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Official Record of Proceedings LEGISLATIVE COUNCIL — 13 March 1996 1 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 13 March 1996 The Council met at half-past Two o'clock MEMBERS PRESENT THE PRESIDENT THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. DR THE HONOURABLE DAVID LI KWOK-PO, O.B.E., LL.D. (CANTAB), J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE SZETO WAH THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. DR THE HONOURABLE EDWARD LEONG CHE-HUNG, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE CHEUNG MAN-KWONG 2 LEGISLATIVE COUNCIL — 13 March 1996 THE HONOURABLE CHIM PUI-CHUNG THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE HUANG CHEN-YA, M.B.E. THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE LEE WING-TAT THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE JAMES TO KUN-SUN DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., F.Eng., J.P. DR THE HONOURABLE PHILIP WONG YU-HONG DR THE HONOURABLE YEUNG SUM THE HONOURABLE HOWARD YOUNG, J.P. THE HONOURABLE ZACHARY WONG WAI-YIN THE HONOURABLE CHRISTINE LOH KUNG-WAI THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P. THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE CHAN KAM-LAM LEGISLATIVE COUNCIL — 13 March 1996 3 THE HONOURABLE CHAN WING-CHAN THE HONOURABLE CHAN YUEN-HAN THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE PAUL CHENG MING-FUN THE HONOURABLE CHENG YIU-TONG DR THE HONOURABLE ANTHONY CHEUNG BING-LEUNG THE HONOURABLE CHEUNG HON-CHUNG THE HONOURABLE CHOY KAN-PUI, J.P. THE HONOURABLE DAVID CHU YU-LIN THE HONOURABLE ALBERT HO CHUN-YAN THE HONOURABLE IP KWOK-HIM THE HONOURABLE LAU CHIN-SHEK THE HONOURABLE AMBROSE LAU HON-CHUEN, J.P. DR THE HONOURABLE LAW CHEUNG-KWOK THE HONOURABLE LAW CHI-KWONG THE HONOURABLE LEE KAI-MING THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE BRUCE LIU SING-LEE THE HONOURABLE LO SUK-CHING THE HONOURABLE MOK YING-FAN 4 LEGISLATIVE COUNCIL — 13 March 1996 THE HONOURABLE NGAN KAM-CHUEN THE HONOURABLE TSANG KIN-SHING DR THE HONOURABLE JOHN TSE WING-LING THE HONOURABLE MRS ELIZABETH WONG CHIEN CHI-LIEN, C.B.E., I.S.O., J.P. THE HONOURABLE LAWRENCE YUM SIN-LING MEMBERS ABSENT THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE MARGARET NG THE HONOURABLE SIN CHUNG-KAI PUBLIC OFFICERS ATTENDING THE HONOURABLE MRS ANSON CHAN, C.B.E., J.P. CHIEF SECRETARY THE HONOURABLE DONALD TSANG YAM-KUEN, O.B.E., J.P. FINANCIAL SECRETARY THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. ATTORNEY GENERAL MR MICHAEL SUEN MING-YEUNG, C.B.E., J.P. SECRETARY FOR HOME AFFAIRS MR CHAU TAK-HAY, C.B.E., J.P. LEGISLATIVE COUNCIL — 13 March 1996 5 SECRETARY FOR RECREATION AND CULTURE MR GORDON SIU KWING-CHUE, J.P. SECRETARY FOR ECONOMIC SERVICES MR NICHOLAS NG WING-FUI, J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS MR RAFAEL HUI SI-YAN, J.P. SECRETARY FOR FINANCIAL SERVICES MR PETER LAI HING-LING, J.P. SECRETARY FOR SECURITY MR BOWEN LEUNG PO-WING, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS MR LAM WOON-KWONG, J.P. SECRETARY FOR THE CIVIL SERVICE MR KWONG KI-CHI, J.P. SECRETARY FOR THE TREASURY MISS JACQUELINE ANN WILLIS, J.P. SECRETARY FOR EDUCATION AND MANPOWER CLERKS IN ATTENDANCE MR RICKY FUNG CHOI-CHEUNG, SECRETARY GENERAL MR LAW KAM-SANG, DEPUTY SECRETARY GENERAL MISS PAULINE NG MAN-WAH, ASSISTANT SECRETARY GENERAL MR RAY CHAN YUM-MOU, ASSISTANT SECRETARY GENERAL 6 LEGISLATIVE COUNCIL — 13 March 1996 PAPERS The following papers were laid on the table pursuant to Standing Order 14(2): Subject Subsidiary Legislation L.N. No. Public Revenue Protection (Air Passenger 122/96 Departure Tax) Order 1996 ................................ Public Revenue Protection (Business Registration 123/96 Fees) Order 1996 ......................................... Public Revenue Protection (Estate Duty) 124/96 Order 1996 ................................................ Public Revenue Protection (Stamp Duty) 125/96 Order 1996 ................................................ Public Revenue Protection (Dutiable Commodities) 126/96 Order 1996 ................................................ Air Pollution Control (Asbestos) 128/96 (Administration) Regulation ............................ Shipping and Port Control Regulations (Amendment 129/96 of Seventh Schedule) Notice 1996 ..................... Criminal Jurisdiction Ordinance (Cap. 461) 130/96 (Commencement) Notice 1996 ......................... LEGISLATIVE COUNCIL — 13 March 1996 7 Sessional Papers 1995-96 No. 65 ─ Revisions to the Estimate of Expenditure on Capital Projects approved by the Urban Council as at the end of December 1995 No. 66 ─ Report of the Public Accounts Committee on the Report of the Director of Audit on the Review of the Housing Benefits provided by the Hospital Authority to its Employees (February 1996 ─ PAC Report No. 25A) No. 67 ─ Audited Statement of Accounts of the Language Fund for the year ending 31 August 1995 ADDRESS Report of the Public Accounts Committee on the Report of the Director of Audit on the Review of the Housing Benefits provided by the Hospital Authority to its Employees (February 1996 ─ PAC Report No. 25A) MR ERIC LI: Mr President, when I tabled the Public Accounts Committee's Report No. 25 in the Council on 7 February 1996, I explained why we had to defer a full report on the subject concerning "the review of the housing benefits provided by the Hospital Authority (HA) to its employees". I also assured Members that the Committee would put in our best endeavours to finalize the report to the Council at the earliest opportunity. I am pleased to report that we have now finalized deliberations on this subject and the Committee's conclusions and recommendations are contained in our Report No. 25A tabled today. At the time when we decided to defer a full report on the subject, the Committee were hopeful that our request to examine the relevant documentary evidence concerning the formulation and financial analysis of the HA remuneration policy could meet with the Administration's favourable consideration. To our great disappointment, although the Chief Secretary implied in her earlier letter to the Committee that exceptions could be made in the disclosure of Executive Council papers, the Administration and the 8 LEGISLATIVE COUNCIL — 13 March 1996 Executive Council have finally chosen to resort to blanket claims of "class" confidentiality in denying the Committee's access to the documents which we believe should not contain sensitive information affecting public security. We are obviously dissatisfied with the act of the Administration which, I must say, is blatantly against the principles and its professed commitment to co-operate with the Committee in the performance of our duties. The Administration argued that all relevant information had been given to the Committee and that inspection of the Executive Council papers would not help to clarify matters further. However, should it be the case that the Administration can alone decide what and how much information and documentation the Public Accounts Committee need? Mr President, there is no doubt that the Committee's scope of investigation into the HA case is hitherto constrained by the selective evidence and secondary information provided to us. Notwithstanding this, the evidence we gathered has clearly shown that the process of formulating the HA remuneration package at the time lack clarity and precision in determining the principle of cost comparability between the civil service and the HA packages. There was the obvious absence of a long-term cost analysis of the HA package under different possible scenarios and the lack of a crucial review mechanism. The arguments justifying the non-application of the double benefits rule on HA staff were also flawed. In the course of examining the cost comparability between the civil service and the HA packages, the Committee had been provided different figures by the Director of Audit and the HA. The Committee are well aware of the fact that different assumptions taken to interpret the open-ended "cost comparability" principle could lead to very different cost projections. However, we do not consider it the proper role of the Committee to decide or adjudicate policy matters where the Administration's own policy is silent. This role falls squarely on the Administration. It alone must take full responsibility to tie up the loose-ends. The proper focus of the Committee is therefore placed on the various short-comings identified in the policy formulation process and the glaring potential of over-spending revealed by the Director of Audit's Report. We urge the Administration to critically examine the HA staff remuneration package, as a matter of urgency, to ensure the public that there could be no chance of over-spending in future. LEGISLATIVE COUNCIL — 13 March 1996 9 The Administration has set up an inter-departmental working group to review the HA remuneration package. We sincerely hope that the review will take into account the Committee's views and recommendations and look forward to the outcome of the review in May 1996. In the Chief Secretary's letter of 1 February 1996 to the Committee, she said that "it is more important for the Committee to point the way forward rather than to dwell on what happened in the past". We have no disagreement with her as a matter of principle. Indeed, in my opening remarks at the Committee's first public hearing on 20 November 1995, I also mentioned that "our approach, as always, will be fact finding and problem solving rather than simply laying blames".
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