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Official Record of Proceedings LEGISLATIVE COUNCIL ― 7 June 2017 9085 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 7 June 2017 The Council met at Eleven o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, G.B.S., J.P. PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, S.B.S., J.P. THE HONOURABLE STARRY LEE WAI-KING, S.B.S., J.P. THE HONOURABLE CHAN HAK-KAN, B.B.S., J.P. THE HONOURABLE CHAN KIN-POR, B.B.S., J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. THE HONOURABLE WONG KWOK-KIN, S.B.S., J.P. 9086 LEGISLATIVE COUNCIL ― 7 June 2017 THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. THE HONOURABLE LEUNG KWOK-HUNG# THE HONOURABLE CLAUDIA MO THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. THE HONOURABLE STEVEN HO CHUN-YIN, B.B.S. THE HONOURABLE FRANKIE YICK CHI-MING, J.P. THE HONOURABLE WU CHI-WAI, M.H. THE HONOURABLE YIU SI-WING, B.B.S. THE HONOURABLE CHARLES PETER MOK, J.P. THE HONOURABLE CHAN CHI-CHUEN THE HONOURABLE CHAN HAN-PAN, J.P. THE HONOURABLE LEUNG CHE-CHEUNG, B.B.S., M.H., J.P. THE HONOURABLE KENNETH LEUNG THE HONOURABLE ALICE MAK MEI-KUEN, B.B.S., J.P. DR THE HONOURABLE KWOK KA-KI THE HONOURABLE DENNIS KWOK WING-HANG THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. # According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council. LEGISLATIVE COUNCIL ― 7 June 2017 9087 DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG DR THE HONOURABLE HELENA WONG PIK-WAN THE HONOURABLE IP KIN-YUEN DR THE HONOURABLE ELIZABETH QUAT, J.P. THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P. THE HONOURABLE POON SIU-PING, B.B.S., M.H. DR THE HONOURABLE CHIANG LAI-WAN, J.P. IR DR THE HONOURABLE LO WAI-KWOK, S.B.S., M.H., J.P. THE HONOURABLE CHUNG KWOK-PAN THE HONOURABLE ALVIN YEUNG THE HONOURABLE ANDREW WAN SIU-KIN THE HONOURABLE CHU HOI-DICK THE HONOURABLE JIMMY NG WING-KA, J.P. DR THE HONOURABLE JUNIUS HO KWAN-YIU, J.P. THE HONOURABLE HO KAI-MING THE HONOURABLE LAM CHEUK-TING THE HONOURABLE HOLDEN CHOW HO-DING THE HONOURABLE SHIU KA-FAI THE HONOURABLE SHIU KA-CHUN 9088 LEGISLATIVE COUNCIL ― 7 June 2017 THE HONOURABLE WILSON OR CHONG-SHING, M.H. THE HONOURABLE YUNG HOI-YAN DR THE HONOURABLE PIERRE CHAN THE HONOURABLE CHAN CHUN-YING THE HONOURABLE TANYA CHAN THE HONOURABLE CHEUNG KWOK-KWAN, J.P. THE HONOURABLE HUI CHI-FUNG THE HONOURABLE LUK CHUNG-HUNG THE HONOURABLE LAU KWOK-FAN, M.H. THE HONOURABLE KENNETH LAU IP-KEUNG, M.H., J.P. DR THE HONOURABLE CHENG CHUNG-TAI THE HONOURABLE KWONG CHUN-YU THE HONOURABLE JEREMY TAM MAN-HO THE HONOURABLE NATHAN LAW KWUN-CHUNG# DR THE HONOURABLE YIU CHUNG-YIM# DR THE HONOURABLE LAU SIU-LAI# # According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council. LEGISLATIVE COUNCIL ― 7 June 2017 9089 MEMBERS ABSENT: THE HONOURABLE PAUL TSE WAI-CHUN, J.P. THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P. THE HONOURABLE KWOK WAI-KEUNG PUBLIC OFFICERS ATTENDING: THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.S., J.P. CHIEF SECRETARY FOR ADMINISTRATION PROF THE HONOURABLE ANTHONY CHEUNG BING-LEUNG, G.B.S., J.P. SECRETARY FOR TRANSPORT AND HOUSING PROF THE HONOURABLE K C CHAN, G.B.S., J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY DR THE HONOURABLE KO WING-MAN, B.B.S., J.P. SECRETARY FOR FOOD AND HEALTH THE HONOURABLE NICHOLAS W. YANG, J.P. SECRETARY FOR INNOVATION AND TECHNOLOGY THE HONOURABLE ERIC MA SIU-CHEUNG, J.P. SECRETARY FOR DEVELOPMENT CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, DEPUTY SECRETARY GENERAL MS ANITA SIT, ASSISTANT SECRETARY GENERAL MS DORA WAI, ASSISTANT SECRETARY GENERAL 9090 LEGISLATIVE COUNCIL ― 7 June 2017 PRESIDENT (in Cantonese): Will the Clerk please ring the bell to summon Members to the Chamber. (After the summoning bell had been rung, a number of Members entered the Chamber) TABLING OF PAPERS The following papers were laid on the table under Rule 21(2) of the Rules of Procedure: Subsidiary Legislation/Instrument L.N. No. Travel Agents (Fee Concessions) Regulation 2017........... 106/2017 Other Papers Report No. 19/16-17 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments Report of the Bills Committee on Inland Revenue (Amendment) (No. 3) Bill 2017 ORAL ANSWERS TO QUESTIONS PRESIDENT (in Cantonese): Questions. First question. Regulation of sharing economy platforms involving illegal commercial activities 1. MR YIU SI-WING (in Cantonese): The concept of sharing economy is to create economic value by sharing or leasing idle resources owned by individuals. In recent years, sharing economy platforms have been in the ascendant around the world, and the resources shared include residential units or rooms, vehicles, parking spaces, etc. The leasing of such resources is generally subject to LEGISLATIVE COUNCIL ― 7 June 2017 9091 regulation of local legislation, including the requirement that the operators concerned must obtain relevant licences. For instance, a person who operates in Hong Kong premises for short-term leases to provide sleeping accommodation with a tenancy term of less than 28 days shall obtain a licence under the Hotel and Guesthouse Accommodation Ordinance, and such premises are also subject to strict regulation in the areas of fire safety installations, building structure, etc. Some members of the hotel industry have relayed that some people operate, through sharing economy platforms, unlicensed guesthouses which have posed unfair competition to them, and visitors staying in unlicensed guesthouses are not afforded protection. Regarding the regulation of sharing economy platforms involving illegal commercial activities, will the Government inform this Council: (1) whether the authorities have a grasp of the sharing economy platforms involving illegal commercial activities that are currently in operation in Hong Kong; if so, of the commercial activities involved, and the law enforcement efforts made by the authorities against such illegal commercial activities; if not, the reasons for that; (2) whether the authorities have studied the experience of overseas countries or regions in regulating sharing economy platforms, including the legislation enacted for this purpose; if so, of the details; if not, the reasons for that; and (3) whether the authorities will adopt measures to regulate sharing economy platforms involving illegal commercial activities so as to protect the rights and interests of lawful operators and the interests of consumers; if so, of the details; if not, the reasons for that? SECRETARY FOR INNOVATION AND TECHNOLOGY (in Cantonese): President, sharing economy is an emerging economic activity which refers to different people sharing idle resources or services through the exchange of information. The operation mode of sharing economy is to build a trusted platform to effectively connect those who provide and demand for the resources or services, thereby lowering the cost of transaction. Some advocates consider that sharing economy facilitates sharing among people and can reduce waste of resources. As communication technology, the Internet and mobile devices become increasingly common, and social media, cloud computing, big data, 9092 LEGISLATIVE COUNCIL ― 7 June 2017 network payment and rating system become more mature, the development of sharing economy has accelerated. Technological development also helps lower the threshold and provides more business opportunities and room for development for innovators and small and medium enterprises. On the other hand, sharing economy disrupts the traditional business model, in particular bringing the greatest impact to sectors such as intermediaries, agents and manufacturers. Sharing economy also challenges the regulatory framework and business model of certain industries. At present, certain businesses can only be operated by designated professionals, such as hire cars, guesthouses, banks, leasing, etc., which are governed by regulatory authorities and relevant legislation. Sharing economy can trigger various problems, including quality assurance, consumer protection, difficulties in regulation, etc., and the operation of certain businesses may even violate the existing regulations. The Government is committed to promoting innovation and technology ("I&T") to drive the transformation and diversified development of the economy, as well as improve the people's quality of life. However, we must emphasize that the rule of law is the core value of Hong Kong. The development of any industry, including the I&T industry, must be done in a lawful manner. Anyone operating illegal businesses in the name of "sharing economy" is unacceptable. The laws of Hong Kong have been thoroughly studied and extensively discussed by the society, and are ultimately enacted by the Legislative Council.
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