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LCQ4: Green procurement policy
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    Following is a question by the Dr Hon Fernando Cheung for Hon Audrey Eu and a reply by the Secretary for Financial Services and the Treasury, Mr Frederick Ma, in the Legislative Council today (November 29):


Question:

     In his Policy Address delivered in January, 2005, the former Chief Executive indicated that government departments would adopt a green procurement policy to help create a market for environmentally-friendly products.  However, the authorities advised afterwards that the majority of environmentally-friendly products procured by government departments were drawn from the unallocated stock held by the Government Logistics Department (GLD) and from the bulk contracts arranged by GLD, and that individual government departments did not record the value of procurement of environmentally-friendly products separately.  In this connection, will the Government inform this Council:

(a)  of the specific contents of the green procurement policy of individual government departments;

(b)  whether it will require individual government departments to keep a record of the environmentally-friendly products they procure and regularly announce the progress of implementing their green procurement policy, to enable the public to assess the effectiveness of the policy; and

(c)  whether it will require public bodies, Government-funded organisations and contractors of Government works projects to formulate a green procurement policy, to further create a market for environmentally-friendly products?


Reply:


Madam President,

     Our reply to the above question is as follows:

(a)  The Government has been steadfast in encouraging government departments to use environmentally-friendly products.  In November 2000, we amended the guidelines for drawing up tender specifications in the Stores and Procurement Regulations, requiring government departments to consider, where economically rational, purchasing products -

(i)  with improved recyclability, high recycled content, reduced packing and greater durability;

(ii) with greater energy efficiency;

(iii)utilising clean technology and/or clean fuels;

(iv) which result in reduced water consumption;

(v)  which emit fewer irritating or toxic substances during installation or use; or

(vi) which result in smaller production of toxic substances, or of less toxic substance, upon disposal.

     Government departments should avoid purchasing single-use disposal items as far as possible.  All government departments are required to follow the guidelines on green procurement in the Stores and Procurement Regulations in their procurement of stores.

(b)  The majority of environmentally-friendly products procured by government departments are drawn from the bulk contracts arranged by the Government Logistics Department.  Therefore there will not be many items of environmentally-friendly products procured directly by government departments.  We do not currently intend to require government departments to maintain records of environmentally-friendly products they directly procured.  However, since 2000, all Controlling Officers are required to submit annual environmental reports to spell out their department's environmental objective and targets and analyse the department's environmental management and performance.  The subjects that may be covered in the environmental reports include use of environmentally-friendly products, resources saving in the office, etc.  The environmental reports are available on the websites of the departments concerned.

(c)  Public bodies and subvented organisations have their own terms of reference and modes of operation.  Some public bodies are governed by the law and are accountable to their boards of directors, and some operate on commercial principles.  As they have their own procurement policies, contract approval procedures and authority for awarding contracts, it would be more appropriate for these bodies to decide whether to follow the government practice of procuring environmentally-friendly products.  For subvented organisations, they are required to formulate a procurement policy that is transparent, fair and cost effective, by making reference to practice of the government.

     In spite of this, we will ask Policy Bureaux to encourage public bodies and subvented organisations under their purview to develop green procurement policy by making reference to Government's practice.  However, it would be up to these organisations to decide whether they would follow Government's practice according to practical circumstances.

     As regards public works, the existing public works contracts require contractors to use recycled construction materials such as recycled aggregates, or recycled asphalt, so as to reduce the consumption of natural resources.  In addition, such contracts also stipulate that all hoardings must be made of metal with a design to facilitate reuse of the materials and that contractors should reduce the use of timber in temporary works.

     Thank you, Madam President.

Ends/Wednesday, November 29, 2006
Issued at HKT 12:47

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