LEGISLATIVE COUNCIL ― 15 February 2017 3615 OFFICIAL RECORD OF PROCEEDINGS Wednesday, 15 February 2017 The Council met at Eleven o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE LEUNG YIU-CHUNG THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, S.B.S., J.P. THE HONOURABLE STARRY LEE WAI-KING, S.B.S., J.P. THE HONOURABLE CHAN HAK-KAN, B.B.S., 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 WONG KWOK-KIN, S.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. 3616 LEGISLATIVE COUNCIL ― 15 February 2017 THE HONOURABLE PAUL TSE WAI-CHUN, J.P. THE HONOURABLE LEUNG KWOK-HUNG# THE HONOURABLE CLAUDIA MO 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 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. 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. DR THE HONOURABLE KWOK KA-KI THE HONOURABLE DENNIS KWOK WING-HANG THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. DR THE HONOURABLE HELENA WONG PIK-WAN # According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council. LEGISLATIVE COUNCIL ― 15 February 2017 3617 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 ALVIN YEUNG THE HONOURABLE ANDREW WAN SIU-KIN THE HONOURABLE JIMMY NG WING-KA, J.P. DR THE HONOURABLE JUNIUS HO KWAN-YIU, J.P. THE HONOURABLE HO KAI-MING THE HONOURABLE LAM CHEUK-TING THE HONOURABLE HOLDEN CHOW HO-DING THE HONOURABLE SHIU KA-FAI THE HONOURABLE SHIU KA-CHUN THE HONOURABLE WILSON OR CHONG-SHING, M.H. THE HONOURABLE YUNG HOI-YAN DR THE HONOURABLE PIERRE CHAN 3618 LEGISLATIVE COUNCIL ― 15 February 2017 THE HONOURABLE CHAN CHUN-YING THE HONOURABLE TANYA CHAN THE HONOURABLE CHEUNG KWOK-KWAN, J.P. THE HONOURABLE HUI CHI-FUNG THE HONOURABLE LUK CHUNG-HUNG THE HONOURABLE LAU KWOK-FAN, M.H. THE HONOURABLE KENNETH LAU IP-KEUNG, M.H., J.P. DR THE HONOURABLE CHENG CHUNG-TAI THE HONOURABLE JEREMY TAM MAN-HO DR THE HONOURABLE YIU CHUNG-YIM# DR THE HONOURABLE LAU SIU-LAI# MEMBERS ABSENT: THE HONOURABLE TOMMY CHEUNG YU-YAN, G.B.S., J.P. THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. THE HONOURABLE KWOK WAI-KEUNG DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG # According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council. LEGISLATIVE COUNCIL ― 15 February 2017 3619 THE HONOURABLE CHU HOI-DICK THE HONOURABLE KWONG CHUN-YU THE HONOURABLE NATHAN LAW KWUN-CHUNG# PUBLIC OFFICERS ATTENDING: THE HONOURABLE PAUL CHAN MO-PO, G.B.S., M.H., J.P. 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 WONG KAM-SING, G.B.S., J.P. SECRETARY FOR THE ENVIRONMENT THE HONOURABLE NICHOLAS W. YANG, J.P. SECRETARY FOR INNOVATION AND TECHNOLOGY THE HONOURABLE ERIC MA SIU-CHEUNG, J.P. SECRETARY FOR DEVELOPMENT MR GODFREY LEUNG KING-KWOK, J.P. UNDER SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT # According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council. 3620 LEGISLATIVE COUNCIL ― 15 February 2017 MR JAMES HENRY LAU JR., J.P. UNDER SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY DR DAVID CHUNG WAI-KEUNG, J.P. UNDER SECRETARY FOR INNOVATION AND TECHNOLOGY CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, DEPUTY SECRETARY GENERAL MS ANITA SIT, ASSISTANT SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MS DORA WAI, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL LEGISLATIVE COUNCIL ― 15 February 2017 3621 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. Road Traffic (Public Service Vehicles) (Amendment) Regulation 2017 ................................................... 20/2017 Employees Retraining Ordinance (Amendment of Schedule 2) Notice 2017 ...................................... 21/2017 Other Papers No. 65 ― Education Scholarships Fund Trustee's Report on the Administration of the Fund and Financial Statements for the year ended 31 August 2016 No. 66 ― Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2016 and the Results of Value for Money Audits (Report No. 67) (February 2017 ― P.A.C. Report No. 67) Report No. 11/16-17 of the House Committee on Consideration of Subsidiary Legislation and Other Instruments 3622 LEGISLATIVE COUNCIL ― 15 February 2017 ADDRESS PRESIDENT (in Cantonese): Address. Mr Abraham SHEK will address the Council on the "Public Accounts Committee Report No. 67". Public Accounts Committee Report No. 67 MR ABRAHAM SHEK: President, on behalf of the Public Accounts Committee ("the Committee"), I have the honour to table our Report No. 67 today. Out of the 10 chapters covered by the Director of Audit's Report No. 67, the Committee has decided to hold hearings on two chapters that contain more serious allegations of irregularities or shortcomings. These chapters are "Funding of universities by University Grants Committee ('UGC')", and the "Maintenance and safety-related improvements of public rental housing flats". The Committee has also studied the other seven chapters by asking the relevant bureaux and departments to provide written replies to Members' questions on how they addressed the inadequacies raised in the Director of Audit's Report No. 67. We would like to take this opportunity to express our appreciation to these bureaux and departments in providing detailed replies to our questions. The Committee was satisfied with these replies, and decided that no public hearing on these chapters was necessary. Regarding the issues relating to the Research Grants Council ("the Council") raised in Chapter 6 of the Director of Audit's Report, the Committee has conducted a visit to the Council and received a detailed briefing on the Council's mechanisms to assess research proposals and to avoid conflict of interests of its members. On behalf of the Committee, I would like to extend my heartfelt thanks to the Council and its Secretariat for arranging such a useful briefing to enhance members' understanding. The Committee's Report tabled today covers our conclusions and recommendations on the chapter "Funding of universities by University Grants Committee" only. For the chapter on the "Maintenance and safety-related improvements of public rental housing flats", as voluminous information has been provided by the witnesses on the issue relating to excess lead in drinking water in some public rental housing estates, the Committee has decided to defer the tabling of the report on this chapter to allow ourselves more time to consider the issues. LEGISLATIVE COUNCIL ― 15 February 2017 3623 I will now report the conclusions and recommendations on the chapter "Funding of universities by University Grants Committee". In the 2016-2017 financial year, the Administration's recurrent expenditure on education amounted to HK$74.7 billion, the largest spending area of the Administration. Out of this sum, around HK$18 billion was earmarked for grants and reimbursements provided to the eight universities funded by UGC. Given the substantial amount of resources involved in tertiary education, UGC and the UGC Secretariat should exercise good governance and be transparent and accountable in using public resources.