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Following is a question by the Hon Frederick FUNG Kin-kee and a written reply by the Financial Secretary, Mr Henry Tang, in the Legislative Council today (April 25):
Question:
Regarding the promotion of the development of social enterprises ("SEs"), will the Government inform this Council:
(a) of the types of jobs to be created by the Enhancing Self-Reliance Through District Partnership Programme, together with a breakdown of the number of jobs to be created and average wages by the types of jobs, and how it ensures that participants from socially disadvantaged groups will receive reasonable wages;
(b) of the details of the pilot scheme for facilitating SEs which employ able-bodied unemployed persons to participate in public procurement (including the mode of operation, the implementation timetable, the size, types and number of contracts, the number of unemployed persons recruited and the average percentage of such persons in the total number of employees of the SEs concerned, as well as the estimated number of beneficiaries and the results of the assessment on the effectiveness of the scheme in alleviating poverty);
(c) of the progress in promoting the products and services of SEs to persons responsible for public procurement (including the government departments already using such products and services, the types and quantity of these products and services, and the amounts of money involved); whether it will consider drawing up a timetable to require all government departments and public bodies to gradually use these products and services; as well as the estimated number of beneficiaries and the results of the assessment on the effectiveness of the efforts concerned in alleviating poverty;
(d) of the expected completion date of the report on the regulatory framework of SEs and the preliminary study results; and whether it will consider relaxing the relevant requirements in the Co-operative Societies Ordinance (Cap. 33); and
(e) given that the term of the Commission on Poverty will expire at the end of June this year, whether the Government will consider establishing a new department under the Chief Secretary for Administration's Office to promote the future development of SEs; if not, which government department will be responsible for the continued promotion of the development of SEs after the expiry of the term of the Commission?
Reply:
Madam President,
(a) Since the launch of the Enhancing Self-Reliance Through District Partnership Programme ("the Programme") in 2006, we have approved 41 projects. It is expected that these projects would create about 750 employment opportunities for the socially disadvantaged in various business areas, including household services, fitting-out works, retail, beauty care/massage, catering, recycling, guided-tours and elderly services.
To ensure a reasonable wage level for employees of the approved projects under the Programme, all grantees are required to specify the wage level for each job to be created in their grants agreements signed with the Government. In this respect, all grantees have to make reference to the average monthly wages for the relevant industry/occupation as published in the latest Census and Statistics Department's Quarterly Report of Wage and Payroll Statistics. The Programme Secretariat has been closely monitoring the implementation of the projects to ensure that the actual emoluments paid out under the approved projects are no less than the amount specified in the grants agreements signed with the Government.
(b) We have explored a model to require successful bidders of some small government contracts to employ a certain percentage of the unemployed persons who have completed a relevant retraining programme offered by the Employees Retraining Board. We also had discussions with a number of non-governmental organizations on, among other things, their capabilities and interests in bidding for Government contracts. Instead of identifying some small contracts in existing services like cleansing and guarding services, they considered that it would be more helpful to identify a stable source of new businesses where SEs would have a relative competitive edge, e.g. delivery of personal care services to other disadvantaged groups. We are considering possible options in this direction.
(c) We have devoted a lot of efforts to promote within the Government, including those responsible for public procurement, and to the public the values and potentials of SEs, e.g. the additional benefits that SEs can bring to the community. While we do not have Government-wide information on the value of goods and services procured from SEs, we have taken stock from the bureaux and departments represented at the CoP (These include the Education and Manpower Bureau; Labour Department; Home Affairs Department; Food and Environmental Hygiene Department; Leisure and Cultural Services Department; Hospital Authority and contracts known to the Social Welfare Department). In 2006–07, some $28 million worth of goods and services were procured from SEs, and it is expected that about $32 million would be procured from SEs during 2007–08.
We will continue to consider ways to strengthen our efforts to promote the goods and services of SEs. Instead of imposing a requirement for Government departments to buy products and services of SEs, our focus would be on disseminating more effectively information about the range and quality of SE products and services. While the Government would facilitate SEs to participate in the public procurement process, the key for SEs to be successful is to be competitive and to deliver the types and quality of services required by the procuring agencies.
(d) The Administration is aware of the need to keep our regulatory framework updated to facilitate SE development. It is uncertain whether relaxation of the co-operatives requirements under the Co-operative Societies Ordinance (Cap.33) is the best way forward to facilitate SE development at this juncture. Separately, the Administration notes that the United Kingdom has just introduced a new form of companies, i.e. the Community Interest Companies, to cater for the special needs of SEs. We will continue to keep track of relevant overseas experience when considering a suitable legal vehicle to promote SE development in Hong Kong. A recommendation will be included in the report of the Commission on Poverty.
(e) The Administration recognises the potential of SEs to facilitate the disadvantaged to integrate into the job market. The next Administration will decide on the most suitable institutional structure to continue to further promote their development in Hong Kong.
Ends/Wednesday, April 25, 2007
Issued at HKT 12:46
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