LEGISLATIVE COUNCIL ─ 16 April 2015 8739 OFFICIAL RECORD OF PROCEEDINGS Thursday, 16 April 2015 The Council continued to meet at Nine 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 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, 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. 8740 LEGISLATIVE COUNCIL ─ 16 April 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 ─ 16 April 2015 8741 THE HONOURABLE ALBERT CHAN WAI-YIP THE HONOURABLE WONG YUK-MAN 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 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 LEUNG CHE-CHEUNG, B.B.S., M.H., J.P. THE HONOURABLE KENNETH LEUNG THE HONOURABLE ALICE MAK MEI-KUEN, J.P. DR THE HONOURABLE KWOK KA-KI THE HONOURABLE KWOK WAI-KEUNG THE HONOURABLE DENNIS KWOK 8742 LEGISLATIVE COUNCIL ─ 16 April 2015 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. 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. MEMBERS ABSENT: DR THE HONOURABLE LAU WONG-FAT, G.B.M., G.B.S., J.P. THE HONOURABLE CLAUDIA MO THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P. THE HONOURABLE CHAN YUEN-HAN, S.B.S., J.P. DR THE HONOURABLE CHIANG LAI-WAN, J.P. LEGISLATIVE COUNCIL ─ 16 April 2015 8743 PUBLIC OFFICERS ATTENDING: THE HONOURABLE JOHN TSANG CHUN-WAH, G.B.M., J.P. THE FINANCIAL SECRETARY THE HONOURABLE TSANG TAK-SING, G.B.S., J.P. SECRETARY FOR HOME AFFAIRS THE HONOURABLE GREGORY SO KAM-LEUNG, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT MR JOHN LEE KA-CHIU, P.D.S.M., J.P. SECRETARY FOR SECURITY THE HONOURABLE PAUL TANG KWOK-WAI, J.P. SECRETARY FOR THE CIVIL SERVICE DR THE HONOURABLE KO WING-MAN, B.B.S., J.P. SECRETARY FOR FOOD AND HEALTH PROF SOPHIA CHAN SIU-CHEE, J.P. UNDER SECRETARY FOR FOOD AND HEALTH CLERKS IN ATTENDANCE: MS ANITA SIT, ASSISTANT SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL 8744 LEGISLATIVE COUNCIL ─ 16 April 2015 BILLS Second Reading of Bills Resumption of Second Reading Debate on Bills PRESIDENT (in Cantonese): Good morning, Members. This Council will now continue with the Second Reading debate on the Appropriation Bill 2015. Mr IP Kwok-him, please speak. APPROPRIATION BILL 2015 Resumption of debate on Second Reading which was moved on 25 February 2015 MR IP KWOK-HIM (in Cantonese): President, the Budget this year was announced on the seventh day of the Chinese New Year, which is commonly known as the "birthday of all". I recall that on the morning after the announcement of the Budget, a woman expressed her view to the Financial Secretary in a phone-in programme that her worry was not about the shortage of resources but the unfair distribution of them. In fact, a surplus of $63.8 billion is recorded in the Budget this year, which is six times higher than the original estimate. If the $2.7 billion set aside for the Housing Reserve is added to this, the present surplus will be 10 times of the estimate of $9.1 billion made early last year. The enormous surplus does give the Financial Secretary the incentive and strength to introduce a number of relief measures to benefit the public. These measures benefit both the grassroots and the underprivileged as well as the middle class. Besides, the "candies" handed out this time are the largest in quantity and coverage in recent years, which is rarely seen. These measures are adopted by the authorities in response to the worries of the public and the uncertainties of the global economy, and they enable the public to have some spare money on hand to spend, thereby stimulating the economy. These measures have achieved the purpose of bringing benefits and joy to all. However, we should be sober in seeing that the increase in income for the Treasury is mainly attributed to the significant increase in income from land sales, profits tax and special stamp duty, and that the expenditure of many LEGISLATIVE COUNCIL ─ 16 April 2015 8745 infrastructure projects has not been approved due to the filibuster in the Legislative Council. Due to these reasons, the income of the Government has increased sharply, but strong economic growth is not the actual cause of the increase. Moreover, it is pointed out in the Budget that there will be significant changes in the population of Hong Kong three years later. By then, the tax revenue of the Government will decrease accordingly as the working population decreases, and the medical and welfare expenditure will increase alarmingly due to the ageing population. Hence, the authorities should prepare for the rainy days. It should start making preparations now. Apart from protecting the livelihood of the public, the authorities should also control its expenditure and make savings when appropriate, so as to prevent Hong Kong from slipping into a structural deficit 10 years later. I think that apart from the wish to have an increasing amount of "candies" every year, this is also a cause of concern. The "treasurer" of the SAR Government should and must have a sense of crisis, otherwise, society as a whole will have to bear the cost when a structural deficit eventually surfaces. Therefore, we must think about it in depth. President, as the man in charge of the management of public resources, it is fundamental for him to maintain the mindset of never relaxing in vigilance while in peace. The Budget this year has been rather prudent in projecting the economic prospects of Hong Kong and the capacity of growth in government income. The Government needs to store up grain in anticipation of famine. It needs to prepare Hong Kong to fight this battle against adverse conditions in the economy and should not lower its guard due to the transient inundation of cash. In the face of the slowdown in economic growth, preparations for rainy days become rather important, particularly when the latest Budget estimates that the income of the Government will only increase by 1.5% whereas total expenditure will increase by 11%. From the perspective of tackling the problem at root, the Government needs to increase its investment in the development of new growth points in the economy, including the innovation and technology industry and high-value-added industry, and so on. It should also capitalize on Hong Kong's unique advantage of being the "super intermediary" between the Mainland and places around the world and support the "One Belt One Road" development under the National 13th Five-Year Plan, so as to identify business opportunities and create employment. Only by maintaining economic development and sustaining prosperity in all trades can the Government ensure it is financially adequate in dealing with various social problems. Otherwise, the improvement of people's livelihood will 8746 LEGISLATIVE COUNCIL ─ 16 April 2015 be likened to a spring without a source and a tree without roots. Public resources, that is, money, will only attain the best value when they are spent on the needy.