LEGISLATIVE COUNCIL ─ 25 March 2015 7873 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 25 March 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 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. THE HONOURABLE WONG KWOK-HING, B.B.S., M.H. 7874 LEGISLATIVE COUNCIL ─ 25 March 2015 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. 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. DR THE HONOURABLE LEUNG KA-LAU 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 LEGISLATIVE COUNCIL ─ 25 March 2015 7875 THE HONOURABLE ALBERT CHAN WAI-YIP 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 7876 LEGISLATIVE COUNCIL ─ 25 March 2015 THE HONOURABLE ALICE MAK MEI-KUEN, J.P. DR THE HONOURABLE KWOK KA-KI 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 CHRISTOPHER CHUNG SHU-KUN, B.B.S., M.H., J.P. THE HONOURABLE TONY TSE WAI-CHUEN, B.B.S. LEGISLATIVE COUNCIL ─ 25 March 2015 7877 MEMBER ABSENT: THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE JOHN TSANG CHUN-WAH, G.B.M., J.P. THE FINANCIAL SECRETARY PROF THE HONOURABLE ANTHONY CHEUNG BING-LEUNG, G.B.S., J.P. SECRETARY FOR TRANSPORT AND HOUSING 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 DR THE HONOURABLE KO WING-MAN, B.B.S., J.P. SECRETARY FOR FOOD AND HEALTH THE HONOURABLE WONG KAM-SING, J.P. SECRETARY FOR THE ENVIRONMENT 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 7878 LEGISLATIVE COUNCIL ─ 25 March 2015 CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MRS JUSTINA LAM CHENG BO-LING, DEPUTY SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, ASSISTANT SECRETARY GENERAL LEGISLATIVE COUNCIL ─ 25 March 2015 7879 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. Merchant Shipping (Prevention and Control of Pollution) (Fees) (Amendment) Regulation 2015 ................... 53/2015 Merchant Shipping (Control of Harmful Anti-Fouling Systems on Ships) Regulation ................................ 54/2015 Places of Public Entertainment (Exemption) (Amendment) Order 2015 .............................................................. 55/2015 Adoption (Amendment) Rules 2015 ................................... 56/2015 Convention Adoption (Amendment) Rules 2015 ............... 57/2015 Other Papers No. 83 ─ AIDS Trust Fund Financial statements for the year ended 31 March 2014 No. 84 ─ Self-financing Post-secondary Education Fund Financial statements for the year ended 31 August 2014 No. 85 ─ HKSAR Government Scholarship Fund Financial statements for the year ended 31 August 2014 7880 LEGISLATIVE COUNCIL ─ 25 March 2015 No. 86 ─ Report of changes made to the approved Estimates of Expenditure during the third quarter of 2014-15 Public Finance Ordinance: Section 8 No. 87 ─ Employees Retraining Board Annual Report 2013-14 Report No. 15/14-15 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments Report of the Bills Committee on District Cooling Services Bill ORAL ANSWERS TO QUESTIONS PRESIDENT (in Cantonese): Questions. First question. Development of Data Centres in Hong Kong 1. MR FREDERICK FUNG (in Cantonese): President, on the 11th of last month, I raised a question on the grant of the sites in the Industrial Estates (IEs) under the Hong Kong Science and Technology Parks Corporation (HKSTPC) for the development of data centres. In this connection, will the Government inform this Council: (1) as the authorities replied that "HKSTPC has previously conducted investigations into some suspected cases of letting or subletting the premises to a third party. Individual grantees which were substantiated to be in breach of the terms and conditions of the lease ('lease-breaching') have rectified the breach upon follow-up by HKSTPC. HKSTPC will continue to monitor the operation of data centres in the IEs and take follow-up actions according to the lease agreement as appropriate", whether the Government knows the details of the lease-breaching cases in the past three years and the mechanism for imposing penalties on the lease-breaching grantees, including the penalties for a first breach and for repeated breaches, as well as the circumstances under which the sites will be recovered; LEGISLATIVE COUNCIL ─ 25 March 2015 7881 whether the various lease agreements entered with the grantees contain such penalty clauses; if so, of the details; if not, whether HKSTPC will consider including such clauses; if HKSTPC will not, of the reasons for that; (2) given that on the one hand, HKSTPC needs to attract investors to IEs for income generation and, on the other, is responsible for monitoring the companies to which IE sites are granted to see if there is any breach of the lease, how the authorities avoid HKSTPC's performance of such dual functions giving rise to conflicts of roles and interests; and (3) whether "the provision of a fair business environment" is a consideration and a principle adopted when the authorities formulated the strategies for promoting the development of data centres; if so, given that HKSTPC has granted IE sites for premiums that are below market value and thus attracted quite a number of multinational enterprises to set up data centres in its IEs, whether the authorities have assessed if such practice has put operators who set up data centres outside IEs on an unlevel playing field; if there is such an unfair situation, whether the authorities will conduct a comprehensive review of the strategies concerned with a view to creating a fair and transparent business environment? SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT (in Cantonese): President, to address the demand for land from the local manufacturing industry, the Government developed the Industrial Estate (IE) Programme in the 1970s with the following objectives: (a) underpinning wider economic development through broadening the industrial/manufacturing base and upgrading technology levels; and (b) providing land for manufacturing industries with special needs which could not operate in flatted factories or should be located away from urban areas because of the need for more horizontal space, high floor loading, greater headroom requirements and/or environmental considerations. 7882 LEGISLATIVE COUNCIL ─ 25 March 2015 At present, the Hong Kong Science and Technology Parks Corporation (HKSTPC) is responsible for administering the three IEs in Tai Po (TPIE), Yuen Long (YLIE) and Tseung Kwan O (TKOIE), offering a total of 217 hectares of land for long lease until 2047.