LEGISLATIVE COUNCIL ─ 21 January 2015 4753 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 21 January 2015 The Council met at Eleven o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE JASPER TSANG YOK-SING, G.B.S., J.P. THE HONOURABLE ALBERT HO CHUN-YAN THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHAN KAM-LAM, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG DR THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, S.B.S., J.P. THE HONOURABLE FREDERICK FUNG KIN-KEE, S.B.S., J.P. THE HONOURABLE VINCENT FANG KANG, S.B.S., J.P. 4754 LEGISLATIVE COUNCIL ─ 21 January 2015 THE HONOURABLE WONG KWOK-HING, B.B.S., M.H. PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P., Ph.D., R.N. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, S.B.S., J.P. THE HONOURABLE RONNY TONG KA-WAH, S.C. THE HONOURABLE CYD HO SAU-LAN, J.P. THE HONOURABLE STARRY LEE WAI-KING, J.P. THE HONOURABLE CHAN HAK-KAN, J.P. THE HONOURABLE CHAN KIN-POR, B.B.S., J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. DR THE HONOURABLE LEUNG KA-LAU THE HONOURABLE WONG KWOK-KIN, S.B.S. THE HONOURABLE IP KWOK-HIM, G.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. THE HONOURABLE PAUL TSE WAI-CHUN, J.P. THE HONOURABLE ALAN LEONG KAH-KIT, S.C. THE HONOURABLE LEUNG KWOK-HUNG THE HONOURABLE ALBERT CHAN WAI-YIP LEGISLATIVE COUNCIL ─ 21 January 2015 4755 THE HONOURABLE WONG YUK-MAN THE HONOURABLE CLAUDIA MO THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. THE HONOURABLE NG LEUNG-SING, S.B.S., J.P. THE HONOURABLE STEVEN HO CHUN-YIN THE HONOURABLE FRANKIE YICK CHI-MING THE HONOURABLE WU CHI-WAI, M.H. THE HONOURABLE YIU SI-WING THE HONOURABLE GARY FAN KWOK-WAI THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P. THE HONOURABLE CHARLES PETER MOK, J.P. THE HONOURABLE CHAN CHI-CHUEN THE HONOURABLE CHAN HAN-PAN, J.P. DR THE HONOURABLE KENNETH CHAN KA-LOK THE HONOURABLE CHAN YUEN-HAN, S.B.S., J.P. THE HONOURABLE LEUNG CHE-CHEUNG, B.B.S., M.H., J.P. THE HONOURABLE KENNETH LEUNG THE HONOURABLE ALICE MAK MEI-KUEN, J.P. DR THE HONOURABLE KWOK KA-KI 4756 LEGISLATIVE COUNCIL ─ 21 January 2015 THE HONOURABLE KWOK WAI-KEUNG THE HONOURABLE DENNIS KWOK THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG THE HONOURABLE SIN CHUNG-KAI, S.B.S., J.P. 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. THE HONOURABLE TANG KA-PIU, J.P. DR THE HONOURABLE CHIANG LAI-WAN, J.P. IR DR THE HONOURABLE LO WAI-KWOK, B.B.S., M.H., J.P. THE HONOURABLE CHUNG KWOK-PAN THE HONOURABLE TONY TSE WAI-CHUEN, B.B.S. MEMBERS ABSENT: DR THE HONOURABLE LAM TAI-FAI, S.B.S., J.P. THE HONOURABLE CHEUNG KWOK-CHE THE HONOURABLE CHRISTOPHER CHUNG SHU-KUN, B.B.S., M.H., J.P. LEGISLATIVE COUNCIL ─ 21 January 2015 4757 PUBLIC OFFICERS ATTENDING: PROF THE HONOURABLE K C CHAN, G.B.S., J.P. SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY THE HONOURABLE GREGORY SO KAM-LEUNG, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT THE HONOURABLE RAYMOND TAM CHI-YUEN, G.B.S., J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS THE HONOURABLE LAI TUNG-KWOK, S.B.S., I.D.S.M., J.P. SECRETARY FOR SECURITY THE HONOURABLE EDDIE NG HAK-KIM, S.B.S., J.P. SECRETARY FOR EDUCATION DR THE HONOURABLE KO WING-MAN, B.B.S., J.P. SECRETARY FOR FOOD AND HEALTH THE HONOURABLE PAUL CHAN MO-PO, M.H., J.P. SECRETARY FOR DEVELOPMENT MR JAMES HENRY LAU JR., J.P. UNDER SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL 4758 LEGISLATIVE COUNCIL ─ 21 January 2015 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/Instruments L.N. No. Land (Miscellaneous Provisions) (Amendment) Regulation 2015 ........................................................................ 5/2015 Minimum Wage Ordinance (Amendment of Schedule 3) Notice 2015 .......................................................... 6/2015 Employment Ordinance (Amendment of Ninth Schedule) Notice 2015 .......................................................... 7/2015 Amusement Rides (Safety) (Fees) (Amendment) Regulation 2015 ........................................................................ 8/2015 Import and Export (Fees) (Amendment) Regulation 2015 ........................................................................ 9/2015 Other Papers No. 60 ─ Hospital Authority Annual Report 2013-2014 No. 61 ─ Samaritan Fund Financial Statements for the year ended 31 March 2014 and Report on the Fund No. 62 ─ Legal Aid Services Council Annual Report 2013-2014 LEGISLATIVE COUNCIL ─ 21 January 2015 4759 Report No. 10/14-15 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments Report of the Bills Committee on Mandatory Provident Fund Schemes (Amendment) Bill 2014 Report of the Bills Committee on Pharmacy and Poisons (Amendment) Bill 2014 ORAL ANSWERS TO QUESTIONS PRESIDENT (in Cantonese): Questions. First question. Development of Hong Kong's Internet Economy and Cross-border E-commerce Activities 1. MRS REGINA IP (in Cantonese): President, according to a consultancy study in 2011 on the contribution of the Internet to Hong Kong's economy, one third of Hong Kong's Internet economy was driven by consumption, another third was contributed by net exports of e-commerce and Internet-related hardware, and the remaining third comprised government and private investments in Internet-related goods and services. The contribution of the Internet to the economy will rise from 5.9% of Hong Kong's gross domestic product in 2009 (that is, about HK$96 billion) to 7.2% in 2015, reflecting the increasing importance of the Internet to the economy. However, there are comments that the Government is not proactive in promoting the development of the Internet economy and cross-border e-commerce activities. In this connection, will the Government inform this Council: (1) whether it has regularly collected data and conducted statistical analyses on Internet economic activities in Hong Kong; if it has, of the details; (2) whether it will set up a standing working group comprising representatives from the Internet industry to study ways to support and boost the Internet economy, including formulating strategies to encourage private investments in this respect; and 4760 LEGISLATIVE COUNCIL ─ 21 January 2015 (3) as it is learnt that the Guangdong provincial authorities have all along been committed to promoting and developing cross-border e-commerce activities, and that Guangzhou, one of the pilot cities designated by the State Council for cross-border e-commerce services, has introduced tax relief measures such as bonded warehouses, bonded logistic parks as well as import duties on luggage and postal parcels, while Hong Kong lacks the measures and a department dedicated to promoting cross-border e-commerce activities proactively, whether the Government will take steps to catch up on this front? SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): President, my reply to the three parts of the question is as follows: (1) Since 2000, the Government has been conducting regular surveys on the usage of computers, Internet, e-commerce and other information technologies in various business sectors in Hong Kong, with a view to formulating measures to drive information technologies adoption among different economic sectors to enhance competitiveness. According to findings of the 2013 Survey on Information Technology Usage and Penetration in the Business Sector undertaken by the Census and Statistics Department, the value of e-commerce sales in Hong Kong increased by 104% from $139.6 billion in 2008 to $284.7 billion in 2012. E-commerce sales accounted for 3.7% of business receipts of local business establishments in 2012, of which 47.6% was business-to-consumer transactions, 51.5% was business-to-business transactions and the remaining 0.9% was related to government and non-business organizations. The new round of survey, which is under preparation, would commence in March. (2) The Government is committed to facilitating the development of digital economy. The Task Force on Industry Facilitation under the Digital 21 Strategy Advisory Committee, comprising members from Government and the industry, advises on strategies and initiatives to facilitate the development of information and communications technology in Hong Kong. The Task Force deliberated on issues related to the development of Internet economy on various occasions, including the Sector-specific Programme, ways to LEGISLATIVE COUNCIL ─ 21 January 2015 4761 promote cloud computing adoption among small and medium enterprises (SMEs), usage of information technologies by local enterprises, and the International IT Fest which helps foster the development of digital economy in Hong Kong.