LEGISLATIVE COUNCIL ─ 14 April 2016 7379 OFFICIAL RECORD OF PROCEEDINGS Thursday, 14 April 2016 The Council continued to meet at Nine o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE JASPER TSANG YOK-SING, G.B.M., 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 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, G.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. THE HONOURABLE WONG KWOK-HING, B.B.S., M.H. 7380 LEGISLATIVE COUNCIL ─ 14 April 2016 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 CYD HO SAU-LAN, J.P. DR THE HONOURABLE LAM TAI-FAI, S.B.S., 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. THE HONOURABLE CHEUNG KWOK-CHE 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 THE HONOURABLE WONG YUK-MAN THE HONOURABLE CLAUDIA MO LEGISLATIVE COUNCIL ─ 14 April 2016 7381 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, B.B.S. THE HONOURABLE FRANKIE YICK CHI-MING, J.P. THE HONOURABLE WU CHI-WAI, M.H. THE HONOURABLE YIU SI-WING, B.B.S. 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, B.B.S., J.P. THE HONOURABLE KWOK WAI-KEUNG THE HONOURABLE DENNIS KWOK THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. 7382 LEGISLATIVE COUNCIL ─ 14 April 2016 DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG 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. DR THE HONOURABLE CHIANG LAI-WAN, J.P. IR DR THE HONOURABLE LO WAI-KWOK, S.B.S., M.H., J.P. THE HONOURABLE CHUNG KWOK-PAN THE HONOURABLE CHRISTOPHER CHUNG SHU-KUN, B.B.S., M.H., J.P. THE HONOURABLE TONY TSE WAI-CHUEN, B.B.S. THE HONOURABLE ALVIN YEUNG NGOK-KIU MEMBERS ABSENT: DR THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE STARRY LEE WAI-KING, J.P. DR THE HONOURABLE LEUNG KA-LAU DR THE HONOURABLE KWOK KA-KI THE HONOURABLE SIN CHUNG-KAI, S.B.S., J.P. THE HONOURABLE TANG KA-PIU, J.P. LEGISLATIVE COUNCIL ─ 14 April 2016 7383 PUBLIC OFFICERS ATTENDING: THE HONOURABLE JOHN TSANG CHUN-WAH, G.B.M., J.P. THE FINANCIAL SECRETARY THE HONOURABLE GREGORY SO KAM-LEUNG, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT DR THE HONOURABLE KO WING-MAN, B.B.S., J.P. SECRETARY FOR FOOD AND HEALTH THE HONOURABLE NICHOLAS W. YANG, J.P. SECRETARY FOR INNOVATION AND TECHNOLOGY MR SHIU SIN-POR, S.B.S., J.P. HEAD, CENTRAL POLICY UNIT PROF SOPHIA CHAN SIU-CHEE, J.P. UNDER SECRETARY FOR FOOD AND HEALTH MR GODFREY LEUNG KING-KWOK, J.P. UNDER SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT CLERKS IN ATTENDANCE: MS ANITA SIT, ASSISTANT SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL 7384 LEGISLATIVE COUNCIL ─ 14 April 2016 GOVERNMENT BILLS Second Reading of Government Bill Resumption of Second Reading Debate on Government Bill PRESIDENT (in Cantonese): Good morning, Members. (Mr WONG Kwok-hing continued to speak) PRESIDENT (in Cantonese): Mr WONG Kwok-hing, the meeting has started. The Council now resumes and continues with the Second Reading debate on the Appropriation Bill 2016. APPROPRIATION BILL 2016 Resumption of debate on Second Reading which was moved on 24 February 2016 MR CHAN KIN-POR (in Cantonese): President, I think the Budget this year can take care of the needs in various aspects. It has taken into account helping small and medium enterprises (SMEs), supporting the tourism industry, developing healthcare services and taking care of the middle class and the disadvantaged. Although the measures proposed may not be sufficient, it has nonetheless responded to many of society's aspirations. Meanwhile, the Financial Secretary has also proposed many measures to promote the development of innovative technologies. I consider this the path which Hong Kong must take. As Hong Kong has to shoulder massive social expenditure, it is necessary for us to open up new income sources. If we only know how to spend and do not know how to make money, Hong Kong will "dry up" one day. The Hong Kong economy is facing a substantial downward risk this year. At present, the performance of external trade, retail sales and the tourism industry is very weak. Coupled with the drop in the property market, it is estimated that it will be increasingly difficult to do business in the latter half of the year, and there is a worry that the unemployment rate will also rise. Therefore, I have called on the Financial Secretary to have precautionary measures in place. LEGISLATIVE COUNCIL ─ 14 April 2016 7385 The Budget has proposed a series of measures, targeting the SMEs and the tourism industry in particular. However, economic data released at present all reflect that the economy has reached a very precarious state. In February, retail sales value, inbound visitor numbers and import and export value have seen alarming decreases. In face of such miserable environment, the precautionary measures in the Budget may have become insufficient. I wish that the Financial Secretary can pay close attention to the development and has on hand ready emergency easing measures, including the enhancement of support for the SMEs. Currently, the SMEs have already bore the brunt. Many are finding it hard to operate or are even folding. I believe the unemployment rate will rise very soon and many social problems will also surface. Thus, it is imperative for the Government to get prepared. It should not make belated and desperate attempts. I wish that colleagues of this Council (regardless of their parties) should also have a clear understanding of the present situation. Once Hong Kong is economically hit, we have to help the SMEs and the unemployed to tide over the storm and reinvigorate Hong Kong's economy. Furthermore, I would also like to discuss the development of innovative technologies. I have always supported their development. With the establishment of the Innovation and Technology Bureau, the Budget has also pushed vigorously for development in this regard. This indicates the strong determination of the Government to develop innovative technologies. In recent years, the neighbouring Pearl River Delta Region has developed into a manufacturing hub of advanced technology products. Hong Kong has lagged behind for years in this regard. We should do our best to catch up. Actually, Hong Kong is already equipped with world-class information technology facilities. If we can enhance the development of scientific research talent and institutions, grasp the opportunity to co-operate with nearby regions to create synergy effect, Hong Kong's innovative technologies can be driven towards internationalization. As the development of the Hong Kong economy is not balanced, we must explore new openings outside the pillar industries. The enhancement of innovative technologies can precisely drive re-industrialization in Hong Kong and bring new opportunities to the territory. Through mobile communications technology and artificial intelligence, the integration of technology into financial development has become the major global trend. The Budget has decided to vigorously develop financial technologies (Fintech) such as electronic payments, robo-advisors and crowdfunding. I 7386 LEGISLATIVE COUNCIL ─ 14 April 2016 believe the Steering Group on Financial Technologies can implement more researches and explore the feasibility of applying new technologies to various financial services. However, while developing Fintech, I wish that the Government can address the problems faced by the Fintech sector as soon as possible. First, the present legal framework for monitoring the traditional financial institutions fail to dovetail with the rapid development of Fintech. I wish that the Government can soon implement a set of legal framework applicable to the current Fintech so that support for the development of Hong Kong's Fintech can be more comprehensive. Then, pertinent Fintech talents will naturally be more at ease to come and take part in infrastructure investment.