HONG KONG LEGISLATIVE COUNCIL — 7 July 1993 4313 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 7 July 1993 The Council met at half-past Two o'clock PRESENT THE PRESIDENT THE HONOURABLE JOHN JOSEPH SWAINE, C.B.E., LL.D., 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 ATTORNEY GENERAL THE HONOURABLE JEREMY FELL MATHEWS, C.M.G., J.P. THE HONOURABLE ALLEN LEE PENG-FEI, C.B.E., J.P. THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, 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 SZETO WAH THE HONOURABLE TAM YIU-CHUNG THE HONOURABLE ANDREW WONG WANG-FAT, O.B.E., J.P. THE HONOURABLE LAU WONG-FAT, O.B.E., J.P. THE HONOURABLE EDWARD HO SING-TIN, O.B.E., J.P. THE HONOURABLE RONALD JOSEPH ARCULLI, O.B.E., J.P. THE HONOURABLE MARTIN GILBERT BARROW, O.B.E., J.P. 4314 HONG KONG LEGISLATIVE COUNCIL — 7 July 1993 THE HONOURABLE MRS PEGGY LAM, 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., J.P. THE HONOURABLE JAMES DAVID McGREGOR, O.B.E., I.S.O., J.P. THE HONOURABLE MRS ELSIE TU, C.B.E. THE HONOURABLE PETER WONG HONG-YUEN, O.B.E., J.P. THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE VINCENT CHENG HOI-CHUEN, J.P. THE HONOURABLE MOSES CHENG MO-CHI THE HONOURABLE MARVIN CHEUNG KIN-TUNG, J.P. THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE CHIM PUI-CHUNG REV THE HONOURABLE FUNG CHI-WOOD 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, O.B.E., J.P. DR THE HONOURABLE LAM KUI-CHUN DR THE HONOURABLE CONRAD LAM KUI-SHING, J.P. THE HONOURABLE LAU CHIN-SHEK THE HONOURABLE EMILY LAU WAI-HING THE HONOURABLE LEE WING-TAT THE HONOURABLE ERIC LI KA-CHEUNG, J.P. HONG KONG LEGISLATIVE COUNCIL — 7 July 1993 4315 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 PHILIP WONG YU-HONG DR THE HONOURABLE YEUNG SUM THE HONOURABLE HOWARD YOUNG, J.P. 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 THE HONOURABLE ANNA WU HUNG-YUK THE HONOURABLE JAMES TIEN PEI-CHUN, O.B.E., J.P. IN ATTENDANCE MR MICHAEL LEUNG MAN-KIN, C.B.E., J.P. SECRETARY FOR EDUCATION AND MANPOWER MR YEUNG KAI-KIN, C.B.E., J.P. SECRETARY FOR TRANSPORT MR ALISTAIR PETER ASPREY, O.B.E., A.E., J.P. SECRETARY FOR SECURITY THE HONOURABLE MICHAEL SZE CHO-CHEUNG, I.S.O., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS MR ANTHONY GORDON EASON, J.P. SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS 4316 HONG KONG LEGISLATIVE COUNCIL — 7 July 1993 MR GORDON SIU KWING-CHUE, J.P. SECRETARY FOR ECONOMIC SERVICES MR DONALD TSANG YAM-KUEN, O.B.E., J.P. SECRETARY FOR THE TREASURY MR MICHAEL DAVID CARTLAND, J.P. SECRETARY FOR FINANCIAL SERVICES THE CLERK TO THE LEGISLATIVE COUNCIL MR CLETUS LAU KWOK-HONG THE DEPUTY CLERK TO THE LEGISLATIVE COUNCIL MR PATRICK CHAN NIM-TAK HONG KONG LEGISLATIVE COUNCIL — 7 July 1993 4317 Papers The following papers were laid on the table pursuant to Standing Order 14(2): Subject Subsidiary Legislation L.N. No. Legal Aid (Assessment of Resources and Contributions) (Amendment) Regulation 1993 ............................. 241/93 Commissioner for Administrative Complaints Ordinance (Amendment of Schedule 1) (No. 2) Order 1993..................................................................................... 242/93 Financial Resources Rules......................................................................... 250/93 Sessional Papers 1992-93 No. 85 — 1992 Annual Report by the Commissioner of the Independent Commission Against Corruption No. 86 — Clothing Industry Training Authority Annual Report 1992 No. 87 — Construction Industry Training Authority Annual Report 1992 Address 1992 Annual Report by the Commissioner of the Independent Commission Against Corruption MR RONALD ARCULLI: Mr President, as a member of the Advisory Committee on Corruption, I have pleasure in introducing the 1992 Annual Report by the Commissioner of the Independent Commission Against Corruption, which is tabled today in this Council. But my pleasure is tinged with sadness. The sudden and untimely death of Peter ALLAN on 28 November 1992, at the age of 47, shocked and saddened us all. To quote from the obituary in this report: 4318 HONG KONG LEGISLATIVE COUNCIL — 7 July 1993 "During his one year's service as Commissioner, Peter effectively brought many of his talents and high professional standards to bear on his demanding and diverse role. He was down-to-earth, sensible and practical with a warm, engaging personality. Hong Kong has lost an outstanding public servant." In his review at the end of 1992 the Acting Commissioner, Mr J E BUCKLE, observed that it had been an unremarkable year as regards statistics on corruption reports but that statistics alone could not be relied upon to reveal the extent of corruption in any society. He remarked that ICAC intelligence sources tended to show that much more corrupt activity was taking place than had been reported, particularly in the government sector and that the Commission would be giving very close attention to the perceived problem areas during 1993. During the year it became increasingly evident that the Commission faced significant new challenges resulting from the increasing pace of change to the democratic process and the effects of the Bill of Rights on investigation and court procedures. The acting Commissioner concluded that the effects so far had been beneficial in encouraging self-examination and demanding greater professionalism from ICAC officers. As always in 1992, the Commission's efforts to control corruption depend on the integrated activities of the three departments. The Operations Department dealt with 2 276 reports of corruption and the breakdown showed that 52% concerned the private sector, 20% the police, 25% all other government departments and 3% other public bodies. The percentage of people prepared to identify themselves when making reports was 68%, which was virtually the same percentage recorded in 1991. During the year 337 persons were prosecuted and 167 were formally cautioned. With professional and imaginative approaches to their work, the Corruption Prevention Department continued in its task of identifying corruption opportunities and proposing improvements in procedures to limit or eliminate them, while the Community Relations Department concentrated on educating members of the public to understand what corruption is and to identify and report it. The acting Commissioner concluded his year-end review by thanking the public for their support, the members of the ICAC's advisory committees for their valuable assistance during the year and, of course, the staff of the Commission for their dedication and hard work. Mr President, on behalf of the members of this community who assist the ICAC in so many ways I wish to join in this tribute. HONG KONG LEGISLATIVE COUNCIL — 7 July 1993 4319 Oral answers to questions Retirement protection scheme 1. MR HUI YIN-FAT asked (in Cantonese): With regard to the motion passed by this Council on 3 February 1993 urging the Government to expeditiously formulate measures so that the people of Hong Kong can be provided with a properly designed retirement protection system, will the Government inform this Council of the progress of work done as well as when the details of the system and its implementation timetable will be announced? SECRETARY FOR EDUCATION AND MANPOWER: Mr President, at the motion debate in this Council on 3 February this year, a number of major issues were raised on the future of a retirement protection system. These, together with the 176 public submissions made in response to the Consultation Document, are now being analysed and studied carefully within the Administration. There are several major issues. These include the relationship between a compulsory retirement protection system and our system of social security benefits, and whether there should be a government guarantee against financial risks arising from private management of decentralized schemes. The subjects before us are highly complex, involving a series of difficult judgements which will have profound consequences on our long-term social, economic, financial and monetary policies. It is not therefore an issue that we can afford to rush to a conclusion. I can however assure this Council that we are already handling the subject as quickly as we can. We aim to reach a more definite conclusion on the best way forward by the end of this year. MR HUI YIN-FAT (in Cantonese): Mr President, the study on the introduction of a retirement protection system in Hong Kong has dragged on for a long time. Could the Administration inform this Council what other issues it has to consider at this stage and whether there are different considerations under different political circumstances and economic situations? The most important thing is: does the Administration have the sincerity to provide a properly designed retirement protection system for Hong Kong? SECRETARY FOR EDUCATION AND MANPOWER: Mr President, there is no question of the Government not being sincere about this.