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Following is an oral reply by the Acting Secretary for Commerce and Economic Development, Mr Gregory So, to a question by Dr Hon Lam Tai-fai in the Legislative Council today (March 17):
Question:
In her reply to a written question raised by a Member of this Council on February 24 this year regarding Hong Kong enterprises operating express delivery service within the Mainland, the Secretary for Commerce and Economic Development indicated that, apart from having all along been closely monitoring the launch of the Postal Law of the People's Republic of China (the new Postal Law) and its impact on the local enterprises, the SAR Government had also proposed to include the service concerned under the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA), so as to enable Hong Kong service providers to operate express delivery service for letters which was outside the monopoly of the China Post Group. In this connection, will the Government inform this Council:
(a) whether the aforesaid proposal will be implemented in Supplement VII to CEPA to be announced; if it will, of the details; if not, the reasons for that;
(b) given that it has been reported that the new Postal Law was passed on April 24, 2009 by the Standing Committee of the National People's Congress only after seven years' deliberations on the Mainland and numerous amendments, whether the SAR Government had conducted any assessment during that period on the impact of the relevant provisions on the courier industry in Hong Kong and relayed to the relevant Mainland authorities the difficulties in operation faced by the trade; if it had, of the details; if not, the reasons for that; and
(c) whether it has assessed, following the implementation of the new Postal Law, the number of Hong Kong enterprises operating express delivery service within the Mainland which will face bankruptcy or closure, the number of Hong Kong employees who will become unemployed or underemployed as a result, and the possible impact on the business of the Hong Kong enterprises in the Pearl River Delta which have been using the service of these companies for a long time; if it has, of the details; if not, the reasons for that?
Reply:
President,
I am replying in sequence the questions raised by Dr Hon Lam Tai-fai.
(a) Under the Postal Law of the People's Republic of China (the new Postal Law) which came into effect from October 1, 2009, foreign companies (including Hong Kong enterprises) are prohibited from investing in and operating express delivery service for letters within the Mainland (i.e. the entire process of the express service from collection of the letters to delivery takes place within the Mainland). The State Post Bureau published a notice on September 30, 2009, which stipulates that enterprises not meeting the statutory requirements for operating express delivery service would have to meet the relevant requirements for their business, and obtain a permit to operate such service before September 30, 2010. In other words, enterprises which are now operating express delivery service but yet to meet the conditions under the new Postal Law may continue to operate temporarily during the grace period until September 30, 2010.
The Government of the Hong Kong Special Administrative Region (the Government) is very concerned about the impact of the new Postal Law on the Hong Kong courier industry. We have reported the latest developments in the written reply we sent to the Hon Wong Ting-kwong on February 24. The Government has reflected the trade's concerns to the Mainland authorities and has proposed to open up this restricted service under CEPA, so that Hong Kong enterprises can invest in and operate this type of business. Discussions between the Government and the Mainland authorities are now underway. It is inappropriate to make any speculation at this stage.
(b) The Hong Kong courier industry first raised with us their concerns on the new Postal Law in mid-2009 (i.e. after the Standing Committee of the National People's Congress has passed the new law). Subsequently, the Government has been in close contact with the Mainland authorities, so as to gain a better understanding of how the new Postal Law is being implemented and to reflect the concerns and views of the Hong Kong trade. As we understand it, apart from the restriction on express delivery service for letters within the Mainland, Hong Kong enterprises can operate, in accordance with the law, express delivery service for letters between the Mainland and Hong Kong, express delivery service for parcels within the Mainland and cross-border express delivery service for parcels. Furthermore, the Government has been in contact with trade organisations to try to get a better understanding of the scope of business of individual enterprises in the Mainland, the number of employees involved and other relevant details. Such information will not only enable us to make an assessment of the potential impact of the new Postal Law, but also facilitate the Government's discussion with the Mainland authorities. Up till now, we have not yet received the necessary information. Hence, we are unable to make any detailed assessment at this stage.
(c) Since the scope of business of individual Hong Kong courier enterprises may be different, the impact of the relevant provisions of the new Postal Law on them would also differ. We therefore need more detailed information from the trade to facilitate our assessment of the impact of the new Postal Law on the trade as a whole. Until we have received such information, we are not able to make any detailed assessment at this stage. We will continue to keep in touch with the trade.
Ends/Wednesday, March 17, 2010
Issued at HKT 13:20
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