Library, Ping Shan Tin Shui Wai Public Library, Ping Shan Tin Shui Wai Leisure and Cultural Building Common Area, Yuen Long Public Library and Yuen Long Leisure and 9234 LEGISLATIVE COUNCIL ― 8 July 2020

Tender Category of Service Regions Contract Contract Contract Name of New Name of Last Issue Date Services Involved Start Date End Date Duration Contractor Contractor Cultural Building Common Area, Tuen Mun Public Library, and Tsuen Wan Public Library 12/4/2019 Security Tseung Kwan O Public 1/8/2019 31/7/2022 36 months Professional Sky Wise Library, Tung Chung Security Services Public Library, and Services Ltd. Management City Hall Public Limited Library 3/5/2019 Venue Oil Street Art Space, 1/8/2019 31/7/2022 36 months Shui On Shui On Management and Hong Kong Visual Properties Properties Arts Centre Management Management Limited Limited 3/5/2019 Cleansing Sai Wan Ho Municipal 1/9/2019 31/8/2022 36 months Baguio Johnson Services Building Cleaning Cleaning Services Co. Services Co. Ltd. Ltd. 3/5/2019 Cleansing Quarry Bay Municipal 1/9/2019 31/8/2022 36 months Baguio New Life Services Building Cleaning Psychiatric Services Co. Rehabilitation Ltd. Association 17/5/2019 Cleansing Sha Tin Town Hall, 1/10/2019 30/9/2022 36 months Baguio Baguio Yuen Long Theatre, Cleaning Cleaning Kwai Tsing Theatre Services Co. Services Co. and Tsuen Wan Town Ltd. Ltd. Hall 24/5/2019 Cleansing Hong Kong Space 1/10/2019 30/9/2022 36 months Good Baguio Museum Environmental Cleaning Services Ltd. Services Co. Ltd. 31/5/2019 Security Ko Shan Theatre and 1/10/2019 30/9/2022 36 months Sky Wise Professional Ko Shan Theatre New Services Security Wing Management Services Ltd. Limited 10/6/2019 Cleansing Fa Yuen Street 1/9/2019 31/8/2022 36 months Baguio Johnson Municipal Services Cleaning Cleaning Building Services Co. Services Co. Ltd. Ltd. 14/6/2019 Cleansing Lam Tin Complex 1/12/2019 30/11/2022 36 months Shiny Glory Lapco Service Services Limited Limited 12/7/2019 Security Un Chau Street 1/12/2019 30/11/2022 36 months Sky Wise Sky Wise Municipal Services Services Services Building Management Management Limited Limited 9/8/2019 Security LCSD Wang Kwong 1/1/2020 31/12/2022 36 months Sky Wise N/A Road Vehicle Services Servicing Area Management Limited LEGISLATIVE COUNCIL ― 8 July 2020 9235

Tender Category of Service Regions Contract Contract Contract Name of New Name of Last Issue Date Services Involved Start Date End Date Duration Contractor Contractor 27/9/2019 Venue The Jockey Club Tuen 1/2/2020 31/1/2023 36 months Spotlight Spotlight Management Mun Butterfly Beach Enterprises Enterprises Sports Centre, Fa Yuen Ltd. Ltd. Street Sports Centre, and Wong Chuk Hang Sports Centre 27/9/2019 Security Sai Wan Ho Municipal 1/3/2020 28/2/2023 36 months Sky Wise Mainland Services Building Services Services Management Management Limited Limited 27/9/2019 Cleansing Eastern District Leisure 1/4/2020 31/3/2023 36 months Johnson Baguio Services Office, Wan Cleaning Cleaning Chai District Leisure Services Co. Services Co. Services Office, Ltd. Ltd. Central and Western District Leisure Services Office, and Southern District Leisure Services Office 18/10/2019 Venue Hiu Kwong Street 1/4/2020 31/3/2023 36 months Spotlight Spotlight Management Sports Centre, Yeung Enterprises Enterprises Uk Road Sports Ltd. Ltd. Centre, and Tin Shui Wai Sports Centre 25/10/2019 Cleansing Eastern District Leisure 1/4/2020 31/3/2023 36 months Baguio Baguio Services Office, and Cleaning Cleaning Wan Chai District Services Co. Services Co. Leisure Services Office Ltd. Ltd. 25/10/2019 Cleansing Central and Western 1/4/2020 31/3/2023 36 months Johnson Baguio District Leisure Cleaning Cleaning Services Office, and Services Co. Services Co. Southern District Ltd. Ltd. Leisure Services Office 1/11/2019 Horticultural Tuen Mun Recreation 1/6/2020 31/5/2023 36 months Dynamic Melofield Maintenance and Sports Centre Source Limited Nursery & Services Landscape Contractor Ltd 1/11/2019 Cleansing Lady MacLehose 1/5/2020 30/4/2023 36 months Baguio Lapco Service Holiday Village, Sai Cleaning Limited Kung Outdoor Services Co. Recreation Centre, and Ltd. Tso Kung Tam Outdoor Recreation Centre 1/11/2019 Cleansing Lei Yue Mun Park 1/5/2020 30/4/2023 36 months Johnson Johnson Cleaning Cleaning Services Co. Services Co. Ltd. Ltd. 8/11/2019 Security Hong Kong Stadium 1/5/2020 30/4/2023 36 months Guard Alliance Guard Ltd. Alliance Ltd. 9236 LEGISLATIVE COUNCIL ― 8 July 2020

Tender Category of Service Regions Contract Contract Contract Name of New Name of Last Issue Date Services Involved Start Date End Date Duration Contractor Contractor 14/11/2019 Security Hong Kong Coliseum, 1/12/2019 30/11/2022 36 months Sky Wise Security Cares and Queen Elizabeth Services Consultancy Stadium Management Ltd. Limited 15/11/2019 Security Hong Kong Heritage 1/6/2020 31/5/2023 36 months Security Cares Guard Museum Consultancy Alliance Ltd. Ltd. 15/11/2019 Venue Ap Lei Chau Sports 1/5/2020 30/4/2023 36 months Spotlight Pulse Fitness Management Centre, Choi Hung Enterprises Management Road Sports Centre, Ltd. Consultant North Kwai Chung Company Tang Shiu Kin Sports Limited Centre, and Wo Hing Sports Centre 6/12/2019 Security Shek Tong Tsui 1/6/2020 31/5/2023 36 months Sky Wise Sky Wise Municipal Services Services Services Building Management Management Limited Limited 6/12/2019 Security Hong Kong Space 1/6/2020 31/5/2023 36 months Security Cares Security Cares Museum Consultancy Consultancy Ltd. Ltd. 9/12/2019 Cleansing Islands District Leisure 1/5/2020 30/4/2023 36 months Johnson Baguio Services Office, Tsuen Cleaning Cleaning Wan District Leisure Services Co. Services Co. Services Office, Tuen Ltd. Ltd. Mun District Leisure Services Office, Yuen Long District Leisure Services Office, and Kwai Tsing District Leisure Services Office 9/12/2019 Cleansing Tai Po District Leisure 1/5/2020 30/4/2023 36 months Nixon Johnson Services Office Cleaning Cleaning Company Services Co. Limited Ltd. 13/12/2019 Security Hong Kong Central 1/6/2020 31/5/2023 36 months Sky Wise Mainland Library Services Services Management Management Limited Limited 20/12/2019 Security Hong Kong Museum 1/6/2020 31/5/2023 36 months Guard Alliance Security Cares of History Ltd. Consultancy Ltd. 20/12/2019 Security Hong Kong Museum 1/6/2020 31/5/2023 36 months Sky Wise Security Cares of Coastal Defence, Services Consultancy and Lei Cheng Uk Han Management Ltd. Tomb Museum Limited 20/12/2019 Security Hong Kong Science 1/6/2020 31/5/2023 36 months Professional Guard Museum Security Alliance Ltd. Services Ltd. 10/1/2020 Venue Yau Ma Tei Theatre 1/6/2020 30/11/2021 18 months Spotlight Dussmann Management Enterprises Service Hong Ltd. Kong Limited LEGISLATIVE COUNCIL ― 8 July 2020 9237

Tender Category of Service Regions Contract Contract Contract Name of New Name of Last Issue Date Services Involved Start Date End Date Duration Contractor Contractor 10/1/2020 Security Kwai Tsing Theatre 1/6/2020 31/5/2023 36 months Professional Sky Wise and Tsuen Wan Town Security Services Hall, Sha Tin Town Services Ltd. Management Hall, Tai Po Civic Limited Centre and North District Town Hall, and Yuen Long Theatre and Tuen Mun Town Hall 17/1/2020 Cleansing Kowloon City 1/7/2020 30/6/2023 36 months New Life New Life Municipal Services Psychiatric Psychiatric Building Rehabilitation Rehabilitation Association Association 31/1/2020 Security Eastern District Leisure 1/5/2020 30/4/2023 36 months Sky Wise Sky Wise Services Office, Wan Services Services Chai District Leisure Management Management Services Office, Limited Limited Southern District Leisure Services Office, Sham Shui Po District Leisure Services Office, Yau Tsim Mong District Leisure Services Office, Wong Tai Sin District Leisure Services Office, and Kwun Tong District Leisure Services Office 31/1/2020 Security Central and Western 1/5/2020 30/4/2023 36 months Guard Able Guard Able District Leisure Ltd. Ltd. Services Office 31/1/2020 Security Kowloon City District 1/5/2020 30/4/2023 36 months Professional Security Cares Leisure Services Office Security Consultancy Services Ltd. Ltd. 31/1/2020 Security Islands District Leisure 1/5/2020 30/4/2023 36 months Sky Wise Sky Wise Services Office, Tuen Services Services Mun District Leisure Management Management Services Office, Sha Limited Limited Tin District Leisure Services Office, and Sai Kung District Leisure Services Office 31/1/2020 Security Kwai Tsing District 1/5/2020 30/4/2023 36 months Professional Security Cares Leisure Services Security Consultancy Office, Tsuen Wan Services Ltd. Ltd. District Leisure Services Office, Yuen Long District Leisure Services Office, North District Leisure Services Office, and Tai Po District Leisure Services Office 9238 LEGISLATIVE COUNCIL ― 8 July 2020

Tender Category of Service Regions Contract Contract Contract Name of New Name of Last Issue Date Services Involved Start Date End Date Duration Contractor Contractor 31/1/2020 Security Lam Tin Complex 1/6/2020 31/5/2023 36 months Security Cares Sky Wise Consultancy Services Ltd. Management Limited 7/2/2020 Venue Quarry Bay Sports 1/7/2020 30/6/2023 36 months Spotlight Pulse Fitness Management Centre, Chuk Yuen Enterprises Management Sports Centre, Cheung Ltd. Consultant Sha Wan Sports Company Centre, and Chun Wah Limited Road Sports Centre 21/2/2020 Security LCSD Headquarters 1/7/2020 30/6/2023 36 months Guard Alliance Sky Wise Ltd. Services Management Limited

(ii) Housing Department

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 1 Security Tai Wo Hau Estate 1/10/2019 30/9/2021 24 months Creative Creative Property Property Services Services Consultants Consultants Limited Limited 2 Security On Tai Estate 1/10/2019 30/9/2021 24 months Nice Onward Property Security Management Company Limited Limited 3 Security Yue Wan Estate 1/10/2019 30/9/2021 24 months Hong Kong Good Excel Guards Property Limited Consultants Limited 4 Security Lok Wah (South) 1/10/2019 30/9/2021 24 months Tonwell Onward Estate Security Security Limited Company Limited 5 Security Fu Cheong Estate 1/12/2019 30/11/2021 24 months Hong Nin Hong Kong Security Wah Kiu Company (Overseas) Limited Services Limited 6 Security Cheung Hong 1/1/2020 31/12/2021 24 months Tonwell Guard City Estate Security Limited Limited LEGISLATIVE COUNCIL ― 8 July 2020 9239

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 7 Security Fuk Loi Estate 1/1/2020 31/12/2021 24 months Creative Hong Kong Property Wah Kiu Services (Overseas) Consultants Services Limited Limited 8 Security Model Housing 1/1/2020 31/12/2021 24 months Unimax Unimax Estate Property Property Consultancy Consultancy Limited Limited 9 Security Hing Man Estate 1/1/2020 31/12/2021 24 months Creative Dragon Property Guard Services Security Consultants Limited Limited 10 Security Wan Tsui Estate 1/1/2020 31/12/2021 24 months Hong Kong Dragon Guards Guard Limited Security Limited 11 Security Tin Yan Estate 1/2/2020 31/1/2022 24 months Guard City Tonwell Limited Security Limited 12 Security Sun Chui Estate 1/3/2020 28/2/2022 24 months Hong Kong Creative Wah Kiu Property (Overseas) Services Services Consultants Limited Limited 13 Security Sha Kok Estate 1/3/2020 28/2/2022 24 months Hong Kong Creative Wah Kiu Property (Overseas) Services Services Consultants Limited Limited 14 Security Ping Shek Estate 1/4/2020 31/3/2022 24 months Creative Creative Property Property Services Services Consultants Consultants Limited Limited 15 Security Kai Yip Estate 1/4/2020 31/3/2022 24 months Guard City Creative Limited Property Services Consultants Limited 9240 LEGISLATIVE COUNCIL ― 8 July 2020

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 16 Security Ko Yee Estate 1/4/2020 31/3/2022 24 months Creative Creative Property Property Services Services Consultants Consultants Limited Limited 17 Security Oi Man Estate 1/4/2020 31/3/2022 24 months Onward Creative Security Property Company Services Limited Consultants Limited 18 Security Shun Tin Estate 1/4/2020 31/3/2022 24 months Creative Creative Property Property Services Services Consultants Consultants Limited Limited 19 Security Tsz Ching Estate 1/5/2020 30/4/2022 24 months Hong Nin Dragon Security Guard Company Security Limited Limited 20 Security Lok Wah (North) 1/6/2020 31/5/2022 24 months Kai Fu Onward Estate Property Security Services Company Company Limited Limited 21 Security Wo Lok Estate 1/6/2020 31/5/2022 24 months Guard City Onward Limited Security Company Limited 22 Security Choi Hung Estate 1/6/2020 31/5/2022 24 months Hong Kong Hong Kong Guards Guards Limited Limited 23 Security Lam Tin Estate 1/6/2020 31/5/2022 24 months Nice Nice Property Property Management Management Limited Limited 24 Security Wah Fu (I) Estate 1/7/2020 30/6/2022 24 months Unimax Modern Property Living Consultancy Property Limited Management Limited LEGISLATIVE COUNCIL ― 8 July 2020 9241

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 25 Security Wah Fu (II) Estate 1/7/2020 30/6/2022 24 months Unimax Unimax Property Property Consultancy Consultancy Limited Limited 26 Security Ap Lei Chau 1/7/2020 30/6/2022 24 months Unimax Unimax Estate Property Property Consultancy Consultancy Limited Limited 27 Cleansing Hing Man Estate 1/12/2019 30/11/2021 24 months Chun Wui Lapco Kee Co. Ltd Service Limited 28 Cleansing Butterfly Estate 1/4/2020 31/3/2022 24 months Chun Wui Man Shun Kee Co. Ltd Hong Kong & Kln. Cleaning Company Limited 29 Cleansing Model Housing 1/3/2020 28/2/2022 24 months Chun Wui Ying Wah Estate Kee Co. Ltd Cleaning Service Limited 30 Cleansing Ko Yee Estate 1/5/2020 30/4/2022 24 months Chun Wui Hong Kong Kee Co. Ltd Commercial Cleaning Services Limited 31 Cleansing Kwai Chung 1/5/2020 30/4/2022 24 months Chun Wui Yee Hop Estate Kee Co. Ltd Cleaning Co 32 Cleansing Sha Kok Estate 1/5/2020 30/4/2022 24 months Chun Wui Yee Tai Kee Co. Ltd Cleaning Co 33 Cleansing Tin Yuet Estate 1/12/2019 30/11/2021 24 months Creative Law's Property Cleaning Services Services Consultants Limited Limited 34 Cleansing Ap Lei Chau 1/11/2019 31/10/2021 24 months Hong Kong Man Shun Estate Commercial Hong Kong Cleaning & Kln. Services Ltd. Cleaning Company Limited 9242 LEGISLATIVE COUNCIL ― 8 July 2020

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 35 Cleansing Shek Pai Wan 1/6/2020 31/5/2022 24 months Hong Kong Hong Kong Estate Commercial Commercial Cleaning Cleaning Services Ltd. Services Limited 36 Cleansing On Yam Estate 1/11/2019 31/10/2021 24 months Hong Yee Yee Tai Cleaning Co Cleaning Co 37 Cleansing Shek Yam East 1/4/2020 31/3/2022 24 months Hong Yee Hong Yee Estate Cleaning Co Cleaning Co 38 Cleansing Wah Fu(II) Estate 1/1/2020 31/12/2021 24 months Li Hing Sun Lee Environmental Cleansing Services Co. Company Limited Limited 39 Cleansing Wan Tsui Estate 1/5/2020 30/4/2022 24 months Li Hing Sun Lee Environmental Cleansing Services Co. Company Limited Limited 40 Cleansing Lam Tin Estate 18/6/2020 17/6/2022 24 months Li Hing Hong Kong Environmental Commercial Services Co. Cleaning Limited Services Limited 41 Cleansing On Ting Estate 1/1/2020 31/12/2021 24 months Sun Lee Chun Wui Cleansing Kee Company Company Limited Limited 42 Cleansing Sam Shing Estate 1/1/2020 31/12/2021 24 months Sun Lee Talent Match Cleansing Limited Company Limited 43 Cleansing Yau Oi Estate 1/1/2020 31/12/2021 24 months Sun Lee Sunny Cleansing Cleansing Company Co Limited 44 Cleansing Lok Wah (South) 1/1/2020 31/12/2021 24 months Sun Lee Lapco Estate Cleansing Service Company Limited Limited LEGISLATIVE COUNCIL ― 8 July 2020 9243

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 45 Cleansing Oi Man Estate 1/11/2019 31/10/2021 24 months Sunbase Hong Kong Environmental Commercial Hygiene Cleaning Limited Services Limited 46 Cleansing Lai Kok Estate 1/11/2019 31/10/2021 24 months Sunny Law's Cleansing Cleaning Co. Services Limited 47 Cleansing Tin Shui (II) 1/11/2019 31/10/2021 24 months Sunny Modern Estate Cleansing Living Co. Property Management Limited 48 Cleansing Yiu Tung Estate 1/1/2020 31/12/2021 24 months Sunny Sun Lee Cleansing Cleansing Co. Company Limited 49 Cleansing Wah Fu (I) Estate 1/1/2020 31/12/2021 24 months Sunny Man Shun Cleansing Hong Kong Co. & Kln. Cleaning Company Limited 50 Cleansing Wu King Estate 1/4/2020 31/3/2022 24 months Sunny Hong Shing Cleansing HK Clean Co. Co 51 Cleansing Lek Yuen Estate 1/1/2020 31/12/2021 24 months Talent Match Talent Match Limited Limited 52 Cleansing Chun Shek Estate 1/1/2020 31/12/2021 24 months Yee Hop Yee Tai Cleaning Co Cleaning Co 53 Cleansing Pak Tin Estate 1/4/2020 31/3/2022 24 months Yee Hop Chun Wui Cleaning Co Kee Company Limited 54 Cleansing Kai Yip Estate 1/4/2019 31/3/2021 24 months Yee Tai Yee Hop Cleaning Co Cleaning Co 55 Cleansing Fu Cheong Estate 1/12/2019 30/11/2021 24 months Yee Tai Yee Hop Cleaning Co Cleaning Co 9244 LEGISLATIVE COUNCIL ― 8 July 2020

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 56 Cleansing Shun Tin Estate 1/1/2020 31/12/2021 24 months Yee Tai Man Shun Cleaning Co Hong Kong & Kln. Cleaning Company Limited 57 Cleansing Tin Heng Estate 1/2/2020 31/1/2022 24 months Ying Wah Man Shun Cleaning Hong Kong Service Ltd. & Kln. Cleaning Company Limited 58 Others Kai Tin Estate, On 1/11/2019 30/9/2022 36 months Nice Modern Tin Estate, Ping Property Living Tin Estate, Tsui Management Property Ping (N) Estate, Ltd. Management Tsui Ping (S) Ltd. Estate, Wan Hon Estate, Ko Cheung Court and Yau Mei Court, Cheung Wo Court, Lei On Court, Hong Tin Court, Hong Nga Court, Hong Ying Court 59 Others Kwai Fong Estate, 1/11/2019 30/9/2022 36 months Modern Modern Lai Yiu Estate, Living Living Shek Lei (I) Property Property Estate, Shek Yam Management Management Estate Ltd. Ltd. 60 Others Hing Tung Estate 1/12/2019 30/11/2022 36 months Sunbase Kai Fu Tin Wan Estate, International Property Tung Lam Court, Properties Services Co. Tung Hei Court Management Ltd. Ltd. LEGISLATIVE COUNCIL ― 8 July 2020 9245

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 61 Others Chuk Yuen (N) 1/12/2019 30/11/2022 36 months Creative China Estate, Fung Tak Property Overseas Estate, Lower Services Property Wong Tai Sin (I) Consultants Services Ltd. Estate, Tung Tau Ltd. (II) Estate, Upper Wong Tai Sin Estate 62 Others Cheung Sha Wan 1/12/2019 30/11/2022 36 months Nice China Estate, Homantin Property Overseas Estate, Hung Hom Management Property Estate, Lei Cheng Ltd. Services Ltd. Uk Estate, Nam Cheong Estate, Sheung Lok Estate, Wing Cheong Estate, Hoi Fu Court, Chun Man Court, Yee Ching Court 63 Others Kin Sang Estate, 1/12/2019 30/11/2022 36 months Pioneer Nice Leung King Management Property Estate, Long Ping Ltd. Management Estate, Tin King Ltd. Estate, Tin Tsz Estate, Tin Wah Estate 64 Others Kin Ming Estate, 1/12/2019 30/11/2022 36 months Easy Living Modern Choi Ming Court Consultant Living Ltd. Property Management Ltd. 65 Others Choi Yuen Estate, 1/1/2020 31/12/2022 36 months Creative Creative Tai Ping Estate, Property Property Tin Ping Estate, Services Services Choi Po Court, On Consultants Consultants Shing Court Ltd. Ltd. 9246 LEGISLATIVE COUNCIL ― 8 July 2020

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 66 Others Hung Fuk Estate 1/4/2020 31/3/2025 60 months Kai Fu Shui On Property Properties Services Co. Management Ltd. Limited 67 Others Lung Hang Estate, 1/4/2020 31/3/2025 60 months Creative Modern Sun Tin Wai Property Living Estate Services Property Consultants Management Ltd. Ltd. 68 Others Chung On Estate, 1/4/2020 31/3/2023 36 months China Easy Living Kwong Yuen Overseas Consultant Estate, Pok Hong Property Ltd. Estate, Fung Shing Services Ltd. Court, Kam Fung Court, Kwong Lam Court 69 Others Lei Tung Estate, 1/4/2020 31/3/2023 36 months Modern Creative Fung Wah Estate, Living Property Ma Hang Estate, Property Services Sai Wan Estate, Management Consultants Siu Sai Wan Ltd. Ltd. Estate, Tsui Wan Estate, Wah Kwai Estate, Kai Tsui Court 70 Others Wang Tau Hom 1/4/2020 31/3/2023 36 months Good Excel China Estate, Choi Fai Property Overseas Estate, Fu Keung Consultants Property Court Ltd. Services Ltd. 71 Others Hau Tak Estate, 1/4/2020 31/3/2023 36 months Modern Pioneer Sheung Tak Living Management Estate, Chung Property Ltd. Ming Court, Management Kwong Ming Ltd. Court, Po Ming Court, Tong Ming Court 72 Others On Tat Estate 1/7/2020 30/6/2025 60 months Good Excel Nice Property Property Consultants Management Ltd. Ltd. LEGISLATIVE COUNCIL ― 8 July 2020 9247

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 73 Others Yat Tung (I) & (II) 1/7/2020 30/6/2023 36 months China Good Excel Estates, Kam Peng Overseas Property Estate, Lung Tin Property Consultants Estate, Ngan Wan Services Ltd. Ltd. Estate, Peng Lai Court, Ngan Ho Court, Ngan Wai Court 74 Others Tin Yiu (I) & (II) 1/7/2020 30/6/2023 36 months Modern Modern Estates, Shui Pin Living Living Wai Estate Property Property Management Management Ltd. Ltd. 75 Others Lower Wong Tai 1/7/2020 30/6/2023 36 months Easy Living Easy Living Sin (2) Estate Consultant Consultant Ltd. Ltd. 76 Others Shui Chuen O 1/11/2019 31/10/2021 24 months China China Plaza Overseas Overseas Property Property Services Services Limited Limited 77 Others Hung Fuk 1/11/2019 31/10/2021 24 months Creative Creative Shopping Centre Property Property Services Services Consultants Consultants Limited Limited 78 Others Lung Cheung 1/4/2020 31/3/2022 24 months Shui On Good Excel Office Block Properties Property Management Consultants Limited Limited 79 Others Domain and Yau 1/7/2020 30/6/2022 24 months Hong Yip Hong Yip Lai Shopping Service Service Centre Company Company Limited Limited 80 Others Carparks in Tai 1/7/2020 30/6/2023 36 months Yue Xiu Yue Xiu Po, North District APT Parking APT Parking and Shatin Limited Limited Regions 81 Others Carparks in Tuen 1/7/2020 30/6/2023 36 months Yue Xiu Yue Xiu Mun and Yuen APT Parking APT Parking Long Regions Limited Limited 9248 LEGISLATIVE COUNCIL ― 8 July 2020

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 82 Others Hong Kong 21/9/2019 20/9/2022 36 months China Synergis Housing Authority Overseas Management Customer Service Property Services Centre Services Limited Limited 83 Others Blocks 3 & 4 of 1/11/2019 31/10/2022 36 months Sun Fook Sun Fook Hong Kong Kong Kong Housing Authority Housing Housing Headquarters Services Ltd. Services Ltd. 84 Cleansing Quantity 1/9/2019 31/8/2022 36 months New Method Master Clean Surveying Section Cleaning Services in Pioneer Centre Services Limited Limited 85 Others Lai Tsui Court 29/8/2019 28/8/2021 24 months City N/A Professional Management Limited 86 Others Sheung Man Court 2/7/2020 1/7/2022 24 months City N/A Professional Management Limited 87 Others Yung Ming Court Contract -- 24 months City N/A will be Professional commenced Management upon the Limited completion of property 88 Others Yu Tai Court Contract -- 24 months China N/A will be Overseas commenced Property upon the Services completion Limited of property 89 Others Hoi Tak Court Contract -- 24 months Kong Shum N/A will be Union commenced Property upon the Management completion Company of property Limited LEGISLATIVE COUNCIL ― 8 July 2020 9249

Category Name of Service Regions Contract Contract Contract Name of Last S/N of New Involved Start Date End Date Duration Contractor Services Contractor 90 Others Kam Fai Court Contract -- 24 months Kong Shum N/A will be Union commenced Property upon the Management completion Company of property Limited 91 Others Yuk Wo Court Contract -- 24 months Kai Fu N/A will be Property commenced Services upon the Company completion Limited of property

(iii) Food and Environmental Hygiene Department

Last New Contractor Service Contractor

Description/Location Name of Contract Name of Start Date End Date Contractor Period Contractor Cleansing 1 Cleansing Services for Yee Tai 1/9/2019 31/8/2022 36 months Lapco Service Hawker Bazaars in Cleaning Limited Kwun Tong and Yau Company Tsim Districts Limited 2 Street Cleansing Man Shing 1/10/2019 30/9/2021 24 months Lapco Service Services in Kowloon Cleaning Limited City District (North) Service Company Limited 3 Street Cleansing Man Shing 1/10/2019 30/9/2021 24 months Lapco Service Services in Kowloon Cleaning Limited City District (South) Service Company Limited 4 Street Cleansing Lapco Service 1/10/2019 30/9/2021 24 months Lapco Service Services for Sheung Shui Limited Limited in North District 5 Street Cleansing Lapco Service 1/10/2019 30/9/2021 24 months Man Shing Services for Fanling in Limited Cleaning North District Service Company Limited 9250 LEGISLATIVE COUNCIL ― 8 July 2020

Last New Contractor Service Contractor

Description/Location Name of Contract Name of Start Date End Date Contractor Period Contractor 6 Mosquito, Rodent and Sparkle 1/10/2019 30/9/2022 36 months Integrity Other Pest Control Environmental Service Services in Cemeteries Services Limited and Crematoria (Hong Limited Kong and Kowloon Sections) 7 Mosquito, Rodent and Johnson 1/10/2019 30/9/2022 36 months Law's Other Pest Control Cleaning Cleaning Services in Kwun Tong Services Services District Company Limited Limited 8 Mosquito, Rodent and Baguio Pest 1/10/2019 30/9/2022 36 months Lapco Service Other Pest Control Management Limited Services in Wong Tai Limited Sin District 9 Cleansing Services for Hugo Services 1/10/2019 30/9/2022 36 months Johnson Tai Kok Tsui Municipal Company Cleaning Services Building in Limited Services Mong Kok District Company Limited 10 Street Cleansing Lapco Service 1/11/2019 31/10/2021 24 months Lapco Service Services in Kwun Tong Limited Limited District (North) 11 Street Cleansing Lapco Service 1/11/2019 31/10/2021 24 months Lapco Service Services in Kwun Tong Limited Limited District (South) 12 Street Cleansing Lapco Service 1/11/2019 31/10/2021 24 months Lapco Service Services in Southern Limited Limited District 13 Cleansing Services for Yee Tai 1/11/2019 31/10/2022 36 months Johnson Markets and Cooked Cleaning Cleaning Food Market in Eastern Company Services District Limited Company Limited 14 Street Cleansing Johnson 1/12/2019 30/11/2021 24 months Man Shing Services in Tuen Mun Cleaning Cleaning District Services Service Company Company Limited Limited LEGISLATIVE COUNCIL ― 8 July 2020 9251

Last New Contractor Service Contractor

Description/Location Name of Contract Name of Start Date End Date Contractor Period Contractor 15 Mosquito, Rodent and Johnson 1/12/2019 30/11/2022 36 months Baguio Pest Other Pest Control Cleaning Management Services in Cemeteries Services Limited and Crematoria (New Company Territories Section) and Limited North District 16 Mosquito, Rodent and Creative Pest 1/12/2019 30/11/2022 36 months Johnson Other Pest Control Control Cleaning Services in Tai Po Services Services District Limited Company Limited 17 Mosquito, Rodent and Lapco Service 1/12/2019 30/11/2022 36 months Lapco Service Other Pest Control Limited Limited Services in Tsuen Wan District 18 Mosquito, Rodent and Baguio Pest 1/12/2019 30/11/2022 36 months Integrity Other Pest Control Management Service Services in Kwai Tsing Limited Limited District 19 Portable Toilet Service ISS 1/12/2019 28/2/2021 15 months N/A for Toilet Renovation Environmental and Selected Locations Services (HK) in the Territory Limited 20 Street Cleansing Johnson 1/1/2020 31/12/2021 24 months Johnson Services in Wan Chai Cleaning Cleaning District (East) Services Services Company Company Limited Limited 21 Street Cleansing Lapco Service 1/1/2020 31/12/2021 24 months Lapco Service Services in Wan Chai Limited Limited District (West) 22 Management, Cleansing Dussmann 1/1/2020 31/12/2022 36 months Baguio Pest and Pest Control Service Hong Management Services for Markets, Kong Limited Limited Cooked Food Markets and Hawker Bazaar in Tuen Mun District 23 Cleansing Services for Yee Tai 1/1/2020 31/12/2022 36 months World Markets and Cooked Cleaning Environmental Food Markets in Kwun Company Services Tong District Limited Limited 9252 LEGISLATIVE COUNCIL ― 8 July 2020

Last New Contractor Service Contractor

Description/Location Name of Contract Name of Start Date End Date Contractor Period Contractor 24 Cleansing Services for Dussmann 1/1/2020 31/12/2022 36 months Johnson Markets, Cooked Food Service Hong Cleaning Market and Hawker Kong Limited Services Bazaar in Tsuen Wan Company District Limited 25 Management, Cleansing Dussmann 1/2/2020 31/1/2023 36 months Lapco Service and Pest Control Service Hong Limited Services for Markets and Kong Limited Cooked Food Markets in Islands District 26 Cleansing Services for Dussmann 1/2/2020 31/1/2023 36 months Lapco Service Markets in Sha Tin Service Hong Limited District Kong Limited 27 Street Cleansing Johnson 1/3/2020 28/2/2022 24 months Baguio Services for Central Cleaning Cleaning (West) and Portion of Services Services Mid-levels Area in Company Company Central and Western Limited Limited District 28 Street Cleansing Johnson 1/3/2020 28/2/2022 24 months Baguio Services for Central Cleaning Cleaning (East), Admiralty and Services Services Portion of Mid-levels Company Company Area in Central and Limited Limited Western District 29 Street Cleansing Johnson 1/3/2020 28/2/2022 24 months Baguio Services in Wong Tai Cleaning Cleaning Sin District (South) Services Services Company Company Limited Limited 30 Street Cleansing Man Shing 1/3/2020 28/2/2022 24 months Baguio Services in Wong Tai Cleaning Cleaning Sin District (North) Service Services Company Company Limited Limited 31 Mosquito, Rodent and Integrity 1/4/2020 31/3/2023 36 months Integrity Other Pest Control Service Service Services in Sha Tin Limited Limited District (East) 32 Mosquito, Rodent and Johnson 1/4/2020 31/3/2023 36 months Creative Pest Other Pest Control Cleaning Control Services in Sai Kung in Services Services Sai Kung District Company Limited Limited LEGISLATIVE COUNCIL ― 8 July 2020 9253

Last New Contractor Service Contractor

Description/Location Name of Contract Name of Start Date End Date Contractor Period Contractor 33 Mosquito, Rodent and Lapco Service 1/4/2020 31/3/2023 36 months Creative Pest Other Pest Control Limited Control Services in Tseung Services Kwan O in Sai Kung Limited District 34 Mosquito, Rodent and Sparkle 1/4/2020 31/3/2023 36 months Integrity Other Pest Control Environmental Service Services in Sha Tin Services Limited District (West) Limited 35 Mosquito, Rodent and Johnson 1/4/2020 31/3/2023 36 months Lapco Service Other Pest Control Cleaning Limited Services in Yuen Long Services District (West) Company Limited 36 Mosquito, Rodent and Sparkle 1/4/2020 31/3/2023 36 months Johnson Other Pest Control Environmental Cleaning Services in Tuen Mun Services Services District (West) Limited Company Limited 37 Mosquito, Rodent and Baguio Pest 1/4/2020 31/3/2023 36 months Johnson Other Pest Control Management Cleaning Services in Tuen Mun Limited Services District (East) Company Limited 38 Mosquito, Rodent and Integrity 1/4/2020 31/3/2023 36 months Lapco Service Other Pest Control Service Limited Services in Yuen Long Limited District (East) 39 Street Cleansing Sparkle 1/5/2020 30/4/2022 24 months Law's Services in Yau Tsim Environmental Cleaning District (South) Services Services Limited Limited 40 Street Cleansing Sparkle 1/5/2020 30/4/2022 24 months Johnson Services in Yau Tsim Environmental Cleaning District (North) Services Services Limited Company Limited 41 Cleansing Services for Dussmann 1/5/2020 30/4/2023 36 months Dussmann Markets, Cooked Food Service Hong Service Hong Markets and Cooked Kong Limited Kong Limited Food Hawker Bazaar in Kwai Tsing District 42 Cleansing Services for Dussmann 1/5/2020 30/4/2023 36 months Dussmann Markets in Sai Kung Service Hong Service Hong District Kong Limited Kong Limited 9254 LEGISLATIVE COUNCIL ― 8 July 2020

Last New Contractor Service Contractor

Description/Location Name of Contract Name of Start Date End Date Contractor Period Contractor Security 1 Security Guard Services Central 1/9/2019 31/8/2022 36 months Guard Able for Hung Hom Security Limited Municipal Services Services Building in Kowloon Limited City District 2 Security Guard Services Guard Able 1/9/2019 31/8/2022 36 months Guard Able for Kwun Chung Limited Limited Municipal Services Building in Yau Tsim District 3 Security Guard Services Central 1/10/2019 30/9/2022 36 months Mainland for Tai Kok Tsui Security Services Municipal Services Services Management Building in Mong Kok Limited Limited District 4 Security Guard Services Sky Wise 1/10/2019 30/9/2022 36 months Guard Able for Sheung Wan Services Limited Municipal Services Management Building and Smithfield Limited Municipal Services Building in Central and Western District 5 Security Guard Services Central 1/11/2019 31/10/2022 36 months Federal for Municipal Services Security Guards Buildings in Southern Services Limited District Limited 6 Security Guard Services Sky Wise 1/11/2019 31/10/2022 36 months Alliance for Municipal Services Services Security Buildings in Eastern Management Limited District Limited 7 Security Guard Services Sunguard 1/12/2019 30/11/2023 48 months Federal for Public Cemeteries, Security Co. Guards Crematoria and Limited Limited Cremation Booking Office in the Territory Other 1 Manual Consignment New Method 1/1/2020 31/12/2022 36 months New Method Handling and Related Cleaning Cleaning Services to Extension Services Services Sites B and C of Man Limited Limited Kam To Food Control Office

LEGISLATIVE COUNCIL ― 8 July 2020 9255

(iv) Government Property Agency

Service Contract Contract Contract Name of New Name of Last Districts Start Date End Date Duration Contractor Contractor Involved 1. 1/4/2020 31/3/2024 48 months Hong Kong 1(1) Urban Urban Property Property Management Management Limited Limited 2. 1/4/2020 31/3/2024 48 months Hong Kong 2(2) Savills Savills Property Property Management Management Limited Limited 3. 1/4/2020 31/3/2024 48 months Kowloon 1(3) Guardian Guardian Property Property Management Management Limited Limited 4. 1/4/2020 31/3/2024 48 months Kowloon 2(4) Urban Urban Property Property Management Management Limited Limited 5. 1/4/2020 31/3/2024 48 months New Guardian ISS EastPoint Territories 1(5) Property Property Management Management Limited Limited 6. 1/4/2020 31/3/2024 48 months New Urban Guardian Territories 2(6) Property Property Management Management Limited Limited

Notes:

(1) Includes Central & Western and Southern

(2) Includes Eastern and Wan Chai

(3) Includes Kowloon City (part), Kwun Tong and Wong Tai Sin

(4) Includes Kowloon City (part), Sham Shui Po and Yau Tsim Mong

(5) Includes North District, Sai Kung, Sha Tin and Tai Po

(6) Includes Kwai Tsing, Tsuen Wan, Tuen Mun, Yuen Long and Islands

9256 LEGISLATIVE COUNCIL ― 8 July 2020

Police officers giving evidence in court proceedings

15. MR JEREMY TAM (in Chinese): President, it has been reported that recently, during the trial of a case of assault on a police officer, a Magistrate stated that the police officer who gave evidence was not an honest and reliable witness, and thus acquitted the defendant of the charge. On the other hand, according to section 31 of the Crimes Ordinance (Cap. 200), any person lawfully sworn as a witness in a judicial proceeding who makes a false statement shall be guilty of perjury. In this connection, will the Government inform this Council:

(1) of the number of police officers in the past five years who were regarded by the courts as not being honest and reliable witnesses, together with the rationale of the courts;

(2) of the number of police officers referred to in (1) who were subject to disciplinary actions upon investigations, and set out one by one the misconduct involved and the disciplinary actions imposed on them;

(3) of the number of police officers who were prosecuted in the past five years for allegedly giving false evidence and, among them, the number of officers convicted and the punishments imposed on them;

(4) of the measures put in place to ensure that police officers collect evidence honestly during criminal investigations and give evidence honestly in court proceedings;

(5) of the number of police officers, who had been regarded by the courts as not being honest and reliable witnesses, giving evidence in the past five years in other cases;

(6) whether it will set up, for the reference of the courts, a database on cases involving police officers being regarded by the courts as not honest and reliable witnesses, and prohibit the police officers concerned from giving evidence in other cases; and

(7) given that during the recent trials of a number of criminal cases in relation to social incidents, the Department of Justice ("DoJ") applied to the courts for the issue of anonymity orders in respect of those police officers who gave evidence, whether DoJ will adopt the LEGISLATIVE COUNCIL ― 8 July 2020 9257

following practice: in the event that a police officer who gave evidence has been regarded by the court as not being an honest and reliable witness, DoJ will, on account of public interest, consider applying to the court for revoking the relevant anonymity order?

SECRETARY FOR SECURITY (in Chinese): President, in the case of a criminal trial, the court's refusal to accept the evidence of a prosecution witness could be due to different reasons, for instance, the court is unable to be satisfied beyond reasonable doubt as to the truth or veracity of the witness' evidence. Hence, it does not necessarily follow that the witness is not honest and reliable, nor should the witness be considered as having made a false statement. This point must be clarified to avoid the public being misled.

Having consulted the Judiciary and the Department of Justice, the reply to the various parts of the question is as follows:

(1) to (3) and (5)

Neither the Government nor the Judiciary keep records of the number of police officers being considered by the courts as not honest and reliable witnesses in the past five years (2015 to 2019). The Police also do not keep record of police officers who have been considered by the courts as not an honest and reliable witness and testify for other cases during the same period.

In the past five years, no police officer has been prosecuted for perjury under section 31 of the Crimes Ordinance (Cap. 200). Over these five years, disciplinary actions were taken against two officers whose credibility was questioned by the court. The Police Force issued a minor offence report to one of the officers in 2016; whilst the other officer was given a punishment of "Reprimand" in 2019 subsequent to disciplinary proceedings.

(4) Section 10 of the Police Force Ordinance (Cap. 232) stipulates that the Police has a statutory responsibility to prevent and detect crimes and offences. During case investigations, and for the purpose of crime prevention and detection, the Police will request for information related to crime investigation from relevant persons or organizations if necessary. In accordance with relevant legal 9258 LEGISLATIVE COUNCIL ― 8 July 2020

requirements, if needed, the Police will also apply for a search warrant from the court for entering premises and searching for, taking possession of or detaining relevant articles, such as seizing documents or information as evidence. Same as all other witnesses who testify during court hearings, a police officer shall give sworn evidence which he is satisfied to be true and accurate in court. In accordance with Chapter 45 of the Police General Orders, prior to the trial, prosecution witnesses (including police officers) are allowed to refresh their memories of what occurred from records (for example, their own statements, etc.). However, they should not have a pre-trial discussion of the evidence. In particular, police officers should not hold a meeting before the trial to look at each other's notebooks or statements, or to discuss the evidence. Nevertheless, police officers may follow the accepted practices of: (i) pooling their re-collections of events when making their notebook entries, either at the time of or shortly after those events when facts are fresh in their minds; (ii) at the time of (i), signing each other's notebooks to indicate that these are true and that they agree with the records made; and (iii) later, before giving evidence, refreshing their memories individually from the records made.

In addition, a witness (including a police officer) must not speak to another witness who has not yet given evidence. Any communication or conversation on case-related or evidence-related topic amongst witnesses is strictly prohibited.

A witness wilfully committing perjury in court and a witness being considered by a judge as not giving credible testimonies can be two different situations. There are existing legal and administrative mechanisms to deal with these situations.

In respect of wilful perjury, under section 31 of the Crimes Ordinance (Cap. 200), if any person lawfully sworn as a witness, either generally or in a particular judicial proceeding, wilfully makes a statement in any judicial proceeding which is material in that proceeding and which he knows to be false or does not believe to be true, he shall be guilty of perjury and shall be liable on conviction upon indictment to imprisonment for seven years and to a fine.

LEGISLATIVE COUNCIL ― 8 July 2020 9259

If the court considers that there is prima facie evidence suggesting perjury by a witness (including police officers), the court may refer the case to the Department of Justice for follow-up. The Police will cooperate and handle the matter seriously. Subject to the investigation results, the officer concerned may be liable to criminal responsibility and also subject to disciplinary actions.

If any person considers he or she is being affected by police misconduct and lodges a complaint, the Complaints Against Police Office shall handle it in a fair and impartial manner according to established procedures, and shall then report to the Independent Police Complaints Council ("IPCC") and submit an investigation report to IPCC in accordance with the Independent Police Complaints Council Ordinance (Cap. 604).

(6) and (7)

As a matter of general principle, according to the Indictment Rules (Cap. 221C), the description or designation in an indictment of the accused person, or of any other person referred to therein, shall be such as is reasonably sufficient to identify him, without necessarily stating his correct name or his abode, style, degree or occupation. This principle applies to charge sheets used in the Magistrates' Courts and the District Court.

The Statement on the Treatment of Victims and the Witnesses released by the Department of Justice stipulates that victims and witnesses are entitled to have their rights to privacy and confidentiality respected. In this regard, the Department of Justice will take into account the circumstances of the cases and consider on a case-by-case basis as to whether the names of victims and witnesses should be revealed. No generalization should be made in this respect.

Article 87 of the Basic Law gives to any accused the right to a fair trial. The Prosecution Code ("the Code") issued by the Department of Justice stipulates that one of the guarantees of fairness is the full and timely disclosure to the defence of all relevant or possibly 9260 LEGISLATIVE COUNCIL ― 8 July 2020

relevant material (or material information―and not confined to admissible evidence) available or known to the prosecution, whether it assists in the proof of the prosecution case or not.

The Government has no plan to set up a database regarding the situation mentioned in part (6) of the question.

As for prosecution, paragraph 12.3(c) of the Code stipulates that materials to be disclosed by the prosecution include known discreditable conduct of a prosecution witness (including disciplinary records) that may reasonably affect his or her credibility. Department of Justice will comply with the duty of disclosure to ensure the protection of an accused's right to a fair trial. These information can assist the court in determining the reliability of the testimonies given by the witness.

Setting up more hawker pitches and bazaars

16. MR WONG KWOK-KIN (in Chinese): President, as Hong Kong's economy has been dealt double blows by the social disturbances in the latter half of last year and the epidemic which broke out at the beginning of this year, the unemployment rate has hit a record high in 10 years. Some members of the public have relayed that the Government should proactively create job opportunities, such as by suitably allowing the setting up of more hawker pitches and bazaars. In this connection, will the Government inform this Council:

(1) as the Food and Environmental Hygiene Department ("FEHD") launched in September last year a scheme of Reallocation of 435 Vacant Fixed Hawker Pitches and Issue of New Licences, whether FEHD has completed reallocating the pitches and issuing the licences, and the total number of pitches reallocated so far; of the number of persons, among those issued with a licence, who fall into the following category: members of the public satisfying certain basic criteria;

(2) whether FEHD will review the above scheme and report the outcome to the relevant panel of this Council; if so, of the details; if not, the reasons for that; and

LEGISLATIVE COUNCIL ― 8 July 2020 9261

(3) whether, in the coming three years, it has plans to set up bazaars and new hawker pitches at suitable sites (e.g. the open space adjacent to Wong Tai Sin Temple) in various districts across the territory, and to issue temporary hawker licences, so as to create job opportunities; 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 is as follows:

(1) Regarding the fixed hawker pitches, the Food and Environmental Hygiene Department ("FEHD") launched the scheme of Re-allocation of Fixed Hawker Pitches and Issue of New Licences in September 2019. Under the scheme, 435 vacant fixed hawker pitches located at seven districts were open for application by persons who are interested in the hawking business and able to meet the required conditions. Successful applicants can operate at the pitches after obtaining a licence.

FEHD conducted an open computer random sequencing cum manual ballot exercise to determine the priority order of applicants for pitch selection in November 2019 and have been inviting applicants to select vacant pitches since December 2019. The Department's pitch selection and licensing procedures are underway. As at 30 June 2020, 420 hawker pitches were selected, of which 308 applicants are members of the public and 201 applicants already obtained the licences. Those members of the public did not hold any valid hawker licence before the exercise.

(2) The pitch selection and licensing procedures of the scheme is still underway. FEHD will keep in view the implementation progress of the scheme and the actual operating situation.

(3) The Government adopts an open mind towards specific bottom-up proposals (proposed by local residents/organizations) for organizing bazaars, and has formulated the Application Guidelines for Setting Up Bazaars to set out matters requiring attention for organizing bazaars. When suitable sites have been identified by the proponent 9262 LEGISLATIVE COUNCIL ― 8 July 2020

organizations (i.e. the venue owners have no in-principle objection to the proposed bazaars being held at their venues at the proposed time slots) and support from local communities and respective District Councils have been obtained, provided that the bazaar proposals will not compromise public order and safety, food safety and environmental hygiene, and will not obstruct public passageways, the Government will facilitate liaison with the relevant departments to follow up the proposal.

As for hawkers, FEHD is implementing the scheme of Re-allocation of Fixed Hawker Pitches and Issue of New Licences. Currently, there is no plan to set up new fixed-pitch hawker areas in individual districts.

Statistics on the work of the Urban Renewal Authority

17. DR FERNANDO CHEUNG (in Chinese): President, regarding the statistics on the work of the Urban Renewal Authority ("URA"), will the Government inform this Council if it knows:

(1) the following information on each of the redevelopment projects for which the work on acquisition and rehousing was completed in the financial years from 2010-2011 to 2019-2020 (set out in Table 1 by project name):

(a) the number of households at the time of the Freezing Survey, with a breakdown by category of occupiers (i.e. (i) owner-occupiers, (ii) domestic tenants, (iii) occupiers of rooftop structures, and (iv) others), and

(b) the number of households who were offered rehousing or compensation, with a breakdown by the following arrangements made for them: (v) being rehoused in the public rental housing units provided by the Hong Kong Housing Authority, (vi) being rehoused in the public rental housing units provided by the Hong Kong Housing Society, (vii) being LEGISLATIVE COUNCIL ― 8 July 2020 9263

rehoused in the units of the rehousing blocks under URA, (viii) being offered the basic ex-gratia payment, (ix) being offered a compensation in the form of an ex-gratia payment equivalent to three times the ex-gratia allowance offered by the Lands Department on resumption (because they were ineligible for the basic ex-gratia payment), and (x) being offered a compensation in the form of an ex-gratia payment equivalent to two times the ex-gratia allowance offered by the Lands Department on resumption (because they moved in after the date of the Freezing Survey or due to other reasons);

Table 1 Financial Project Project (a) (b) year number name (i) (ii) (iii) (iv) Total (v) (vi) (vii) (viii) (ix) (x)

(2) the following information on the various types of units in the rehousing blocks under URA (i.e. (a) one-person unit (with shared kitchen), (b) one-person unit (with independent kitchen), (c) two-person unit (with shared kitchen), (d) two-person unit (with independent kitchen), and (e) family unit) in each of the financial years from 2010-2011 to 2019-2020 (set out in Table 2):

(i) the number of units,

(ii) the smallest and the largest usable areas of such units,

(iii) the lowest and the highest rents for such units (excluding those units used as transitional housing),

(iv) the number of units occupied,

(v) the number of vacant units available for allocation to tenants affected by redevelopment, and

(vi) the number of units leased to or reserved for social welfare organizations;

9264 LEGISLATIVE COUNCIL ― 8 July 2020

Table 2 Shun Sing Rich Bedford 12 Soy Street, Type of unit Mansion Building Tower Mong Kok (i) (ii) (iii) (a) (iv) (v) (vi) …

(3) in each of the redevelopment projects for which the work on acquisition and rehousing was completed in the financial years from 2010-2011 to 2019-2020, the number of units used for non-residential purposes at the time of the Freezing Survey, with a breakdown by:

(a) the type of units (i.e. (i) ground level unit, (ii) exit staircase shop, (iii) cockloft unit, (iv) upstairs unit, and (v) others),

(b) the category of occupiers (i.e. (vi) owner, (vii) tenant, (viii) occupier, and (ix) others), and

(c) the nature of business operations (i.e. (x) retail, (xi) eatery, (xii) workshop, (xiii) service, (xiv) office, and (xv) others);

(set out in Table 3 by project name); and

Table 3 Financial Project Project (a) (b) (c) year number name (i) (ii) (iii) (iv) (v) Total (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv) (xv)

(4) in respect of each of the redevelopment projects completed in the financial years from 2010-2011 to 2019-2020, the following details of the applications made by the affected shop operators for renting the shop premises provided in the completed redevelopment projects under the "Local Shop Arrangement" implemented by URA (set out in Table 4 by project name):

LEGISLATIVE COUNCIL ― 8 July 2020 9265

(i) the number and percentage of shop operators who made such applications,

(ii) the number of shop operators who signed a tenancy agreement,

(iii) the shortest and the longest terms of the tenancy agreements signed for the first time,

(iv) whether rental concessions were offered to the shop operators, and

(v) the details of the rental concessions (if any)?

Table 4 Financial year Project number Project name (i) (ii) (iii) (iv) (v)

SECRETARY FOR DEVELOPMENT (in Chinese): President, based on the information provided by the Urban Renewal Authority ("URA"), my reply to the four parts of the question is as follows:

(1) The requested information on the redevelopment projects for which acquisition and rehousing work was completed by URA in the financial years from 2010-2011 to 2019-2020 is set out in Annex 1.

(2) There are four rehousing blocks under URA, namely Shun Sing Mansion, Rich Building, Bedford Tower and 12 Soy Street, Mong Kok.

The units of these rehousing blocks are categorized into one-person units (with shared kitchen), two-person units (with shared kitchen) and family units. The information on various types of units in each rehousing block as requested by the Member is set out in Annex 2.

(3) The information on units used for non-residential purposes at the time of the Freezing Survey in each of the redevelopment projects for which acquisition and rehousing work was completed by URA in the financial years from 2010-2011 to 2019-2020 is set out in Annex 3.

9266 LEGISLATIVE COUNCIL ― 8 July 2020

As the collation of information on the nature of business operations of the units for non-residential purposes at the time of the Freezing Survey involves very substantial data compilation work, URA is not able to provide the relevant information within a limited time frame.

(4) Depending on the circumstances, URA would assist eligible non-domestic owner-operators and tenant-operators within the area of a redevelopment project to rent shop premises in the future redevelopment. Details of applications from affected shop operators in URA's redevelopment projects for renting the shop premises in the completed redevelopments in the financial years from 2010-2011 to 2019-2020 are set out in Annex 4.

Annex 1

Information of the Redevelopment Projects for which Acquisition and Rehousing Work was completed by URA in the Financial Years from 2010-2011 to 2019-2020

Number of households Number of households offered rehousing or Financial Project code at the time of the compensation year and name Freezing Survey (only applicable to tenants and non- owner-occupiers) (i) (ii) (iii) (iv) Total (v) (vi) (vii) (viii) (ix) (x) 2010-2011 TKT/2/001 32 82 0 0 114 30 0 1 38 0 22 Fuk Tsun Street/Pine Street Project 2011-2012 TKW/1/001 15 118 6 1 140 34 3 0 61 0 12 Chi Kiang Street/Ha Heung Road Project 2011-2012 H18 (Site B) 65 64 0 4 133 1 8 0 38 0 11 Peel Street/Graham Street Project LEGISLATIVE COUNCIL ― 8 July 2020 9267

Number of households Number of households offered rehousing or Financial Project code at the time of the compensation year and name Freezing Survey (only applicable to tenants and non- owner-occupiers) (i) (ii) (iii) (iv) Total (v) (vi) (vii) (viii) (ix) (x) 2011-2012 K28 89 54 6 7 156 12 1 0 37 0 3 Sai Yee Street Project 2011-2012 MTK/1/001 23 86 3 0 112 38 0 0 29 0 19 Pak Tai Street/Mok Cheong Street Project 2013-2014 SSP/3/001 8 50 7 4 69 17 0 0 10 0 21 Shun Ning Road Project 2013-2014 K7 659 154 58 69 940 62 6 0 98 0 19 (Development Areas 2, 3 and 4) Kwun Tong Town Centre Project 2013-2014 MTK/1/002 34 71 5 6 116 34 4 0 27 0 12 San Shan Road/Pau Chung Street Project 2014-2015 DL-1:SSP 32 26 0 0 58 13 0 0 6 0 9 229A-G, Hai Tan Street Project 2014-2015 MK/01 13 40 6 0 59 17 0 0 9 0 27 Shanghai Street/Argyle Street Project 9268 LEGISLATIVE COUNCIL ― 8 July 2020

Number of households Number of households offered rehousing or Financial Project code at the time of the compensation year and name Freezing Survey (only applicable to tenants and non- owner-occupiers) (i) (ii) (iii) (iv) Total (v) (vi) (vii) (viii) (ix) (x) 2014-2015 TKW/1/002 50 196 33 4 283 57 16 0 62 0 106 Ma Tau Wai Road/Chun Tin Street Project 2014-2015 SSP/1/003-005 114 412 27 16 569 220 16 0 55 0 250 Hai Tan Street/Kweilin Street & Pei Ho Street Project 2014-2015 SSP-014 14 96 0 0 110 48 1 0 11 0 16 Fuk Wing Street Project 2014-2015 TKT/2/002 25 83 2 4 114 33 0 1 25 0 20 Anchor Street/Fuk Tsun Street Project 2014-2015 KC-006 41 88 0 2 131 42 5 0 30 0 15 Pak Tai Street/San Shan Road Project 2015-2016 H14 In 2005, the Hong Kong Housing Society was Sai Wan Ho responsible for the acquisition and rehousing Street Project arrangement for the project. On 23 November 2011, the follow-up work on the units that were not yet acquired in the industrial building was returned to URA. URA does not have information on the residential units and occupiers information of the project. 2015-2016 H18 (Sites A 93 74 1 9 177 6 6 0 46 0 8 and C) Peel Street/Graham Street Project LEGISLATIVE COUNCIL ― 8 July 2020 9269

Number of households Number of households offered rehousing or Financial Project code at the time of the compensation year and name Freezing Survey (only applicable to tenants and non- owner-occupiers) (i) (ii) (iii) (iv) Total (v) (vi) (vii) (viii) (ix) (x) 2015-2016 DL-8:KC 27 39 1 0 67 12 0 0 15 0 6 Kai Ming Street Project 2015-2016 KC-007 34 144 9 2 189 70 4 0 83 0 8 Kowloon City Road/Sheung Heung Road Project 2015-2016 DL-2:SSP 34 74 1 0 109 31 1 0 12 0 12 205-211A, Hai Tan Street Project 2015-2016 DL-3:YTM 46 80 1 1 128 49 0 0 13 0 8 Pine Street/Oak Street Project 2015-2016 K1 6 21 0 36 63 15 0 1 43 0 0 Nga Tsin Wai Village Project 2015-2016 DL-4:SSP 22 89 0 0 111 39 2 0 25 0 12 Kowloon Road/Kiu Yam Street Project 2016-2017 DL-5:SSP 103 109 15 8 235 73 7 0 25 0 12 Tung Chau Street/Kweilin Street Project 2016-2017 DL-6:YTM 29 32 5 2 68 20 3 0 11 0 5 Fuk Chak Street/Li Tak Street Project 9270 LEGISLATIVE COUNCIL ― 8 July 2020

Number of households Number of households offered rehousing or Financial Project code at the time of the compensation year and name Freezing Survey (only applicable to tenants and non- owner-occupiers) (i) (ii) (iii) (iv) Total (v) (vi) (vii) (viii) (ix) (x) 2016-2017 YTM-010 49 225 13 2 289 93 7 5 72 0 22 Reclamation Street/Shantung Street Project 2017-2018 SSP-016 42 139 26 5 212 78 8 19 24 0 19 Castle Peak Road/Un Chau Street Project 2018-2019 DL-10:KT 54 99 4 3 160 51 6 13 18 0 7 Hang On Street Project 2018-2019 DL-11:YTM 35 29 2 0 66 29 2 0 4 0 3 Ash Street Project 2019-2020 SSP-015 26 82 10 4 122 40 6 4 11 6 18 Tonkin Street/Fuk Wing Street Project

Legend:

(i) Owner-occupiers

(ii) Domestic tenants

(iii) Occupiers of rooftop structures

(iv) Others

(v) Rehoused in the public rental housing units provided by the Hong Kong Housing Authority

(vi) Rehoused in the public rental housing units provided by the Hong Kong Housing Society

LEGISLATIVE COUNCIL ― 8 July 2020 9271

(vii) Rehoused in the units of URA's rehousing blocks

(viii) Offered the ex-gratia allowance

(ix) Offered a special ex-gratia allowance by URA the amount of which is equivalent to three times the ex-gratia allowance offered by the Lands Department on resumption (because they were not eligible for the ex-gratia allowance for reasons such as having alternative accommodation)

(x) Offered a special ex-gratia allowance by URA the amount of which is equivalent to two times the ex-gratia allowance offered by the Lands Department on resumption (because they moved in after the date of the Freezing Survey or due to other reasons)

Note:

The above rehousing or compensation arrangement is only applicable to eligible tenants and non-owner-occupiers. Some of the tenants and non-owner-occupiers registered at the time of the freezing survey might not be eligible for the rehousing or compensation provided by URA due to various reasons. As such, the number of households at the time of the Freezing Survey would not equal to the number of households offered rehousing or compensation.

Annex 2

Information of Various Types of Units in URA's Rehousing Blocks

Shun 12 Soy Rich Bedford Sing Street, Building Tower Mansion Mong Kok One-person Number of Units 65 No such No such 120 Unit (with Smallest and largest 30 to type of type of 61 to shared usable areas of units 94 sq ft units are units are 99 sq ft kitchen) Lowest and highest rents $610 to provided provided $750 of units (excluding units $750 for transitional housing) Number of occupied 5 41 units Number of vacant units 36 43 available for allocation to tenants affected by redevelopment Number of units leased 24 36 to or earmarked for social welfare organizations 9272 LEGISLATIVE COUNCIL ― 8 July 2020

Shun 12 Soy Rich Bedford Sing Street, Building Tower Mansion Mong Kok Two-person Number of Units 41 6 No such 60 Unit (with Smallest and largest 45 to 43 to type of 105 to shared usable areas of units 145 sq ft 48 sq ft units are 130 sq ft kitchen) Lowest and highest rents $1,125 $420 to provided $1,125 of units (excluding units $750 for transitional housing) Number of occupied 3 2 30 units Number of vacant units 22 4 24 available for allocation to tenants affected by redevelopment Number of units leased 16 0 6 to or earmarked for social welfare organizations Family Number of units 38 24 44 98 Unit Smallest and largest 315 to 277 to 305 to 372 to usable areas of units 440 sq ft 282 sq ft 307 sq ft 415 sq ft Lowest and highest rents $1,408 to $1,100 to $1,037 to $1,684 to of units (excluding units $6,175 $4,155 $4,290 $5,105 for transitional housing) Number of occupied 17 13 35 48 units Number of vacant units 14 2 9 29 available for allocation to tenants affected by redevelopment Number of units leased 7 9 0 21 to or earmarked for social welfare organizations Total number of all categories of 144 30 44 278 units

LEGISLATIVE COUNCIL ― 8 July 2020 9273

Annex 3

Information of Units Used for Non-residential Purposes at the Time of Freezing Survey in the Redevelopment Projects for which Acquisition and Rehousing Work was completed by URA in the Financial Years from 2010-2011 to 2019-2020

Unit Type Category of Occupiers Financial Project Ground Exit Project Name Cockloft Upstairs Year Code Level Staircase Others Total Owner Tenant Occupier Others Unit Unit Unit Shop 2010-2011 TKT/2/001 Fuk Tsun 10 0 0 0 0 10 2 9 1 0 Street/Pine Street Project 2011-2012 TKW/1/001 Chi Kiang 9 0 0 0 0 9 1 22 3 0 Street/Ha Heung Road Project 2011-2012 H18 Peel 27 0 10 32 0 69 11 33 1 0 (Site B) Street/Graham Street Project 2011-2012 K28 Sai Yee Street 32 1 6 17 0 56 12 50 0 2 Project 2011-2012 MTK/1/001 Pak Tai 9 0 0 0 0 9 5 14 0 0 Street/Mok Cheong Street Project 2013-2014 SSP/3/001 Shun Ning 8 1 0 0 0 9 2 4 1 0 Road Project 2013-2014 K7 Kwun Tong 145 19 10 111 0 285 53 160 19 11 (Develop- Town Centre ment Project Areas 2, 3 and 4) 2013-2014 MTK/1/002 San Shan 14 0 1 2 0 17 2 19 0 0 Road/Pau Chung Street Project 2014-2015 DL-1:SSP 229A-G, Hai 6 0 0 1 0 7 0 8 0 0 Tan Street Project 2014-2015 MK/01 Shanghai 14 0 3 3 0 20 3 23 1 1 Street/Argyle Street Project 2014-2015 TKW/1/002 Ma Tau Wai 33 4 0 1 0 38 9 38 3 0 Road/Chun Tin Street Project 9274 LEGISLATIVE COUNCIL ― 8 July 2020

Unit Type Category of Occupiers Financial Project Ground Exit Project Name Cockloft Upstairs Year Code Level Staircase Others Total Owner Tenant Occupier Others Unit Unit Unit Shop 2014-2015 SSP/1/003- Hai Tan 70 2 2 8 0 82 21 108 4 2 005 Street/Kweilin Street & Pei Ho Street Project 2014-2015 SSP-014 Fuk Wing 6 1 0 0 0 7 0 8 1 0 Street Project 2014-2015 TKT/2/002 Anchor 11 0 0 1 0 12 3 14 0 0 Street/Fuk Tsun Street Project 2014-2015 KC-006 Pak Tai 12 5 0 3 0 20 5 16 3 0 Street/San Shan Road Project 2015-2016 H14 Sai Wan Ho 3 0 0 11 0 14 6 7 0 0 Street Project 2015-2016 H18 Peel 52 0 10 41 0 103 21 40 7 1 (Sites A and Street/Graham C) Street Project 2015-2016 DL-8:KC Kai Ming Street 6 0 0 1 0 7 4 6 0 0 Project 2015-2016 KC-007 Kowloon City 16 7 0 0 0 23 3 16 3 3 Road/Sheung Heung Road Project 2015-2016 DL-2:SSP 205-211A, Hai 4 0 0 0 0 4 1 5 0 0 Tan Street Project 2015-2016 DL-3:YTM Pine Street/Oak 11 0 0 9 0 20 1 9 0 0 Street Project 2015-2016 K1 Nga Tsin Wai 17 0 0 3 0 20 0 2 18 0 Village Project 2015-2016 DL-4:SSP Kowloon 7 0 0 2 0 9 1 9 0 0 Road/Kiu Yam Street Project 2016-2017 DL-5:SSP Tung Chau 12 1 0 2 0 15 8 7 1 1 Street/Kweilin Street Project 2016-2017 DL-6:YTM Fuk Chak 4 0 0 0 0 4 0 3 0 0 Street/Li Tak Street Project 2016-2017 YTM-010 Reclamation 25 2 12 6 0 45 15 28 1 0 Street/Shantung Street Project 2017-2018 SSP-016 Castle Peak 16 6 0 3 0 25 4 18 4 0 Road/Un Chau Street Project 2018-2019 DL-10:KT Hang On Street 10 0 0 0 0 10 2 10 0 0 Project LEGISLATIVE COUNCIL ― 8 July 2020 9275

Unit Type Category of Occupiers Financial Project Ground Exit Project Name Cockloft Upstairs Year Code Level Staircase Others Total Owner Tenant Occupier Others Unit Unit Unit Shop 2018-2019 DL-11:YTM Ash Street 6 0 0 8 0 14 0 8 2 0 Project 2019-2020 SSP-015 Tonkin 14 0 0 1 0 15 5 16 0 0 Street/Fuk Wing Street Project

Note:

Some of the units might have more than one owner/tenant/occupier/others, while one owner/tenant/occupier/others might occupy more than one unit. As such, the total number of unit type would not equal to the total number of owner/tentant/occupier/others.

Annex 4

Details of Applications Made by Affected Shop Operators in URA's Completed Redevelopment Projects for Renting Shop Premises Provided after Completion of the Projects in the Financial Years from 2010-2011 to 2019-2020

Shortest and Number and Number longest percentage of shop terms of of shop operators Rental Year of Project the Project Name operators who have concessions Completion Code tenancy who have signed a and details agreement made tenancy signed for applications agreement the first time 2016 MK/02 Prince Edward 1 1 three years Nil Road West/Yuen (12.5%) Ngai Street Project 2017 K28 Sai Yee Street 8 6 three years Nil Project (40%) 2019 H18 Peel Street/Graham 11 11 five years Nil Street Project (78%) with a right of subsequent renewal for three years 9276 LEGISLATIVE COUNCIL ― 8 July 2020

Shortest and Number and Number longest percentage of shop terms of of shop operators Rental Year of Project the Project Name operators who have concessions Completion Code tenancy who have signed a and details agreement made tenancy signed for applications agreement the first time 2020 TKW/1/002 Ma Tau Wai 0 not not not Road/Chun Tin (None of the applicable applicable applicable Street Project 21 eligible shop operators applied for the arrangement)

Predicate offences for money laundering involving environmental crimes

18. MR HUI CHI-FUNG (in Chinese): President, the Financial Action Task Force ("FATF") comprises 39 major economies of the world, including Hong Kong. In its Mutual Evaluation Report of Hong Kong ("the Report") published in 2008 and its Follow-up Report published in 2012, FATF pointed out that the predicate offences for money laundering ("predicate offences") in Hong Kong had not adequately covered environmental crimes. In its Report published in 2019, FATF pointed out that Hong Kong had made relevant legislative amendments in May 2018. In this connection, will the Government inform this Council:

(1) of the details and latest progress of the Government's efforts, since 2008, in rendering environmental crimes as predicate offences;

(2) of the details of those predicate offence cases involving environmental crimes which were detected by relevant government departments in each of the past five years, including (i) the number of cases, (ii) the total amount of money laundered, and (iii) the total value of assets frozen (if applicable), with a tabulated breakdown by type of environmental crime (e.g. (a) emission of pollutants, (b) smuggling of endangered wild animals, (c) smuggling of LEGISLATIVE COUNCIL ― 8 July 2020 9277

endangered species of plants, (d) illegal logging, and (e) illegal fishing); and

(3) whether the Government has plans to render, by making reference to the practice of other jurisdictions which have currently included environmental crimes as predicate offences, the various environmental crimes as predicate offences; if so, of the timetable; if not, the reasons for that?

SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY (in Chinese): President, the Financial Action Task Force ("FATF") is an inter-governmental organization which sets international standards for combating money laundering and terrorist financing ("ML/TF"). It conducts mutual evaluations, a peer-review process by member jurisdictions, to oversee the implementation of the FATF Standards around the world. As a member of FATF since 1991, Hong Kong underwent the fourth round of mutual evaluation starting in January 2018. The assessment was concluded in June 2019, with the Mutual Evaluation Report of Hong Kong ("the Report") examined and adopted by the FATF Plenary convened in the United States.

Hong Kong has achieved satisfactory results in this round of mutual evaluation. The HKSAR Government's efforts in building a robust anti-money laundering and counter-terrorist financing regime is duly recognized by the international community. The Report commends Hong Kong for having a strong legal foundation and effective system for combating ML/TF. Underpinned by a high-level commitment from the Government, the system is particularly effective in the areas of risk identification, law enforcement, asset recovery, counter-terrorist financing and international cooperation. Hong Kong's system is assessed to be compliant and effective overall, making us the first jurisdiction in the Asia-Pacific region to have achieved an overall compliant result in the current round of FATF evaluation.

My reply to various parts of the question raised by Mr HUI Chi-fung is as follows:

(1) and (3)

All indictable offences are predicate offences covered under the ML offence stipulated in section 25 of the Organized and Serious Crimes Ordinance (Cap. 455). The Protection of Endangered Species of 9278 LEGISLATIVE COUNCIL ― 8 July 2020

Animals and Plants (Amendment) Ordinance 2018, which came into effect in May 2018, stipulates as indictable offences the importing, exporting or re-exporting of scheduled endangered species otherwise than in accordance with the Ordinance. The offences are punishable upon conviction to a maximum penalty of a fine of $10 million and imprisonment for 10 years. In addition, acts such as illegal logging and wildlife smuggling can also be prosecuted through other applicable indictable offences (such as theft, smuggling, etc.), and therefore also constitute predicate offences covered by the ML offence.

Having conducted a comprehensive review of the ML offence in Hong Kong, FATF acknowledges in the Report that it has covered all serious predicate offences, including various environmental crimes, and is therefore largely compliant with the international standards. Since environmental crimes are already predicate offences of ML covered under the laws of Hong Kong, the need does not arise for the Government to follow up in this regard.

(2) Statistics of various environmental crimes investigated by the relevant departments during the past five years are tabulated below. No ML prosecution was involved in these cases:

2015 2016 2017 2018 2019 Smuggling of endangered species 395 309 434 745 659 Illegal logging 59 24 23 21 12 Illegal fishing 39 14 8 8 6 Emission of pollutants(1) 360 722 708 759 781

Note:

(1) The figures provided are the total number of convictions each year under the following 10 legislations, including the Air Pollution Control Ordinance, the Noise Control Ordinance, the Water Pollution Control Ordinance, the Waste Disposal Ordinance, the Ozone Layer Protection Ordinance, the Environmental Impact Assessment Ordinance, the Dumping at Sea Ordinance, the Hazardous Chemicals Control Ordinance, the Product Eco-responsibility Ordinance and the Public Cleansing and Prevention of Nuisances Regulation.

LEGISLATIVE COUNCIL ― 8 July 2020 9279

Support for private museums

19. MR MA FUNG-KWOK (in Chinese): President, earlier on, the Legislative Council Secretariat has, at my request, conducted a study on the support policies for private museums in overseas places. The findings of the study show that private museums in the United States ("US") and the United Kingdom ("UK") are provided with various policy and financial support by their governments. In comparison, among over 35 existing private museums in Hong Kong, most of them have not been provided with any direct support by the Government. There have been comments that such a situation is not conducive to the preservation and diversified development of culture. In this connection, will the Government inform this Council:

(1) of the measures currently in place to support private museums, including whether it has assisted such museums in their promotional work targeted at members of the public in Hong Kong and overseas tourists; if so, of the details; if not, the reasons for that;

(2) of the details of the support provided by the Government for individual private museums in the past three years, including the names of such museums, and the specific details of the support; and

(3) whether it will consider, by drawing reference from the practices adopted by the US and UK authorities, (i) encouraging and supporting private museums in Hong Kong to establish their own accreditation regime and implement an accreditation scheme, and (ii) formulating policies and measures for supporting private museums, e.g. disbursing direct financial assistance, providing technical support, as well as regarding donations to private museums as a deduction allowable in tax assessment; if so, of the details; if not, the reasons for that?

SECRETARY FOR HOME AFFAIRS (in Chinese): President, the consolidated reply to various parts of Mr MA's question is as follows:

Currently, the major museums in Hong Kong are under the purview of the Leisure and Cultural Services Department ("LCSD"). LCSD is responsible for the provision and management of its museums in accordance with the Public 9280 LEGISLATIVE COUNCIL ― 8 July 2020

Health and Municipal Services Ordinance (Cap. 132). From the cultural policy perspective, in addition to the operations of public museums, the Government also welcomes the establishment of private museums, which are conducive to the pluralism and diversity in the cultural ecology of Hong Kong.

There have been regular collaborations between LCSD museums and other local museums. The most significant example is the annual International Museum Day, in which LCSD has been inviting non-LCSD museums to participate since 2001. On the International Museum Day 2020, Hong Kong ("IMD 2020, HK"), 18 private museums joined hands with our public museums to launch online activities and upload resources such as pamphlets, audio guides and multimedia programmes. Besides IMD 2020, HK, reciprocal loan of museum collections is also very common between LCSD museums and private museums; recent examples include:

(a) F11 Foto Museum loaned its manual cameras produced in the early years to LCSD's Hong Kong Museum of Coastal Defence for display at its thematic exhibition from 2017 to 2018;

(b) LCSD's Hong Kong Museum of Art loaned its collections to the Hong Kong Maritime Museum ("HKMM") for the exhibitions "The Silver Age: Origins and Trade of Chinese Export Silver" and "Pirates of the South China Sea: Chasing Cheung Po Tsai and the Port Cities" from 2017 to 2018; and to Liang Yi Museum for its exhibition "The Blue Road: Mastercrafts From Persia" in 2018;

(c) LCSD's Hong Kong Heritage Museum loaned its collections to HKMM, the Fong Yim Fun Art Sustainability Project Gallery of the Chinese University of Hong Kong, "Dismantling The Scaffold" exhibition of the Tai Kwun (2018), "A Story of Light: Hon Chi-fun" exhibition of the Asia Society Hong Kong Center (2019) and "Art Deco. The France-China Connection" exhibition of the Indra and Harry Banga Gallery (2019);

(d) LCSD's Hong Kong Museum of Art loaned the artworks of Hon Chi-fun and Irene Chou to the Asia Society Hong Kong Center in 2019 for display at the exhibitions "A Story of Light: Hon Chi-fun" and "A World Within: The Art and Inspiration of Irene Chou" respectively; and

LEGISLATIVE COUNCIL ― 8 July 2020 9281

(e) LCSD's Hong Kong Museum of History borrowed 14 collections from the MILL6 Foundation for its exhibition "Striving and Transforming―The History of Hong Kong Industry" (2020).

Apart from loaning of collections, LCSD museums and private museums also join hands with each other in organizing various kinds of activities including exhibitions, lectures and seminars. Recent examples include:

(a) LCSD's Hong Kong Museum of Art jointly organized the exhibition "In Search of Zen―The Art of Lui Shou-kwan" with the Art Museum, The Chinese University of Hong Kong and the National Art Museum of China in 2018. Ink paintings by LUI Shou-kwan from the Hong Kong Museum of Art and the Art Museum, The Chinese University of Hong Kong were exhibited at the National Art Museum of China in Beijing. Lectures were also organized;

(b) At end 2018, LCSD's Dr Sun Yat-sen Museum and Tianjin Museum jointly organized the exhibition "The Beiyang Warlords: War and Politics". The Tung Wah Group of Hospitals and Tung Wah Museum rendered assistance by providing artifacts for display and organizing visits to Tung Wah Hospital; and

(c) LCSD's Hong Kong Heritage Museum will jointly organize the exhibition "Fund-raising Culture of Hong Kong―Contributions of the Tung Wah Group of Hospitals" with Tung Wah Museum in October 2020.

In 2010, the Government had studied whether there was a need to formulate a suitable framework and mechanism to support the development of museums in Hong Kong. After examining the mode of governance of overseas museums, the Government found that the situation among different regions varied, hence it would be difficult to formulate a single mode that would be applicable for all. From the point of view of accountability, while the use of public resource should be monitored, when considering supports to private museums and formulating the relevant policies, the Government has to be mindful not to affect the diversified development of non-LCSD museums. Having regard to the uniqueness of individual museums' cultural and historical importance, theme, scale, organizational structure or financial situation, the Government does not have a set of standard mechanisms to support the operation 9282 LEGISLATIVE COUNCIL ― 8 July 2020 of private museums. Consideration of whether and how to support the operation of individual private museums would be made on a case-by-case basis in accordance with our policy objectives and established assessment criteria by examining carefully the museum's mission, planning, governance, community involvement, collections custodianship and the level of public recognition. Reference will also be drawn from operation information of museums of similar scale and theme in Hong Kong, the Mainland and overseas when reviewing the financial situation and operating mode.

Specifically, when handling the requests of support from private museums, we will positively consider museums meeting the following five main criteria:

(a) whether the development of the museum concerned will help maintain a diverse, pluralistic and vibrant cultural ecology in Hong Kong;

(b) whether the theme and contents of the museum concerned will help preserve and promote Hong Kong's art, culture and heritage with special reference to the key areas where Hong Kong's unique and outstanding development is showcased;

(c) whether the development of the museum concerned will help enhance Hong Kong's positioning as a creative economy and regional cultural hub;

(d) whether the activities and programmes of the museum concerned will help foster partnership between the Government and the community by complementing the public museums managed and operated by LCSD; and

(e) whether the museum would be managed by professional staff adopting internationally accepted code of practice.

In principle, we will only consider funding applications submitted by private museums operated by non-profit-making organizations in a non-profit-making mode. Applications from cultural organizations operating on commercial principles, such as private galleries, will not be considered.

LEGISLATIVE COUNCIL ― 8 July 2020 9283

Currently, HKMM is the only private museum in Hong Kong that is subvented by the Government. The Government has leased the premises at Central Pier 8 to HKMM at nominal rental with a 10-year land lease since 2011. Afterwards, the Government has provided subvention to support the operation of HKMM, including an annual operating grant at $6 million per annum and a maintenance fund up to $0.6 million between 1 April 2018 and 31 July 2021. The Government has also subsidized individual exhibitions and projects of HKMM, such as the Marine Science Education Programme (2020), exhibitions "The World on Paper: From Square to Sphericity" (2019) and "The Silver Age: Origins and Trade of Chinese Export Silver" (2017), etc.

In addition to subvention, the Government welcomes organizations interested in operating museums to apply for subsidy for cultural, art projects or activities, such as the "Springboard Grants" and the "Project Grants" under the Arts Capacity Development Funding Scheme managed by the Home Affairs Bureau, the Project Grant and Matching Fund Scheme from Hong Kong Arts Development Council and the Lord Wilson's Heritage Trust, etc., to support the museum's operations or to organize events. Non-governmental organizations and social enterprises, if interested in operating a private museum on vacant Government land, can submit an application for "Use of Vacant Government Land for Community, Institutional or Non-Profit Making Purposes on Short Term Basis". The Government will consider whether to grant the short-term tenancy at nominal rent in accordance with policy objectives and established assessment criteria.

According to section 2 of the Inland Revenue Ordinance, approved charitable donation means a donation of money to any charitable institution or trust of a public character, which is exempt from tax under section 88 of the Inland Revenue Ordinance, or to the Government, for charitable purposes. If the private museum is a charity that is exempted from tax under section 88 of the Inland Revenue Ordinance, taxpayers can claim a deduction for a donation of money. The aggregate deduction of approved charitable donations cannot be less than $100, and shall not exceed 35% of income after allowable expenses and depreciation allowances or assessable profits.

In terms of promotion, the Hong Kong Tourism Board has been promoting public and private museums with unique characteristics and their activities on its website , social platforms and tourist information centres, to highlight the diversity of touristic experience in Hong Kong.

9284 LEGISLATIVE COUNCIL ― 8 July 2020

With regards to other forms of support, private museums may also consider support provided by the global network of the International Council of Museums ("ICOM") in exchange with museum professionals and reference from the professional and ethical standards established by ICOM to enhance the quality of museums. ICOM, established in 1946, is an international organization of museums and museum professionals committed to the conservation, continuation and communication to society of the world's natural and cultural heritage. The major museums under are members of ICOM. HKMM is also a member.

The Government will continue to keep closely in view the development and trends of museums around the world, and to review the development of museums in Hong Kong.

Redevelopment projects implemented by the Urban Renewal Authority

20. MR SHIU KA-CHUN (in Chinese): President, according to the policy of the Urban Renewal Authority ("URA"), when URA holds discussions with the owners of the properties in a redevelopment project regarding the market value of their properties in the acquisition offers made to them, it will take into consideration the valuation reports on the market value of the properties ("valuation reports") submitted by professional surveyors who were appointed by the owners on their own ("owner-appointed surveyors"). On the other hand, in the event that URA cannot reach an agreement with the property owners on the acquisition of property titles due to such issues as the acquisition prices and vesting of titles, it may, under the Urban Renewal Authority Ordinance (Cap. 563), apply to the Government for resumption, under the Lands Resumption Ordinance (Cap. 124), by the Government of those property titles which have not been acquired so that those titles will revert to the Government. If such an application has been approved, the Lands Department will offer relevant compensation to the affected persons. If the two parties cannot reach an agreement on the amount of compensation, the affected persons may apply to the Lands Tribunal for determining the amount of compensation to be offered. In this connection, will the Government inform this Council:

(1) whether it knows the following information about the various redevelopment projects implemented by URA in the past 10 years: (i) the number of units acquired, (ii) the number of units which involved the submission of valuation reports by owner-appointed LEGISLATIVE COUNCIL ― 8 July 2020 9285

surveyors, and (iii) the number of units which involved revision of the acquisition offers by URA having regard to the valuation reports submitted by owner-appointed surveyors, with a breakdown by whether such properties were (a) residential or (b) non-residential properties in the following table;

(a) (b) Name of project (i) (ii) (iii) (i) (ii) (iii)

(2) of the following information about the redevelopment projects implemented by URA in the past 10 years which involved the Government's invoking of Cap. 124: (i) the number of units resumed by invoking Cap. 124, (ii) the number of units which involved the affected persons applying to the Lands Tribunal for determining the amount of compensation, and (iii) the number of units which involved the determination by the Lands Tribunal that the amount of compensation had to be adjusted, and set out a breakdown by whether such properties were (a) residential or (b) non-residential properties in a table of the same format as the table above; and

(3) whether it knows the criteria adopted by URA for deciding whether or not to (i) accept the valuation reports submitted by owner-appointed surveyors, and (ii) revise the acquisition offers; whether it will request URA to review the relevant mechanism to better protect the rights and interests of property owners?

SECRETARY FOR DEVELOPMENT (in Chinese): President, generally speaking, when the Urban Renewal Authority ("URA") implements a redevelopment project, it endeavours to acquire the property titles through voluntary negotiation. However, due to title issue, owners' wishes or other reasons, sometimes URA might not be able to successfully acquire all the property titles in a project. In such cases, pursuant to the Urban Renewal Authority Ordinance (Cap. 563), URA may make an application to the Secretary for Development requesting him to recommend to the Chief Executive in Council the resumption of land pursuant to the Lands Resumption Ordinance (Cap. 124). If the application is approved, the Lands Department ("LandsD") will resume the land in the entire lot, including the titles which have already been acquired by 9286 LEGISLATIVE COUNCIL ― 8 July 2020

URA, in order to extinguish all and any rights and interests in the land concerned. Afterwards, LandsD will hand over the vacant site to URA for implementation of redevelopment project at an appropriate juncture.

Based on the information provided by LandsD and URA, my reply to the three-part question is as follows:

(1) and (3)

Under the prevailing policy of URA, URA will assess the market value of each property in a redevelopment project based on the valuation of two independent valuation firms, whichever is higher, appointed by URA through tender invitation. If necessary, the factors and sale transactions considered by the surveyors would be provided to the owners. If the owners have other views, they may engage professional surveyors to assess the market values of the property. The owners may also apply to URA for subsidies to cover the cost of engaging such surveyors, but the amount cannot exceed the prescribed ceiling of the subsidies which would vary depending on the type of property concerned. The surveyors appointed by URA will carefully analyse the valuation reports and related information submitted by the owner-appointed surveyors. If necessary, URA and its appointed surveyors will also meet with the owners and their surveyors to exchange views on the valuation of the properties involved. After detailed consideration of different factors such as sale transactions of similar properties in the vicinity and the characteristics of the properties concerned, the surveyors appointed by URA will make a recommendation to URA. Upon considering the recommendations from the surveyors, URA will provide a written reply to the owners on whether their justifications and reasons to adjust URA's valuation are accepted.

Based on the established mechanism, owners can appoint professional surveyors to acquire professional advice and if necessary, they can also submit justifications on the valuation to URA and exchange views with URA. At present, URA does not have any plan to review the relevant mechanism.

LEGISLATIVE COUNCIL ― 8 July 2020 9287

Regarding the redevelopment projects implemented by URA in the past 10 years, the number of units acquired, the number of units which involved the submission of valuation reports by owner-appointed surveyors and the number of units which involved revision of the acquisition offers by URA having regard to the valuation reports submitted by owner-appointed surveyors are set out at Annex 1.

(2) Generally speaking, after a land resumption application initiated by URA has been approved, land resumption shall cover the entire lots, including the private titles to the affected land which have been transferred to URA, in order to extinguish all and any rights and interests in the land concerned which include those illegal occupiers of the common areas of the buildings on that land.

Relevant information on the invocation of the Lands Resumption Ordinance (Cap. 124) on the redevelopment projects in Annex 1 is at Annex 2.

Annex 1

Information on URA Redevelopment Projects in the Past 10 Years

Non-domestic Properties and Domestic Properties Others(1)

appointed appointed

- - Name of Project valuation reports surveyors surveyors appointed surveyors appointed surveyors - - Number of Number units acquired Number of Number units acquired owner owner Number of Number units the involving Number of Number units the involving submitted by owner submitted by submitted by owner submitted by regard tovaluation regard the reports regard to regard the submission of valuation reports by submission by of valuation reports submission of valuation reports by submission by of valuation reports the acquisition offers by URA having having acquisitionthe URA offers by the acquisition offers by URA having having acquisitionthe URA offers by Number of Number units of revision involving Number of Number units of revision involving MK/01 1. Shanghai Street/Argyle 20 1 0 16 10 0 Street Project 9288 LEGISLATIVE COUNCIL ― 8 July 2020

Non-domestic Properties and Domestic Properties Others(1)

appointed appointed

- - Name of Project valuation reports surveyors surveyors appointed surveyors appointed surveyors - - Number of Number units acquired Number of Number units acquired owner owner Number of Number units the involving Number of Number units the involving submitted by owner submitted by submitted by owner submitted by regard to regard the tovaluation regard the reports submission of valuation reports by submission by of valuation reports submission of valuation reports by submission by of valuation reports the acquisition offers by URA having having acquisitionthe URA offers by having acquisitionthe URA offers by Number of Number units of revision involving of Number units of revision involving

MK/02 Prince Edward Road 2. 26 17 0 11 6 1 West/Yuen Ngai Street Project MTK/1/002 3. San Shan Road/Pau 69 1 0 14 2 0 Chung Street Project SSP/3/001 4. 34 1 0 8 2 0 Shun Ning Road Project TKW/1/002 5. Ma Tau Wai Road/Chun 126 14 0 33 24 0 Tin Street Project KC-006 6. Pak Tai Street/San Shan 96 35 0 12 7 0 Road Project SSP-014 7. 26 4 0 6 2 0 Fuk Wing Street Project DL-1:SSP 8. 229A-G, Hai Tan Street 52 15 0 6 2 0 Project DL-2:SSP 9. 205-211A, Hai Tan Street 67 5 0 4 2 0 Project DL-3:YTM 10. Pine Street/Oak Street 76 3 0 21 4 0 Project KC-007 Kowloon City Road/ 11. 102 29 0 16 12 0 Sheung Heung Road Project LEGISLATIVE COUNCIL ― 8 July 2020 9289

Non-domestic Properties and Domestic Properties Others(1)

appointed appointed

- - Name of Project valuation reports surveyors surveyors appointed surveyors appointed surveyors - - Number of Number units acquired Number of Number units acquired owner owner Number of Number units the involving Number of Number units the involving submitted by owner submitted by submitted by owner submitted by regard to regard the tovaluation regard the reports submission of valuation reports by submission by of valuation reports submission of valuation reports by submission by of valuation reports the acquisition offers by URA having having acquisitionthe URA offers by having acquisitionthe URA offers by Number of Number units of revision involving of Number units of revision involving DL-4:SSP 12. Kowloon Road/Kiu Yam 72 17 0 7 4 0 Street Project DL-5:SSP 13. Tung Chau Street/Kweilin 160 14 0 12 9 0 Street Project YTM-010 14. Reclamation Street/ 129 22 0 44 21 0 Shantung Street Project DL-6:YTM 15. Fuk Chak Street/Li Tak 50 5 0 4 0 0 Street Project IB-2:SSP 16. Yu Chau West Street 0 0 0 40 34 0 Project DL-8:KC 17. 43 6 0 6 1 0 Kai Ming Street Project SSP-015 18. Tonkin Street/Fuk Wing 65 20 0 16 8 4 Street Project DL-10:KT 19. 80 2 0 10 1 1 Hang On Street Project SSP-016 20. Castle Peak Road/Un 85 29 0 16 8 0 Chau Street Project DL-11:YTM 21. 64 5 0 14 14 0 Ash Street Project KC-009 22. Bailey Street/Wing 769 40 0 109 27 0 Kwong Street Project 9290 LEGISLATIVE COUNCIL ― 8 July 2020

Non-domestic Properties and Domestic Properties Others(1)

appointed appointed

- - Name of Project valuation reports surveyors surveyors appointed surveyors appointed surveyors - - Number of Number units acquired Number of Number units acquired owner owner Number of Number units the involving Number of Number units the involving submitted by owner submitted by submitted by owner submitted by regard to regard the tovaluation regard the reports submission of valuation reports by submission by of valuation reports submission of valuation reports by submission by of valuation reports the acquisition offers by URA having having acquisitionthe URA offers by having acquisitionthe URA offers by Number of Number units of revision involving of Number units of revision involving KC-011 23. Hung Fook Street/Kai 203 35 0 27 16 12 Ming Street Project KC-012 24. Wing Kwong Street 58 4 0 13 4 0 Project KC-008(A) 25. Chun Tin Street/Sung Chi 56 8 0 14 11 0 Street Project KC-010 26. Hung Fook Street/Ngan 381 12 0 54 17 3 Hon Street Project KC-013 27. Kai Ming Street/Wing 106 20 0 19 13 5 Kwong Street Project C&W-005 28. Sung Hing Lane/Kwai 80 11 0 21 9 5 Heung Street Project YTM-011 29. Oak Street/Ivy Street 54 7 0 10 7 0 Project KC-014 30. Wing Kwong Street/Sung 271 0 0 36 4 0 On Street Project C&W-006 31. Queen's Road West/In Ku 54 10 0 13 13 0 Lane Project

Note:

(1) including buildings in single ownership of any type and vacant lots

LEGISLATIVE COUNCIL ― 8 July 2020 9291

Annex 2

Relevant Information on URA's Redevelopment Projects in the Past 10 years Which Involve Invocation of the Lands Resumption Ordinance (Cap. 124) by the Government

Domestic Properties Non-domestic Properties

the amount the

Name of Project on ofamount the previously) compensation compensation of compensation of compensation Resumption Ordinance Ordinance Resumption acquired by URA previously) URA by acquired for ofamount determination the for determinati (including those already already those (including successfully already successfully acquired URA already by Number of interests of which the Lands the of Number interests of which Lands the of Number interests of which Resumption Ordinance (including Ordinance Resumption those to the Lands Tribunal by affected parties to Landsaffected the Tribunal by parties to Landsaffected the Tribunal by Tribunal to adjust determined Tribunal to adjust amount the determined Number of interests resumed under Lands under of Number interests resumed Number of interests resumed under Lands under of Number interests resumed Number of applicationsNumber interests involving of applicationsNumber interests involving MK/01 1 Shanghai Street/ 11 1 1 12 2 1 Argyle Street Project MTK/1/002 2 San Shan Road/Pau 69 0 0 14 0 0 Chung Street Project SSP/3/001 3 Shun Ning Road 43 0 0 0 0 0 Project TKW/1/002 Ma Tau Wai 4 155 1 0 4 1 0 Road/Chun Tin Street Project KC-006 5 Pak Tai Street/San 96 1 0 12 0 0 Shan Road Project SSP-014 6 Fuk Wing Street 26 0 0 6 1 0 Project DL-1:SSP 7 229A-G, Hai Tan 55 0 0 3 0 0 Street Project DL-2:SSP 8 205-211A, Hai Tan 67 0 0 4 0 0 Street Project DL-3:YTM 9 Pine Street/Oak 76 0 0 21 0 0 Street Project 9292 LEGISLATIVE COUNCIL ― 8 July 2020

Domestic Properties Non-domestic Properties

the amount the

Name of Project on ofamount the previously) compensation compensation of compensation of compensation Resumption Ordinance Ordinance Resumption acquired by URA previously) URA by acquired for ofamount determination the for determinati (including those already already those (including successfully already successfully acquired URA already by Number of interests of which the Lands the of Number interests of which Lands the of Number interests of which Resumption Ordinance (including Ordinance Resumption those to the Lands Tribunal by affected parties to Landsaffected the Tribunal by parties to Landsaffected the Tribunal by Tribunal to adjust determined Tribunal to adjust amount the determined Number of interests resumed under Lands under of Number interests resumed Lands under of Number interests resumed Number of applicationsNumber interests involving of applicationsNumber interests involving KC-007 Kowloon City Road/ 10 106 0 0 12 0 0 Sheung Heung Road Project DL-4:SSP 11 Kowloon Road/Kiu 72 0 0 7 0 0 Yam Street Project DL-5:SSP Tung Chau Street/ 12 159 0 0 12 8 1 Kweilin Street Project YTM-010 Reclamation Street/ 13 129 2 2 44 1 0 Shantung Street Project DL-6:YTM 14 Fuk Chak Street/Li 50 0 0 4 0 0 Tak Street Project DL-8:KC 15 Kai Ming Street 45 0 0 4 0 0 Project SSP-015 16 Tonkin Street/Fuk 73 0 0 8 1 0 Wing Street Project DL-10:KT 17 Hang On Street 80 0 0 10 0 0 Project SSP-016 18 Castle Peak Road/Un 85 0 0 16 0 0 Chau Street Project DL-11:YTM 19 64 0 0 14 0 0 Ash Street Project KC-009 20 Bailey Street/Wing 850 0 0 28 1 0 Kwong Street Project LEGISLATIVE COUNCIL ― 8 July 2020 9293

Domestic Properties Non-domestic Properties

the amount the

Name of Project on ofamount the previously) compensation compensation of compensation of compensation Resumption Ordinance Ordinance Resumption acquired by URA previously) URA by acquired for ofamount determination the for determinati (including those already already those (including successfully already successfully acquired URA already by Number of interests of which the Lands the of Number interests of which Lands the of Number interests of which Resumption Ordinance (including Ordinance Resumption those to the Lands Tribunal by affected parties to Landsaffected the Tribunal by parties to Landsaffected the Tribunal by Tribunal to adjust determined Tribunal to adjust amount the determined Number of interests resumed under Lands under of Number interests resumed Lands under of Number interests resumed Number of applicationsNumber interests involving of applicationsNumber interests involving KC-011 Hung Fook Street/ 21 207 0 0 23 0 0 Kai Ming Street Project KC-012 22 Wing Kwong Street 69 0 0 2 0 0 Project KC-008(A) Chun Tin Street/ 23 66 0 0 4 0 0 Sung Chi Street Project KC-010 Hung Fook Street/ 24 395 0 0 40 0 0 Ngan Hon Street Project KC-013 Kai Ming Street/ 25 106 0 0 19 0 0 Wing Kwong Street Project Total 3 154 5 3 323 15 2

Notes:

Compared to Annex 1, Prince Edward Road West/Yuen Ngai Street Project (MK/02) and Yu Chau West Street Project (IB-2:SSP) are revitalization/retrofitting projects and thus the Lands Resumption Ordinance (Cap. 124) was not invoked.

Also, four projects, namely Sung Hing Lane/Kwai Heung Street Project (C&W-005), Oak Street/Ivy Street Project (YTM-011), Wing Kwong Street/Sung On Street Project (KC-014) and Queen's Road West/In Ku Lane Project (C&W-006) have not yet reached the stage of invoking Lands Resumption Ordinance (Cap. 124).

As LandsD's criteria for categorizing the type of ownership might be different from the categorization adopted by URA for the purpose of acquisition, the number of units and interests for individual projects in Annex 1 and Annex 2 might differ.

9294 LEGISLATIVE COUNCIL ― 8 July 2020

External transport for Tuen Mun

21. DR KWOK KA-KI (in Chinese): President, some Tuen Mun residents have relayed that as Tuen Mun Road, being the major trunk road connecting Tuen Mun to other areas, has rather high volume of traffic, and traffic accidents frequently occur, severe traffic congestions often happen there. On the 12th of last month, two traffic accidents happened on that road on the same day, causing serious traffic jams with tailbacks reaching as long as 10 kilometres, much to the agony of the local residents. Regarding the external transport for Tuen Mun, will the Government inform this Council:

(1) of the design maximum capacity of Tuen Mun Road and, as anticipated by the authorities when constructing the road, the average daily peak hour and non-peak hour traffic volumes of the road in the 10th and the 20th years after its commissioning;

(2) of the following information on Tuen Mun Road in each of the past three years:

(i) the morning peak hour traffic volume,

(ii) the morning peak hour traffic volume/capacity ("v/c") ratio,

(iii) the non-peak hour traffic volume,

(iv) the non-peak hour traffic v/c ratio, and

(v) the average daily traffic volume;

(3) of the number of traffic accidents which happened on Tuen Mun Road and the resultant casualties, in each of the past three years;

(4) of (i) the number of incidents of traffic jams which were caused by traffic accidents, (ii) the average and the longest duration of the traffic jams, and (iii) the average and the longest lengths of the tailbacks, on Tuen Mun Road in each of the past three years;

LEGISLATIVE COUNCIL ― 8 July 2020 9295

(5) of the works projects to be implemented and other ways to be adopted in the coming five years to alleviate the problem of traffic congestion on Tuen Mun Road;

(6) of the latest anticipated commissioning date of the Northern Connection of Tuen Mun-Chek Lap Kok Link ("TM-CLKL"); in the estimation by the authorities, (i) the v/c ratios on Tuen Mun Road during peak hours, and (ii) the reduction in the traffic volume per hour when compared with the pre-commissioning figure, in the first five years after the commissioning of the Northern Connection of TM-CLKL;

(7) of the (i) maximum traffic volumes, (ii) peak hour traffic volumes per hour, and (iii) average daily traffic volumes, in the first five years after the commissioning of the Northern Connection of TM-CLKL, as anticipated by the authorities when designing the road; and

(8) in addition to the commissioning of the Northern Connection of TM-CLKL, of the authorities' plans in the coming five years to improve the external transport for Tuen Mun, and whether such plans include:

(i) planning for the construction of additional roads to connect Tuen Mun to the urban areas,

(ii) resuming the ferry services between Central and Tuen Mun,

(iii) planning for the construction of additional railways to connect Tuen Mun to the urban areas,

(iv) enhancing the franchised bus services between Tuen Mun and the urban areas, with a view to attracting motorists commuting to and from Tuen Mun by bus instead, and

(v) prompting the reduction in the tolls of Tai Lam Tunnel with a view to making optimal use of its unused capacity;

if so, of the progress; if not, whether they will commence feasibility studies for such plans?

9296 LEGISLATIVE COUNCIL ― 8 July 2020

SECRETARY FOR TRANSPORT AND HOUSING (in Chinese): President, Tuen Mun Road, with heavy daily traffic, is the trunk road connecting the Northwest New Territories ("NWNT") and the urban areas. The Transport Department ("TD") has all along been closely monitoring the traffic of various major roads (including Tuen Mun Road) and disseminating traffic information to road users through different channels in a timely, effective and extensive manner, so that they could plan their trips and select transport modes having regard to the actual traffic conditions.

After consulting TD and the Highways Department ("HyD"), my reply to the various parts of the Dr KWOK Ka-ki's question is as follows:

(1) and (2)

At present, the section between Sham Tseng and Tsing Long Highway has the highest daily traffic flow of Tuen Mun Road. According to the latest Annual Traffic Census ("ATC") (i.e. traffic flow statistics up to 2018), the daily average traffic volumes, the morning peak hour traffic volumes, the morning peak hour traffic volume/capacity ("v/c") ratios of the road section concerned from 2016 to 2018 and its maximum design capacity are tabulated below:

Morning peak Maximum Daily average Morning peak hour traffic design Year traffic volume hour traffic volume(1) capacity(3) (vehicle) v/c ratio(2) (vehicle/hour) (vehicle/hour) 2016 63 230 5 510 0.9 6 300 2017 66 160 5 830 0.9 6 300 2018 64 040 5 850 0.9 6 300

Notes:

(1) The morning peak hour refers to the busiest one hour from 7:00 am to 10:00 am on weekdays (i.e. Mondays to Fridays, except public holidays).

(2) The v/c ratio is used to reflect the traffic situation during peak hours. A v/c ratio less than 1.0 means that the situation is acceptable.

(3) The maximum design capacity is calculated based on the number of traffic lanes and width of the road section concerned.

LEGISLATIVE COUNCIL ― 8 July 2020 9297

As Tuen Mun Road was constructed years ago, TD does not have information on its estimated peak hour and non-peak hour traffic volumes at the time of construction. ATC also does not contain traffic volume data during non-peak hours of the road section concerned.

(3) Based on records, the numbers of traffic accidents that happened on Tuen Mun Road and the resultant casualties from January 2017 to May 2020 are tabulated below:

Number Number of casualties Year of traffic Seriously Slightly Killed accidents injured injured 2017 225 1 34 345 2018 256 1 34 355 2019 263 1 42 359 2020* 78 1 14 104 (January to May)

Note:

* Provisional figures

(4) During the period from June 2017 to mid-June 2020, there were 589 traffic accidents that caused traffic obstruction on Tuen Mun Road. The average and the longest duration of the traffic obstruction caused by these accidents were about 30 minutes and 270 minutes respectively. TD does not maintain records of the lengths of vehicle queues caused by each accident.

(5) to (7)

HyD is taking forward the construction of the Tuen Mun―Chek Lap Kok ("TM-CLK") Link Northern Connection which will connect NWNT, Hong Kong-Zhuhai-Macao Bridge Hong Kong Port, North Lantau and the Hong Kong International Airport. Upon the commissioning of TM-CLK Link Northern Connection, it is anticipated that some of the vehicles will choose to travel between NWNT and Lantau through TM-CLK Link Northern Connection, 9298 LEGISLATIVE COUNCIL ― 8 July 2020

alleviating the traffic conditions at Tuen Mun Road. The actual traffic volumes of Tuen Mun Road and TM-CLK Link Northern Connection will be subject to various factors, including choices of the motorists, economic conditions, traffic conditions on other roads, etc.

TM-CLK Link Northern Connection is planned to be completed in end 2020 at the earliest. Due to unforeseen events in recent months, including COVID-19, the supply of construction materials and installations has been affected and the workforce for site works was once reduced. HyD will monitor the progress of works and assess continuously the impact of the epidemic on the project as a whole.

TD will also continue to monitor closely the traffic conditions of Tuen Mun Road and review the design of the road facilities in due course. Additional traffic signs and road markings will be provided as necessary to further remind motorists to pay attention to the traffic conditions.

(8) (i) HyD is conducting a feasibility study on Route 11 for enhancing the connectivity of major roads between NWNT and the urban areas. Upon finalization of the feasibility study, the Government will consult the Legislative Council and relevant District Councils on the recommended alignment and other engineering-related matters.

(ii) Due to inadequate patronage, the "Tuen Mun―Central" ferry route ceased operation in 2000. Regarding the proposed resumption of operation of the ferry route, the Government welcomes any operator interested in running a new ferry route to submit application. The Government will take into account all factors, including passenger demand as well as financial and operational viability.

(iii) The Tuen Mun South ("TMS") Extension is one of the seven recommended railway schemes in the Railway Development Strategy 2014. The proposed project will extend the West Rail Line from Tuen Mun Station southwards by about LEGISLATIVE COUNCIL ― 8 July 2020 9299

2.4 km, including the provision of a new station near Tuen Mun Ferry Pier and an intermediate station at Tuen Mun Area 16, thereby improving railway access to the community south of the Tuen Mun town centre. The TMS Extension will offer an alternative commuting choice to the residents in the vicinity and divert more commuters to rail-based transport, which may help relieve the congestion on existing roads. The Government has already invited the MTR Corporation Limited to proceed with the detailed planning and design of the TMS Extension project.

In addition, in order to complement the proposed development of the artificial island in the Central Waters, the Government plans to implement a major transport corridor with roads and railway linking Hong Kong Island North, the artificial island in the Central Waters, North Lantau and the coastal areas of Tuen Mun. The proposed transport corridor will help relieve the current day-to-day congestion at the existing West Rail Line and Tuen Mun Road during peak hours, improve the transport situation in NWNT and enhance the flexibility and resilience of the entire transport network of Hong Kong, and improve the transport performance in NWNT and even the entire Hong Kong.

(iv) At present, franchised buses are the major road-based public transport mass carriers connecting NWNT and the urban areas. To facilitate the operation of franchised buses, the Government has already put in place bus-only lanes and bus-bus interchange on Tuen Mun Road.

Given the impending commissioning of TM-CLK Link Northern Connection, TD will adjust the current bus routes plying between Tuen Mun and North Lantau by re-routing via the Northern Connection of TM-CLKL in lieu of Tuen Mun Road, Ting Kau Bridge and Lantau Link. The arrangement will shorten the journey distance and time of the bus routes to and from the two districts, as well as ease the traffic flow on Tuen Mun Road. TD will continue to closely monitor the operation of various public transport services, and make 9300 LEGISLATIVE COUNCIL ― 8 July 2020

timely adjustments in response to passenger demand with a view to further improving the public transport services of the district.

(v) TD commenced the Study on "Congestion Charging" ("the Study") in July 2019 to examine the hierarchy and levels of tolls of government tolled tunnels and control areas (including the Western Harbour Crossing and Tai Lam Tunnel which will be taken over by the Government upon franchise expiry in August 2023 and May 2025 respectively). The Study adopts the principle of "Efficiency First" to enable efficient people carriers to enjoy lower tolls for using government tolled tunnels and control areas, while imposing higher tolls on vehicles with low-carrying capacity.

The Study will also consider how the implementation of Congestion Charging will affect vehicular traffic flows of the relevant alternative routes (including Tuen Mun Road). TD plans to consult relevant stakeholders on the recommendations arising from the Study in 2021.

Restricting students' freedom of expression

22. MR IP KIN-YUEN (in Chinese): President, the Convention on the Rights of the Child ("the Convention"), which has been applicable to Hong Kong since 1994, stipulates under paragraph 1 of Article 13 that "[t]he child shall have the right to freedom of expression; this right shall include freedom to seek, receive and impart information and ideas of all kinds … either orally, in writing or in print, in the form of art, or through any other media of the child's choice", and under paragraph 1(b) of Article 29 that States Parties unanimously agree that the education of the child shall be directed to "[t]he development of respect for human rights and fundamental freedoms, and for the principles enshrined in the Charter of the United Nations". On the other hand, on 10 June this year, the Secretary for Education ("the Secretary") wrote to the principals of all primary and secondary schools in Hong Kong, requesting them to counsel their students to stop "chanting slogans, forming human chains, and posting slogans or singing songs which contain political messages at schools for expressing political stance", and stated that "if individual students refuse to comply with the LEGISLATIVE COUNCIL ― 8 July 2020 9301 instructions after repeated persuasion, schools should take appropriate counseling and disciplinary actions according to the school-based mechanism". In addition, when the Secretary was asked at a radio interview on 11 June whether students might play and sing the songs from the musical Les Misérables at school music competitions, he responded that it would depend on the circumstances and the purpose at the time. In this connection, will the Government inform this Council:

(1) whether it has assessed if the aforesaid request made by the Secretary to the principals of primary and secondary schools has constituted a restriction on students' freedom of expression, thereby violating the aforesaid provisions in the Convention under which the child shall enjoy such right; if it has assessed and the outcome is in the negative, of the justifications for that;

(2) whether it has assessed if "listening to the views of the students" is one of the indispensable elements in good school-based management practices; if it has assessed and the outcome is in the affirmative, why the Education Bureau ("EDB") has requested schools to counsel students to stop expressing political stance; of the measures in place to ensure that students may express themselves freely without fear;

(3) of the criteria based on which EDB determines whether the songs played and sung by students at schools are political promotion or political propaganda in nature;

(4) under what circumstances or for what purpose that students playing and singing songs at schools will be regarded by EDB as conducting political promotion or political propaganda;

(5) whether students playing and singing The Internationale or Bloodstained Elegance (a military song of the People's Liberation Army) at schools will be regarded by EDB as conducting political promotion or political propaganda; and

(6) given that since the 1980s, it has been recognized across the globe that forming human chains is a peaceful way to express an array of aspirations (apart from political promotion or political propaganda, such aspirations include raising funds to fight hunger, advocating 9302 LEGISLATIVE COUNCIL ― 8 July 2020

world peace, striving for debt forgiveness for developing nations, fighting for gender equality), and that some local pro-establishment organizations initiated a human chain activity in 2016 in which a large number of children took part, whether EDB prohibits, in a broad-brush manner, students from forming human chains inside and outside schools?

SECRETARY FOR EDUCATION (in Chinese): President, schools are places for students to learn and grow. They should not be used as a venue for anyone to express their political demands. Such acts will affect the normal learning of students and stir up their emotions. We are pleased to see students care about the society. As to whether and how to discuss controversial social issues, it depends on the stage of students' cognitive development. We should also stick to basic principles such as rationality, impartiality and analysis from multiple perspectives, but under no circumstances should anyone be allowed to incite students to indicate their stance on controversial or evolving political issues and mobilize them to take part in inappropriate or even unlawful activities in support of their political cause at the expense of students' interests. This is also a general consensus of the education sector. During the past year, some individuals and groups with ulterior motives have deliberately misled and incited students to express their political stance in different ways (such as boycotting classes, chanting slogans, forming human chains, and posting slogans or singing songs which contain political messages in schools) in order to achieve their political objectives. The Education Bureau and schools are obliged to stop these acts. It is heartbreaking to see our students being used as political chips. We strongly condemn the acts of these people who have been causing harm to our students. To ensure that our students can learn in a peaceful, caring, rational, safe and orderly campus environment, the Education Bureau will do our best to protect them.

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

(1) and (2)

We note that paragraph 1 of Article 13 of the Convention on the Rights of the Child ("the Convention") provides for the right to freedom of expression. However, such right is not absolute. Paragraph 2 of Article 13 of the Convention also stipulates that the LEGISLATIVE COUNCIL ― 8 July 2020 9303 exercise of this right may be subject to certain restrictions, including those which are necessary for respect of the rights of others, or for the protection of national security or of public order, or of public health or morals. Besides, paragraph 1(b) of Article 29 of the Convention sets out that the education of the child shall be directed to "[t]he development of respect for human rights and fundamental freedoms, and for the principles enshrined in the Charter of the United Nations". More importantly, Article 3 of the Convention provides that in all actions concerning children, the best interests of the child shall be a primary consideration. The Government has the responsibility to ensure the children such protection and care as that is necessary for their well-being, including their educational needs and learning life free from interference.

Peaceful and orderly school environment and atmosphere are crucial to students' learning and growth. In response to some groups' inciting students to participate in a so-called "referendum" on holding a strike and class boycott, the Education Bureau issued a letter on 10 June 2020 to all primary and secondary school principals in Hong Kong, calling on them to remind students once again that they should always put their own safety as the top priority, be considerate to themselves and family members who care about them, and must not participate in dangerous or unlawful activities. They should not participate in class boycotts, or take part in activities such as chanting slogans, forming human chains, and posting slogans or singing songs which contain political messages at schools for expressing political stance. These actions would stir up other people's emotions and undermine the harmonious school environment and progress of learning. With the interest of students as our primary consideration, the Education Bureau has repeatedly appealed to schools with a view to protecting students' well-being.

On the other hand, we have all along encouraged schools to maintain communication with different stakeholders (including students) through various channels to understand their views on various aspects of the schools. This can facilitate the self-evaluation and self-improvement of schools, which will in turn enhance the quality of education. Nevertheless, we have to emphasize that such exchange of views should be conducted in a peaceful and rational 9304 LEGISLATIVE COUNCIL ― 8 July 2020

manner without being subject to any pressure. Under no circumstances should students or other persons be incited to indicate their stance on controversial and evolving political issues or mobilized to take part in inappropriate and even unlawful activities.

(3) to (6)

We would like to reiterate that no political propaganda activities should be allowed in schools, and no one, including students, should play, sing and broadcast songs which contain political messages or hold any activities to express their political stance. Playing and singing songs, which cover a wide range of topics, are one of the ways for people to express their thoughts and feelings. Some of the songs are composed and performed under certain social, historical, cultural and era background, and public's understanding and views of them may change with different social landscapes. Whether students are allowed to play and sing a particular song or certain songs in schools should be considered based on certain basic principles. In this regard, the Education Bureau would like to emphasize that schools must not allow their students to play, sing or broadcast any songs which will disrupt the normal operation of schools, affect students' emotions or contain political messages. For example, the song "Glory to Hong Kong", originated from the social incidents since June last year, contains strong political messages and is closely related to the social and political incidents, violence and illegal incidents that have lasted for months. Therefore, schools must not allow students to play, sing or broadcast it in schools.

Moreover, in case a student acts in a way which is not respectful on occasions such as graduation ceremonies and school opening ceremonies or in learning activities or not in line with the learning objectives in schools, the schools concerned should take prompt action to stop it. Playing, singing or broadcasting songs with political messages and forming human chains are ways to express political demands and incite the participation of other students, which are not in line with the curriculum or learning objectives. Of course there have been activities forming human chains for various LEGISLATIVE COUNCIL ― 8 July 2020 9305

non-political reasons across the world in the past. Nevertheless, forming human chains and chanting certain slogans, which carry strong political messages, have obviously been organized or carried out neither for charity nor other non-political purposes since September last year. Therefore, schools should dissuade students from doing so.

In addition, looking at the incidents in the past year, the forming of human chains inside and outside schools have inevitably caused a nuisance to others. Problems such as noise nuisance have caused the resentment of residents in the neighbourhood and in some cases have even led to incidents such as confrontations, injuries to persons and throwing objects from height. To protect the personal safety and well-being of students, both the Education Bureau and schools have the responsibility to stop students from forming human chains.

Over the past year, many students were incited to participate in violent and unlawful activities and quite a number of them were arrested and even prosecuted. According to information gathered from various sources, among those arrested from June 2019 to May 2020 in relation to the social incidents, about 1 600 of them were aged under 18. We believe that most of them were secondary school students and some were primary school students. This is distressing and worrying. We must let students understand clearly that they are responsible for their behaviour. In school, punishment and guidance are made in accordance with the school-based disciplinary and counselling mechanisms. Outside school, the responsibility is taken according to law. We do not want to see our students being injured, arrested, prosecuted and even convicted. We need to dissuade and stop students immediately when there are signs of their breaking the law or violating any regulations. We remain steadfast in safeguarding the well-being of our students and upholding the goals of education in Hong Kong by cultivating their positive values and moral character so that they can learn to abide by the law and respect others.

(Dr KWOK Ka-ki indicated to raise a point of order)

9306 LEGISLATIVE COUNCIL ― 8 July 2020

DEPUTY PRESIDENT (in Cantonese): Dr KWOK Ka-ki, what is your point of order?

DR KWOK KA-KI (in Cantonese): A point of order. I wish to move the following motion for adjournment of the Council under Rule 16(2) of the Rules of Procedure: "That this Council do now adjourn for the purpose of debating the following issue: in view of the rapid upward trend of confirmed cases of novel coronavirus (commonly called "Wuhan Pneumonia") yesterday and today with about 30 reported cases in two days, moreover, cases were reported for the first time in residential care home for the elderly, there were also cases of students being infected and unknown sources, the Government has admitted that it is a third-wave of community outbreak in Hong Kong, triggering worries among the public about the threat of Wuhan Pneumonia to their lives again."

DEPUTY PRESIDENT (in Cantonese): Dr KWOK Ka-ki, you have concisely explained the reason why you are requesting to move the motion for adjournment under Rule 16(2) of the Rules of Procedure. I am now going to suspend the meeting. Please deliver the wording of your motion to the Secretariat as soon as possible so as to facilitate the President to deal with it.

The meeting is now suspended.

3:35 pm

Meeting suspended.

4:05 pm

Council then resumed.

(THE PRESIDENT resumed the Chair)

LEGISLATIVE COUNCIL ― 8 July 2020 9307

PRESIDENT (in Cantonese): Dr KWOK Ka-ki, I understand that the question you wish to debate is a matter of great public concern. As far as I know, the Panel on Health Services of this Council has arranged to discuss the prevention and control measures on COVID-19 in Hong Kong in Friday's meeting where all Members are invited to join the discussion on the matter. I think that Members will still have many opportunities to follow up the matter via various channels. For that reason, I consider it unnecessary for this Council to debate the matter at this meeting in the form of an adjournment motion.

Members should know well that only two meetings of this Council remain within this legislative session, including this one, yet we still need to deal with a large number of agenda items as soon as possible.

Based on the above reasons, I rule that Dr KWOK Ka-ki's motion does not meet the requirements of Rule 16(2) of the Rules of Procedure. Therefore, I am unable to grant permission to your request.

GOVERNMENT BILLS

Second Reading of Government Bills

Resumption of Second Reading Debate on Government Bill

PRESIDENT (in Cantonese): Government Bill. This Council now continues with the Second Reading debate on the Employment (Amendment) Bill 2019.

Stand-over item: Employment (Amendment) Bill 2019 (standing over from the meeting of 24 June 2020)

EMPLOYMENT (AMENDMENT) BILL 2019

Resumption of debate on Second Reading which was moved on 8 January 2020

PRESIDENT (in Cantonese): Does any Member wish to speak?

9308 LEGISLATIVE COUNCIL ― 8 July 2020

MR LEUNG YIU-CHUNG (in Cantonese): President, I speak in support of the resumption of Second Reading of the Employment (Amendment) Bill 2019 ("the Bill").

Basically, the Bill contains three main points: first, extending the statutory maternity leave from the current 10 consecutive weeks to 14 weeks, during which the maternity leave pay for the additional four weeks will also be calculated at four-fifths of the employee's average daily wages and subject to a cap which the Government proposes to amend from the originally proposed amount of $36,822 to the present $80,000―I will discuss this issue again later―second, amending the definition of "miscarriage" by changing it from "before 28 weeks of pregnancy" to "before 24 weeks of pregnancy", so, in order words, an eligible female employee whose child is incapable of survival after being born at or after 24 weeks of pregnancy will be entitled to maternity leave; and third, an employee who is absent from work for attending an antenatal check-up during her pregnancy would still be entitled to sickness allowance under the Employment Ordinance ("EO") for the day of the check-up, even if she only has a certificate of attendance as proof.

President, these three amendments are definitely good news for female employees. Regarding these amendments, the Government intended to create one post of Chief Labour Officer with the special responsibility of setting up a dedicated office to implement the scheme for reimbursing employers for the additional four weeks' maternity leave pay, and, among others, conduct tendering exercises for the appointment of the processing agent. That is to say, this Chief Labour Officer will be responsible for finding a private sector processing agent to outsource the task of reimbursing the employers for the additional maternity leave pay. In our view, this is a task that can be handled by the Labour Department itself, and the Government need not waste public money on tendering exercises for the appointment of the processing agent. Therefore, this proposal of the Government was negatived by Members at the Finance Committee meeting on 3 July.

President, while we have voted down the proposal to outsource the Labour Department's task of handling the Reimbursement of Maternity Leave Pay Scheme, we strongly support the Bill. As roughly estimated by Secretary Dr LAW Chi-kwong, after the passage of the newly amended Bill, some 27 000 female employees will benefit from it each year. So, if the Bill can be passed in the current legislative session, it will certainly bring benefits to a substantial number of female employees.

LEGISLATIVE COUNCIL ― 8 July 2020 9309

As I recall, at the previous Legislative Council meeting, the royalist Members and the Government spoke with one voice, accusing pan-democratic Members of deliberately filibustering to thwart the passage of the Bill, but the truth was … Since January this year, why … Pan-democratic Members have kept asking Secretary Dr LAW Chi-kwong when the Bill would be tabled before the Legislative Council, but what we saw in the end was that the Secretary decided to bypass the House Committee―i.e. without any discussion about forming a bills committee at all―and suddenly proposed during a Council meeting that the Bill be directly referred to the Panel on Manpower for deliberation and then be directly tabled before the Council for resumption of Second Reading debate―that is what happened today. This was a rare manoeuvre in the history of the Legislative Council, and it was a blatant breach of the established procedures. Relying on the majority held by the royalists in the Council, the Government acts as it pleases, doing whatever it wants in an arrogant and overbearing manner. So, how can this possibly win people's heart?

The strong criticisms made by pro-democracy Members are not directed at the contents of the Bill, but the fact that Government has taken the lead to sabotage the legislative procedures by using the Bill to advance its hidden agenda. Also, we are worried that once we fail to uphold the due process of the Legislative Council, the Government can introduce draconian bills into the Legislative Council as it pleases, without following the procedures of the Legislative Council. It can do whatever it wishes by bypassing the House Committee to table a bill before a panel for scrutiny. What does the Government think the Legislative Council is? Does the Government still attach importance to the established procedures? Does the Government regard the Legislative Council as a "doorless chicken coop" from which it can get whatever it wants without restraint? Does it consider it unnecessary to build public confidence in the Legislative Council at all?

President, let me emphasize here again that what we oppose and criticize is not the Bill per se, but … In our view, as the Bill seeks to protect the rights of female employees, it is all the more important to improve its contents to afford greater protection to female employees. With the manoeuvre made by the Government this time, there is not only the problem that we were deprived of the opportunity to form a bills committee to examine the Bill. One very important point is that … In the past, after the formation of a bills committee, we would, very often, convene public hearing sessions to allow people or groups that were concerned about the relevant issues to express their views. Regrettably, we have not held any public hearing session this time round. Nor have we let any member of the public come to the Legislative Council to voice their views. As a 9310 LEGISLATIVE COUNCIL ― 8 July 2020 result, the legislature which represents public opinions has been denied the opportunity to listen to the public views.

Nevertheless, President, from the Fugitive Offenders Ordinance which triggered the "anti-extradition to China" movement in June last year to the present Hong Kong National Security Law, the public has clearly witnessed how fearful the Government is of listening to public opinions. The enactment of the Hong Kong National Security Law has been pushed through by the Beijing Government in the absence of any local discussion in Hong Kong. Even the Chief Executive, , also claimed that she had not seen any of its provisions before the enactment, and she did not dare to come to the Legislative Council to respond to Members' questions about the Hong Kong National Security Law either. Hong Kong people have already been forced to live with the Hong Kong National Security Law which has profound implications for Hong Kong, so if the Government really … carries on this way, how can it do justice to the Hong Kong public and the legislature?

Actually, it has been very clear to us that having the Bill bypassing the House Committee was a small attempt by the Government to test Hong Kong people's bottom line, while the implementation of the Hong Kong National Security Law was a blatant public announcement from the Beijing Government to tell Hong Kong people that Hong Kong had become a society upholding the rule of man. It will have no regard to whatever the Legislative Council does and just do whatever it wishes anyway. Now that this North Korean-style approach to legislation has been adopted in Hong Kong, it is really doubtful whether Hong Kong's "high degree of autonomy" still exists.

President, speaking of this issue, we think Hong Kong has indeed entered an extremely … an era of white terror. Regardless of our preference, fear, and attitude towards these matters, the Government is still like this … It will not have regard to us. An example is the Bill which is under discussion now. The Government has actually jeopardized the due process of the Legislative Council, and for this very reason, we will not keep our mouths shut and will remain vocal in criticizing the Government for this improper manoeuvre.

Concerning the contents of the Bill, as I said at the outset, be it the extension of maternity leave to 14 weeks, the shortening of the period of pregnancy mentioned in the definition of "miscarriage", or the permission for an employee to use a certificate of attendance as proof of her entitlement to sickness allowance for the day on which she attends an antenatal check-up, the legislative intent is to ease the pressure faced by pregnant women at work, and to enable LEGISLATIVE COUNCIL ― 8 July 2020 9311 them to have more time to take rest both before and after giving birth. Therefore, I support the Government's amendments. After all, these amendments will be of great help to female employees.

That said, does it mean that there will be sufficient support for pregnant female employees in society, if the Bill is passed today? Actually, this is not the case. At present, female employees are entitled to 10 consecutive weeks of maternity leave under EO, and it has been 25 years since this provision of EO was enacted. During these years, we have repeatedly requested the Government to review this provision, but the Government has simply shut its eyes and ears to our request, paying no attention to us at all. It is only now that the Government increases maternity leave by four weeks as if it is granting a magnanimous imperial favour. We think that this initiative is not only too late but also too little, leaving much to be desired in a number of aspects. For example, the Government still maintains the maternity leave pay rate at four-fifths of the employees' average daily wages, rather than allowing them to get 100% of their wages during maternity leave just as other places do (including Taiwan, Korea and Singapore). Regarding this point, I think the Government … As usual, I take this opportunity to tell the Government that we hope it will conduct a review as soon as possible, and I believe the Government will simply go through the motions and respond that it will conduct reviews from time to time. But I am not sure if what it referred to as "from time to time" will be the same as what happened before, i.e. waiting 25 years before any review or amendment is done. This is really something very disappointing.

Anyway, President, the most unfortunate fact is that working mothers in Hong Kong do not have any parental leave or child care allowance. Soon after giving birth to their babies, female employees have to return to work, juggling work and motherhood. To them, juggling two commitments (i.e. work and child care) is not only hard work, but it is also more psychologically stressful and more physically demanding for them. So, I think that for this regard―especially family status, a focus of our discussion today―the Government should come up with more ways to help working mothers to solve the relevant problems.

In addition, as I mentioned just now, the Government stated that it intended to raise the cap on the additional four weeks' maternity leave pay from $36,822 per employee as proposed in the Bill to $80,000. This is certainly a good thing. But I do not understand why the Government always likes to leave matters half-done instead of finishing them completely. If fairness is the concern, why then is it necessary to consider income level? Why is this benefit not available to all female employees? This is really puzzling.

9312 LEGISLATIVE COUNCIL ― 8 July 2020

President, even if a gentleman wants to have more time staying at home to take care of his family … While the Government previously increased paternity leave of male employees to five days, the duration is actually too short―it is still way shorter than that of other countries―to allow a husband to share such domestic chores as looking after the baby and keeping house with his wife after she has given birth. This is most regrettable. Let us refer to the situation of Taiwan. First, in Taiwan, maternity leave is full-pay leave―though it is not very long, consisting of only eight weeks―and one important point is that fathers and mothers can respectively apply for six months' paid child care leave and take it alternately. During the leave, they will be entitled to 60% of their wages, and afterwards, they may even apply for no pay leave if necessary. In other words, they can take leave for as long as two years altogether.

Moreover, Mainland China also implemented full-pay maternity leave as early as in 2011, much earlier than Hong Kong. With the implementation of the two-child policy in recent years, various provinces and municipalities have begun to amend their legislation to adjust the length of both maternity leave and childbearing leave, granting at least 30 extra days of leave to incentivize childbearing in addition to the basic 14 weeks' maternity leave, and among them, Fujian province provides maternity leave of 180 days while Shanghai Municipality provides maternity leave of 128 days which is the shortest. If a female employee gives multiple births, she will have 15 additional days of maternity leave for each baby. I wonder whether the Government has conducted any survey or review in this regard, and whether it has studied the contents of relevant policies implemented in other places … In fact, it is now time for the Government to really consider matters relating to this regard in Hong Kong, because even if these amendments are passed today, Hong Kong still lags behind other places.

President, actually, we should not merely focus on improving employees' maternity leave entitlements by amending EO. More importantly, there should be a review on the overall family-friendly policy. I believe that all parents want to give their children the best care possible. For grass-roots families, it is often the case that both parents need to go out to work in order to support their families and cope with their children's learning expenses and daily needs. Therefore, grass-roots families often encounter great difficulties in juggling work and the need of their babies. In recent years, a number of grass-roots parents have actually relayed to us their difficulties in getting child care services in their communities. Unable to get matching service in their communities, many parents have been forced to give up their jobs and stay home to take care of their children. As admitted by the Secretary last August, child care places provided LEGISLATIVE COUNCIL ― 8 July 2020 9313 by non-governmental organizations under the subsidy of the Social Welfare Department are always insufficient, and this has caused a severe headache to many dual-income parents. I hope that later, the Secretary will honour his promise by increasing the child care services in various districts to alleviate the burden of grass-roots families and enable female employees to avoid facing (The buzzer sounded) … the dichotomous choice between family and work.

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

MR KENNETH LEUNG (in Cantonese): President, we resume the Second Reading debate on the Employment (Amendment) Bill 2019 ("the Bill") today.

The Bill proposes to extend the statutory maternity leave by 4 weeks under the Employment Ordinance ("EO") to allow eligible employees to take the 4-week additional maternity leave continuously after the 10 weeks' maternity leave originally stipulated. The additional maternity leave pay will be calculated on the same basis as the current statutory rate of maternity leave pay (i.e. four-fifths of the employee's average daily wages), subject to a cap originally pitched at $36,822 in the Bill. However, I noted that the Government will amend the cap to $80,000.

The Bill also proposes to introduce two technical amendments, including updating the definition of "miscarriage" in EO from "before 28 weeks of pregnancy" to "before 24 weeks of pregnancy". This will entitle a female employee who suffers a miscarriage at or after 24 weeks of pregnancy to maternity leave if other conditions are met. Another technical amendment is to make clear that a certificate of attendance issued by professionally trained persons would be accepted as documentary proof for entitling the eligible employee to sickness allowance for any day on which the employee has attended a medical examination in relation to her pregnancy.

I noted that that the Secretary for Labour and Welfare indicated in his blog around 12 August 2018: "One of the top priorities of the Labour and Welfare Bureau's future policy is to help relieve the pressure on the married couples wishing to bear a child in respect of child-rearing in future, so that they can have a choice in deciding whether to bear a child instead of helplessly making the decision of not bearing a child. As for how to improve the relevant labour and welfare policies, it is one of the Bureau's future work directions." This tells us that, rather obviously, one of the main objectives of the amendment in question is 9314 LEGISLATIVE COUNCIL ― 8 July 2020 to encourage childbirth among local married couples. Nevertheless, will this objective be achieved solely by extending the length of maternity leave?

In addition, we found some interesting data from a study entitled "Boosting Birth Rate in Hong Kong" released in 2018 by the Youth I.D.E.A.S. established under the Hong Kong Federation of Youth Groups Youth Research Centre. Based on the interviews of the 520 young respondents, the average number of children they will have in the future is 1.41, that is, as each respondent also indicated he or she would have one child or two, an average of 1.41 children is derived; according to 5.8% of the respondents, an ideal family would be a family without children; and about 18.3% of the respondents said they would not have children in the future.

Is there a direct correlation between improving the local statutory maternity leave system and our population policy? Actually, in order to provide a better environment for Hong Kong people to raise families/children, the Government also needs to pay attention to other more fundamental social problems apart from extending the statutory maternity leave. First, it is so obvious that the working parents of most families in Hong Kong have to work long hours and utterly do not have the opportunity to create a more supportive environment for raising families/children as a result since it is unlikely for them to do anything else after working for 11 hours or 12 hours. This is the most fundamental problem. Secondly, child care services are inadequate. Of course, the cost of living in Hong Kong is rather high but the pay increase is far from enough to cover the expenses of raising children. Children of those families still have to attend many different remedial classes and interest classes during after-school hours, where the expenditure on these classes alone may be as high as some $10,000 per month―I mean the middle-class families in which both parents have to work.

Given that the parents of many families also have to work, do we have adequate child care services to cater for their needs? Are we providing whole-day child care services so that, while putting parents' minds at rest, both parents can work, earning income to cover their children's expenses on music classes, dance classes, etc. since they can let qualified persons take care of their children? This is in fact an issue that many Members of the Council have mentioned.

In addition, there are still a lot of fundamental problems which, as we all know, are related to land and housing supply. That is, if a lot of people get married …

LEGISLATIVE COUNCIL ― 8 July 2020 9315

PRESIDENT (in Cantonese): Mr Kenneth LEUNG, this Council is now having a Second Reading debate on the Employment (Amendment) Bill 2019, the subject of which is not childbirth. Please revert to the subject under debate.

MR KENNETH LEUNG (in Cantonese): Although the subject of the Bill is not childbirth, but if people do not give birth, how are they supposed to enjoy the policy initiatives as amended by the Bill? This is really incomprehensible to me.

PRESIDENT (in Cantonese): Mr Kenneth LEUNG, please revert to the subject under debate.

MR KENNETH LEUNG (in Cantonese): Alright, I revert to the subject under debate.

Of course, I am pleased to see the Bill propose that statutory maternity leave be extended to 14 weeks, but I think this is still not enough. Based on my personal experience―President, you have really made me feel like throwing the entire script of my speech into the trash bin because you instructed me not to discuss matters related to childbirth, but I will still tell my personal experience.

Is the 14-week maternity leave adequate? In fact, it is still inadequate because if a mother chooses to breastfeed her child, it will take about half a year to establish maternal bond and provide sufficient nutrients for the child. Of course, the mother is under immense pressure both physically and mentally throughout the period of breastfeeding. I noted that the Council had passed a legislative amendment a few weeks ago to prohibit discrimination against women on ground of breastfeeding in public places.

However, the most important thing is to put in place corresponding leave so that those women who wish to spend more time with their newborns can choose to take in addition to the statutory maternity leave, that is, apart from the paid maternity leave, the Government should offer women more options other than that, such as 8 to 10 weeks of unpaid maternity leave, where the employers concerned must undertake to provide unpaid maternity leave to their women employees in need and cannot dismiss them with any excuse. I think Hong Kong's welfare level will be on a par with that of other countries or regions in the world with the provision of 8 to 10 weeks of unpaid maternity leave.

9316 LEGISLATIVE COUNCIL ― 8 July 2020

Apart from maternity leave for women, paternity leave for men is also far from adequate. I was the deputy chairman of the bills committee on paternity leave for men in the last legislative year. After much discussion and many different views were heard, the bill was passed and the paternity leave for men was increased from the original three-day period to the current five-day period.

As a matter of fact, when facing a newborn child, the father has to cope with a great deal of work, including acquiring baby supplies and taking care of his wife, so it is necessary to provide fathers with more psychological or mental support, but it is a very difficult task indeed particularly in an environment like Hong Kong's. Is it possible that the Secretary consider extending the paternity leave for men to seven days when EO is amended next time? I think it would be a really appropriate and beneficial initiative if the paternity leave for men can be lengthened. Yet, even if the Government increases the number of maternity leave days and even that of paternity leave, it does not necessarily mean that local young couples will choose to have children.

President, I have to talk about the impact of the Bill on Hong Kong's overall productivity and the local economy. Apart from welfare policies, the Bill is also directly related to Hong Kong's GDP (Gross Domestic Product) and even GNP (Gross National Product), so we must face up to the problem of an ageing population. I will talk about the situation in the Mainland but not that in Hong Kong. As the Mainland had once implemented the "one-child policy", some experts on population studies have estimated that the Mainland's population will peak in 2035, while Hong Kong's population has actually passed its peak …

PRESIDENT (in Cantonese): Mr Kenneth LEUNG, please revert to the subject under debate.

MR KENNETH LEUNG (in Cantonese): I am now reverting to the subject under debate. The major policy which the Bill is dealing with …

PRESIDENT (in Cantonese): The Council is not discussing the population policy. Please revert to the subject of the Second Reading debate on the Employment (Amendment) Bill 2019.

LEGISLATIVE COUNCIL ― 8 July 2020 9317

MR KENNETH LEUNG (in Cantonese): OK.

Apart from welfare policies, the Bill is also directly related to economic and demographic structures. Therefore, I opine that apart from perfecting the maternity leave system, the Secretary for Labour and Welfare should also ponder how other allowances (such as cash allowance) can be provided to those local couples who wish to have children. Of course, dependent parent allowance is offered to people with children for the time being―President, what I am now talking about are policy issues …

PRESIDENT (in Cantonese): Mr Kenneth LEUNG, the policy issues which you are discussing have nothing to do with the Employment (Amendment) Bill 2019, please revert to the subject under debate. You have talked about the rest days for women as well as paternity leave for men in Hong Kong, and even the population policy, all of which are outside the ambit of the Employment (Amendment) Bill 2019.

MR KENNETH LEUNG (in Cantonese): Well, let me talk about the scrutiny process of the Bill then, but actually, I do not really feel like discussing this since Mr LEUNG Yiu-chung has already given an account of this. I had better revert to the subject of the Bill.

I am not sure if it is possible that the Administration provides cash allowance directly to these women or families by amending EO―it is inappropriate for me to discuss in depth the existing tax policy as the President has indicated that we cannot talk about the tax policy―but can the Government provide cash allowance directly to the families concerned under EO, say, give a cash allowance of $50,000 or even $80,000 directly to the families of those employees with newborns rather than offer tax deductions to them? It is because tax deductions are a bit indirect and will also delay the for employees to benefit from the offer, and no …

PRESIDENT (in Cantonese): Mr Kenneth LEUNG, this also falls outside the ambit of the Employment (Amendment) Bill 2019. You may bring up your views on relevant policy matters to the Panel.

9318 LEGISLATIVE COUNCIL ― 8 July 2020

MR KENNETH LEUNG (in Cantonese): Yes, President, I understood. I will not further put forth any other proposal.

I would also like to know that in the amendment, the Secretary―he would certainly talk about the move of revising the cap from $36,822 to $80,000 (i.e. revised to about 200% of the original amount) when giving his speech in reply later. Why has he suddenly made the decision in such a short time? I would also like to know the calculation mechanism on which the original cap at $36,822 is based. Why would it be suddenly revised to over 200%? I wonder why the Government has become so quick in action. I would like to know the reasons behind and hope that the Secretary can explain to me the calculation mechanism concerned in his speech in reply later. Why not increase the amount to $100,000 but $80,000?

President, you certainly think that my speech is not directly related to the Bill, but actually, I just hope that the Administration will make more significant amendments to EO in the future so as to improve the demographic structure of Hong Kong, thereby further enhancing its productivity.

I so submit, President.

MR LUK CHUNG-HUNG (in Cantonese): President, I am speaking on the Second Reading of the Employment (Amendment) Bill 2019 ("the Bill"), and I am in support of the amendments to the Bill and its Second Reading. The amendments in the Bill mainly seek to extend the paid maternity leave to 14 weeks. Besides, the Government has particularly adopted the amendment proposed earlier by Mr KWOK Wai-keung of the Hong Kong Federation of Trade Unions ("HKFTU") to the effect that an employer can apply to the Government for an allowance of $80,000 in respect of the additional four weeks' paid maternity leave. In my view, the Government should be commended for taking on board this piece of good advice.

Some colleagues prefer the idea of granting "unlimited" allowance, to which I would like to slightly respond. The allowance of $80,000 already exceeds four weeks' maternity leave pay of an employee with a monthly salary of $100,000, while the monthly salary cap of $100,000 covers 99% of female employees. As regards those female employees earning super high salaries of more than $100,000 a month, we think that their employers should at least take up their moral obligation, instead of asking the Government to provide unlimited subsidies. In the case of a female employee earning more than $1 million per LEGISLATIVE COUNCIL ― 8 July 2020 9319 month or more than $10 million per year, does the Government need to reimburse nearly $1 million for her four weeks' maternity leave pay? For these super high-paid female employees, the Government should not over-subsidize their employers as this may not be using public money prudently.

The third aspect is to amend the definition of "miscarriage" from "before 28 weeks of pregnancy" to "before 24 weeks of pregnancy". While this amendment is keeping pace with the times, it is also in line with the guidelines issued by the Hong Kong College of Obstetricians and Gynaecologists and is a scientific move. Besides, the Bill also allows a certificate of attendance to be accepted as proof in respect of entitlement to sickness allowance for a day on which a female employee attends a medical examination in relation to her pregnancy. We of course think that miscarriage is not a kind of sickness, but through this arrangement, the women concerned can receive better care during pregnancy.

In my view, this amendment exercise has significant meaning, because it concerns a population policy that encourages childbearing, a family-friendly policy and even the fruits of the hard work of HKFTU and the labour sector which have been fighting for many years. The extension of paid maternity leave can help prevent postpartum depression. If a woman does not have enough rest after giving birth, it is especially easy for her to have postpartum depression. According to the result of a survey, about 10% to 15% of women have suffered from postpartum depression, which usually occurs at any time from the tenth to the fifteenth week after giving birth. When maternity leave can be extended to 14 weeks, women can have better adjustment and rest both psychologically and physically during this period of time. As such, they can recover more quickly and can return to work more readily.

The Government has been promoting the policy on breastfeeding. With the extension of maternity leave to 14 weeks, women can have more time to take care of their babies, while the period of breastfeeding can also last longer.

In sum, the extension of paid maternity leave should not be a controversial subject in the Legislative Council, but why could the Second Reading debate of the Bill only be resumed at the second last meeting of this term of office? Some women are very worried that the Bill cannot be passed before the end of this term of the Legislative Council. In regard to who should take this responsibility, people really need to ask the opposition camp or the mutual destruction camp. I truly do not want to say too much because this basically is a political question. However, after listening to Mr LEUNG Yiu-chung who does not dare to admit 9320 LEGISLATIVE COUNCIL ― 8 July 2020 what he has done, acting like a thief crying "thief", I really could not bear it but have to reveal the true face of the opposition camp.

Mr LEUNG Yiu-chung just queried our constructive camp for accusing them of filibustering. He also said that he had been asking the Secretary when the Bill could be presented to this Council for resumption of the Second Reading debate. Does he think that Hong Kong people are so forgetful? President, in the current term of the Legislative Council, since October last year, Mr Dennis KWOK had been taking over the election of the Chairman of the House Committee, a farce which lasted for seven whole months during which a Chairman could not be elected even after 17 meetings were held, hindering the deliberation of the Bill concerning the extension of maternity leave. When everybody is cognizant of it, he shamelessly says that the constructive camp is not following the rules and is advancing secretly by an aberrant path. Does the opposition camp talk about rules and laws? They are fond of saying achieving justice by violating the law, no severing ties, no snitching, no condemnation, and even vandalism to the Legislative Council Complex is fine to them. The filibuster of Mr Dennis KWOK may be a trivial matter to them, but we have to state clearly that Members from the opposition camp have sworn allegiance to the Hong Kong Special Administrative Region of the People's Republic of China and sworn to uphold the Basic Law. However, when dealing with the National Anthem Bill, they filibustered in the House Committee with an irrational means. They have been playing foul for seven months, and even the Bill concerning the extension of maternity leave was nearly taken hostage by them. Hence, even if Mr LEUNG Yiu-chung had not made those comments, I would also expose their wrongful means, because I am really very angry.

President, it is fortunate that the constructive camp is familiar with and is making good use of the Rules of Procedure. Following the rules and regulations, we rescued this Bill through invoking Rule 54(4), and the Panel on Manpower was also very serious in its deliberation, going through the Bill clause by clause. As a result, the Bill could be submitted to the Council for resumption of the Second Reading debate. Otherwise, the Bill would have been scuttled by the opposition camp in the House Committee just like the Rating (Amendment) Bill 2019 which seeks to introduce a tax on vacant first-hand private residential properties, a measure that can prevent hoarding of residential properties by developers for profiteering purpose.

The opposition camp is just like a thief crying "thief". Mr LEUNG Yiu-chung even claims that he represents the rights and interests of labour. President, his political group, the Neighbourhood and Worker's Service Centre, LEGISLATIVE COUNCIL ― 8 July 2020 9321 will not send any representative to run for the Legislative Council election, and I am not sure whether it is due to this reason. All along, he has not been acting sincerely, betraying the interests of labour. It is due to this simple reason that no one supports him.

The labour sector has been fighting for the extension of maternity leave for many years. The Employment Ordinance was last amended in 1995, which was 24 or 25 years ago. During this period of time, Legislative Council Members of a few generations, like our predecessors Ms CHAN Yuen-han, Mr WONG Kwok-hing, Mr KWONG Chi-kin, Mr IP Wai-ming, Dr PAN Pey-chyou and Mr TANG Ka-piu, as well as many Members in this Council who are concerned with the rights and interests of labour and women, have been fighting for their rights and interests inside and outside this Council. Of course, we have to be forward-looking. In fact, there are no perfect rights and interests of labour as they can always be improved. We hope that with the development of society, this only marks a milestone but not the destination.

As regards the rights and interests of women, it is especially difficult to raise children nowadays and women are facing tremendous pressure. This is particularly so for working women who are busy juggling jobs and families. It is not easy indeed. Therefore, firstly, we hope that full-pay maternity leave can be implemented as soon as possible. Maternity leave is not sick leave. The maternity leave pay per day should not be calculated at the rate of only four-fifths of the daily wages of an employee or having the wages deducted by 20%. The Mainland, our Motherland, has already introduced some measures in this regard.

Secondly, we should further review and extend maternity leave. In Singapore, the period of maternity leave is 16 weeks. In the Mainland, depending on different arrangements in different provinces and cities, the period of maternity leave is 14 weeks or more, with some provinces and cities offering the employees a few more weeks of maternity leave than others. The arrangements are different in different provinces and cities, but all of their maternity leave periods are more than 14 weeks.

Thirdly, this very significant point concerns the postpartum job protection period. We suggest that the job protection period should last for six months. A woman who just returns to her work position after taking maternity leave may not be able to return to her working shape so easily restored. President, or at the preliminary stage of adaptation, a breastfeeding mother may need to adjust to some physical or psychological changes. Hence, employers should try their best to accommodate those new mothers who just return to their work positions. However, some unscrupulous employers will dismiss the female employees who 9322 LEGISLATIVE COUNCIL ― 8 July 2020 just return to work after taking maternity leave, for the reason that the employees' working efficiency is not as high as before or for various other reasons. In some cases, there was even no reason at all. The employers simply took some opportunities to dismiss the employees unreasonably. In our view, the Government has to put in place some rational legal protection so that when women return to work after giving birth, they can work with their hearts at ease and have their feeling of calmness quickly restored. When their pressure from work as well as from family is reduced, the chances of having postpartum depression will also decrease. Since this is so important, I hope that the Government can have a proactive study on postpartum job protection period for women as soon as possible.

Finally, a very simple point is that a husband also needs to keep his wife company. We wish that the Government can submit to the Legislative Council a bill seeking to extend paternity leave to seven days without delay. This is a very simple request for increasing two days of leave.

In fact, concerning this proposal of extending paid maternity leave, I think there is also one important extended line of thought, which is about the expenditure on the additional maternity leave of four weeks being shouldered by the Government. This will cost about $500 million each year, an amount which is not substantial, but is also not minimal either. Is that the best arrangement? If the arrangement is for implementing this proposal and for the rights and interests of women, I think it is worthwhile and is a good attempt. In regard to the abolition of the offsetting arrangement of the Mandatory Provident Fund ("MPF"), the Government will also introduce a transitional period and allocate $20 billion to assist employers in going through this stage with a view to resolving the offsetting issue of MPF and protecting the rights and interests of employees. This is also a desirable move.

Nevertheless, I very much want to ask the employers in the business sector not to take subsidization from the Government for granted. Because first of all, the sources of government revenue are from taxpayers such as employees and businessmen, as well as from other income sources such as land sale and various kinds of taxes. All of them are public finance. In fact, the most appropriate approach is for employers to provide their employees with the rights and interests, because their employees are working for them, working themselves to the bone for them and earning money for them. Hence, the best way should be for employers to foot the bill. Nonetheless, the contradiction of Hong Kong is that many small and medium enterprises ("SMEs") are seriously exploited by consortia, in particular real estate hegemony, and it is not easy to run a business. That is why the Government rolls out some subsidy measures for the benefit of LEGISLATIVE COUNCIL ― 8 July 2020 9323

SMEs. However, as I have said, subsidization from the Government should not be made a routine. In fact, I wish that the business sector can be more open-minded towards labour rights and interests and will share the commitment, because Hong Kong is after all practising a low tax regime, which is where our competitiveness lies.

Of course, I acknowledge that a tax on the super-rich or windfall profit tax should be introduced. For instance, Mr LI Ka-shing is in possession of a mega enterprise which is earning a few billion dollars a year. The Government should actually collect a bit more taxes from these companies or corporations. However, a society can still not sidestep the questions of "where does our money come from" and how to redistribute wealth. In fact, in terms of wealth distribution, I always ask why the Government provides so much welfare such as low income subsidy, low-income working family allowance …

PRESIDENT (in Cantonese): Mr LUK Chung-hung, please return to the subject of this debate.

MR LUK CHUNG-HUNG (in Cantonese): President, this is very important, because the additional paid maternity leave of four weeks suggested in the Bill is funded by the Government, and I need to extend this line of thought. I wish that the system can incorporate the concept of social harmony with fairness and justice. I believe that as long as social fairness and justice can be achieved, employees of various strata will stand fast at their posts. A large proportion of social wealth is hard-earned by employees. The success of those businessmen who can operate under a desirable business environment may be attributable to their foresight, knowledge of investment and knowledge of making profits. But at the same time, they should have a bit more commitment to labour rights and interests. As such, our society will be more harmonious and "one country, two systems" will be more successful.

I believe that the Bill is the biggest achievement in regard to labour rights and interests during this term of the Legislative Council. We wish that in the days to come, we can focus more on labour rights and interests as well as people's livelihood. When there are fewer political confrontations and social disturbances, employees can have the greatest rights and interests. Thank you, President.

9324 LEGISLATIVE COUNCIL ― 8 July 2020

MR LAU KWOK-FAN (in Cantonese): President, the amendments to the Employment (Amendment) Bill 2019 ("the Bill") this time around are mainly related to the maternity leave of female employees in Hong Kong. The major adjustment is the extension of the maternity leave from 10 weeks to 14 weeks. Other amendments include capping the maternity leave pay in respect of the extension of maternity leave and revising the definition of miscarriage by shortening the period of pregnancy. In general, the Bill and its amendments have received support from both the community and Members. Some colleagues reversed the cause and effect when talking about the legislative process, they said that the process was delayed or bypassed normal procedures because the Bill was referred to the Panel on Manpower for scrutiny before it was tabled to the Council for the Second Reading. But they ignored the reason for that. Of course we very much hope for an early passage of the Bill, but as the House Committee has failed to elect its chairman after 17 weeks, bringing to halt to the deliberation of many motions or legislation, and even the operation of various Bills Committees. In view of this, we have no alternative but to find another way in order to benefit the people, to improve their livelihood and wellbeing. For that reason, I hope Members of the opposition camp should think about the cause and effect as well as the reality carefully before making any criticism.

I am going to speak on the Bill in the following paragraphs. As a matter of fact, the maternity leave in Hong Kong has been criticized for lagging behind the international community as it is only a 10-week leave. For that reason, although it will be extended to 14 weeks through this amendment, there is still a gap between Hong Kong and other countries or regions. But anyway we have made a step forward by closing the gap. The relevant Ordinance was amended 37 years ago, therefore we need to keep abreast with the times by endorsing the relevant amendments.

What does a period of 37 years represent? Thirty-seven years ago, the concept that women were to take care of the family while men were to work outside was still deep rooted in society, women often had to work full-time as a housewife in order to take care of their children at home. Even though some might have other jobs, their jobs would mostly be simple ones so that they could spare the time to take care of their kids. For that reason, a 10-week maternity leave would be fine 37 years ago. But the situation nowadays is very different from that of 37 years ago. Many holders of senior positions and high ranking officials in society nowadays are women, even our Chief Executive is a woman. Therefore, many women are holding important posts. When the husband and LEGISLATIVE COUNCIL ― 8 July 2020 9325 wife have their respective jobs, it would be quite difficult for them to spare time to take care of their child after the birth of the child. Economic consideration is one of the factors that the wife cannot simply quit the job to take care of the baby. In such a circumstance, a 10-week maternity leave is absolutely not adequate. Actually a 14-week leave is not adequate either. I understand that the amendments this time around may not necessarily be able to make up for all the shortfalls, but it is an important step forward. For that reason, I will support the amendments.

Generally speaking, late marriage and low birth rate in Hong Kong are nothing new at all. But in the long run, it will definitely affect Hong Kong's manpower resources. As the problem of an ageing gets worse, we need to encourage childbearing. Even though the length of maternity leave is not usually the decisive factor for a couple to consider whether they should have a baby, a longer maternity leave will undoubtedly ease their pressure and anxiety, which will indirectly encourage them to think about having a baby.

Furthermore, one of the very important amendments is to shorten the period of pregnancy under the definition of miscarriage from 28 weeks to 24 weeks, that is, female employees are only entitled to maternity leave and sickness allowance after a pregnancy period of 28 weeks at present, but it will be revised to 24 weeks. Actually, that is absolutely right, but the amendment has not been made until today, it is long overdue, this is something that ought to be done. In fact, be it Hong Kong or foreign countries, many places have used 24 weeks of pregnancy as a demarcation, and Hong Kong's medical sector has also defined a foetus of 24 weeks as a baby. Besides, Hong Kong's lawful abortion can only be carried out within the first 24 weeks of pregnancy. For that reason, a demarcation of 24 weeks is commonly recognized by various sectors in Hong Kong, and as far as the number is concerned, it has its scientific basis. For that reason, using such a period for the definition of miscarriage is reasonable, and I believe the amendment is worthy of passage.

As a matter of fact, 24 weeks of pregnancy is tantamount to 6 months of pregnancy, which is not a short period at all. Basically one can judge a pregnant woman who is bearing a child for over 6 months by her appearance. If a woman is so unfortunately to have a miscarriage during pregnancy, it will bring a devastating impact on her physically or mentally. It is absolutely necessary to let her recuperate and calm down, to heal her physical or mental wounds. Without the maternity leave, they will need to apply for annual leave. But 9326 LEGISLATIVE COUNCIL ― 8 July 2020 general wage earners do not have much annual leave; perhaps they only have 7, 12, or 14 days, which are not adequate for them to recuperate physically or mentally. For that reason, if there is no amendment to maternity leave this time around, it will possibly have a huge impact on the physical wellbeing of pregnant women or their work.

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

Nevertheless, I have also mentioned that regardless of 10 weeks or 14 weeks, or the definition of miscarriage, I support the Government in all of these areas. But the amendments this time around are still not perfect. For example, pregnant women taking maternity leave can only get 80% instead of 100% of their salaries, which will remain unchanged after the amendments this time around. Certainly, I understand that from the perspective of employers, they have to bear the costs for paying the employees absent from work, or even have to draft in extra manpower to take up the jobs previously performed by pregnant employees. But as far as maternity leave throughout the world is concerned, pregnant employees in such places as the Mainland, Singapore, France and Germany, actually may get 100% of their salaries during their maternity leave period. For that reason, from a humane point of view, a full-pay maternity leave will keep Hong Kong on a par with international practice, and it will also make people feel that the Government cares about the welfare of women and pregnant women. I hope that the Government will listen to such voice and conduct the review in future as soon as practicable with a view to making improvement.

Moreover, we also support the upward adjustment of the cap for the 4-week additional maternity leave pay from $36,822 to $80,000, which was originally based on the salary of an employee earning $50,000 or less a month and now has been increased to a salary of $100,000. In so doing, 99% of working women will be covered, meaning that those relatively highly paid women can also get 80% of their salaries during maternity leave. It is commendable. However, we still consider that there is still 1% from perfect. In my opinion, the Government should consider the introduction of full-pay maternity leave. After all, different families have different economic considerations, even highly paid people will be seriously affected if their income is cut by 20% abruptly. After all, the Government's policy intent is to enhance the support for pregnant women. I believe that the Government should make its fullest effort by implementing this good suggestion.

LEGISLATIVE COUNCIL ― 8 July 2020 9327

Another thing is the date of implementation. At present, it is stated in the Bill that it will be implemented in 2021 … by the end of this year. The reason is that the Government needs time to set up a dedicated reimbursement office and obtain the necessary funding from the Legislative Council. I consider this less than satisfactory. Such policies which will be beneficial to people's livelihood should be implemented as soon as possible. As for the procedures concerned, I consider that this can be resolved. For that reason, I hope that the Government will seriously consider whether it can implement the relevant legislation immediately after the passage of the Bill.

Actually, under the Interpretation and General Clauses Ordinance (Cap. 1), the Secretary may designate different commencement dates for different provisions. For that reason, we request the Secretary to announce earlier commencement dates for some of the new provisions which are possible to be immediately implemented and not so relevant to the additional costs arising from maternity leave, such as those concerning shortening the period under the definition of miscarriage, which will enable pregnant women reaching 24 weeks of pregnancy to receive the sickness allowance. If all of these are technically feasible and the provisions concerned can be implemented at an earlier date after the passage of the Bill, I hope that the Secretary will provide his response later on.

In sum, I absolutely support the relevant motion. The amendments this time around have encountered many twists and turns. But as this legislative session draws to a close―the last Council meeting will be held next week, and this meeting is the second last Council meeting of the Legislative Council―I am concerned that the opposition camp will ask for an adjournment or make a filibuster, which may eventually prevent the Bill from being passed. Nevertheless, we believe that Members from the pro-establishment camp will do their best to ensure the passage of the Bill. First it is our hope that we will not let prospective parents down, second it is our obligation and commitment to women and pregnant women. I hope that even if some Members want to play tricks to achieve their goal of "mutual destruction", only a week or two is left, it is time for them to cut it out and stop, to give their support to the amendments and the passage of the Bill, so as to allow women and pregnant women to enjoy their rightful benefits, interests and welfare entitlements.

Deputy President, I so submit, thank you.

9328 LEGISLATIVE COUNCIL ― 8 July 2020

MR WONG TING-KWONG (in Cantonese): Deputy President, you, myself, and Members present here all have mothers. It is a noble thing for women to bear children. Not only is it an act for continuing their own family lines, but it is also something conducive to the constant development and progress of human society. Therefore, the whole society should give pregnant women special care.

I think it is actually a belated move to table this Employment (Amendment) Bill 2019 ("the Bill") at the Legislative Council meeting for Second Reading now. As I can recall, two to three decades ago, the company for which I worked already offered paid maternity leave to its female employees, but it is not until now that our society has the consciousness to extend paid maternity leave to 14 weeks. Of course … Just now, some colleagues raised the point that extending maternity leave should be employers' responsibility, but I think―as I said at the beginning―this should be a collective responsibility of society. While female employees are having babies for their own families and society rather than their employers, employers should still be caring to their pregnant female employees. Actually, regarding the additional four weeks' maternity leave pay, can the Government further consider raising the percentage borne by it to full amount, i.e. 100%? If employers … If employers shoulder a small part of the additional maternity leave pay which is largely borne by the Government, can the Government offer some tax concessions to them and provide incentives to encourage some capable employers to consider providing better benefits to their pregnant employees? Is it possible for the Government to consider it? This is not something to be done merely by the Labour and Welfare Bureau. The Financial Services and the Treasury Bureau can also work together with the Labour and Welfare Bureau and jointly discuss whether any tax measures can be actively introduced.

Moreover, the Bill is introduced after the Bureau has considered various aspects. Its contents―say, the amended definition of "miscarriage" … and suchlike―are able to improve the statutory maternity leave entitlements of female employees, but I still think there is a deficiency in that the Bill is only relevant to working women. What about housewives who are not in employment then? Childbearing is equally hard for housewives, isn't it? Is it fair that housewives have no maternity leave because they are not in employment? Can the Government further consider issues in this regard? For example, is it possible for the Government to provide concessions in salaries tax to the spouses of housewives?

LEGISLATIVE COUNCIL ― 8 July 2020 9329

Currently … In terms of progress of human society, procreation is very important. As oft-mentioned, we have insufficient labour force and manpower shortage, and in this regard, the Government really needs to do something more. I remember that the two former Chief Executives have called on Hong Kong people to have more children, but despite all their calls … Childbearing is hard, but childcare is harder still. Things are not that simple. Young couples who want to have children need to consider their affordability with thorough deliberations and comprehensive planning. It is not simply letting the children grow on their own. Therefore, I think it will be a nice thing for the Labour and Welfare Bureau to do something more.

I must say that the speeches made by Members of the "mutual destruction camp" today are very irritating. Please think about this: why has the Bill been delayed for so long that this Council can only proceed to the Second Reading debate on the Bill now? The reason is that they have jerked the House Committee around. After the resumption of the Legislative Council in October last year, the House Committee spent seven whole months―17 meetings―electing its Chairman but went nowhere. The process of electing the House Committee Chairman was just more gruelling than that of "Journey to the West". They "played their game" infinitely, and now, they are saying things in the opposite way … that the Bill has bypassed the House Committee … What House Committee? The House Committee did not even have a Chairman. How could the Bill have bypassed it? It was a blessing that some Members had the wisdom to find a provision in the Rules of Procedure which allowed the Bill to be referred to the Panel on Manpower for scrutiny, thus enabling the Bill to be tabled at the Council meeting today for Second Reading. They have done a good thing, but you people, the "mutual destruction camp", just smear them, saying that they are imperious and disregard procedural justice and such. Have you people ever respected the procedures? Playing fast and loose with the House Committee, do you people really have any sense of justice? To put it bluntly, set your own house in order first! For the "mutual destruction camp", the notion of "those who submit will prosper; those who resist shall perish" dictates everything. They simply play whatever games they want with no regard for the law. I hope that Hong Kong people can see this clearly.

Here is one point that really puzzles me. In the previous meeting, a Member surnamed KWOK mentioned that the Mainland had implemented 14 weeks' paid maternity leave, but it was not until 2018 that the Hong Kong SAR 9330 LEGISLATIVE COUNCIL ― 8 July 2020

Government proposed an extension of maternity leave in the Policy Address, and it was a real shame that even if the Second and Third Reading of this Bill was passed by this Council, it would not come into operation until next year, meaning that Hong Kong women would have waited for three years then. He often lashes out at the Mainland, speaking about how awful Mainland China is, but then he pointed out this situation, saying that it was a real shame for Hong Kong to compare unfavourably with the Mainland. Anyway, now proposing this … For some ulterior purposes, they keep stirring up trouble, bringing everything in Hong Kong and this Council to a standstill without caring about the life and death of others. We can just realize how malicious they are!

I really hope that the "mutual destruction camp" will stop being two-faced, deceiving Hong Kong people with specious arguments. On 18 April this year, the Legislative Council passed the funding proposal for the second round Anti-epidemic Fund which covers the Employment Support Scheme and amounts to some $137.5 billion. That day, the "mutual destruction camp"―including the seven Members of the Democratic Party who are present here―voted against this funding proposal, whereas Members of the pro-establishment camp gave their strong support to it. Finally, with 41 Members voted in favour of it, 22 Members voted against it and 2 Members abstained, the motion was passed. Without being abashed, many organizations and people opposing the Chinese Government and stirring up trouble in Hong Kong have also applied for this fund.

I hope that after the Bill has successfully gone through the Second and Third Reading, the Bureau can implement the policy concerned as soon as possible.

Deputy President, I so submit.

DR CHIANG LAI-WAN (in Cantonese): Deputy President, regarding the legislative proposal introduced to amend the Employment Ordinance to extend the statutory maternity leave by four weeks to 14 weeks in total, I personally cannot agree more because new mothers will thus be given more time to recover from childbirth and take care of their newborns. However, I do not quite agree with the argument put forward by the Bureau that the extension of maternity leave can encourage childbearing.

LEGISLATIVE COUNCIL ― 8 July 2020 9331

I think the Secretary also knows very well that the aspirations expressed in many youth forums were mostly related to housing issues, with employment being another issue recently. It was heard that the underemployment rates among university graduates of last year and this year were on the high side, and young people do have worries about the prospect of finding a job to support themselves. In my opinion, it is impossible to encourage young couples to bear one more child by offering them a few more days of leave.

I recall that more than 10 years ago, some professionals made an estimation and pointed out that it would take $4 million to raise a child to adulthood. Will the estimated sum of $4 million still be enough to serve the purpose today after more than 10 years? In my opinion, $4 million will definitely not be enough for a professional to raise a child to adulthood with his/her own efforts, unless he or she relies on government assistance in every aspect. I would not say too big a sum, but in order to groom a child with the best education, $5 to $6 million will be the minimum amount needed.

Therefore, it is in fact a mission impossible for the Secretary to encourage childbearing by merely extending the statutory maternity leave by four weeks, because it is definitely no easy task to raise a child. Actually, apart from providing basic education, what has the Government done so far for the new generation? What policy measures are in place to make young people feel that the Government is trying to help them? Many young people have taken to the street because they simply do not feel good, and with regard to the fruits of economic development that we often talk about, can they have a share and feel them? The answer is obvious to all. It has been said that the Government cares for and is very concerned about young people, hoping that they will be given more opportunities for upward mobility. If so, they should be given prospects for the future, instead of the current uncertainty. As a matter of fact, what I see is the opposite, if the Government continues to take no action, young people will face downward mobility, and I consider this very worrying.

The Secretary should know it well that I have not put up many specific requests to him since he joined the Government. Apart from certain proposals like the handing out of $10,000 to everyone, I do not expect much from him although quite a number of requests have been directed to him by some of my fellow party members. I only wish that he will hand out cash to grass-roots families or the unemployed during the most difficult times, but some political 9332 LEGISLATIVE COUNCIL ― 8 July 2020 parties have raised objection to even the proposal of handing out $10,000, and let us not talk about it for the time being. Does the Secretary remember what request I have repeatedly put up to him in a serious manner during my previous meetings with him? The answer is the establishment of a baby fund.

The intelligence quotient of the Secretary is definitely higher than mine, and I admit that I am not as smart as him, but the proposal to establish a baby fund is not an idea that came up suddenly when I woke up one day. Rather, we have seriously examined the issue for several years with reference drawn from the successful and failure experiences in many other places and countries, and then drawn up a proposal by learning from both the strengths and weaknesses of such examples. We have approached the Chief Executive, the Chief Secretary for Administration and the "God of Wealth" one by one with papers prepared on the subject and discussed the proposal with them respectively, urging them to do something for the benefit of the next generation. The Chief Executive of course subsequently asked me to bring the issue up with the Chief Secretary for Administration, who then suggested that I put forward the proposal to the "God of Wealth", and as I was advised by the "God of Wealth" to discuss the matter with the Secretary, what response will I get from him then? The matter is within the portfolio of the Secretary, and I am really grateful that he has not asked me to bring it up with the Under Secretary for discussion.

It has often occurred to me that a child actually has nothing at the very moment when he/she is born, and for parents who are financially better off, it may be possible for their children to inherit property from them in the future. However, children of grass-roots families which are not well off at all will simply be left with no property, and the housing units they are living in may even be recovered by the Government after their parents have passed away. I did receive requests for assistance in this respect, where the help seekers concerned were notified after the death of their parents that they had to vacate their flats on or before a certain deadline, and such incidents did happen. The Government would of course claim that other policy measures were in place to provide assistance, but the people affected would have serious doubt about their future, and they failed to see that the Government was truly caring for them. It is not enough for the Government to pay merely lip service, and concrete actions must be taken to show that it really cares for them.

LEGISLATIVE COUNCIL ― 8 July 2020 9333

The Secretary will definitely give a reply later, and my request to him is very simple: Go ask the children if they agree that the Government cares for them. I think what they can come up with after racking their brains may only be the provision of free education. As far as the children are concerned, the benefits they can enjoy include free education, as well as the tuition fee subsidy or school textbook assistance provided only recently, but are these enough? Have other measures been put in place to give them hope for the future?

There is a Chinese song named "一無所有" ("Having Nothing At All"), a child committed suicide a few years ago because he felt that he got nothing at all. What can we do about this? We have therefore repeatedly proposed to the Government that a baby fund should be established for the new generation mainly for the purpose of opening an account for every newborn baby, in addition to providing new parents with four more weeks of maternity leave or a few more days of paternity leave. The Government may inject into each account a sum of perhaps $10,000 to $20,000, which will serve as an initial fund and make future contributions on a matching and ongoing basis until the child reaches the age of 18. This will not only help to plan ahead for the future of each child but also facilitate narrowing the wealth gap between children from families of different economic backgrounds. It can even alleviate the problem of inter-generational poverty, so that children will have greater expectations of our society during their growing stage, thereby ensuring that they will get rid of the feeling that they have nothing at all and will be able to face the future more positively.

Secretary, different policies have been drawn up in various places around the world to encourage childbearing, and cash rewards and prizes are even given in many places. For example, all Japanese women who are confirmed pregnant for over four months will receive a subsidy of ¥420,000 for each pregnancy. In Hungary, mothers with four children or more will be exempted from paying income tax for life, while financial assistance will be provided to families with more than three children for the acquisition of a seven-seater vehicle. The Secretary may argue that child allowance has also been increased in Hong Kong for that purpose, but as compared with the measures adopted in countries mentioned above, we would of course like to see that greater incentives will be offered to women in Hong Kong to encourage them to put aside personal career pursuit and bear more children, so as to strengthen our future workforce. I therefore am of the view that serious consideration should be given by the authorities to implementing more attractive policies. To be honest, diversified 9334 LEGISLATIVE COUNCIL ― 8 July 2020 policies have been launched in different places over the world to encourage childbearing, and it will not be possible for me to illustrate here one by one.

Let me say a few words more on the establishment of a baby fund. Singapore started to implement a similar plan as early as in 2001, and do you know how many people have participated in the plan? The participation rate from 2001 to 2005 was 97%, and that of the birth groups from 2006 onwards has also reached 95%, indicating that the plan has been very well received. It would be fair to say that similar measures have also been adopted in Hong Kong, and in this connection, the Secretary may cite the Child Development Fund as an example. However, the Fund has been established for 12 years, and how many people have participated? Only 17 000 participants. When compared with measures adopted in other countries, the scope of the Fund is very narrow, and only children at the most grass-roots level will be selected. Hence, although it has been established for a number of years, I am not sure whether the Fund still exists now. Moreover, the financial resources accumulated under the Fund will only be used for developing personal interests of the children concerned.

Take a look around the world and we will notice that similar initiatives have already been introduced in many places, and it is in fact not necessary for the authorities to rely on the Child Development Fund. On the contrary, the baby fund for the new generation proposed by the Democratic Alliance for the Betterment and Progress of Hong Kong is a lifelong asset accumulation plan that can be used for education, medical care and even retirement protection if and when required. In our opinion, some participants may not need to use the money accumulated in the proposed baby fund, and the asset may then be used in conjunction with their Mandatory Provident Fund ("MPF") in the future to increase the amount saved up for retirement protection. We all know that many people do not hold much expectation of MPF, and have queried about how long it can support their retirement life, since calculations showed that the accrued benefits would be exhausted within 10 years. The authorities should therefore seriously consider what measures it should adopt to address the issue.

I firmly believe that the Secretary should continue exploring in the next financial year the possibility of establishing a baby fund, because this will in effect offer greater incentives for the new generation to bear more children, reassuring them that the Government will assist in nurturing their children. Hence, I am sure that establishing a sound funding plan (such as a baby fund) and LEGISLATIVE COUNCIL ― 8 July 2020 9335 giving the plan very careful consideration will genuinely encourage young couples to bear more children, and will also give children more hope. Most importantly, this will make the new generation feel that the Government really cares for them. Therefore, Secretary, my colleagues and I will definitely keep following up on the proposal to establish a baby fund in the days to come.

I so submit.

MR WU CHI-WAI (in Cantonese): Just now, Dr CHIANG Lai-wan put forth her viewpoints on encouraging women to bear children. In my view, her argument is not wrong because whether women will bear children certainly depends on their concern about the political prospects of society and also their perception of whether the future of society will still look promising. Is the latter pegged to money only? If the Secretary takes a stroll outside today and asks the young generation whether they want to have children and whether they are hopeful about Hong Kong's future, I believe many of them will give the Secretary this reply, "I am worried about whether my children can live a normal life in Hong Kong in the days ahead. I have lots of worries, so I will not have any children, so as to avoid putting them at risk. I say so because they will have to face the Hong Kong National Security Law that has just been passed and also the Education Bureau's persistent attempts to incorporate new policies in the education system to forbid this and that, just as everybody can see."

When a society is stripped of freedom, the prospects as we call them will then shatter gradually because the pursuit of freedom is an innate human nature. As Dr CHIANG Lai-wan said just now … On the Mainland, there is a song called "Nothing to lose". I believe the lyrics she just quoted are from this song. But does she know that the protagonist in this song called "Nothing to lose" is actually a person longing for freedom? He has been criticized by his better half for having nothing at all from the financial, monetary and materialistic angles, and that is why he is deeply aggrieved. This has also precisely reflected the divergent attitudes held by different people in Hong Kong society towards various values. Some people merely want to satisfy their needs at the bottom of the "satisfaction pyramid", meaning to say that they are only after satisfaction in the subsistence and financial aspects, and they are already satisfied with being economic animals. In contrast, some people think that after becoming better off in life, they should move on to pursue dignity and higher values in life, including 9336 LEGISLATIVE COUNCIL ― 8 July 2020 freedom. They yearn for a land of freedom, hoping that the Government can be more answerable to people in society.

Just now, Dr CHIANG Lai-wan questioned here whether the SAR Government could show that its care for young people and the community was adequate. How should the Government show its care? Does the additional allocation of a few dollars under the appropriation mechanism mean "care"? Or, does it mean that during policy formulation, the Government should go into the crowds, pay heed to the will of the public and youngsters' opinions, and then adjust its high-handed tactics, so that they can fully manifest their creativity? I think that when the SAR Government considers any policies to encourage women to bear children, this is the area in greater need of improvement.

The Employment (Amendment) Bill 2019 ("the Bill") is certainly not perfect because it only proposes to extend the maternity leave ("ML") period from 10 weeks in the past to 14 weeks. In fact, the Government's statistics and justifications have shown its perception that this amendment is already not too bad as it already brings Hong Kong in compliance with the proposed arrangements formulated by the International Labour Organization in 2000. A research report has even pointed out that 74% of the 178 places worldwide that provide paid ML compute their maternity leave pay ("MLP") based on four fifths of the original wages. Nevertheless, all will have to depend on how the Government perceives our city's positioning. What kind of cities does the Government compare Hong Kong with? Developed, advanced cities? Or, developing cities? The answer will obviously lead to a marked difference in the Government's stance in its comparison.

We may draw reference from Singapore's experience. In 2008, Singapore already extended its ML period to 16 weeks and stipulated full MPL payment for its employees. Speaking of MLP relating to the first and second child, employers may claim MLP reimbursement from the government for a period of eight weeks. For the third child and subsequent children, the government will fully reimburse employers for the latters' MLP payment. Singapore's ML policy obviously factors in the element of encouraging childbirth. In the case of other countries, while some of them do not offer full MLP, their ML periods are longer. Let us look at Sweden as an example. Since 2016, its local government has stipulated that MLP be computed based on four fifths of the original wages, but parents can enjoy a parental leave period of 480 days in total. This means that LEGISLATIVE COUNCIL ― 8 July 2020 9337 each parent can enjoy 34 weeks of parental leave on average. In the case of South Korea, while the ML period is shorter, and a pregnant woman is entitled to only 12.9 weeks of ML under the latest requirement in 2001, they are nonetheless entitled to full pay for the whole period.

From this angle, I think that when the Government considers the issue of ML, it should draw a comprehensive comparison with other places, rather than choosing those places that are favourable to itself and dispensing with those that are not in its comparison. The Government proposes amendments only in 2020 to extend the ML period to 14 weeks without even offering full pay. We can only say that there is progress, but this is not perfect. I hope the Government can introduce further improvement as early as possible.

Speaking of ML, I also have an interesting … Dr Helena WONG also proposed an amendment. After reviewing her amendment, the Administration argued that it was not acceptable because Dr Helena WONG demanded an annual review of the pay cap we talked about just now. But the President agreed with the Administration's argument that this arrangement would have a charging effect and therefore ruled it inadmissible.

But in a paper I read recently, I noticed something interesting. Due to the new ML arrangements, the Labour Department raised a request with the Establishment Subcommittee ("the Subcommittee") for additional manpower. Actually, this request for additional manpower was already put forth on 30 April 2019 rather than today. One point is very interesting and that is, the Administration argued at the time that it was necessary to establish a working group led by a Chief Labour Officer ("CLO"), and its main task was to monitor the labour relations scene following the implementation of the new ML system, and to review the pay cap for the additional four weeks of ML when necessary.

In other words, speaking of Dr Helena WONG's amendment proposal that has been rejected, the Administration already sought manpower resources from the Subcommittee quite some time ago for the purpose of dealing with the relevant arrangements. From this, Members can see that the Administration was actually lying when it rejected her amendment on the ground that the amendment, if passed, would have a charging effect because the Government already presented a paper on 30 April 2019 requesting sufficient manpower to deal with 9338 LEGISLATIVE COUNCIL ― 8 July 2020 the relevant arrangements. Somehow, the Subcommittee passed the Government's proposal of outsourcing the reimbursement mechanism in the end, and the proposal of creating a CLO post was voted down by members―the proposal was voted down by not only the democratic camp but also DAB.

The point I am driving at is that if the Administration can even tell falsehood in its grounds for rejecting Members' amendments, then how can it be possible to rectify the relationship between the executive and the legislature? Of course, this is not an issue that should be discussed in the debate today. But from this, we can see that when the Government looks at a problem, it often wants to impose its mindset on the legislature. Of course, the Government might want to try its luck, thinking that Members would not bother to read all papers, so members would not notice during the discussion of the Bills Committee that the Subcommittee had already held discussion some time ago. In my view, this attitude is very undesirable.

In this debate on the resumption of Second Reading, I also wish to bring up another viewpoint. According to the Administration, computation shows that if employees with a monthly salary of below $50,000 are also to be reimbursed for the remaining one fifth of their MLP for the first 10 weeks (meaning "full pay"), an additional expenditure of $472 million will be incurred. But this proposal has not been accepted. The Administration has put forth another amendment in its counterproposal, the proposal of raising the MLP cap. But the discussion concerned is not detailed, and Members have not been given any opportunities to discuss the objective of this proposal―whether it seeks to enable employees with a monthly salary of below $50,000 to receive full MLP, or to raise the MLP reimbursement ceiling to $80,000 for employees covered by this proposal.

I believe this proposal merits discussions because the original coverage rate is 95% of female employees. If these 95% of female employees can receive full MLP, then I believe this will mean that an overwhelming majority of "wage earners" can benefit. But on the one hand, the Government does not accept the payment of full MLP to female employees with a monthly salary of below $50,000; on the other hand, despite an expenditure increase, the Government still proposes to raise the MLP cap to $80,000 on the ground that this can benefit an additional 4% of female employees on the labour market.

LEGISLATIVE COUNCIL ― 8 July 2020 9339

We often say that when the Government conceives a public policy, it should make the most of public money to cover more recipients. From this perspective, what was the Administration's basis for deciding on its acceptance of an amendment and rejection of another? Of course, the two amendments were proposed. But why did the Government accept one amendment and reject the other? What was the Government's basis? What was its line of reasoning? What were its criteria? What was its baseline? Members are actually eager to know the Administration's entire line of reasoning when it considers an issue. We have said all along that if the Government is to make a choice when formulating a public policy, the cardinal guiding principle is that it should try as much as possible to benefit an overwhelming majority of its recipients. Obviously, from the effectiveness point of view, I believe that enabling female employees with a monthly salary of below $50,000 to receive full MLP can better benefit female employees when compared to raising the cap for the purpose of covering an additional 4% of female employees.

Finally, I wish to point out that on the amendment of ML, one thing still remains uncertain, and I hope the Secretary can advise Members on it later. Even if the Bill is passed today, we still do not know when it will take effect. The Government will outsource the reimbursement mechanism. Does it mean that the Secretary expects the Bill to take effect upon completion of the tasks relating to the reimbursement mechanism? I hope that the Secretary can explain in his reply later on whether it will be possible to commence MLP reimbursement shortly after the outsourcing of the reimbursement mechanism (for example, at the beginning of 2021). If yes, I would also like to ask the Secretary to "open his mouth" later on and explain the Government's plan.

My speech here today comes to an end at this point. I hope that when the Administration considers and discusses the ML policy or any public policies, it can adopt a holistic and consistent attitude, so as to enable Members to see that the Administration's acceptance or otherwise of a certain proposal is not arbitrary. That way, both sides can commence effective discussions on a more reasonable basis.

Thank you, Deputy President.

9340 LEGISLATIVE COUNCIL ― 8 July 2020

DR PRISCILLA LEUNG (in Cantonese): Deputy President, I speak in support of the Employment (Amendment) Bill 2019 ("the Bill") to resume its Second Reading debate. The Bill mainly seeks to extend the statutory maternity leave ("ML") from 10 weeks, which we commonly call the "pre-four and post-ten weeks" of childbirth, to 14 weeks. The additional four weeks of ML pay will be shouldered by the Government. Moreover, the Government will shorten the period of pregnancy for ML entitlement from 28 weeks to 24 weeks and allow the use of a certificate of attendance issued for a prenatal medical examination for sick leave application. To begin with, I do not think it is correct to say that this is a sick leave. This leave should be regarded as a pregnancy leave and pregnancy is not a sickness. This is an ML, which is related to the pregnancy. When we want to encourage women to have babies, we should be careful with the wordings.

We did not have an opportunity to discuss the four-week ML extension in this Council until today. Deputy President, it is because Members have bundled livelihood issues with political ones. Deputy President, you are also the Chairman of the House Committee. For half a year, or eight months, the House Committee had been hijacked by Members who bundled livelihood issues with political ones. We felt that the chance of having normal House Committee meetings was low. A lot of time was spent on discussing the Rules of Procedure. To our relief, the Secretary came up with a way out. He moved a motion to refer the Bill to the Panel on Manpower for consideration, and then the Bill was directly tabled to this Council. By so doing, he managed to break the standstill and rendered it possible for the Bill to proceed to its Second and Third Reading normally.

Deputy President, Members' time should not be wasted in such a way. We can use different ways to express our views on political controversies, but we absolutely should not paralyse the House Committee, resulting in delay to the handling of livelihood issues, including the long-awaited proposal to extend ML. Leaving aside the sufficiency of the four-week extension, if we trace back in history, a 10-week unpaid ML was first introduced to Hong Kong in 1971. Those women who took ML at that time may have become grandmothers now. Subsequently in 1981, the Government introduced an ML pay at two thirds of the wages of pregnant employees who had been employed for no less than 40 weeks. And in 1995, the statutory ML pay was increased to four fifths of their daily wages.

LEGISLATIVE COUNCIL ― 8 July 2020 9341

Deputy President, 25 years have passed since 1995 and employees taking ML are still paid at 80% of their wages. I am a mother of two. I also took my ML in the "pre-four and post-six weeks" pattern. I was fortunate that when I was pregnant, I was teaching at the City University of Hong Kong. I was pregnant for two consecutive years. I had one baby each year for two years. Members should know that the ML terms at the public sector are the best. We are allowed to accumulate our leave days. The "pre-four and post-six weeks" of ML are truly not enough, especially if the mother wants to breastfeed her baby. The mother will be under great pressure if she only has 10 weeks of ML. Some of my colleagues who did not want to take the four weeks of ML prior to childbirth still went to work a few days before childbirth, so that they could have a longer period of leave after childbirth to breastfeed and take care of their infants.

Certainly, when it comes to giving birth to a baby, the present-day concept is that the father will also be in the delivery room to accompany his wife during the delivery of the baby. Hence, male employees should have paternity leave. Postnatal mothers are prone to depression, especially mothers bearing their first child. Some women who have more family members to take care of them may overcome the depression period quicker. However, when the new mother witnesses a new life coming to this world, she will realize that this is a life-long responsibility. She will get emotional and does not know what to do, especially how to breastfeed her baby. She will need to get up in the middle of the night to make preparation. There are many things she needs to learn.

Nowadays, there are not many extended families in Hong Kong. Most families are a three-member household. They do not have any elderly family members to help take care of their newborn babies, nor do they have the money to employ a maternity helper. They have to take care of their babies alone. I came across a family in which both the mother and the father were depressed. I had an assistant who became a father for the first time. He phoned home almost anytime. I could tell from experience that he could have postnatal depression. Actually, if the parents work full-time and take care of a baby at the same time, they are subject to immense pressure. The era that children would grow up by themselves has gone. Some celebrity even said in a TV commercial that raising a child would cost $4 million. I hope there will be fewer commercials like this. Parents should happily embrace the birth of their baby because it is a gift from heaven.

9342 LEGISLATIVE COUNCIL ― 8 July 2020

As to the question of whether the 14-week ML is long enough, my assistant said that the extension from 10 weeks to 14 weeks comes only 50 years later. He said that this is only a change from few to a few more. I think he is too humble. How could this be described as "a few more"? I find the amendment simply unacceptable. However … Kenneth LAU, who sits near me, just came into the Chamber … I also understand that a balance must be struck among stakeholders in society. Many employers have a view about the amendment and they may not want to employ females because of the amendment, especially those who bear more children like me. If they bear a child every year for two and even three years, they will always be taking ML. I can understand the employers on this point.

However, regarding this issue, I wish to respond to what Mr WU Chi-wai just said and I also wish to tell the Secretary … I very much respect the Secretary. I think he has a heart for social welfare matters. But I am not sure whether he lacks the power or he worries too much about the slack economy in Hong Kong now, so much so that he often only has the piggy bank of the Government in mind. I will elaborate on this point later.

Mr WU Chi-wai questioned just now whether anyone would still care about this matter. He said that we could ask any woman or young household on the street and we would find that their greatest concerns are freedom of speech and the National Security Law. I want to say that many people worry about the endless riots in Hong Kong. They worry about being subject to vigilante beating when they go out. Businessmen worry about the need to pledge allegiance to the "yellow economic cycle" and that their different political stands may result in their offices being attacked by petrol bombs. What people are actually more concerned about? We are talking about law-abiding people and their concerns.

I thus hope that the opposition camp will not continue to mingle livelihood issues with political ones. I believe both pro-establishment and pan-democratic Members have strong views about this government policy. I often say that a livelihood issue should not be stretched too far, so that Members can pressurize the Government to make improvement. Today, the Government is willing to extend ML to 14 weeks. As a woman, I do not think it is enough. In particular, having experienced childbirth in the past, I would say that 14 weeks are not enough at all.

LEGISLATIVE COUNCIL ― 8 July 2020 9343

Members often criticize the system in the Mainland. Actually, I was in Beijing taking a course in 1987. I met two Japanese students there. They worked at the Ministry of Foreign Affairs of Japan and they went to Beijing to study Putonghua. I was rather close to them and one of them told me she planned to get married after returning to her country. She was a diplomat. She told me that her institution would keep her post for five years so that she could have peace of mind when she got married and had children. The purpose was to let her be a good mother and free her from worrying about losing her post. Her institution reassured her that they would keep her post while she got married and had children. When her child entered kindergarten, she would resume her work as a diplomat. These two Japanese students both said that they would return to their country to get married after completing the Putonghua course in Beijing. The Government has to take the lead in order to formulate such a meticulous policy like.

The Labour Law of the People's Republic of China enacted in 2008 aroused extensive discussion in the Mainland. This law concerns not only labour law, it also contains many policies concerning women. Females are entitled to six months of ML to facilitate breastfeeding and caring of their newborn babies, as well as allow them to fully recuperate. The one child policy was still in force at that time. Besides, females who are pregnant or having their period can be exempted from jobs that involve getting wet or getting in touch with ice water. Woman policy in the Mainland is very attentive to details. Do we have such a meticulous policy in Hong Kong?

(THE PRESIDENT resumed the Chair)

Some jobs may involve touching water frequently, such as that of a cleaning worker. In discussing the extension of our ML to 14 weeks, we should consider it comprehensively in a package. It is now the year 2020. We have waited for such a long time. In 1987, I learnt about somebody else's woman policy. It is not until 33 years later that we now manage to extend our ML to 14 weeks. We have lagged so far behind! Hence, how could I say that this is enough? Women in Hong Kong have waited for too long. Secretary, the Bureau should be more proactive. Hong Kong women are truly "holding up half of the sky". The Government encourages childbirth, but this has to be coupled with support from society because many working women want to be a mother.

9344 LEGISLATIVE COUNCIL ― 8 July 2020

Many Members question whether it is enough to pay employees on ML at 80% of their wages. I am more accommodating in this regard. I know it is rather difficult for many small and medium enterprises to pay their employees on ML at full rate. And of course, given the present economic condition, now is not a good time to introduce full-rate ML pay. I thus think it is acceptable that the Secretary proposes to revise the cap of the additional ML pay to $80,000. I find it acceptable, at least for the time being.

Many people ask whether the $80,000 cap can be increased for employees earning more than $100,000 a month. I think this is a tenable proposal, given that all women should be entitled to their rights irrespective of their income level. But I am willing to accept a compromise proposal. I thus wish to say a few words on the thinking of the opposition camp, the mutual destruction camp or Mr WU Chi-wai. When I studied government and public administration, where I got my first university degree, I had a favourite scholar named Charles LINDBLOM who put forth the theory of incrementalism. I studied his theory as a major subject. And another one at the school of philosophy was Professor HE Xiuhuang. He is the author of the book "0與1之間".

Society will not reach its ideal state in one step. We all had our younger days. When a person has nothing, he certainly wants to reach his dream immediately. But is it practically feasible? If it is not, Charles LINDBLOM may have provided the correct answer. He said that one should achieve his ideal policy step by step. I still remember our examination question at that time was the Rational Comprehensive Model. It means that everything must be achieved in one step. The model encourages revolution. It advocates reforming everything in society, including culture. If everything is reformed in one go, the gains will certainly not make up for the losses.

We often use a tortoise as an example for metaphor. Its shell is thick and hard. The animal moves slowly, but it lives for a long time. It moves slowly step by step. Similarly, you cannot succeed in reforming the system in China or in Hong Kong at one stroke. We should not eradicate anything we find undesirable, thinking that this can speed up the process. Just imagine if you pluck the shell from the tortoise, can it survive? Just like a snail without its shell, we will lose our source of nutrients.

LEGISLATIVE COUNCIL ― 8 July 2020 9345

We have to be sensible sometimes. I hold that the most important thing for Hong Kong now is to return to rationality, which requires great wisdom. When we discuss a livelihood issue, we should focus on it. If we can reach a consensus on a part of the issue, we should take that step forward first, and gradually we will move forward and push the Secretary who is highly intelligent to move forward. Secretary, I wish to follow up an issue with you. What is the progress with the $2 concessionary fares for persons aged 60? Many people aged over 60 but below 65 are waiting for the implementation of this government policy. They will suffer losses if it is implemented next year. Moreover, please expeditiously launch unemployment assistance. Many people in Hong Kong are looking forward to this assistance. Please use your way to expeditiously launch this assistance, just like the way you broke the stalemate with the Bill and referred it to the panel for discussion and resubmitted it to this Council for consideration. Where there is a will, there is a way. It is now the opportunity for the Labour and Welfare Bureau to play its part.

President, I so submit.

MR KENNETH LAU (in Cantonese): President, I speak in support of the Employment (Amendment) Bill 2019 ("the Bill"). The Bill seeks to increase the statutory maternity leave ("ML") for women from 10 weeks to 14 weeks, propose two technical amendments, including shortening the period of pregnancy mentioned in the definition of "miscarriage" from 28 weeks to 24 weeks, and entitle employees who have attended medical examination in relation to pregnancy to sickness allowance if they are able to produce a certificate of attendance, thus more comprehensively improving ML benefits for female employees.

The relevant legislation on statutory ML in Hong Kong has remained unchanged since it was amended in 1995. The relevant provisions are outdated and lag behind the recommendation of the Maternity Protection Convention, 2000 (Convention 183) enacted by the International Labour Organization ("ILO") that ML should be at least 14 weeks. We also lag far behind other countries and cities in this regard. An earlier study by the Legislative Council pointed out that the governments around the world are far more generous than the Hong Kong Government in their provision of ML. For instance, 16 weeks in neighbouring Singapore, 14 weeks in Japan and 12.9 weeks in South Korea are all better than that of Hong Kong. However, in comparison, European and American countries 9346 LEGISLATIVE COUNCIL ― 8 July 2020 outdo Hong Kong by far, with 17 weeks in Canada, 52 weeks in the United Kingdom and 68.6 weeks in Sweden, for example. The Government's current amendment to the outpaced statutory ML has met at least the minimum requirement of 14 weeks recommended by ILO, thus affording working mothers more time to accompany and care for their newborn babies. This is arguably a big step forward.

In fact, the community has been discussing the extension of statutory ML for some time, and the policy has gradually matured, but as a bunch of "mutual destruction camp" Members had filibustered in the House Committee for more than seven months to keep making it impossible to elect the House Committee Chairman, the House Committee ground to a halt and, as a result, the Bills Committee could not be formed and the Bill almost fell through because the scrutiny might have been unable to be completed within the current session of this term of the Legislative Council. I believe that if the Government had not moved that the Bill be committed to the Panel on Manpower instead of the House Committee, the chance of completion within the current legislative session of this term would have been very slim. Besides, once the current legislative session of this term is missed, there is no knowing of when the Bill will eventually be passed, and the rights and interests of mothers-to-be in Hong Kong will ultimately be impaired. The community should condemn the bunch of Members who put politics before people's livelihoods in woeful ignorance of public well-being for the only purpose of expressing their political stance.

Let us get back to the content of the Bill. In the past, one of the focuses of the community's discussion on the extension of ML was how to strike a balance between the interests of working women and the abilities of enterprises to afford the benefit. If and when statutory ML is extended, it will inevitably further increase the operating cost of enterprises and harm the business environment. In particular, micro, small and medium enterprises ("MSMEs") will be the first to bear the brunt. Throughout the past few decades, employers have been alone in shouldering the burden of ML benefits for employees. Now, the Government is finally willing to assume social responsibility by funding the additional maternity leave pay ("MLP") and increasing the cap in this respect from the original $36,822 to $80,000. This move would reduce the additional cost to MSMEs. It can not only provide more comprehensive protection for pregnant employees, but also tackle the business stress experienced by small and medium enterprises. The policy is a result of comprehensive consideration. It is my hope that the Government will also balance the commitments of employers, employees and LEGISLATIVE COUNCIL ― 8 July 2020 9347 itself when taking forward any labour welfare policy in future, and refrain from letting employers bear all the financial burden alone, so as to reduce the resistance to the policy.

In addition, the Government is developing the new reimbursement regime for the additional MLP, under which employers can apply to the Government for reimbursement of the pay already paid to employees in respect of the additional four weeks of ML. The Government indicated earlier that, in light of the expectation of the community at large to benefit pregnant employees as early as possible, it was exploring the feasibility of implementing the Bill by the end of the year. I hope that the Government will announce good news to the community soon. Meanwhile, the design of the reimbursement regime should be streamlined as much as possible to simplify the reimbursement process, ensuring that the employers' applications will be processed in a convenient and effective manner.

The current Bill involves two technical amendments, including shortening the period of pregnancy mentioned in the definition of "miscarriage". At present, the medical profession has defined "stillbirth" as a baby born without sign of life at or after 24 weeks of gestation. To dovetail with the prevailing medical definition and practices, the Bill proposes to update the definition of "miscarriage" from "before 28 weeks of pregnancy" to "before 24 weeks of pregnancy". This will entitle a female employee who unfortunately miscarries at or after (same as above) 24 weeks of pregnancy to ML instead of just sick leave, so that they have enough time to recuperate and heal the heart-wrenching pain of bereavement. The birth of a new life brings joy and deserves a universal celebration, so to speak, but the demise of a child will break its parents' heart beyond others' comprehension. ML provides them with a breathing space and heal their pain. The extension of ML is a very important amendment, as well as a manifestation of the humanitarian spirit.

Another amendment proposed by the Bill is that a certificate of attendance would be accepted as documentary proof for entitling the female employee to sickness allowance for any day on which the employee has attended a medical examination in relation to her pregnancy. At present, quite a few female employees cannot receive sickness allowance after attending medical examination in relation to pregnancy because they have been issued with a certificate of attendance rather than a medical certificate. The Government deserves support in proposing an amendment to ensure a consistent delivery of the initial objective 9348 LEGISLATIVE COUNCIL ― 8 July 2020 of the provisions of the Employment Ordinance to protect the rights and interests of pregnant employees. Certainly, there is still room for improvement in our ML regime. On the other hand, all the relevant family-friendly policies, such as post-natal support, childcare services and flexible working hours, require a commitment from the Government for improvement and support, so as to tap into the potential labour force in order to take forward the sustainable development of enterprises and the local economy, as well as address the challenges posed by the ageing population.

The current Bill has been delayed by opposition Members for a long period of time. For this reason, quite a few working pregnant women have failed to benefit from it in time. I sincerely hope that the Bill will be passed as soon as possible, so that the rights and interests of pregnant women will be more comprehensively protected by means of legislation and all female employees in Hong Kong can benefit as quickly as possible without having their due rights and interests impeded by the opposition any more. Therefore, I support the Government's and Mr Vincent CHENG's amendments.

I so submit.

MS STARRY LEE (in Cantonese): President, as a female Member of the Council, I do have special feelings when the Second Reading debate of the Employment (Amendment) Bill 2019 ("the Bill") resumed today, which will possibly be passed and come into operation.

We certainly hope that the Bill will be passed so as to enhance people's desire to have children or even increase our young population, but I am afraid that in fact, as the Secretary also understands, when a married couple or a woman decide(s) whether to bear a child or not―if you ask me about my personal experiences or experience―the length of maternity leave is not at all a point to be considered. I think they have to consider social values in the very first place.

In local community or the community in China, the size of family has been shrinking. In the past, there were three, four or more children in a family without any appeals made or policies launched by the Government, but nowadays, a family only has a child or two, or even has to consider whether to bear one or not. This is actually a reflection of the change in social values. Therefore, Secretary, if our population policy is really meant to encourage LEGISLATIVE COUNCIL ― 8 July 2020 9349 childbearing, it is more important to lead by example in addition to increasing the number of weeks of maternity leave, namely government officials take the lead in childbearing and appeal to the people of Hong Kong to do the same.

I have been listening to Members' speeches on this issue and, in retrospect, found that the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") is actually quite proactive in action. As its Chairman, I have only one daughter, which should be considered a small number of course. Yet, several members of DAB, including―the Chairman of the Panel on Manpower Committee who has three children, while both Mr CHEUNG Kwok-kwan and Mr CHAN Han-pan are fathers of two children. In fact, the average fertility rate of DAB should be an average of Hong Kong's general figure. It is for sure that some of the DAB members have not yet chosen to be parents, and as the DAB Chairman, I often encourage them to have more children because we have to take action and set an example in order to convince people.

When chatting with the Secretary, I did not ask him how many children he has, but I think he can also encourage the Under Secretary, his own team and even the entire civil service to have more children. Perhaps, however, there is less discussion of this issue due to the prevailing atmosphere in society. As regards the Chief Executive, I had a deep feeling before she assumed office. She came to attend the meeting of the House Committee ("HC") as the Chief Secretary for Administration back then, and she was precisely the one who took the lead to discuss Hong Kong's population policy. She had already indicated at the meeting her wish to work out the ways to boost the local fertility rate. Nevertheless, it is a real regret that after she became the Chief Executive, she has not taken any other substantive action or measure to encourage childbearing other than expressing in the policy address her wish of increasing the number of weeks of maternity leave.

Of course, I should not blame only her Administration because as a matter of fact, Hong Kong has gone through an unprecedentedly difficult period in the past except for the honeymoon phase at the very beginning. That is why I hope that the Secretary will, apart from introducing the Bill, launch corresponding substantial policy or, if there is no substantive policy, vigorously promote childbearing within the civil service. In my opinion, under the extreme political confrontations for the time being, it is also a good thing for the Government to take the lead to encourage childbearing since this will help unite the local community.

9350 LEGISLATIVE COUNCIL ― 8 July 2020

President, I now revert to the amendments proposed in the Bill, namely extending the maternity leave from 10 weeks to 14 weeks, and that the additional maternity leave pay will be funded by Government on a reimbursement basis but subject to a cap. Basically, the Government's willingness to take such a crucial step will, of course, gain support across different parties, and it is also a major demand of the labour sector which it has been fighting for years. However, given the current political environment in Hong Kong, even though the Bill has gained support across different parties in theory, whether it will be passed smoothly and expeditiously by the Council still depends on the actual situation.

As we all know, the Bill has gone through a period of dramatic filibuster in HC, that is, no HC chairman had been elected within a seven-month period, and we should actually give credit to the Secretary because it was him who had initiated at the Council meeting the proposal of referring the Bill to the Panel on Manpower before scrutiny of the Bill could begin, and thanks to him that we managed to submit the Bill to the Council in time for resumption of Second Reading debate upon completion of scrutiny with a view to its early passage.

Of course, many Members questioned last week whether the "finishing touch" can really be made so smoothly as expected because under the Rules of Procedure ("RoP") of the Legislative Council, consideration of the Bill maybe delayed even if only a few Members make quorum calls or filibuster. The current legislative session is nearing the end now, and I clearly remember that some bills would fail to be passed at the end of each legislative session, such as the bill related to the Medical Registration Ordinance of last session and the bill related to the Copyright Ordinance of the previous session. For the Bill in the current session, I am confident that it will be passed, but according to my own estimation, consideration of some other bills by the Council may not be completed, and may even be aborted.

President, a few Members have just said that as women, they would have deep feeling to be able to see the passage of the Bill, but I think that given his intelligence and experience, the Secretary must understand that the Bill alone is absolutely insufficient to enhance the desire of families or women in Hong Kong to have more children. Let us look at the report prepared for us by the Legislative Council Secretariat in 2019―Research Brief: "Opportunities and challenges facing maternal workforce in Hong Kong" ("the report"), which states that in 2018, there were still 458 000 non-working local females at prime age, that is, women aged 25 to 54. Secretary, as you are also concerned about manpower LEGISLATIVE COUNCIL ― 8 July 2020 9351 affairs, it is also among your tasks to encourage women who have given birth to join the workforce again or to help them become eligible to rejoin the workforce in the face of the shrinking labour force in Hong Kong. Of these women, 80% are forced to quit their jobs because they have to take care of household chores or their own children.

As regards the work participation of younger mothers aged 25 to 39, it has paradoxically receded to 54% over the past 11 years, during which both the pressure as well as the cost of living were so high here in Hong Kong. This is something the Secretary is duty-bound to face up to. In fact, I have come across many such examples: one party of a young couple (i.e. the mother in most cases) who, after discussion with the other party, will give up whose career in order to raise children at home due to the lack of child care services support in Hong Kong.

At present, less than 13% of children under the age of 3 are provided with child care services in child care centres. In the case of Hong Kong, we are indebted to those foreign domestic helpers ("FDHs"), such as the FDHs from the Philippines and Indonesia. Without FDHs, fewer women would be able to work. Thus, I asked the Secretary to pay more attention to matters in this regard as I have already told the Secretary in the past that many organizations of employment agencies placing FDHs would like to meet with the Secretary. However, they said that it has been very difficult to do so. Actually, we should care about these FDHs working in Hong Kong because given the considerably inadequate provision of child care services in Hong Kong, the female members of many families will have to stop working outside but stay at home to take care of their families instead if it really happens one day that the FDHs no longer come here to work.

President, the report also points out directly that Hong Kong's fertility rate is inversely proportional to the female employment rate, which is partly due to the delayed implementation of family-friendly employment practices in Hong Kong. Citing the Organization for Economic Cooperation and Development ("OECD") as an example, the report also mentions that a number of OECD's member states have already introduced policies to support mothers to continue working in the workplace after giving birth, including the provision of longer maternity leave averaging at 18 weeks; flexible childcare leave averaging at 37 weeks to enable mothers to take care of their young children; granting of statutory leave for 9352 LEGISLATIVE COUNCIL ― 8 July 2020 mothers; the statutory right for mothers to request part-time work or flexible working hours from employers; and provision of more child care services. In fact, Hong Kong is rather backward in this respect.

Dr Priscilla LEUNG has shared just now her personal experiences and she was so lucky to be able to take the 10-week maternity leave in the form of 4 weeks before giving birth and 6 weeks after delivery. In my case, I was also working as a professional when I was about to give birth back then, and just as what she has told, I was basically unable to take the 4-week maternity leave before giving birth. It was almost until the last minute before delivery did I take maternity leave in an attempt to get a 10-week maternity leave in full after delivery so that I could breastfeed my child because I wanted to act in line with the Government policy and also for the sake of my newborn baby.

Looking around, however, mothers in other countries can negotiate with their employers to arrange for flexible childcare leave so as to make possible the continuation of the period of breastfeeding, which can hardly be materialized here though. Hence, Ms YUNG Hoi-yan is really so remarkable and I have to give her a "like" since she has played the role of taking the lead to deliver two babies during her term of office as Member of the Council. Therefore, President, apart from introducing the Bill, the Secretary really has to continue his efforts in the implementation of a series of family-friendly employment practices. In this connection, DAB's Family Affairs Committee has already put forth relevant policy proposals at an early stage and I hope that the Secretary will take our views on board.

In fact, the introduction of family-friendly employment practices has been really effective. Taking the United Kingdom as an example, the report points out that upon implementation of such practices, its labour force participation rate for females aged 25 to 54 was 81% and number of newborns was 1 790 in 2017. Both were noticeably higher than our figures. According to my understanding, the latest figures have decreased slightly, with a female labour force participation rate at 72.7% and 1 072 newborns. In view of this, I implore the Secretary not to stop there but to keep taking forward family-friendly policy and family-friendly employment practices in Hong Kong to provide an excellent environment for those families that are considering or getting down to decision-making in respect of family planning since it is indeed rather difficult for parents to make up their minds, in particular those who are facing the childbirth issue for the very first time.

LEGISLATIVE COUNCIL ― 8 July 2020 9353

President, there are only the last two Council meetings remaining in the current legislative session. Previously when I came into contact with the Secretary, he was a scholar then and had the background of a former member of the Democratic Party, but still, he was willing to join the Government―I am most certain that he must be able to put into practice his philosophy of governance and make contribution to society, but I vividly remember that I had criticized him when the Budget (Appropriation Bill) received the Third Reading―this being one of the last two meetings attended by Members of the current term of the Legislative Council, but all that he has done is introducing the Bill into the Council only, so I think he has really failed as the Secretary. We still have a number of policies that need to be taken forward vigorously by the Secretary―the Legislative Council has made strenuous effort to tell the Government that the unemployment rate in Hong Kong is exceptionally high, but why can the Government not introduce a temporary unemployment assistance scheme? I remember the Secretary had once told me that the Comprehensive Social Security Assistance Scheme was already in place, but I did have repeatedly advised the Government to launch a temporary unemployment assistance scheme. I hope that the Secretary will seriously consider my proposal again. Actually, the Council is really reflecting the views of the public and I hope that the Secretary will ponder the proposal in question.

In addition, some Members mentioned the issue of $2 concessionary fare this morning―I was sitting here as the President's deputy―I do hold strong views on the Secretary in this regard. Although the issue is not directly related to the Bill, since the Secretary is present here listening to Member's speeches on the Bill, I have to grasp this last opportunity in the current term of the Council to relay to the Secretary the views of the public. I believe that it is the hope of Members across various parties to urge the Secretary to announce the good news to the public before the legislative session comes to an end. People can never understand why a policy approved by the Chief Executive this year will not be implemented until a year or two later. The Secretary said in his reply this morning that there were a large number of Octopus cards in use―I also got three Octopus cards with me―but that does not necessarily mean they will be abused by the public, and the Administration can launch an inquiry to find out if abuse of Octopus cards is present. I trust that with his wisdom and capabilities, the Secretary must be capable of responding aptly to the public's and Members' demands.

9354 LEGISLATIVE COUNCIL ― 8 July 2020

I hope that in future, the Secretary will put in efforts with respect to the views I have just given, in particular those on maternity leave, family-friendly policies and unemployment assistance given the twists and turns of the coronavirus pandemic in these days. And just as mentioned in a number of supplementary questions during the oral question session this morning, both the tourism industry and the health code may also hit the rocks. If the unemployment rate continues to rise but the Secretary does not put in place any practical measures to tackle it, many people in Hong Kong will really have to lead a rather miserable life.

Finally, I would like to urge the Secretary once again to consider the proposal of offering the $2 concessionary fare and hope that he will be able to, before the current legislative session ends, announce to the public when the relevant measures will be implemented.

With these remarks, President, I support the Bill.

MR STEVEN HO (in Cantonese): President, presumably, I am the last Member to speak today. A moment ago, the number of Members waiting to speak was still zero. Seeing my party colleague Mr Vincent CHENG sitting for six to seven hours in order to secure the passage of this maternity leave bill, I have no reason not to give my support. Anyway, the meeting will be adjourned after I speak today, so I am unable to drag it out.

When I stood up just now, I recalled Secretary Dr LAW Chi-kwong racking his brains for this maternity leave bill and even employing the tactic of referring the Bill to the Panel for discussion, which is why Secretary Dr LAW is said to have an IQ up to 160 and I have no doubt about it at all. Some people have asked me what my IQ is. When I was a child, I did not have the opportunity to measure it. I have no idea what utility there is in measuring it when I have grown up. Therefore, I do not know if my IQ is as high as my height of 1.92 metres, but I believe it is lower than the Secretary's because I was really unable to come up with the idea of referral to the Panel for discussion. There is a notion in society that stakeholders cannot see the wood for the trees, so I would like to take the opportunity today to share some of my views on the maternity leave bill.

LEGISLATIVE COUNCIL ― 8 July 2020 9355

In addition to the recent maternity leave bill, another thing that Secretary Dr LAW Chi-kwong is better known for is a previous incident. That is, when there was a shortage of masks in the beginning, the Secretary said that―sorry, I have to take a dig at the Secretary but it is not my will to do so and I just cite the following example―he had used only one mask in more than 20 days to one month. He got in his car as soon as he stepped out of home, and after returning to the office, he would be alone, so he used only one mask, of course. Subsequently he received scathing criticism from the outside. After all, the Secretary only offered his own views and perspectives, and that was what he actually did, but the community has a different perception of him.

The same is true for this maternity leave bill. When he proposed referral to the Panel, he was also criticized the next day for trampling morality, circumventing the Legislative Council, and so on. Likewise, today I heard Dr Fernando CHEUNG criticize not only the Secretary but also all Members of the pro-establishment camp for pursuing a hidden agenda in the Council in an attempt to set a bad precedent so that other bills can also be handled in this way. In fact, whether a Panel or a Bills Committee was engaged, what it did was only scrutiny. Of course, had the House Committee worked normally, there would not have been any need at all to make this move. They claimed that we trampled morality and pursued a hidden agenda but put the blame on them instead. If we agreed with Mr Dennis KWOK's handling of the House Committee's business, namely playing for time by presiding on up to 17 meetings, and continued to grin and bear it, what would our response be tantamount to? It would be Duke Xiang of Song's kindness. Before the enemy has its battle formation in place, we should not attack it, or else we are unrighteous. When the enemy is crossing a river, we should not attack it either, because it is unrighteous to do so, according to Duke Xiang of Song. After the enemy has crossed the river but its battle formation has not yet taken shape, we should not seize the opportunity to launch an attack either, because this is also unrighteous. In the end, his flag of benevolence and righteousness embroidered with gold thread was trampled underfoot and his body was even hit by an arrow. He died two years after going home. Therefore, in order to secure a bill on maternity leave, and even other bills introduced to the Legislative Council, we must also counteract the ever-emerging new filibustering tricks of these opposition Members in the "mutual destruction camp".

9356 LEGISLATIVE COUNCIL ― 8 July 2020

That is why Mr Vincent CHENG has also been sitting for so long today to promote counteraction, making good use of the last two Council meetings. Looking back and employing logical reasoning, I am sure that if we had turned the other cheek, this maternity leave bill could not have been introduced to the Legislative Council. Moreover, it was unknown at the time that the House Committee Chairman, Ms Starry LEE, could be elected in this way. Admittedly, the process was a battle of wits, but nobody expected it at that time, did they? Hence, through this process, this maternity leave bill could be successfully taken forward in this term of the Legislative Council. I do not care whether the "mutual destruction camp" vote for or against the Bill today. Even if they vote for it, I will not believe that they support this maternity leave bill. If this Bill is passed, the credit should definitely go to those Members who did not filibuster in the election of House Committee Chairman which was previously presided over by Mr Dennis KWOK. I have to reiterate this point.

Now, let us get back to the environment. I just heard Deputy President Ms Starry LEE specifically mention that the maternity leave bill sought to encourage childbirth right from the outset, right? I have no children myself. Mr Vincent CHENG has three and some Members also have several children. I do envy them. But why in the beginning did I mention the story about the Secretary wearing one mask? It is precisely because when people consider having a child, they have different thoughts, and maternity leave is one of the considerations.

Nevertheless, I would like to tell a short story from the perspective of the agriculture and fisheries sector. In the past, the agriculture and fisheries sector, i.e. the earlier generation, or my grandfather's generation, engaged in manual labour to rear children for the purpose of providing for old age. The more children one had, the more human resources there were to help with fishing. They had a strong aversion to those who encouraged their adult children to buy a home, because their children would not embark the boat anymore once having bought a home onshore, which would translate into a reduction in manpower, as the Labour and Welfare Bureau put it, would it not? Secondly, they were gullible, with some having been deceived. I find it hard to understand why, just a couple of years after they bought a small wooden boat, which would easily cost the better part of $200,000 back then, they were forcibly encouraged to enlarge the boat by two feet or replace it with a new one. I have no idea how this would affect their productivity. This was also a way to nibble away at fishermen's LEGISLATIVE COUNCIL ― 8 July 2020 9357 capital so that they continued to stay at sea to fish and manpower could not shift ashore. As a result, they were forced to resign themselves to the conditions of their life.

However, in recent years―not exactly in recent years, but since more than a decade ago, I believe―some people have said that $4 million should be set aside for having a child. Now, with inflation taken into account, would $4 million still be enough? When the period of "black-clad violence" erupted last year, it was not just about money, but even about the fear that children might be badly taught in government schools, so having no children might be a better choice. Therefore, the SAR Government has to create an environment that encourages childbirth, as well as a stable and peaceful society. The currently introduced National Security Law for HKSAR will have a great shock-and-awe effect, but even after the Central Government has taken action, the success is contingent upon how the SAR Government uses this card. The pro-establishment Members―they should be called the "constructive camp Members" instead of the "pro-establishment Members"―see that both the Central Government and the SAR Government have taken matters into their own hands. How then should Members react? What obligations should ordinary members of the public fulfil? When visiting the neighbourhood area, I often came across residents telling me that the Legislative Council has to properly fulfil its role as a gatekeeper in the next term, and keep on working hard as well to complete the scrutiny of the Employment (Amendment) Bill 2019 in this term. I asked them in return: "Do you really think that social problems can be solved by merely having 'constructive camp' Members hold meetings? Did you vote?" On 24 November last year, no one dared to vote. Some young people who uphold "yellow violence"―not all of them―hid their grandparents and even their parents' identity cards in order to prevent them from voting. Some level-headed elders insisted on having to vote …

PRESIDENT (in Cantonese): Mr Steven HO, please return to the subject under debate.

MR STEVEN HO (in Cantonese): I am speaking on the subject. I am talking about the need to encourage childbirth by creating a peaceful environment.

9358 LEGISLATIVE COUNCIL ― 8 July 2020

PRESIDENT (in Cantonese): Mr Steven HO, this Council is conducting the Second Reading debate on the Employment (Amendment) Bill 2019 and the subject matter is not about childbirth. Please return to the subject under debate.

MR STEVEN HO (in Cantonese): The Bill seeks to increase the subsidy to $80,000 and extend the maternity leave to 14 weeks. It serves exactly to encourage childbirth, but my proposition is that extension of the maternity leave to 14 weeks is not the only surefire way to encourage childbirth. President, I do not think this is a digression. Let me continue with my speech. There is only a little left before the end, so one minute is enough.

Simply put, if we do not create an environment … oh, I was talking about issues related to voting just now. Some people grin and bear it, saying that they do not want to turn their home into a battlefield. Now, this has something to do with Bill. In order to avoid conflicts at home, they agree to whatever their children want. It has never occurred to them that today's environment would be so bad. Even with the endorsement of the 14-week maternity leave, the SAR Government will fail to encourage them to have children. Many fisherman friends, and even fellows engaged in agriculture, have already gone into business. Those engaged in agriculture may not necessarily do cultivation. They sell fruits imported from foreign countries and even do packaging work instead. I have just talked about voting and the social environment, as well as concerns about the different values of their children. When they transform themselves from farmers to businessmen and continue to engage in agriculture-related work, they will be concerned that too high a proportion of female employees―putting aside gender discrimination―would pose a problem because of the prospect of childbearing. Although the SAR Government will provide employers with subsidies, a company with only one or two employees will surely get puzzled about how to replenish the manpower. The provision of subsidies does not help in any way. Should they recruit staff again and then fire them after a few months?

Therefore, I am very pleased that the 14-week maternity leave proposed by the SAR Government can really encourage employees to bear more children, but what kind of subsidy can the Government provide to the employers who employ pregnant women? Can money really solve the problem? I have vehemently advised many times in the Council against using money to "buy out" an industry, doing nothing other than providing subsidies. In that event, the company would LEGISLATIVE COUNCIL ― 8 July 2020 9359 rather close down. The employer would take maternity leave together with the employee, wait until the latter has given birth before setting up a new company, and then hire her again. Of course, this is an extreme individual case. In theory, medium and large companies would not do so.

However, back on topic, the resumption of the Second Reading debate on the Bill in the Legislative Council after a bumpy ride has been no easy feat indeed. Regardless of whether they have smeared Secretary Dr LAW Chi-kwong over the earlier mask incident, members of the community should restore justice to him today for the efforts he made on the matter of maternity leave, so that the Government, together with the "constructive camp" Members who wish to take forward the Bill, can find a way to give the Bill the unique chance of revival to come to this point.

I do not know if Mr Vincent CHENG will have a fourth child and if Mr CHAN Han-pan will have a third child. It seems that Mr CHAN's wife is a full-time housewife, so she may not be benefited. Despite having no children yet, I have to express the mentality of some young couples in their thirties and forties. Although we should thank the Government for increasing the maternity leave to 14 weeks, it can only be enjoyed in a rather desperate and unpeaceful era. To be honest, this 14-week maternity leave may not necessarily be able to encourage me to bear the next generation. As I said earlier, people have many considerations before bearing children. I hope that, after listening to Members' speeches on the Second Reading today, Secretary Dr LAW Chi-kwong will go back to discuss with other Secretaries the idea that encouragement of childbirth is not the sole responsibility of the Labour and Welfare Bureau, but rather an issue to be dealt with by the Chief Secretary for Administration, who should even set up a "Committee on Childbirth of the Special Administrative Region" to comprehensively consider various factors, including paternity leave, from the perspectives of employers, child bearers and even husbands. Only in this way can we find a better direction.

I do not want to waste the remaining time, because I know that everyone is eager to go home and keep their children company. Even Members, such as Ms YUNG Hoi-yan, who has given birth to two very cute children (I have not yet had a chance to see the second child though), are not entitled to 14 weeks of maternity leave, nor necessarily to paternity leave. Particularly, under the circumstances where the "mutual destruction camp" have many tricks to manipulate the agenda in the Council, the "constructive camp" Members find it 9360 LEGISLATIVE COUNCIL ― 8 July 2020 really difficult to see their children, which is a regret―having no children myself, I am speaking on their behalf, so I have no conflict of interest. If the values of the Council or Hong Kong people are truly based on the belief that a harmonious family will thrive in every aspect of life, I suggest that we make a careful choice for the future of Hong Kong by casting a responsible vote.

President, I so submit.

SUSPENSION OF MEETING

PRESIDENT (in Cantonese): I now suspend the meeting until 9:00 am tomorrow.

Suspended accordingly at 6:38 pm.

LEGISLATIVE COUNCIL ― 8 July 2020 A1

Appendix I

WRITTEN ANSWER

Written answer by the Secretary for Development to Mr Tony TSE's supplementary question to Question 2

The number of removal orders issued by the Buildings Department against various types of unauthorized building works in the past five years:

Year Number of removal orders issued 2015 12 918 2016 12 901 2017 13 182 2018 12 819 2019 12 186