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Following is the transcript of the question and answer session by the Chief Secretary for Administration, Mr Rafael Hui, at the Hong Kong Exporters' Association Christmas Luncheon this afternoon (December 9):
Question: Chief Secretary, I want to express on behalf of the Exporters' Association that we fully support the MC6 to be held here as well as what you have in mind, what will cause you to have 14 long days, maybe not with a lot of sleep. We have learnt much about what is going to be happening in Hong Kong next week. We have learnt through the radio, the news media about the arrangements of the MC6, including transportation arrangements. Many of us are still worried about the safety of the demonstrators. Of course we do look forward to some peaceful demonstrations. We have heard and we have seen many times that during the last few conferences, there has been some really violent situations and some even spread to the streets. I want to learn from you what the Government has put in place to make sure that the demonstrations will go in peace as well as our daily life will not be disrupted through the demonstrations.
Chief Secretary: In the course of the last one or two months, the Government has been disseminating a lot of information on what's going to happen, alternative transport arrangements, particularly public transport. And for the first day of the conference a lot of schools, particularly on Hong Kong Island, will not have classes. The schools are open but the students and teachers will be doing something else. Realistically, I will not be thoroughly honest if I were to say that everything will be completely 105% normal when it comes to transport arrangements particularly along the northern shore of Hong Kong Island. There will be some diversion of traffic. There will be, from time to time, holdups in the flow of traffic in some of our main corridors along the northern shore of Hong Kong Island. Inevitable, even without large-scale demonstrations, traffic will be tight because ministers will have to go into the Convention Centre and then they will have to leave. And it depends on how frequently they go in and leave. There might be some disruption to normal traffic, but we hope that these disruptions can be kept to a minimum.
When it comes to demonstrations, it is, of course, inevitable that Hong Kong being a free and completely open society, we must give demonstrators every possible but reasonable opportunity to voice their opinions and let their opinions be known to delegates attending the World Trade Organization conference. I would just like to point out two things as to the degree of the liberal attitude that we have adopted. First of all, this is the first time ever in any WTO meeting that we actually have NGOs inside the conference facilities side by side with the delegates. This is a demonstration of not only the host but also the WTO itself's attitude toward exchange of views. There is no intention to segregate people for security reasons, so they are actually situated inside the conference facilities.
Secondly, for the other demonstrators such as various, shall I say, contingents or delegations representing the agricultural sector from a number of countries, if you look at previous meetings - Seattle, Mexico, and so on - the nearest area where demonstrators are allowed to stage their demonstrations and make their views known up until Hong Kong, if you look at the previous five, the nearest proximity, if you imagine the Hong Kong Convention Centre, then the demonstrators are situated in Stanley, that's the nearest. But in our case we have, of course, made available a number of sites for demonstrators to gather, to assemble, to do whatever they want to do, in the public cargo handling area within sight and within sound of the convention centre. Our view is that if you allow real opportunities and genuine opportunities for demonstrators to voice their views it will be very helpful to reduce any attitude or feelings of hostility and reduce the possibility, hopefully, of very severe and very unwanted kind of confrontation. Of course I can imagine some demonstrators would want to show in more graphic terms the strength of their feelings and their positions. Our police, of course, stand ready to ensure that things are kept within the law and Hong Kong people's safety, property are not threatened. Apart from that, we hope that this MC6 will be not as dramatic as earlier conferences. But this is our hope.
Question: I turn to another subject. In the first nine months of 2005, Hong Kong's total export is 12% over the same period last year. However given the fact that we have faced a very substantial oil increment, in fuel oil, and also, which leads to all downstream products including raw materials, components and parts and so on, Hong Kong in container throughput per year, we have already been overtaken by Singapore. Both Shanghai and Shenzhen claim that they have become No.2 in the world. It's to be supported somehow. However, Hong Kong all of a sudden will become No.4 in the world if those are true, realistic facts that we are facing. What measures or what guidance can you give us, because Hong Kong Exporter's Association in 50 years of existence, we have been very successfully promoting Hong Kong-made products, and now the Pearl River Delta or China-made products, exporting throughout the world. Now what guidance can you give us that we are going to face because of the fact that we are losing out to some of our neighbouring cities.
Chief Secretary: Realistically, we still have a cost problem as everybody knows. But also as everybody knows this particular cost problem is attributable to a number of players in the chain. I don't think I should be more specific than that. I don't want to cause unnecessary offence. But as far as the Government is concerned, we have been quite successful insofar as things that are within our control to reduce some of the transportation costs, for example, particularly in the container traffic between Hong Kong and across the border. There are new arrangements put in, in the course of this year, doing away with some of the more cumbersome or more ridiculous arrangements regarding container--one container has to be attached to certain things and one driver, and things like that. And that has, I think, helped. Whether this has completely reduced the cost differential, probably not. But as far as exporters are concerned, quite frankly you have to look at your own commercial situation and see whether some facilities in fact are more cost-effective up there than here. We don't want you to do that in a big way, but at the end of the day it is a commercial decision. I also hope that, because of for example, changes in the quota situation, more manufacturing can come back to Hong Kong and therefore our exporting industry and our logistics industry can also benefit. I think that's the best answer I can give under the circumstances without naming specific sectors.
Question: I don't think the lunch is intended to have you slipped away without talking too much about democracy and the speed there. I wonder if you would like to use this opportunity to urge businessmen on the floor to prepare for one day that we do approach universal suffrage. Even though we have the report No. 5 on the table and like Mr Hui says, in two weeks time - and it's a very long two weeks. We are there with you, Rafael. Even though it's a very long two weeks and as you all know we all sensible people realise that this report must be accepted with full force. However, we do have some that are not, either not logically minded or they have some other hidden agendas. But anyway we don't want to speculate on their intentions. However the whole good intention of Hong Kong, seven million of us all, intends to approach universal suffrage in a steady, stable manner and this is our intention. But the thing is are we all ready for it? I think maybe, I hope the CS would utilise this opportunity to encourage business sectors to get ready for that. What advice would you give? Maybe you can encourage some to sponsor or help support Liberal Party too.
Chief Secretary: Thank you for raising this from a very helpful angle. I'm not here primarily to lobby anyone or advocate any particular position but I think eventually the business sector has to accept that the Basic Law provides, ultimately, for universal suffrage. Even our current Report No 5, as we call it, again quite frankly, some members of the business sector are sceptical. So I think it is imperative that business understands that whatever comfort or benefit that they might have felt under a less democratic system, this system cannot last forever. There must be more competition, if you like, just as in business, more competition in politics, more competition in how Hong Kong is to be governed. No one ultimately should have a natural monopoly in governing, except upon the will of the people. This is something that I think a lot of people in principle accept. But in practice you need to be not just psychologically prepared, but also more important, as I have emphasised repeatedly in the past five weeks during my regularly visits to District Councils (DC), it is necessary for the business sector to ensure that there will be a proper balance of interests in the new legislative assembly eventually to be set up under universal suffrage. And in order to ensure that different sectors' interests are represented, business should get itself more involved in politics - if not directly. I'm not suggesting that everybody should go and run for DC membership. But there must be a greater degree of interest and involvement because it is going to be part and parcel of our daily lives and it is also going to affect how you conduct your business, whether rules are fair, whether there will be real competition or not. Now these issues have to be very carefully thought out, and also more important is our taxation system under universal suffrage. Hong Kong has a very low tax regime. The Basic Law also refers to the need to make reference to a regime of low taxation. Now all these I'm sure you support, but these are only provisions in the Basic Law. It has to be translated into real life institutions. How do you ensure that under universal suffrage, 'one man, one vote' and party politics that the taxation is sustainable, the taxation system is fair and the taxation system can retain our competitive position in being an international trade, commerce and financial centre. Now all these are real and pragmatic matters that it is in fact not too late for business, both big and small, to consider, to consult and to involve.
Ends/Friday, December 9, 2005
Issued at HKT 17:56
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