LEGISLATIVE COUNCIL ─ 17 October 2007 93 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 17 October 2007 The Council met at Eleven o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.M., G.B.S., J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. THE HONOURABLE ALBERT HO CHUN-YAN IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, S.B.S., S.B.ST.J., J.P. THE HONOURABLE LEE CHEUK-YAN DR THE HONOURABLE DAVID LI KWOK-PO, G.B.M., G.B.S., J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, S.B.S., J.P. THE HONOURABLE MARGARET NG THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, G.B.S., J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHAN YUEN-HAN, S.B.S., J.P. THE HONOURABLE BERNARD CHAN, G.B.S., J.P. 94 LEGISLATIVE COUNCIL ─ 17 October 2007 THE HONOURABLE CHAN KAM-LAM, S.B.S., J.P. THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, G.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG DR THE HONOURABLE PHILIP WONG YU-HONG, G.B.S. THE HONOURABLE WONG YUNG-KAN, S.B.S., J.P. THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE HOWARD YOUNG, S.B.S., J.P. DR THE HONOURABLE YEUNG SUM, J.P. THE HONOURABLE LAU CHIN-SHEK, J.P. THE HONOURABLE LAU KONG-WAH, J.P. THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE MIRIAM LAU KIN-YEE, G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK, J.P. THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE TIMOTHY FOK TSUN-TING, G.B.S., J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, S.B.S., J.P. THE HONOURABLE LI FUNG-YING, B.B.S., J.P. LEGISLATIVE COUNCIL ─ 17 October 2007 95 THE HONOURABLE TOMMY CHEUNG YU-YAN, S.B.S., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE FREDERICK FUNG KIN-KEE, S.B.S., J.P. THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. THE HONOURABLE VINCENT FANG KANG, J.P. THE HONOURABLE WONG KWOK-HING, M.H. THE HONOURABLE LEE WING-TAT THE HONOURABLE LI KWOK-YING, M.H., J.P. DR THE HONOURABLE JOSEPH LEE KOK-LONG, J.P. THE HONOURABLE DANIEL LAM WAI-KEUNG, S.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, S.B.S., J.P. THE HONOURABLE ANDREW LEUNG KWAN-YUEN, S.B.S., J.P. THE HONOURABLE ALAN LEONG KAH-KIT, S.C. THE HONOURABLE LEUNG KWOK-HUNG DR THE HONOURABLE KWOK KA-KI DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG THE HONOURABLE CHEUNG HOK-MING, S.B.S., J.P. THE HONOURABLE WONG TING-KWONG, B.B.S. THE HONOURABLE RONNY TONG KA-WAH, S.C. THE HONOURABLE CHIM PUI-CHUNG 96 LEGISLATIVE COUNCIL ─ 17 October 2007 PROF THE HONOURABLE PATRICK LAU SAU-SHING, S.B.S., J.P. THE HONOURABLE ALBERT JINGHAN CHENG, J.P. THE HONOURABLE KWONG CHI-KIN THE HONOURABLE TAM HEUNG-MAN MEMBERS ABSENT: THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. THE HONOURABLE SIN CHUNG-KAI, S.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE HENRY TANG YING-YEN, G.B.S., J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE WONG YAN-LUNG, S.C., J.P. THE SECRETARY FOR JUSTICE THE HONOURABLE FREDERICK MA SI-HANG, J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT THE HONOURABLE STEPHEN LAM SUI-LUNG, J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS THE HONOURABLE AMBROSE LEE SIU-KWONG, I.D.S.M., J.P. SECRETARY FOR SECURITY THE HONOURABLE DENISE YUE CHUNG-YEE, G.B.S., J.P. SECRETARY FOR THE CIVIL SERVICE THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE LEGISLATIVE COUNCIL ─ 17 October 2007 97 THE HONOURABLE MRS CARRIE LAM CHENG YUET-NGOR, J.P. SECRETARY FOR DEVELOPMENT THE HONOURABLE EVA CHENG, J.P. SECRETARY FOR TRANSPORT AND HOUSING CLERKS IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL MRS VIVIAN KAM NG LAI-MAN, ASSISTANT SECRETARY GENERAL MRS JUSTINA LAM CHENG BO-LING, ASSISTANT SECRETARY GENERAL 98 LEGISLATIVE COUNCIL ─ 17 October 2007 PRESIDENT (in Cantonese): A quorum is not present. Clerk, will you please ring the bell to summon Members to the Chamber. (After the summoning bell had been rung, a number of Members entered the Chamber) PRESIDENT (in Cantonese): A quorum is now present. The meeting will now start. TABLING OF PAPERS The following papers were laid on the table pursuant to Rule 21(2) of the Rules of Procedure: Subsidiary Legislation/Instruments L.N. No. Bankruptcy (Amendment) Ordinance 2005 (Commencement) Notice .............................. 185/2007 Other Papers No. 2 ― Occupational Safety and Health Council Annual Report 2006-2007 No. 3 ― Report by the Trustee of the Customs and Excise Service Children's Education Trust Fund for the year ending 31 March 2007, together with the Director of Audit's Report and the Audited Statement of Accounts No. 4 ― Hong Kong Deposit Protection Board Annual Report 2006-2007 No. 5 ― Urban Renewal Authority Annual Report 2006-2007 No. 6 ― Audited Financial Statement of Accounts and Auditors' Report for the Fish Marketing Organization for the year ended 31 March 2007 LEGISLATIVE COUNCIL ─ 17 October 2007 99 No. 7 ― Audited Financial Statement of Accounts and Auditors' Report for the Vegetable Marketing Organization for the year ended 31 March 2007 No. 8 ― Marine Fish Scholarship Fund Trustee's Report and Audited Financial Statement of Accounts and Auditors' Report on the Fund for the year ended 31 March 2007 No. 9 ― Agricultural Products Scholarship Fund Trustee's Report and Audited Financial Statement of Accounts and Auditors' Report on the Fund for the year ended 31 March 2007 No. 10 ― Report of changes to the approved Estimates of Expenditure approved during the first quarter of 2007-2008 (Public Finance Ordinance : Section 8) No. 11 ― Companies Registry Trading Fund Annual Report 2006-2007 No. 12 ― Environment and Conservation Fund Trustee Report 2006-2007 No. 13 ― Report by the Trustee of the Prisoners' Education Trust Fund for the period from 1 April 2006 to 31 March 2007 No. 14 ― The Land Registry Trading Fund Hong Kong Annual Report 2006-2007 No. 15 ― Report on the Recommended Delineation of Geographical Constituencies for the 2008 Legislative Council Election No. 16 ― The Government Minute in response to the Report No. 48 of the Public Accounts Committee dated July 2007 ADDRESSES PRESIDENT (in Cantonese): Address. The Chief Secretary for Administration will address the Council on "The Government Minute in response to the Report No. 48 of the Public Accounts Committee dated July 2007". 100 LEGISLATIVE COUNCIL ─ 17 October 2007 The Government Minute in response to the Report No. 48 of the Public Accounts Committee dated July 2007 CHIEF SECRETARY FOR ADMINISTRATION (in Cantonese): Madam President, laid on the table today is the Government Minute responding to Report No. 48 of the Public Accounts Committee (PAC). When presenting the PAC Report No. 48 on 11 July, the Chairman of the PAC set out in detail the comments of the PAC on three selected chapters from Director of Audit's Reports, viz the administration of short term tenancies (STTs), the administration of the Hong Kong Applied Science and Technology Research Institute Company Limited (hereinafter referred to as the "ASTRI") and the management of government fresh food wholesale markets. The Administration is grateful for the effort and time that the PAC has devoted. Today, I would like to highlight the key measures taken in the relevant areas. Details of the Government's response to the conclusions and recommendations in the Report are set out in the Minute tabled. Administration of STTs Land is one of our most valuable resources. It has always been our policy to optimize the use of this scarce resource. Where there is a vacant government site which has not been designated for specific use or is not required for development in the near future, the possibility for tendering it through STT for temporary use is explored. The STT system has been practised for many years, and the system has proven to be effective. On the one hand, we can derive some leasing revenue from these tenancies, and on the other hand the vacant sites can be put into various temporary uses. Although the Lands Department (LandsD) is relieved from managing those vacant government sites by way of STTs, in return it has to take up the extensive task of administering the STTs which have now totalled over 4 000 in different parts of Hong Kong. The LandsD has, over the years, developed its policies and practices for administering STTs. New issues arise as the number of STTs grows and the complexity of STTs intensifies. The Audit and PAC Reports came as a timely reminder for the LandsD to review its policies and practices. The LandsD has critically re-examined many aspects of STT administration, in response to the observations and recommendations made by the Audit Commission and the PAC. LEGISLATIVE COUNCIL ─ 17 October 2007 101 The observations and examinations made by the Audit Commission focus on three main areas in the STT system, namely administration of rent arrears, monitoring tenants' performance and enforcement of tenancy conditions. The LandsD has accepted all recommendations of the Audit Commission, and this has been noted by the PAC.