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Following is a question by the Hon Sin Chung-kai and a written reply by the Secretary for Commerce, Industry and Technology, Mr Henry Tang, in the Legislative Council today (March 5): (translation)

Question:

It has been reported that of the nine buildings at the Hong Kong Science Park Phase 1, 30 per cent of the facilities and office premises have not yet been rented out. According to the Chief Executive Officer of the Hong Kong Science and Technology Parks Corporation (HKSTP), the selection of the Science Park tenants is strict and only those which have "contribution to the economy and technology in Hong Kong" can be admitted. The progress of the construction will also be adjusted according to the situation, to avoid the facilities and office premises of the Science Park being left idle upon their completion. In this connection, will the Government inform this Council whether it knows:

(a) the business natures and staff numbers of the Science Park tenants and, among them, the ratio between new inward investing companies and local start-up companies;

(b) the criteria adopted by HKSTP for determining "contribution to the economy and technology in Hong Kong";

(c) as the "Admission Criteria of the Hong Kong Science Park" announced by the Provisional Hong Kong Science Park Company Limited, the precursor to HKSTP, had been submitted to the LegCo Panel on Commerce and Industry in April 2001, whether HKSTP subsequently adopted these criteria or those mentioned in (b) above in selecting the Science Park tenants; and whether it has drawn up a mechanism for regular review of these selection criteria;

(d) whether adjusting the progress of the construction according to the situation has any cost implication on the HKSTP's investment in the Science Park; if so, of the details and how HKSTP will cope with this; and

(e) whether HKSTP will formulate measures and plans to promote the Science Park to overseas research companies or assist local small and medium-sized research companies to become its tenants, so as to fully utilize the equipment therein and enhance its occupancy rate?

Reply:

Madam President,

(a) As at February 25, 2003, the Hong Kong Science and Technology Parks Corporation (HKSTP) approved 25 applications for admission into the Science Parks as tenants. It also approved another 8 companies for admission as incubatees. These 33 companies include 16, 11, 1 and 5 enterprises engaged respectively in the areas of electronics, information technology and telecommunications, biotechnology and precision engineering, which comprise the four clusters of enterprises that the Science Park aims to develop. Of these 33 companies, 6 are new inward investing companies and 1 is a local start-up company. The ratio of new inward investing companies to local start-up companies is 6:1. Among the remaining 26 companies, 10 had been established for about a year or less when their applications were approved. Overall, these 26 companies plan to expand their research and development activities in Hong Kong or consolidate these activities elsewhere in the Science Park. These 33 companies initially plan to employ about 2,500 additional staff in the first three years after commencement of operation in the Science Park.

(b) The public mission of the Science Park is to facilitate technological research, development and application to support the development, transfer and use of new or advanced technology in Hong Kong to enable Hong Kong to become a technology intensive and knowledge-based economy. In the "Admission Criteria of the Hong Kong Science Park" submitted by the Commissioner for Innovation and Technology to the Legislative Council Panel on Commerce and Industry on 11 April 2001, it was already stated that the applicants had to contribute to the long term economic success of Hong Kong. The tenants should engage in technology-intensive business and their operations in the Science Park should be carried out through the development, enhancement and/or application of innovation and technology.

(c) The "Admission Criteria of the Hong Kong Science Park" are in line with what is stated in (b) above. The companies approved for admission are engaged in technology-intensive business. They will carry out operations in technological research and new product development in the Science Park. The Board of Directors of the HKSTP and its committee responsible for admission matters will review, where necessary, the admission criteria taking into account the circumstances with a view to selecting the most appropriate tenants.

(d) Construction of the Science Park Phase 1 is under the Public Works Programme, with the Architectural Services Department being responsible for the construction process. Part of Phase 1 has already been completed and opened, while the remaining construction work is in progress as scheduled. The last building is expected to be completed in mid-2004. The HKSTP will be responsible for the construction process of Phase 2. Detailed design and planning are now underway and construction has not yet commenced. In July 2001, the Finance Committee of the Legislative Council approved a commitment to inject $2,435 million as equity and to provide a loan of $1,043 million to the HKSTP to enable it to proceed with the construction of Science Park Phase 2. Any shortfall is to be borne by the HKSTP. The funds will be injected in phases in the light of the progress and the expenditure pattern of the construction. In such circumstances, there are already stipulations on the maximum amount of funding to be provided.

(e) The HKSTP has launched a series of marketing activities in Hong Kong and overseas (including the major markets in America, Europe and Asia) and will engage overseas representatives to further promote the Science Park. As for the assistance to the small and medium-sized local research-based companies, there are 77 technology start-ups participating in HKSTP's incubation programme and engaging in operations in technological research and new product development. Most of them are local companies. In addition, 8 other companies have been approved for admission to the Science Park as incubatees and will more fully utilise the facilities therein.

End/Wednesday, March 5, 2003

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