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HONG KONG LEGISLATIVE COUNCIL — 22 October 1992 307 OFFICIAL RECORD OF PROCEEDINGS Thursday, 22 October 1992 The Council met at half-past Two o'clock PRESENT THE DEPUTY PRESIDENT THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., Q.C., J.P. THE CHIEF SECRETARY THE HONOURABLE SIR DAVID ROBERT FORD, K.B.E., L.V.O., J.P. THE FINANCIAL SECRETARY THE HONOURABLE NATHANIEL WILLIAM HAMISH MACLEOD, C.B.E., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE HUI YIN-FAT, O.B.E., J.P. THE HONOURABLE MARTIN LEE CHU-MING, Q.C., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E. THE HONOURABLE SZETO WAH THE HONOURABLE TAM YIU-CHUNG THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P. THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE, O.B.E., J.P. THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG, O.B.E. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. 308 HONG KONG LEGISLATIVE COUNCIL — 22 October 1992 THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE VINCENT CHENG HOI-CHUEN THE HONOURABLE MOSES CHENG MO-CHI THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHIM PUI-CHUNG THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE TIMOTHY HA WING-HO, M.B.E., J.P. THE HONOURABLE MICHAEL HO MUN-KA DR THE HONOURABLE HUANG CHEN-YA THE HONOURABLE SIMON IP SIK-ON, J.P. DR THE HONOURABLE LAM KUI-CHUN DR THE HONOURABLE CONRAD LAM KUI-SHING THE HONOURABLE LAU CHIN-SHEK THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE LEE WING-TAT THE HONOURABLE GILBERT LEUNG KAM-HO THE HONOURABLE ERIC LI KA-CHEUNG, J.P. THE HONOURABLE FRED LI WAH-MING THE HONOURABLE MAN SAI-CHEONG THE HONOURABLE STEVEN POON KWOK-LIM THE HONOURABLE HENRY TANG YING-YEN, J.P. THE HONOURABLE TIK CHI-YUEN THE HONOURABLE JAMES TO KUN-SUN DR THE HONOURABLE SAMUEL WONG PING-WAI, M.B.E., J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE HOWARD YOUNG, J.P. HONG KONG LEGISLATIVE COUNCIL — 22 October 1992 309 THE HONOURABLE ZACHARY WONG WAI-YIN DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE CHRISTINE LOH KUNG-WAI THE HONOURABLE ROGER LUK KOON-HOO ABSENT THE ATTORNEY GENERAL THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. THE HONOURABLE DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE MRS PEGGY LAM, M.B.E., J.P. THE HONOURABLE PETER WONG HONG-YUEN, J.P. THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. REV THE HONOURABLE FUNG CHI-WOOD DR THE HONOURABLE PHILIP WONG YU-HONG IN ATTENDANCE THE CLERK TO THE LEGISLATIVE COUNCIL MR CLETUS LAU KWOK-HONG 310 HONG KONG LEGISLATIVE COUNCIL — 22 October 1992 Member's motion MOTION OF THANKS Resumption of debate on motion which was moved on 21 October 1992 DEPUTY PRESIDENT: Council will resume and continue with the debate on the Motion of Thanks. MR MARTIN BARROW: Mr Deputy President, in his "Agenda for Hong Kong", the Governor has given our community a bold and visionary lead for the next five years. It clearly has considerable support across the community. Economic issues I wholeheartedly welcome the restatement of the Government's philosophy of minimum interference and of its desire to preserve Hong Kong as the most business- friendly place in Asia. I also welcome the pledge to keep taxes low but would go further to suggest that a small part of the current surpluses could be used to roll back this year's tax increase. I also believe that the social programmes can be achieved without undermining these successful policies. The commitment to holding government spending down so that it does not outpace economic growth is equally welcome to the business community. The four tasks set for the Governor's Business Council lie at the very heart of Hong Kong's quest for continuing success. As I have said many times in this Council, there remains a need to dam the flood of new legislation. Given the enormous task for the Administration and this Council alike to bring existing legislation into line with the Basic Law, I do not see how we can cope with so much new legislation as well. While the Governor is right to say that consumers must have redress against unscrupulous business practices the remedy lies with more vigorous use of existing legal sanctions, for example a greater readiness to prosecute and to impose long sentences. It must not mean more legislation, more red tape in other areas, a regulatory environment which will stifle enterprise and, in retarding economic growth, deprive us of funds for improving social services. Minimum interference has served Hong Kong well and must continue to do so. We must resist the temptation to seek a legislative solution to every perceived abuse. It simply will not work. The determined criminal will breach the rules however complex while the enterprise of the honest businessmen will be stifled. A case in point is the regulation of the securities industry. Hong Kong now has some of the most complex securities regulation in Asia while still further complexity is planned. The Government must strive for a better balance in both the structure of the rules and in the way they are presently being HONG KONG LEGISLATIVE COUNCIL — 22 October 1992 311 administered, between free, open and responsive securities markets and adequate investor protection. I am delighted by the Government's commitment to reassess existing policies that stand in the way of progress. As President BUSH put it recently: "We must clear away the obstacles to growth, high regulation, red tape, and yes, wasteful government spending. Departments and agencies will carry out a top to bottom review of all regulations, old and new, to stop the ones that will hurt growth, and speed up those that will help growth. I will not neglect my responsibility for sound regulations that serve the public good, but regulatory overkill must be stopped." Hong Kong's free enterprise has brought prosperity to the people of this territory. The business community shares the Governor's determination to safeguard this against the assaults of the nanny state. On many occasions I have called for a more vigorous programme of privatization. I am reassured that the Government will continue to pursue this area and I endorse Mr David LI's comments on this topic yesterday. Lastly, on economic issues, this is the fifth policy debate in succession in which I have referred to the labour shortage. But the responsibility of the Government to explain its labour importation policies and the need to eliminate bureaucratic bottlenecks is no less pressing than before. For example, our service standards as a major tourist centre can only be sustained if there are adequate staff to meet growing needs. Business as well as the Government can play its part by supporting retraining programmes but with unemployment at under 2%, the growth target of 5% or 6% can probably only be achieved with continued flexibility in the supply of labour from overseas. New schemes must, however, be surrounded by less red tape than in the past. Serving the community As in last year's policy address, I state my admiration for the dedication and loyalty of our Civil Service. Last year I called for radical reform, for refocussing civil servants on serving the customer, not the boss. I called for mountains of achievement, not of paper. I am therefore delighted to learn of the Government's commitment to a culture of service through performance pledges. While it is encouraging too that civil service managers have responded to this new challenge, it is disappointing that some civil servant unions have suggested that it will lead only to overwork. No one suggests that civil servants do not work hard. But they 312 HONG KONG LEGISLATIVE COUNCIL — 22 October 1992 miss the point. The effect of these proposals will be to reduce mountains of paperwork. Civil servants should themselves take the initiative in coming up with ideas. I know at least one civil servant who has been fighting the bureaucratic steeple chase for some years. A case in point was the extraordinary Security Branch policy of imposing a paper chase of work before visas could be issued to certain visitors to Hong Kong. Now that needless paper work has been excised, the Immigration Department's workload has reduced. Further simplification in procedures of issuing Taiwan visitor visas, would reduce the workload further. But other examples remain. In the same area, why should it be necessary to queue for hours to get an ID card or a passport? Cannot more of this activity be undertaken through the post? The Governor mentioned driving licences. In the United Kingdom a licence is valid until the age of 70. Why do we have to renew here every three years? A "culture of service" must apply equally to customers in businesses. Is the Administration aware that it can take an entrepreneur six to nine months to obtain all the approvals to open a new restaurant? Health or fire regulations must exist but unclear and frequently changing regulation must be scrapped and replaced with a client-friendly system which will give all approvals within, say, 21 days.