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1 HONG KONG LEGISLATIVE COUNCIL -- 6 February 1991

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1 HONG KONG LEGISLATIVE COUNCIL -- 6 February 1991 1 HONG KONG LEGISLATIVE COUNCIL -- 6 February 1991 HONG KONG LEGISLATIVE COUNCIL -- 6 February 1991 1 OFFICIAL REPORT OF PROCEEDINGS Wednesday, 6 February 1991 The Council met at half-past Two o'clock PRESENT THE ATTORNEY GENERAL (MEMBER PRESIDING) THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE CHIEF SECRETARY THE HONOURABLE GRAHAM BARNES, C.B.E., J.P. THE FINANCIAL SECRETARY THE HONOURABLE SIR PIERS JACOBS, K.B.E., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE STEPHEN CHEONG KAM-CHUEN, C.B.E., J.P. THE HONOURABLE CHEUNG YAN-LUNG, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, O.B.E., J.P. DR THE HONOURABLE HENRIETTA IP MAN-HING, O.B.E., J.P. THE HONOURABLE CHAN YING-LUN, O.B.E., J.P. THE HONOURABLE PETER POON WING-CHEUNG, O.B.E., J.P. THE HONOURABLE CHENG HON-KWAN, O.B.E., J.P. THE HONOURABLE CHUNG PUI-LAM, J.P. THE HONOURABLE HO SAI-CHU, O.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 DAVID LI KWOK-PO, O.B.E., J.P. THE HONOURABLE NGAI SHIU-KIT, O.B.E., J.P. THE HONOURABLE PANG CHUN-HOI, M.B.E. THE HONOURABLE POON CHI-FAI, J.P. PROF. THE HONOURABLE POON CHUNG-KWONG, J.P. THE HONOURABLE SZETO WAH THE HONOURABLE TAI CHIN-WAH, J.P. THE HONOURABLE MRS ROSANNA TAM WONG YICK-MING, O.B.E., J.P. THE HONOURABLE TAM YIU-CHUNG DR THE HONOURABLE DANIEL TSE, C.B.E., J.P. THE HONOURABLE ANDREW WONG WANG-FAT, J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE MICHAEL LEUNG MAN-KIN, J.P. SECRETARY FOR TRANSPORT THE HONOURABLE EDWARD HO SING-TIN, J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, J.P. THE HONOURABLE MARTIN GILBERT BARROW, O.B.E. THE HONOURABLE PAUL CHENG MING-FUN THE HONOURABLE MICHAEL CHENG TAK-KIN, J.P. THE HONOURABLE DAVID CHEUNG CHI-KONG, J.P. THE HONOURABLE RONALD CHOW MEI-TAK THE HONOURABLE MRS NELLIE FONG WONG KUT-MAN, J.P. THE HONOURABLE MRS PEGGY LAM, M.B.E., J.P. THE HONOURABLE DANIEL LAM WAI-KEUNG, J.P. THE HONOURABLE MRS MIRIAM LAU KIN-YEE THE HONOURABLE LAU WAH-SUM, O.B.E., J.P. DR THE HONOURABLE LEONG CHE-HUNG THE HONOURABLE LEUNG WAI-TUNG, J.P. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE KINGSLEY SIT HO-YIN THE HONOURABLE MRS SO CHAU YIM-PING, J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. THE HONOURABLE YEUNG KAI-YIN, J.P. SECRETARY FOR EDUCATION AND MANPOWER THE HONOURABLE MRS ANSON CHAN, J.P. SECRETARY FOR ECONOMIC SERVICES THE HONOURABLE PETER TSAO KWANG-YUNG, C.B.E., C.P.M., J.P. SECRETARY FOR HOME AFFAIRS THE HONOURABLE ALISTAIR PETER ASPREY, O.B.E., A.E., J.P. SECRETARY FOR SECURITY THE HONOURABLE MICHAEL DAVID CARTLAND, J.P. SECRETARY FOR HEALTH AND WELFARE THE HONOURABLE BOWEN LEUNG PO-WING, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS ABSENT HIS EXCELLENCY THE GOVERNOR (PRESIDENT) SIR DAVID CLIVE WILSON, G.C.M.G. THE HONOURABLE MARIA TAM WAI-CHU, C.B.E., J.P. THE HONOURABLE MRS RITA FAN HSU LAI-TAI, O.B.E., J.P. THE HONOURABLE PETER WONG HONG-YUEN, J.P. IN ATTENDANCE THE CLERK TO THE LEGISLATIVE COUNCIL MR LAW KAM-SANG Oath Mr Bowen LEUNG Po-wing took the Oath of Allegiance. Papers Sessional Papers 1990-91 No. 46 -- Report on the Administration of the Travel Agents' Reserve Fund for the period 1.4.89 - 31.3.90 No. 47 -- Report of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Hong Kong Government for the year ended 31 March 1990 and the Results of Value for Money Audits January 1991 P.A.C. Report No. 16 MEMBER PRESIDING: Before I start this afternoon's proceedings I would like to deliver a message. The Governor has asked me to send his apologies to the Council for not being able to take the chair today owing to some over enthusiastic running down a hill side. I am sure that Members of the Council would wish me to convey to the Governor their best wishes for a very speedy recovery. MR ALLEN LEE: Sir, I, on behalf of my non-government colleagues, wish you to send the Governor a message, wishing him a speedy recovery. Addresses by Members Report on the Administration of Travel Agents' Reserve Fund for the period 1.4.89 -- 31.3.90 DR IP: Sir, in my capacity as Chairman of the Advisory Committee on Travel Agents, I wish to say a few words about the report on the Travel Agents' Reserve Fund just tabled. Sir, you may remember that when I last addressed this Council in 1990 on the same subject, I mentioned that we had hoped to put behind us the liability of Austravel and P.C. Travel Service Limited by the end of 1990. I am pleased to confirm that this has been accomplished. The great majority of former clients of the two defunct companies have been paid. The amount of ex-gratia payments involved is approximately $12 million. So much for the "Austravel" experience. With the Austravel liabilities duly resolved, we are one step closer to abolishing the Travel Agents' Reserve Fund. However, there are still a small number of outstanding claims to be dealt with. These are cases on which the Official Receiver has yet to complete adjudication or which the claimants have failed to complete the requisite documentation. Once these cases are resolved, the Travel Agents' Reserve Fund may be closed for good. On the brighter side, I am happy to report that the Travel Industry Council Reserve Fund of which I am also Chairman is consolidating its position. You may recall that this non-statutory fund was established in 1988 with a view to replacing the much depleted Travel Agents' Reserve Fund. Financed by a 1% levy on all outbound package tours, the Travel Industry Council Reserve Fund has become the cornerstone of a new self-regulation structure for the outbound tour industry. By the end of 1990, the amount of net reserves reached $46.8 million. This amount is of course much more encouraging than the meagre amount the Travel Agents' Reserve Fund had managed to amass, although I must say it still falls short of the level which could offer an effective shield of protection to travellers in the event of a major mishap. Provided travel agency failures could be kept to a low level, as in the past two years, this optimum level could be reached without difficulty. Looking to the future I am given to understand that the Administration is at its final stages of reviewing the package of arrangements for self-regulation for the outbound tour industry. At the beginning of the current Session, I had already voiced my concern about the rather uneasy working relationship between the Travel Industry Council and the Travel Industry Council Reserve Fund. I have also emphasized the need for keeping administration expenditure of the Travel Industry Council Reserve Fund to a reasonable level so that the bulk of reserves go to the relief of travellers in distress. I am glad to learn that due regard will be given to my observations and indeed the various areas identified to be capable of refinement. I look forward to hearing from the Administration about the outcome of this overall review. Sir, the Year of the Horse is often considered by many to be an auspicious year, particularly for travellers. This seems to have been borne out by the performance of the Travel Industry Council Reserve Fund. It is my sincere wish that the Year of the Ram is just as prosperous and auspicious, if not more. Report of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Hong Kong Government for the year ended 31 March 1990 and the Results of Value for Money Audits January 1991 P.A.C. Report No. 16 MR PETER POON: Sir, laid on the table today is the 16th Report of the Public Accounts Committee. This covers the conclusions reached by the Committee in considering the Director of Audit's Report on the results of Value for Money studies conducted between March and September 1990. Sir, the Committee have been encouraged by the continuing improvement in standards of financial management within Government, and by the positive attitude adopted by the Administration towards the Director of Audit's recommendations in his Report No. 16 and towards the implementation of many of our own recommendations in previous reports. There remain nonetheless some general areas of concern to the Committee, and there are two in particular which I would like to touch on. First, the Committee feel that urgent and serious consideration should be given to the introduction of a simple -- and I emphasize the word "simple" -- system of interdepartmental charging for services provided. A common theme running through several of the items contained in this report is that the lack of such a system has hindered the proper identification and containment of costs. This problem particularly comes to the fore when a government organization -- such as Radio Television Hong Kong -- is being prepared for privatization.
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