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The Greater Pearl River Delta Business Council (Business Council) published its first annual report today (July 11), outlining its work for the year 2004-05.

In response to the publication of the 2004-05 annual report by the Greater Pearl River Delta Business Council, the Chief Executive noted with pleasure that the Business Council had studied various aspects of Hong Kong/Guangdong co-operation in its first year of work and come up with constructive recommendations.  In promoting joint development of Hong Kong and Guangdong, the involvement of the private sector is very important.  He looked forward to the continued contribution of the Business Council to enhancing Hong Kong/Guangdong cooperation.

Established in March, 2004, the Business Council gives advice to the Chief Executive of the Hong Kong Special Administration Region (HKSAR) on Hong Kong/Guangdong co-operation.  It also provides a forum for the private sectors of Hong Kong and Guangdong to exchange views on co-operation issues.

Chairman of the Business Council Dr Victor Fung said future competition in the world market would not be city versus city and, instead, competition between economic zones was likely to prevail.

"The integration between Hong Kong and Guangdong has been mutually rewarding and reinforcing.  Enhanced co-operation between the two places will strengthen the competitiveness of the entire region and promote its development," Dr Fung said.

"Today Hong Kong-Guangdong partnership has developed beyond the sphere of manufacturing for export.  The scope of co-operation covers economic and trade linkage, people and cargo flow, infrastructure, environmental protection, technology, education, tourism, culture, sports and other aspects.  While the work of the Business Council in the first year covered the various aspects, it focused on the key issues that are of mutual benefit."

In its first year of work, the Business Council and its six sub-groups looked into various topics under Hong Kong/Guangdong co-operation, and came up with relevant recommendations.  The major topics include :

(1)  Cross boundary people and cargo flow

The Business Council considered that speeding up people and cargo clearance between Hong Kong and Guangdong was vital to enhancing the competitiveness of the Greater Pearl River Delta as an economic entity.  To this effect, the Business Council recommended the HKSAR and Guangdong governments consider extending the operating hours of Sha Tau Kok and Man Kam To control points and enhance flexibility for cross-boundary cargo industry such as the relaxation of the "four-up-four-down" requirement (i.e. truck driver, truck, trailer and container must enter the Mainland and return to Hong Kong as one ensemble) and the "one-truck-one-driver" requirement (i.e. only one driver could be registered to drive the same truck between the Mainland and Hong Kong).  The Business Council was pleased to learn that the Mainland authorities had relaxed the former requirements since January 1, 2005.  The Business Council also planned to study other issues such as promoting electronic submission of manifests and standardising operation hours of various departments at inland control points.

(2)  Implementation of Closer Economic Partnership Arrangement (CEPA)

The Business Council was pleased to note that CEPA had brought economic benefits to both Hong Kong and Guangdong.  On the other hand, CEPA has not made significant impact on the service sector.  The Business Council recommended that both the HKSAR and Guangdong governments could join hands in further promoting CEPA, enhance transparency of relevant regulations and streamline procedures for setting up business operations.  Moreover, chambers of commerce and professional bodies should strengthen communication and reflect the views of the business and professionals to the HKSAR and Guangdong governments.

(3)  Investment and trade promotion

The Business Council proposed the HKSAR and Guangdong governments co-ordinate an annual GPRD promotional plan to better promote the whole region.

(4)  Attracting Guangdong enterprises to establish business in Hong Kong

The Business Council has identified three aspects relevant to the facilitation of Guangdong enterprises to come to Hong Kong.  First, Hong Kong's professional services could help the enterprises to enhance their readiness to expand abroad.  Secondly, the Business Council hoped that Mainland authorities could further simplify the relevant application procedures for enterprises to start business in Hong Kong.  Finally, the HKSAR Government and relevant organisations could step up promotion to introduce the services that Hong Kong could render to these enterprises and encourage them to set up business in Hong Kong.

(5)  Sustainable development

The Business Council was very concerned with the problem of air pollution, which had affected the residents and GPRD's attractiveness to international investors and tourists.  The Business Council would join hands with the governments and business sectors of the two places in promoting environmental protection and studying clean productions.

(6)  Education and technology

The Business Council was preparing a concrete proposal to suggest the inclusion of education services in CEPA.  It was also studying proposals to enhance communication between the two places on technological development and promote commercialisation of research and development deliverables.

(7)  Other issues

The Business Council had also studied other issues relevant to Hong Kong/Guangdong co-operation, including co-operation to promote tourism, culture and sports and to facilitate Hong Kong enterprises in Guangdong to enter the Mainland domestic consumer market.  These issues would need more in-depth study before the Business Council could formulate specific recommendations.

As an organisation established under the aegis of the Hong Kong/Guangdong Co-operation Joint Conference, the Business Council had maintained close liaison with its Guangdong counterpart - the Guangdong Sub-Council of the China Council for the Promotion of International Trade.  The two councils had exchanged views on issues of common interest.  At the same time, the Business Council had maintained contact with governments of Hong Kong and Guangdong and individual cities in the GPRD region.

Looking ahead, the Business Council would continue to study measures to promote Hong Kong/Guangdong co-operation with a view to coming up with recommendations to the two governments.

Full text of the annual report is viewable at the following website: http://www.info.gov.hk/info/gprd/index.htm.

Ends/Monday, July 11, 2005
Issued at HKT 14:57

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