LEGISLATIVE COUNCIL ─ 17 April 2002 5483 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 17 April 2002 The Council met at half-past Two o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE MRS RITA FAN HSU LAI-TAI, G.B.S., J.P. THE HONOURABLE KENNETH TING WOO-SHOU, J.P. THE HONOURABLE JAMES TIEN PEI-CHUN, G.B.S., J.P. DR THE HONOURABLE DAVID CHU YU-LIN, J.P. THE HONOURABLE CYD HO SAU-LAN THE HONOURABLE ALBERT HO CHUN-YAN IR DR THE HONOURABLE RAYMOND HO CHUNG-TAI, J.P. THE HONOURABLE LEE CHEUK-YAN THE HONOURABLE MARTIN LEE CHU-MING, S.C., J.P. THE HONOURABLE ERIC LI KA-CHEUNG, J.P. DR THE HONOURABLE DAVID LI KWOK-PO, G.B.S., J.P. THE HONOURABLE FRED LI WAH-MING, J.P. DR THE HONOURABLE LUI MING-WAH, J.P. 5484 LEGISLATIVE COUNCIL ─ 17 April 2002 THE HONOURABLE NG LEUNG-SING, J.P. THE HONOURABLE MARGARET NG THE HONOURABLE MRS SELINA CHOW LIANG SHUK-YEE, J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE CHEUNG MAN-KWONG THE HONOURABLE HUI CHEUNG-CHING, J.P. THE HONOURABLE CHAN KWOK-KEUNG THE HONOURABLE CHAN YUEN-HAN, J.P. THE HONOURABLE BERNARD CHAN THE HONOURABLE CHAN KAM-LAM THE HONOURABLE MRS SOPHIE LEUNG LAU YAU-FUN, S.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE ANDREW WONG WANG-FAT, J.P. DR THE HONOURABLE PHILIP WONG YU-HONG THE HONOURABLE WONG YUNG-KAN THE HONOURABLE JASPER TSANG YOK-SING, J.P. THE HONOURABLE HOWARD YOUNG, J.P. DR THE HONOURABLE YEUNG SUM THE HONOURABLE YEUNG YIU-CHUNG, B.B.S. THE HONOURABLE LAU CHIN-SHEK, J.P. LEGISLATIVE COUNCIL ─ 17 April 2002 5485 THE HONOURABLE LAU KONG-WAH THE HONOURABLE LAU WONG-FAT, G.B.S., J.P. THE HONOURABLE MIRIAM LAU KIN-YEE, J.P. THE HONOURABLE AMBROSE LAU HON-CHUEN, G.B.S., J.P. THE HONOURABLE EMILY LAU WAI-HING, J.P. THE HONOURABLE CHOY SO-YUK THE HONOURABLE ANDREW CHENG KAR-FOO THE HONOURABLE SZETO WAH THE HONOURABLE TIMOTHY FOK TSUN-TING, S.B.S., J.P. THE HONOURABLE LAW CHI-KWONG, J.P. THE HONOURABLE TAM YIU-CHUNG, G.B.S., J.P. DR THE HONOURABLE TANG SIU-TONG, J.P. THE HONOURABLE LI FUNG-YING, J.P. THE HONOURABLE HENRY WU KING-CHEONG, B.B.S. THE HONOURABLE TOMMY CHEUNG YU-YAN, J.P. THE HONOURABLE MICHAEL MAK KWOK-FUNG THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE LEUNG FU-WAH, M.H., J.P. DR THE HONOURABLE LO WING-LOK THE HONOURABLE WONG SING-CHI 5486 LEGISLATIVE COUNCIL ─ 17 April 2002 THE HONOURABLE FREDERICK FUNG KIN-KEE THE HONOURABLE IP KWOK-HIM, J.P. THE HONOURABLE LAU PING-CHEUNG THE HONOURABLE AUDREY EU YUET-MEE, S.C., J.P. THE HONOURABLE MA FUNG-KWOK MEMBERS ABSENT: THE HONOURABLE SIN CHUNG-KAI THE HONOURABLE ABRAHAM SHEK LAI-HIM, J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE DONALD TSANG YAM-KUEN, J.P. THE CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE ANTONY LEUNG KAM-CHUNG, G.B.S., J.P. THE FINANCIAL SECRETARY THE HONOURABLE ELSIE LEUNG OI-SIE, J.P. THE SECRETARY FOR JUSTICE MR MICHAEL SUEN MING-YEUNG, G.B.S., J.P. SECRETARY FOR CONSTITUTIONAL AFFAIRS MR CHAU TAK-HAY, J.P. SECRETARY FOR COMMERCE AND INDUSTRY MR JOSEPH WONG WING-PING, G.B.S., J.P. SECRETARY FOR THE CIVIL SERVICE LEGISLATIVE COUNCIL ─ 17 April 2002 5487 MISS DENISE YUE CHUNG-YEE, G.B.S., J.P. SECRETARY FOR THE TREASURY MR LAM WOON-KWONG, G.B.S., J.P. SECRETARY FOR HOME AFFAIRS MR STEPHEN IP SHU-KWAN, G.B.S., J.P. SECRETARY FOR FINANCIAL SERVICES MRS LILY YAM KWAN PUI-YING, J.P. SECRETARY FOR THE ENVIRONMENT AND FOOD DR YEOH ENG-KIONG, J.P. SECRETARY FOR HEALTH AND WELFARE MRS REGINA IP LAU SUK-YEE, J.P. SECRETARY FOR SECURITY MRS FANNY LAW FAN CHIU-FUN, J.P. SECRETARY FOR EDUCATION AND MANPOWER MR LEE SHING-SEE, J.P. SECRETARY FOR WORKS MRS CARRIE YAU TSANG KA-LAI, J.P. SECRETARY FOR INFORMATION TECHNOLOGY AND BROADCASTING MS SANDRA LEE SUK-YEE, J.P. SECRETARY FOR ECONOMIC SERVICES MR JOHN TSANG CHUN-WAH, J.P. SECRETARY FOR PLANNING AND LANDS MS ELAINE CHUNG LAI-KWOK, J.P. SECRETARY FOR HOUSING MR PAUL TANG KWOK-WAI, J.P. SECRETARY FOR TRANSPORT MR PATRICK LAU LAI-CHIU, J.P. ACTING HEAD, CENTRAL POLICY UNIT 5488 LEGISLATIVE COUNCIL ─ 17 April 2002 CLERK IN ATTENDANCE: MR RICKY FUNG CHOI-CHEUNG, J.P., SECRETARY GENERAL PURSUANT TO RULE 8 OF THE RULES OF PROCEDURE, THE CHIEF EXECUTIVE, THE HONOURABLE TUNG CHEE-HWA, ATTENDED TO ADDRESS THE COUNCIL AND TO RECEIVE QUESTIONS. LEGISLATIVE COUNCIL ─ 17 April 2002 5489 PRESIDENT (in Cantonese): Members will please remain standing for the Chief Executive. PRESIDENT (in Cantonese): The Chief Executive will address the Council on the accountability of principal officials. ADDRESS BY THE CHIEF EXECUTIVE CHIEF EXECUTIVE (in Cantonese): Madam President and Honourable Members, in the 2000 policy address, I proposed that we should examine the possibility of introducing a new Principal Officials Accountability System. In my 2001 policy address, I set out in greater detail the framework of the Accountability System being considered. In the last two years, we have listened closely to the views of the community through various channels. This includes attending a series of meetings in the Legislative Council and listening to the views of Honourable Members. We are heartened that the community has generally identified with the concept of introducing the Accountability System. I have decided to come in person to the Legislative Council to introduce to Honourable Members the plans of the Government of the Hong Kong Special Administrative Region (SAR) for introducing the Accountability System on 1 July 2002, and to seek Members' support for the associated expenditure and the resolution for the relevant legislation to be amended, so as to transfer relevant statutory powers and functions to the respective Directors of Bureaux under the Accountability System. Our hope is that the Accountability System can be implemented on schedule. In the last two policy addresses, I have emphasized that the purpose of introducing the Accountability System is to enable Principal Officials of the SAR Government to assume responsibility for their policy portfolios, to share a common agenda and to have clear directions. We need to feel the pulse of the community, to understand community sentiments, and to strengthen liaison and communication with the Legislative Council, different sectors of the community and the general public. We need to improve the prioritizing of the Government's agenda and to improve overall policy co-ordination, so that we would be in a position to provide better services to the community and the general public. 5490 LEGISLATIVE COUNCIL ─ 17 April 2002 Now, let me set out the principal elements of the Accountability System. Firstly, the upper echelon of the Government, including the Chief Secretary for Administration, Financial Secretary, Secretary for Justice and all Directors of Bureaux, will be covered by the Accountability System. These officials will no longer be civil servants, but will be appointed on contract terms as Principal Officials under the Accountability System. They may serve for a term of five years, but not exceeding that of the Chief Executive who nominates them. They will cover the respective portfolios assigned to them by the Chief Executive, oversee the work of associated departments, formulate policies, explain policy decisions, market policy proposals and gain the support of the Legislative Council and the public. They will be accountable to the Chief Executive for the success or failure of their policy initiatives. Under the leadership of the Chief Executive, they will be accountable to the community. Where necessary, the Chief Executive may terminate their contracts. Secondly, all Principal Officials under the Accountability System will be appointed to the Executive Council. This will strengthen the work of the Executive Council. The Principal Officials will participate directly in the Government's policy decision-making, in prioritizing the policy agenda, and in harmonizing the work which straddles across different departments. In overall terms, governance will be improved; decision-making will be quickened; responses to the demands of the community and the needs of the public will be more direct. In accordance with the provisions of the Basic Law, the Executive Council may continue to include other community leaders and Members of the Legislative Council. Thirdly, the remuneration of Principal Officials under the Accountability System is comparable to the packages currently applicable. Fourthly, various Policy Bureaux will be combined to facilitate better deployment of resources and closer co-ordination of policy portfolios. Through this reorganization, the original 16 Policy Bureaux will be revised to 11. Including the three Secretaries of Departments, following the restructuring, there will be 14 Principal Officials covered by the Accountability System. These are the Chief Secretary for Administration, Financial Secretary, Secretary for Justice, Secretary for Home Affairs, Secretary for Constitutional Affairs, Secretary for Housing, Planning and Lands, Secretary for Education, Secretary for the Environment, Health and Welfare, Secretary for Transport and Works, LEGISLATIVE COUNCIL ─ 17 April 2002 5491 Secretary for Economic Development, Secretary for Commerce, Industry and Manpower, Secretary for Financial Affairs and the Treasury, Secretary for Security and Secretary for the Civil Service. Fifthly, the terms and conditions of service of civil servants who presently fill the positions of Directors of Bureaux will remain unchanged. These positions will be re-titled Permanent Secretaries. Under the Accountability System, they will act as the interface between Directors of Bureaux and the Civil Service. Under the direction of the Directors of Bureaux, the Permanent Secretaries will be responsible to the accountability officials, assisting in formulating and implementing policies, listening to the views of the public and the Legislative Council, explaining policies to these respective groups, responding to questions raised and gaining support from different quarters for government policies.