************************************************************

Following is the speech by the acting Secretary for Home Affairs, Mr Peter Lo, in moving the second reading of the Hotel Accommodation (Miscellaneous Provisions) Bill 1998 in the Legislative Council today (Wednesday):

Madam President,

I move the Second Reading of the Hotel Accommodation (Miscellaneous Provisions) Bill 1998.

The main objective of the Bill is to amend the definition of "hotel" in the Hotel Proprietors Ordinance and the Hotel Accommodation Tax Ordinance; and the definition of "hotel" and "guesthouse" in the Hotel and Guesthouse Accommodation Ordinance in order to specify the scope of the definitions clearly.

The exiting definitions of "hotel"; and "hotel" and "guesthouse" in the three Ordinances have allowed establishments which offer accommodation only to limited categories of persons, for example, to persons of a particular nationality or clients of one tourist agency, to operate outside the ambit of the Ordinances. A High Court Judgement in March 1996 also has implications on the scope of application of the Ordinances. It ruled that hotels that accepted guests with prior reservations would not fall within the purview of the Ordinances. A potential loophole has been created whereby hotels could claim that they let rooms in response to prior reservations (for example, telephone booking) and should not be subject to the Ordinances. This loophole needs to be plugged expeditiously so that the licensing scheme under the Hotel and Guesthouse Accommodation Ordinance would continue to apply to all hotels to ensure the efficacy of safety in them; and that hotel accommodation tax should continue to be payable by all hotels under the Hotel Accommodation Tax Ordinance. Otherwise there would be serious revenue implications.

Clauses 2, 4 and 5 of the Bill propose to amend the definition of "hotel" in the Hotel Proprietors Ordinance, the definition of "hotel" in the Hotel Accommodation Tax Ordinance, and the definition of "hotel" and "guesthouse" in the Hotel and Guesthouse Accommodation Ordinance respectively to address the above-mentioned deficiencies.

The Bill also proposes certain technical amendments to the Hotel and Guesthouse Accommodation Ordinance to improve the operation of the licensing scheme. Clauses 6 and 7 propose to amend the Ordinance so that the Licensing Authority can issue licences of up to three years' validity to obviate the need for annual licence renewal, as is the case now. We intend to issue three-year licences on a case by case basis. In principle, such licences will be granted only to those establishments that have shown integrity of continuing to fulfil the fire and building safety standards and would not abuse the licensing control.

Clauses 8 and 9 propose to allow notices under Sections 19 and 20 of the Ordinance to be served by posting them in a conspicuous part of the premises without the need to state the name of the addressee. At present, notices may be served to the responsible person of a hotel or guesthouse personally or by registered post to direct remedial works under Section 19 and to notify the Administration's intention to apply from the District Court for closure order under Section 20. Serving of these notices would be difficult where the whereabouts or identity of the responsible persons are not known. It would assist operationally if these notices could be served by posting them in a conspicuous part of the premises.

Clause 9 also proposes to amend Section 20 of the Ordinance to allow any person authorised by the Secretary for Home Affairs in writing to enter into a hotel or guesthouse to execute any remedial works while a closure order is in force. Clause 10 provides that it shall not be an offence for a person so authorised to enter into the closed premises. These amendments address a flaw in the Ordinance in that the premises, once closed by order, may not be re-entered for carrying out remedial works. Without these works, the premises cannot be made safe and cannot be reopened as a hotel or guesthouse.

Clause 11 proposes to extend the time limit for prosecution of offences under the Ordinance. Under Section 26 of the Magistrates Ordinance, the Licensing Authority is time-barred from prosecution if an offence (for example, breach of licence conditions) has been committed more than six months before the Authority issues the summons. This is unsatisfactory because an offence may occur immediately after an inspection of the premises by the Licensing Authority at the time of renewal of the licence and in these circumstances the offence will not be discovered shortly. Many offences may be time-barred from prosecution. Clause 11 proposes that any prosecution under the Ordinance shall be commenced either within six months of the commission of the offence; or within six months of the offence being discovered by or coming to the notice of the Authority whichever is the later.

Madam President, the Bill improves the definitions in three Ordinances to ensure, inter alia, that the fire and building safety of all hotels and guesthouses will continue to be regulated by the licensing scheme under the Hotel and Guesthouse Accommodation Ordinance; and that hotel accommodation tax is payable by all hotels. The Bill also improves the day to day operation of the licensing scheme under the Hotel and Guesthouse Accommodation Ordinance. I recommend the Bill to Members.

Thank you, Madam President.

End/Wednesday, September 16, 1998

NNNN