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Thursday, February 19, 1998 CONTENTS ======== 1. CE's transcript 2. CS's transcript 3. FS's transcript 4. CE to attend NPC opening and closing ceremonies 5. Effective building management prevents fire: CE 6. Hard cash back up for housing commitments 7. SJ makes courtesy call on Shenzhen officials 8. FS to visit Beijing 9. Advice on illegal slimming products 10. No discrimination against hotel industry on sewage charges 11. Two days left for electors to check registration records 12. Latest education and career information for Expo visitors 13. Huge demand for Budget Speech 14. Update on avian flu 15. PDB to launch home safety campaign 1. CE's transcript *************** Following is the transcript (English part) of the media session by the Chief Executive, Mr Tung Chee Hwa, after visiting Kwun Tong District this (Thursday) afternoon: Reporter: There have been reports that prices of property have already moved up in response to the announcement of the allowance for mortgage interest. Is it really beneficial to the first time buyers who want to buy a house ...? Mr Tung: I think as I said just a little bit time ago that the purpose of this tax incentive is to encourage home buyers and that insofar as the property price itself is concerned. I have said many times on many occasions that we do not want to see the property prices shoot through the roof. Neither do we want to see it fall like a tonne of bricks. What we want to see is a stable property price, affordable property price and that at the end of the day the Government does have a lot of land on hand to ensure the stability of the property price. End 2. CS's transcript *************** Following is the transcript of the media session by the Chief Secretary for Administration, Mrs Anson Chan, at the Government Secretariat this (Thursday) morning: Reporter: Mrs Chan, given that this is an election year, how much importance did you place in getting provisional legislators' approval in coming up with this Budget? Mrs Chan: The Financial Secretary and the Administration's main aim is on the one hand to address the specific concerns of the community, particularly in the light of the heavy burdens that the community faces - and I refer particularly to the middle-income family groups, but on the other hand to be ever mindful of the fact that particularly in the current financial turmoil, and the economic uncertainties facing not only Hong Kong but the region as a whole, that we should be able to demonstrate to international investors and organisations that we have not departed from our prudent fiscal management. It is as a consequence of an observance of prudent fiscal management over the years and the fact that we have sizeable reserves, that we are able, despite the current financial difficulties, to afford on the one hand to continue to increase public spending in both services and in infrastructural investments, and on the other hand to reduce taxes and add in a reasonable manner to our reserves. So, we feel that this Budget for 1998/99 should send a very clear signal both to the community that the Government has heeded their concerns, but also to the international investing public. Of course we very much hope that our political parties and all members of political parties will feel able to support this Budget. But it is principally a budget that is based on careful consideration of all the relevant factors and an adherence to well-tried policies and principles. I want also to say a few words about the decision of the Government to put out a competitive tendering of the bus service. As you know, with the approval of the Executive Council, we have decided to invite open tenders for the provision of bus services on the Island. We hope in this manner, through a competitive tendering, we can find an operator that has the ability and the commitment to provide good quality bus services. From the indications so far, there appears to be a good deal of interest and so far the Transport Department has already issued nine tender papers to interested parties. We will do everything we possibly can to assist the company to maintain and provide good quality bus services. And I am sure that with the co-operation of the employees of CMB that we can ensure that after September 1 bus services will continue to operate smoothly. I also very much hope that the management of CMB will cooperate with the Government in ensuring that there is no disruption to services. We are, of course, very mindful of the concerns of the present employees of CMB and we have already made it very clear in the tender notice that that new operator will be required to give preferential employment opportunities to serving front- line workers of CMB. End 3. FS's transcript *************** Following is the transcript of a media session by the Financial Secretary, Mr Donald Tsang, after meeting with chairmen of the Provisional District Boards and the two Provisional Municipal Councils this (Thursday) morning: Reporter: Mr Tsang, will you go to Beijing to brief the Chinese government? FS: I will talk about Beijing later. Reporter: ....salaries allowance..... the only criticism we have heard around is that the rates cut is not enough. Is it one of today's topic of discussion? FS: There wasn't any serious discussion on these two topics. If you look at salaries allowance, you must not only look at the rate of increase, but also the widen of the band. That is where all the benefits would come. As far as rates is concerned, I have explained very clearly I could not do it more. Well, on the whole I am very happy with the response. I think its indication is not that I have produced a popular Budget, but rather people see hope in this Budget that we can work together. Thank you very much. End 4. CE to attend NPC opening and closing ceremonies *********************************************** At the invitation of the Standing Committee of the National People's Congress, the Chief Executive, Mr Tung Chee Hwa, will attend the opening and closing ceremonies of the first session of the Ninth National People's Congress in Beijing and will be seated at the rostrum, a government spokesman said today (Thursday). The opening ceremony will be held on March 5 and the closing ceremony on March 19 in the Great Hall of the People. "The Chief Executive will return to Hong Kong after attending the opening ceremony. He will visit Germany and France before leaving for Beijing again to attend the NPC closing ceremony," the spokesman said. End 5. Effective building management prevents fire: CE *********************************************** The Chief Executive, Mr Tung Chee Hwa, reiterated his appeal to the public to attach the highest priority to effective building management to ensure fire safety during his visit to Kwun Tong district this (Thursday) afternoon. Accompanied by the acting Director of Home Affairs, Mr Lui Hau-tuen, Mr Tung first went to Yue Man Square to inspect an old building which had fallen into disrepair as there was no owners' corporation (OC) to oversee its management. His next stop was the Kwun Tong Industrial Centre where he was briefed by its OC on the maintenance of the outer wall of the building and the role of the owners' corporation. Mr Tung also visited a printing factory in the building. He then inspected the environment of an industrial area in Hoi Bun Road and visited a market in Hiu Lai Court, Sau Mau Ping. Referring to the On Hing Building fire two weeks ago, Mr Tung said, "The tragedy should serve as a stark reminder of the urgency to form OCs to effect proper and safe building management. Residents should not delay any longer in forming OCs. They provide a forum for residents to pool their efforts together in putting in place effective safeguards against fires." "The issue has been the subject of intense discussions within Government and a number of positive steps are being taken to deal with the problem," Mr Tung said. "Among other things, we are exploring the possibility of setting up a fund to help those OCs with financial difficulties. The Government has also deployed more fire services officers to inspect old buildings and encourage the public to be more concerned about their living environment," he added. Mr Tung also stressed that fire prevention is a joint responsibility of the Government, building owners and tenants. During the visit, Mr Tung learned that the Home Affairs Department is planning to set up a Building Management Resource Centre (BMRC) to provide a wide range of services, including free preliminary professional advice from lawyers, accountants, surveyors and property management companies to owners and officer-bearers of OCs. Relevant government departments, including the Fire Services Department, will join in the work of the BMRC. The department will also soon set up district fire safety committees to promote and arouse the public's awareness of fire prevention at district level. Before concluding the visit, Mr Tung met with Kwun Tong Provisional District Board members and local community leaders to exchange views on district issues and future development. Kwun Tong District Officer, Mr Tsang Hing-kay, also accompanied Mr Tung on the visit. End 6. Hard cash back up for housing commitments ***************************************** The Secretary for Housing, Mr Dominic S W Wong, said that the total public expenditure on housing in 1998/99 will be increased by 52.1 per cent in real terms to $48.915 billion as compared with $29.895 billion in 1997/98. Speaking at a press conference on public expenditure on housing this (Thursday) afternoon, Mr Wong said the Budget announced by the Financial Secretary demonstrated that the Government would back up housing commitment with hard cash. On total capital expenditure, there will be an increase of 93.7 per cent from $16.925 billion in 1997/98 to $35.185 billion in 1998/99. As for total recurrent expenditure, there will be an increase of $760 million (decrease of 0.2 percent in real terms) from $12.97 billion in 1997/98 to $13.73 billion in 1998/99. Mr Wong said the total public expenditure on housing would account for 16.9 per cent of the total public expenditure in 1998/99, as compared with 12.9 per cent in 1997/98. "This massive growth in expenditure is a clear demonstration of the SAR Government's commitment to resolve Hong Kong's housing problem," he said. A total of $35.185 billion will be spent on the capital public expenditure on housing in 1998/99, this massive increase is accounted for by the following policy initiatives: - an increase in the number of flats under construction by the Housing Authority from 96,000 flats in 1997/98 to 152,000 flats in 1998/99 (i.e. construction cost will increase from $14.783 billion to $22.321 billion); - draw-down by the Housing Society from the Loan Fund of $6.755 billion in respect of land premia for Sandwich Class Housing sites; - draw-down by the Housing Society from the Loan Fund of $3.6 billion to provide loans for first- time home buyers under the new Home Starter Loan Scheme; and - an increase in the Housing Authority's expenditure on upgrading and renovation work in its estates from $932 million to $1.083 billion (8.3 per cent in real terms). Capital expenditure on housing will account for 38.8 per cent of the total capital public expenditure in 1998/99. As for the $13.73 billion of recurrent public expenditure on housing in 1998/99, $679 million will be allocated to government departments in the housing policy group while $13.051 billion will go to the Housing Authority. Recurrent expenditure on housing will account for 6.9 per cent of total recurrent expenditure in 1998/99, the spending will mainly attributable to: - an increase of 79 posts in the Housing Department funded by the Housing Authority; and - an increase in government Departments' recurrent expenditure to cater for the creation and filling of 31 posts in the Lands Department, Rating and Valuation and Inland Revenue Departments, and nine posts in the Housing Bureau. The Secretary said much of this year's additional expenditure on housing arose from a major increase in the production of public sector flats. "At the same time, we will spend $11 billion to accelerate housing-related infrastructure development over the five years up to 2001/02," he said. "To ensure that flats are completed on schedule, the Bureau has drawn up a computerised inventory of housing sites, clearly laid down the responsibility for monitoring and delivering housing projects at the district and central government level and put in place an efficient system for solving problems relating to flat production. "Flat production for the eight-year period up to 2004-05, involving some 940 sites, has already been published, and this programme will be rolled forward each year and extended to cover a 13-year period," Mr Wong said. "To achieve an home ownership rate of 70 per cent by 2007, this year's Budget will enable us to expand our existing subsidised home ownership schemes and to introduce new ones." For lower-income families: - the number of subsidised home ownership flats under construction under the Housing Authority's Home Ownership Scheme and Private Sector Participation Scheme will increase by over 85 per cent in 1998/99; - the existing Home Purchase Loan Scheme will be expanded, in consultation with the Housing Authority, to give more eligible families the opportunity to buy their own homes in the private sector; - the Tenants Purchase Scheme represents a massive transfer of wealth to the families that will benefit. For middle-income families: - the target production of Sandwich Class Housing (SCH) flats will be increased from 30,000 to 50,000 by 2004/05. About 4,000 SCH flats will be pre-sold in 1998/99 and the Housing Society will draw down some $6.775 billion from the Loan Fund to pay the land premia for five SCH sites producing over 8,800 flats; and - the Government will continue to offer loans to eligible middle-income families under the SCH Loan Scheme. "Taken together, all these measures will mean that about 90 per cent of Hong Kong families will have received or be eligible for assistance under the Government's subsidised home ownership programme. "Home owners will be eligible for a tax relief of up to $100,000 a year per property for home mortgage interest payments. To ensure that only genuine home buyers will benefit, the deduction will apply only to owner-occupied premises," Mr Wong said. Applicants may claim the deduction in any five tax years. Some 500,000 tax payers are expected to benefit from this concession. "We are equally determined to protect the interest of genuine home buyers when they purchase flats. "The new Estate Agents Authority, on which a further $18 million will be spent next year, will inject discipline into the market and provide added security to purchasers," he said. End 7. SJ makes courtesy call on Shenzhen officials ******************************************** The Secretary for Justice, Ms Elsie Leung, is leading a delegation from the Department of Justice to pay a number of courtesy calls in Shenzhen today (Thursday). The Programme for the one-day visit includes meetings with the Chairman and Vice-chairmen of the Standing Committee of the Shenzhen People's Congress, the Deputy Director and the Division Chief of the Shenzhen Public Security Bureau, and the Chief Procurator of the Shenzhen People's Procuratorate and his deputy. In the afternoon, she is meeting the President of the Shenzhen Intermediate People's Court, the Assistant to the President, and the Director and Deputy Director of the Shenzhen Justice Bureau. The delegation includes the Solicitor General, Mr Daniel Fung and Counsel from the Legal Policy Division, the Civil Division and the Prosecutions Division of the Department of Justice. End 8. FS to visit Beijing ******************* At the invitation of Mr Liao Hui, Director of the Hong Kong and Macau Affairs Office of the State Council, the Financial Secretary, Mr Donald Tsang, will visit Beijing on February 23 and 24. This is the Financial Secretary's first visit to Beijing after the Handover. During his visit to Beijing, the Financial Secretary will make courtesy calls to the Vice-Premier and Minister of Foreign Affiars, Mr Qian Qichen and Director Liao. The Financial Secretary will also meet with the Minister of Finance, Mr Liu Zhongli; the Governor of People's Bank of China, Mr Dai Xianglong; and Chairman of the China Securities Regulatory Commission, Mr Zhou Zhengqing. The Financial Secretary will discuss with the officials the latest developments in the Asian financial markets and the impact of the financial turmoil on the Hong Kong Special Administrative Region (HKSAR). He will also take the opportunity to brief them on the first Budget of the HKSAR. Details of his visit programme are still being worked out. Mr Tsang will be accompanied by his Administrative Assistant Mr Thomas Chow, Press Secretary Ms Kitty Choi and Assistant Secretary for Constitutional Affairs Miss Rosanna Law. End 9. Advice on illegal slimming products *********************************** The Department of Health today (Thursday) advised the public not to buy and use four slimming products labelled as Chinese proprietary medicines which are found to contain fenfluramine, a western medicine which has been de-registered in Hong Kong. The four slimming products are Xian Zhi Bao Xian Ti Su, Xian Ti Jian Mei Su (II), Xian Ti Wan Ding Su (III) and Mei Zhi Xuan Xian Mei Su. The last one is also found to contain diethyl-propion, another western medicine prescribed for use as appetite depressant. Fenfluramine is reported to be associated with heart disease. The Pharmacy and Poison Board decided to de- register all products containing it with effect from January this year. The warning was issued by the Department's Assistant Director (Special Health Service), Dr W M Chan, who said that the four products were labelled as Chinese proprietary medicines and investigation revealed that they had been illegally imported into Hong Kong. "Acting upon complaint, the Department tested these four slimming products and found that they contained fenfluramine," Dr Chan said. "The follow-up enforcement action taken by department staff resulted in the seizure of a total of 2,621 boxes of these products from the wholesalers concerned. In addition, 3,699 boxes have also been recalled and seized from the market." Dr Chan advised the public not to take these four products and should consult their doctors for advice. In case of query, they can contact the Department's Pharmaceutical Service Complaint Hotline on 2572 2068 during office hours. Retailers who are in possession of these products are urged to refrain from selling them and surrender them to the Pharmaceutical Service of the Department on the 18th floor, Wu Chung House, 213 Queen's Road East, Wan Chai. Dr Chan said the Department would be forwarding the investigation results to the Department of Justice for legal advice to ascertain whether prosecution could be instituted against the wholesalers. In the meantime, Dr Chan said the Department has stepped up surveillance and would be testing similar slimming products. "So far, the Department has not detected the presence of fenfluramine in other similar slimming products currently available in the market," she added. Under the Pharmacy and Poison Ordinance, the possession and sale of unregistered pharmaceutical products is an offence liable to a maximum penalty of $100,000 fine and two years' imprisonment. End 10. No discrimination against hotel industry on sewage charges ********************************************************* In response to the Federation of Hong Kong Hotel Owners' recent allegation that the hotel industry has been unfairly subjected to paying the Trade Effluent Surcharge (TES), a government spokesman said today (Thursday) that the sewage charging scheme did not discriminate against any trade or industry; nor did it give any special treatment to any trade or industry. The TES is, at present, only levied on premises connected to the public sewerage system where trade effluent is produced in the course of one or some of the 30 trades, businesses or manufactures listed in Schedule I of the Sewage Services (Trade Effluent Surcharge) Regulation. "The hotel industry on its own is not one of the businesses in the list. Hotels are only assessed for the proportional flow from their restaurants, laundries and bakeries, if they have such facilities," the spokesman said. "The present system of 'mixed accounts' treats hotels with TES payable business as any other multi-use buildings having common water meters and applies the Polluter Pays Principle accordingly." "The operation of the scheme, including the use of Chemical Oxygen Demand as the charging parameter, and the collection of charges are in accordance with the Sewage Services Ordinance and its subsidiary regulations and the relevant Technical Memorandum," the spokesman said. "If these TES-payable trades inside hotels are not charged, it would be unfair to other operators of similar facilities outside hotels who would continue to pay TES and would give a commercial benefit to establishments such as restaurants within hotels. "In fact, over 90 percent of the registered hotels do not pay TES as they only provide accommodation facilities. The basis of charging for the 50 or so hotels who do pay under the 'mixed account' arrangements has been agreed amicably and individually with each hotel affected," the spokesman added. He said the administration had explained the details including the legality of charging "mixed accounts" to the Federation on many occasions. The spokesman reiterated that the administration is operating within the bounds of the legislation. End 11. Two days left for electors to check registration records ******************************************************** Registered electors have only two days left to raise objections, make claims or request for corrections regarding entries on the 1998 provisional registers and the omissions lists. "If anybody has doubts about whether his name is included, he should check his registration particulars without delay by Saturday (February 21)," a spokesman for the Registration and Electoral Office said today (Thursday). "You will not be able to vote in this year's Legislative Council elections if your name is not on the registers or being put on the omissions lists," he added. Objections or claims must be lodged by February 21 in a specified form in person at the office of the Electoral Registration Officer, 10th floor, Harbour Centre, Wan Chai, or 10th floor, Guardian House, 32 Oi Kwan Road, Wan Chai. Since the registers and the omissions lists were published last Friday (February 13), 35 objections and claims have been lodged. These cases will be referred to eight Revising Officers, who are members of the Judiciary, for determination by next Saturday (February 28). Their decisions will be reflected in the final registers to be published before mid-March. A registered elector may call hotline 2891 1001 or make enquiries via fax (2891 1180) to check his own records. The hotline will maintain services up to midnight on Saturday. The provisional register and the omissions list for the five geographical constituencies are available for inspection during ordinary business hours up to noon on Saturday at: * the Registration and Electoral Office, 10th floor, Harbour Centre, 25 Harbour Road, Wan Chai; and * 18 district offices (that part of the register relevant to the district). The provisional registers for the functional constituencies and the Election Committee subsectors and the omissions lists for the functional constituencies may be inspected at: * the Registration and Electoral Office, 10th floor, Harbour Centre, 25 Harbour Road, Wan Chai, and 10th floor, Guardian House, 32 Oi Kwan Road, Wan Chai; and * five District Offices in Central and Western, Yau Tsim Mong, Kwun Tong, Sha Tin and Tsuen Wan. Any person who wishes to inspect the registers or the omissions lists is required to fill in a form and show his identity card. End 12. Latest education and career information for Expo visitors ********************************************************* Students, young people and working adults will have access to the latest information on opportunities for further study and career choices at the 8th Education and Careers Expo opened today (Thursday). Jointly organised by the Labour Department and the Hong Kong Trade Development Council (HKTDC), the Expo was officially opened today by the Executive Council member, the Hon Tam Yiu-chung; the Executive Director of HKTDC, Mr Michael Sze; and the Commissioner for Labour, Miss Jacqueline Willis. The Expo, featuring over 200 exhibitors from a wide range of trades, government departments, professional bodies, local and overseas education and training institutes, will be held from today until Sunday (February 22) at Level 5 of the Hong Kong Convention and Exhibition Centre in Wan Chai. Admission is free. The opening hours are as follows: * February 19 (Thursday) 11 am to 7.30 pm; * February 20 (Friday) 10 am to 7.30 pm; * February 21 (Saturday) 10 am to 7.30 pm; and * February 22 (Sunday) 10 am to 6 pm. A series of career video shows and seminars introducing a wide range of careers and the work of professional bodies and public utilities will be presented to further enhance visitors' understanding of the world of work. To encourage secondary school students to visit the Expo and collect career information, the Labour Department's Careers Advisory Service has arranged group visits for some 10,000 students from over 100 schools. Senior Labour Officer (Careers and Employment Agencies), Mrs Louisa Poon, said: "To introduce its employment services, the Labour Department has set up a booth at the Expo. It adopts an integrated approach in the presentation of the multi-dimensional employment services provided by the department for different client groups such as young people, people with a disability and the unemployed. "Colourful displays in the booth carry information on the Job Matching Programme, Job Matching Centre, careers advisory, employment and selective placement services," she added. Moreover, there are computer games to test participants' knowledge of career options and services provided by the Labour Department as well as video shows on job interviewing skills and support services to the employers employing people with a disability. End 13. Huge demand for Budget Speech ***************************** The Government has decided to re-print the Financial Secretary's 1998-99 Budget Speech following unprecedented public demand for copies of the document today (Thursday). A government spokesman said that a total of 80,000 copies of the speech - 50,000 Chinese and 30,000 English - had been distributed to members of the public from 10.30 am today. However, within a matter of hours, all 19 outlets had run out of copies. "The demand has exceeded all our expectations. The print run for the Chinese version of this year's budget speech was three times greater than last year and double the English version. Despite this significant increase, we have still not been able to meet the huge demand," the spokesman said. As a result, the government has decided to re-print an additional 10,000 copies (7,000 Chinese and 3,000 English). These will be available form noon on Monday (February 23). There will be two distribution points: Yau Tsim Mong District Office, G/F, Mong Kok Government Offices, 30 Luen Wan Street, Mong Kok; and the Marketing Office of Information Services Department, 17/F Siu On Centre, 188 Lockhart Road, Wan Chai. The extra copies will only be available while stocks last. However, the speech can be downloaded from the Internet in either Chinese or English. The address is - http://www.info.gov.hk. End 14. Update on avian flu ******************* The Department of Health (DH) announced today (Thursday) that there were no new cases of influenza A (H5N1) today. The total number of cases stands at 18 confirmed cases. The conditions of these cases remain the same as of February 10. End 15. PDB to launch home safety campaign ********************************** Residents in the Yau Tsim Mong district and other interested people are invited to participate in two seminars and a carnival on home safety to be held in the coming weeks. The events are organised by the Yau Tsim Mong District Home Safety Campaign Co-ordination Committee 1997/98 of the Yau Tsim Mong Provisional District Board with assistance from the Yau Tsim Mong District Office and sponsorship from the Yau Tsim Mong Provisional District Board. The two seminars, both running from 2.30 to 5 pm, will be held on February 21 (Saturday) at the Kei Wing Primary School at 23 Lai Chi Kok Road, Mong Kok and on March 1 (Sunday) at the Henry G Leong Yaumatei Community Centre at 60 Public Square Street. Admission is free. Representatives from the Fire Services Department, the Electrical and Mechanical Services Department and the Hong Kong Police Force will give talks on topics covering fire prevention, the Electrical Product Safety Regulation, and security measures at home. In addition to the two seminars, a carnival will be held on March 7 (Saturday) at 2.30 pm at the MacPherson Playground at Sai Yee Street to drive home the home safety message. The carnival will feature singing performances, drama, quiz competitions, exhibitions and game stalls. Admission is also free. For enquiries, please call 2399 2582. End
