Following is the speech (translated from Chinese) by the Chief Secretary for Administration, Mr Chan Kwok-ki, in presenting the Government Minute in response to Report No. 85 and No. 86 of the Public Accounts Committee in the Legislative Council today (October 21):

President, 

     Laid on the table today is the Government Minute (GM) responding to Reports No. 85 and No. 86 of the Public Accounts Committee (PAC) presented to the Legislative Council on July 15, 2026.

     The Government welcome the Report of the PAC and would like to express its appreciation to the Chairman, the Hon Sunny Tan, and PAC members for the devotions and contributions. The Government has accepted PAC's various recommendations and set out in detail in the GM the specific responses of the relevant bureau and departments (B/Ds). The PAC conducted public hearings on the chapters on "Management of food waste by the Environmental Protection Department" and "Regulation and monitoring of ferry services by the Transport Department" of the Director of Audit's Report No. 86. I would like to highlight the latest progress on the key measures taken by the two departments in response to the recommendations.

Management of food waste by the EPD

     The Environmental Protection Department (EPD) has been actively promoting food waste recycling. Through expanding the recycling network and strengthening publicity and education, the amount of food waste collected has continued to rise. The daily average increased by around 14 per cent from approximately 350 tonnes in 2025 to around 400 tonnes in the first half of 2026, demonstrating that the measures are progressively taking effect. The EPD has been continuously enhancing its food waste management work to provide more convenient and cost-effective recycling services in accordance with the recommendations of the Audit Commission and the PAC. These efforts include expanding the recycling network, intensifying public education , stepping up promotion on food waste recycling targeting commercial and industrial premises such as shopping malls and eateries, and implementing strengthened screening of inert materials to enhance both the quality and quantity of recycled food waste. 

     Regarding the management of food waste collection services, the EPD formulated a series of guidelines for monitoring the services in April this year. These guidelines set out clearly the criteria and procedures for site inspections, assessment of non-compliances, and follow-up procedures for late report submissions. In addition to strengthening the internal vetting mechanism, the EPD has commenced a trial application of artificial intelligence tools to assist in cross-checking tender documents to ensure compliance of tendering procedures with Government procurement guidelines with technology support. At the same time, the EPD has refined the methodology for preparing pre-tender estimates and assessment criteria for food waste collection service contracts. The relevant measures have been implemented in the food waste collection service contracts tendered in July this year.

     For domestic food waste recycling, the "one bin per block" target for public rental housing estates will be achieved this year, and the EPD will continue to encourage and assist the installation of food waste smart recycling bins in private housing estates. Furthermore, the EPD has strategically set up approximately 260 public food waste recycling points across various districts in Hong Kong to provide food waste recycling services for residents at premises that lack space to install food waste recycling facilities. The EPD will continue to identify more suitable locations, such as public markets and refuse collection points, to set up recycling points. At the same time, the EPD will continue to review the operation of the recycling spots, adjust their locations and service hours in a timely manner to facilitate the general public's participation in food waste recycling.

     Furthermore, the EPD has commenced a review on the overall effectiveness of the Food Wise Hong Kong Campaign and will consult the Food Wise Hong Kong Steering Committee and its subcommittees, as well as gather feedback from the trade with a view to rolling out more publicity and promotional activities for encouraging more stakeholders to reduce and recycle food waste, working together to foster a "food wise" culture.

Regulation and monitoring of ferry services by the TD

     The Transport and Logistics Bureau and the Transport Department (TD) attach great importance to the regulation and monitoring of ferry services, and have actively followed up on the views and recommendations put forward by the Audit and the PAC.

     On improving the financial viability of ferry services, the TD has been actively assisting operators in implementing proposals conducive to increasing non-farebox revenue. The TD has established a Task Force to co-ordinate across departments and expedite the approval of commercial activities and pier enhancement proposals that could help increase non-farebox revenue. The TD has also strengthened its monitoring of the pier rental situation, encouraging operators to make full use of pier resources to develop non-farebox revenue. Among these initiatives, the franchised ferry operator has adopted flexible rental combinations to improve the occupancy rate of shops at piers, and converted premises at the Wan Chai Ferry Pier that were originally used for storage into restaurants and retail shops to stimulate pedestrian flow.

     In terms of the regulation of ferry service performance, franchised, licensed, and kaito ferry operators must strictly adhere to their franchise or licence conditions. For franchised ferry services, the TD actively explores service schedule optimisation with the operator as well as monitors fleet maintenance and engine replacement progress, etc, so as to elevate its service performance. For licensed ferry services, the TD continuously follows up on operators' fulfillment of their tender commitments, and will regularly conduct monitoring surveys and follow up in a timely manner.

     For the kaito ferry services with relatively more flexible operation, the TD has, following Audit's recommendations, required kaito ferry operators to submit operational data and appropriately strengthened inspection work of kaito ferry routes to gain a more comprehensive understanding of their operational situation.  Overall speaking, the TD has revised its internal guidelines, adopted measures to strengthen the oversight of consultants responsible for on-site surveys, and ensured that departmental staff take timely follow-up actions with operators having regard to the survey results, to more promptly process operators' submission and make public regular returns as well as operational information, and properly record related follow-up work.

     Furthermore, the Government attaches great importance to the safety of vessels and passengers, as well as PAC's concerns regarding illegal kaito. To facilitate identification of licensed kaito ferry service by the public, the TD has reminded all operators to display the plates and flags provided by the TD at prominent locations onboard, and display publicity posters with QR codes on TD's website and at major public piers or landing steps, so that the public can access the latest kaito ferry service information at any time. The TD will also strengthen the verification of kaito vessel licences and conduct patrols against illegal kaito.

     President, I would like to thank the PAC again for its efforts and suggestions. The B/Ds concerned will strictly adhere to their responses and implement various enhancement measures set out in the GM with full efforts.

     Thank you, President.

Ends/Wednesday, October 21, 2026
Issued at HKT 12:23

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