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LCQ18: Development of social enterprises
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    Following is a question by the Hon Frederick Fung and a written reply by the Financial Secretary, Mr Henry Tang, in the Legislative Council today (June 6):

Question:

     On April 25 this year, the Financial Secretary said in reply to my question that the Administration was considering possible options for implementing a trial scheme to facilitate social enterprises ("SEs") employing able-bodied unemployed persons to participate in the public procurement process in the direction of identifying new businesses where SEs would have a relative competitive edge (e.g. delivery of personal care services to other disadvantaged groups). The Government had also collected information from the Education and Manpower Bureau, the Labour Department, the Home Affairs Department, the Food and Environmental Hygiene Department, the Leisure and Cultural Services Department, the Hospital Authority and the Social Welfare Department about the contracts known to involve procurement of goods and services from SEs. In this connection, will the Government inform this Council of:

(a) further details of the above-mentioned trial scheme, including the responsible departments, the latest progress, expected implementation time and work schedule, as well as the estimated number of beneficiaries and the effectiveness in alleviating poverty;

(b) the number of government contracts which involve the delivery of personal care services to other disadvantaged groups and the contract value involved, as well as the other businesses where SEs are relatively more competitive;

(c) details of the efforts to promote the values and potentials of SEs within the Government, in particular to those responsible for public procurement, including the progress of the work, the policy bureaux and government departments to which the promotional efforts have been directed, the types of goods and services promoted, and the methods and timetable for promotional efforts; and

(d) detailed information from the above-mentioned bureau and departments about the contracts known to involve procurement of goods and services from SEs, including the types, quantities or times of the goods and services procured, and whether they include goods and services which have obtained organic, environment-friendly or fair trade certifications, the estimated number of beneficiaries and the effectiveness in alleviating poverty; and whether it will consider collecting information in this regard from all government departments?

Reply:

Madam President,

(a) One of the major tasks of the Administration is to actively promote the development of social enterprises (SEs) with a view to helping the unemployed in need to integrate into the job market and achieve self-reliance. The Home Affairs Bureau will be responsible for vigorously promoting the further development of SEs, and will further consider the feasibility and details of the possible options in implementing the trial scheme.

(b) Regarding government contracts, many non-governmental organisations (NGOs) operating SEs have indicated that it would be more effective to focus on identifying new, stable businesses in which SEs have a relative competitive edge, e.g. provision of personal care services to disadvantaged groups. At its meeting on September 27, 2006, the Commission examined the potentials of the home help and personal care services markets and the successful examples of SEs, e.g. delivery of household repair and postnatal care services. The Commission recognises that the people-oriented approach emphasised by SEs has given them a relative edge in the relevant sectors.  However, most of the personal care services are currently provided by NGOs through traditional service model. We also do not have any information on the number of such service contracts provided by SEs and the amount involved.  

(c) To effectively promote the development of SEs, it is vital to gain public recognition and support. In this connection, apart from public education and publicity, we have been devoting a lot of efforts to promote within the Government, including those responsible for public procurement, the values and potentials of SEs. We will continue to step up our efforts in publicity work so as to further promote the values of SEs and the additional benefits that SEs can bring to the community.  

     The Government has been working closely with the Hong Kong Council of Social Service (HKCSS) to actively promote the products and services of SEs. Recently, HKCSS is organising a series of marketing activities for SEs, which include the compilation and publication of a catalogue of products and services offered by SEs, in order to facilitate the Government and stakeholders concerned in promoting and developing SE brands and products.

(d) We are aware that there are some SEs promoting goods and services on organic, environment-friendly or fair trade certifications, e.g. organic farm products, environment-friendly products, and recovery and recycling services.

     The Government has long implemented a green procurement policy. As early as 2000, the Stores and Procurement Regulations (SPR) were amended to require government departments to give consideration, as far as possible and where economically rational, to purchase green products that comply with the specific standards. All bureaux and departments must follow the SPR and the green procurement guidelines therein when making their procurement decisions. Since 2000, the Government has developed a set of green specifications for a number of commonly used items (including recycled papers, office stationeries and cleansing supplies) to ensure that they comply with specific environmental protection standards. Government departments will also consider including other environment-friendly features in various marking schemes for procurement, with a view to encouraging market players to develop cleaner and greener products. SEs which can meet the requirements of green procurement can participate in bidding the relevant government contracts.

     In 2006-07, some $28 million worth of goods and services were procured from SEs by the bureaux and departments represented at the CoP*, including over 100 government contracts on cleansing, catering (restaurants/light refreshment kiosks), printing, letter shopping/delivery, gardening and car washing services. However, we do not have the detailed information of contracts in relation to goods and services on organic, environment-friendly or fair trade certifications etc.

* 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.

Ends/Wednesday, June 6, 2007
Issued at HKT 12:29

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