Issued by Hong Kong Special Administrative Region Government Information Services
Garden Road, 5th-8th Floors, Murray Building, Hong Kong. Tel: 2842 8777
Tuesday, March 31, 1998 CONTENTS ======== 1. Grant of a new bus franchise to New World 2. Five-Year Land Disposal Programme announced 3. Land Sales Programme (April 1998 - March 2000) announced 4. Adaptation of Laws (Interpretative Provisions) Bill 5. Future railway development being studied 6. Hong Kong's telecommunications industry enters a new era 7. Exchange Fund reports satisfactory results in a historic year 8. Environmental Impact Assessment more transparent 9. Improved services for disabled passengers 10. Trial placement scheme for mentally handicapped 11. HK will not delay ISM Code implementation 12. Appointment of Directors of Hong Kong Mortgage Corporation Ltd 13. Schooling for returned emigrants explained 14. Property owners fined for tax evasion 15. Monetary statistics for February 1998 16. Noisy piling hammers to be phased out 17. VIIs and a VM depart on orderly repatriation flights 18. New strategic road project takes shape 19. Sewerage works in Central adopts new contract management 20. Hong Kong Monetary Authority tender results 21. Seven groups to raise funds next month 1. Grant of a new bus franchise to New World ***************************************** The Chief Executive in Council today (Tuesday) approved the grant of a new bus franchise to New World First Bus Services Limited (New World) to operate a public bus service of 59 Hong Kong Island and 29 cross harbour routes from September 1, 1998 to July 31, 2003. "A gazette notice to invite tenders was issued on February 17, 1998. At the close of the tender on March 13, Government received a total of six bids, including submissions from four tendering groups comprising existing franchised bus companies or their associate companies," a government spokesman said. "The competitive tender has attracted a good turnout and served to widen the trawl for the most suitable operator to run the network of 88 bus routes," the spokesman added. The tenders were evaluated by an inter-departmental Tender Assessment Committee, chaired by a Deputy Commissioner for Transport and comprising representatives from Transport Bureau, Economic Services Bureau, Transport Department, Labour Department, Department of Justice, and the Independent Commission Against Corruption, with the support of an independent consultant commissioned by Transport Department. "Tenders were assessed on the level and quality of services to be provided and the fares to be charged; the tenderers' management and financial capability, their staff employment proposals, transitional arrangements. To enhance competition, credit is given to tenderers which are not providing a franchised bus service in Hong Kong at the expiry of CMB's franchise on September 1, 1998. "Assessed against these criteria, New World scored the highest marks in overall terms. On the basis of this assessment, the Assessment Committee recommended the grant of a new franchise to New World. In accepting the recommendation of the Assessment Committee, the Chief Executive in Council noted that the company had committed itself to a large scale investment programme to provide a quality service to commuters at acceptable fares. New World would also offer employment opportunities to all CMB's staff to facilitate transition," the spokesman added. New World plans to invest up to HK$2 billion in its bus operations. It has also made a commitment to implement a package of improvements to its bus operations and passenger facilities. These include the acquisition of 500 new buses within two years, each equipped with a temperature control ventilation system, facilities for the disabled, a 2-way radio communication system, a smart card collection system, an on-board public address and display system, and a tachograph to monitor vehicle speed. It will also construct a new permanent bus depot. The company also plans to replace existing bus shelters within two years and provide better information display at bus termini. It will seek passenger opinion before the start of operation and organise a Passenger Liaison Group as soon as possible. Despite these service improvements, the company has undertaken to maintain the existing fare scale for at least one year following franchise commencement. "Unlike some of the other tenderers, New World does not have prior experience in operating a bus service in Hong Kong," the spokesman said. "It however will recruit a number of personnel who are experienced in operating a local bus service, including some former managerial staff of CMB, to provide continuity of service. New World would also draw on the bus operations experience and the technical support of its shareholding company, FirstGroup plc, the largest bus operator in U.K., to facilitate the transitional arrangements and introduce new initiatives. FirstGroup plc accounts for 22 per cent of the bus passenger market share in UK." On employment of CMB staff, the spokesman said New World is prepared to employ all existing staff, including front-line staff and managerial staff. As New World will be operating a smaller network with new buses, the company will require fewer mechanics. "However, the company is prepared to offer alternative employment to the surplus mechanics as well as to other office staff who are willing to take on other jobs with New World or companies within the group. "New World will set up a liaison centre in the first instance to register CMB's staff who are willing to work for the new bus company. "A meeting between New World and CMB's staff unions will be arranged as soon as possible. "Government will also assist staff of CMB in seeking suitable employment with other franchised operators," the spokesman said. He assured the public that Government will provide New World with every assistance in gearing up the necessary bus-related resources to commence operation in time. To meet the operational needs at the initial stage, New World will enter into commercial negotiations with CMB to lease its Chai Wan depot, to acquire its bus fleet, spare parts and machinery. "We trust that CMB will co-operate with the Government and New World in ensuring a smooth transition. Early meetings between the two operators will be arranged to discuss the detailed arrangements," the spokesman said. "The grant of a new franchise to New World through the open tender will enhance competition in the bus services market and benefit commuters in terms of better quality service at acceptable fares," he added. End 2. Five-Year Land Disposal Programme announced ******************************************* The Five-Year Land Disposal Programme (1998/99 to 2002/03) is designed to implement the Government's long- standing policy to provide adequate land to meet the economic and social needs of Hong Kong, having regard to the prevailing market conditions and the underlying factors which give rise to forecast demand over time. Announcing the Five-Year Land Disposal Programme (LDP) today (Tuesday) at a press conference, the Secretary for Planning, Environment and Lands, Mr Bowen Leung, said among the various needs of the community, housing has been accorded the top priority on the Government's agenda. Noting that the Government would make available sufficient land for achieving the long term housing target of producing not less than 85,000 flats a year, Mr Leung said: "As construction will take three to five years and formation of land an even longer period, it is important for us to ensure that there would be a steady and stable supply of land to meet future needs. "At the same time, the Government is fully aware that stable property prices are important to the economy of Hong Kong. We do not wish to see a sharp price increase, nor a collapse in the property market. "We have therefore designed the LDP flexibly. On the one hand, we would have to meet the market demand while on the other, we would also need to take into account our current economic sensitivities. The Government will dispose of land at a pace that the market is able to cope with. We will also continue to sell land at fair market value and to keep the market under close monitoring," Mr Leung said. Referring to the details of the programme, he said the Five-Year LDP covered two parts - land disposal in 1998/99 and 1999/2000 and the projected land supply for the following three years, i.e. between 2000/01 and 2002/03. In the Five-Year LDP, 650 hectares of land would be disposed of for housing, including 400 hectares of land for private housing and 250 hectares for public housing. Mr Leung said a total of 286 hectares of land would be disposed of in the first two years, which have the potential to produce 158,900 units for housing. The land supply for private housing in 1998/99 and 1999/2000 will be 181 hectares, broken down into 75 hectares in 1998/99 and 106 hectares in 1999/2000 which is expected to produce 17,000 and 39,800 units respectively. Of the 181 hectares, 51 hectares of land are for commercial/residential development, 57 hectares for high density housing and 73 hectares for low density housing. A further 105 hectares of land have been reserved for public housing for this period, which are capable of producing 102,100 units. "It should be noted that construction will have to span over a number of years. The flats to be produced from these sites will therefore not come onto the market in the same years as many of them will be developed in phases," he said. As regards the second part of the LDP, he forecast that the land supply for housing for the following three- year period will be 364 hectares which are expected to produce 186,500 units. A total of 219 hectares of land would be available for the construction of private housing in the following three years (i.e. 2000/01 - 2002/03). They have the capacity and potential to produce 79,700 units. These include 20 hectares of land for commercial/residential development, 102 hectares for high density housing and 97 hectares for low density housing. A further 145 hectares of land have been reserved for public housing for this period and is expected to produce 106,800 units. "However, the availability of such land will depend on the progress of site formation and other infrastructural programmes. Our plan to include them into the LDP and to release them to the market will also depend on the market situation in future. "If the market demand is low, we may consider reviewing the LDP and put the land into a land bank for disposal when the market demand increases," he said. In respect of private redevelopment projects involving lease modifications, the Secretary estimated that the flat production arising from private redevelopment projects involving lease modifications approved in 1997/98 would be 11,900 units. In addition, the Lands Department has received applications for lease modifications, which have the potential to produce 35,000 units. Whether these projects will continue to proceed will, of course, depend on the operation of the private property market. Mr Leung said: "The above flat production estimates had not included flat production from redevelopment projects not requiring lease modifications. Again, we would have to leave it to the market to undertake these projects. "Taking all the relevant factors into consideration, our assessment is that we shall have enough land to meet our long term target of producing 85,000 units a year. Our aim is to provide a stable land supply, so that property prices will remain stable, and we shall respond flexibly to market demand," he said. As for the overall land supply for other uses for the next five years, 25 hectares will be disposed of for commercial development, including 15 hectares of land for the next two years and 10 hectares for the following three years. In addition, 108 hectares of land will be disposed of for industrial uses, including 46 hectares for the next two years and 62 hectares for the following three years. These are mainly land reserved for the industrial estates in Tseung Kwan O and Tuen Mun. Meanwhile, the Director of Lands, Mr Robert Pope, also announced the details of the LDP for 1998/99 and 1999/2000 at the press conference today. End 3. Land Sales Programme (April 1998 - March 2000) announced ******************************************************** The Director of Lands, Mr Robert Pope, announced today (Tuesday) the Government's Land Sales Programme for the coming two years - 1998/99 and 1999/2000. The programme comprises 94 sites extending to about 157 hectares (ha). The breakdown of the sites is as follows: 1998/99 ******* User* Number of Sites Area (ha) ---- --------------- --------- (1) C 9 9.6124 (2) CR/R1/R2 13 21.2498 (3) R3/R4 23 41.6477 (4) PSPS 6 20.7709 (5) Industrial 6 3.7336 (6) Others 2 0.2783 1999/2000 ********* User Number of Sites Area (ha) ---- --------------- --------- (1) C 2 3.6300 (2) CR/R1/R2 13 16.7730 (3) R3/R4 11 31.5477 (4) PSPS 4 5.9500 (5) Industrial 5 1.8382 The programme includes 48 sites to be sold by auction, 31 of which are smaller lots with an area less than 5,000 square metres. "These lots are offered to meet demand from smaller developers and to address the concern previously expressed by the Consumer Council that some lots offered for sale were too large," Mr Pope said. In the coming two years, 46 sites will be sold by tender. They comprise 10 PSPS sites, 11 mixed industrial uses sites, 10 mixed commercial uses sites with several being the more valuable sites. "While auctions are our preferred method of sale, it is necessary for some sites with restricted user, i.e. petrol filling stations, hotels and mixed industrial and commercial uses, to be sold by tender," Mr Pope said. "This is because the success of an auction depends on active bidding and the restricted user clause in these developments limits the number of potential purchasers," he explained. "In addition, the more valuable sites, which are more difficult to finance in the current economic climate, are to be offered by tender in order that developers have more time to make considered bids," he added. Other features of the programme are 10 ex-Government sites, including the old desalting plant at Lok On Pai and previous Government Supplies Depot in Oil Street, North Point, and a few ex-Government quarter sites such as Leighton Hill, the Homestead and Severn Road (both on the Peak). Moreover, six ex-military sites including the British Military Hospital, the Kowloon Tsai Married Quarters, the Perowne Barracks and Burma Lines have been included. In addition, two sites for PSPS development in the old Kai Tak Airport site are scheduled to be tendered in late 1999 and early 2000. *Remarks: C - Commercial CR - Commercial/Residential R1 - Residential 1 (categorisation relates to zoning; 1 denotes the highest density) R2 - Residential 2 R3 - Residential 3 R4 - Residential 4 End 4. Adaptation of Laws (Interpretative Provisions) Bill *************************************************** In response to press enquiries, a government spokesman today (Tuesday) said all Ordinances that were previously binding on the Crown (in whole or in part) will now be construed as binding on the Hong Kong Special Administrative Region Government and relevant State organs. The presumption that (in the absence of express words or necessary implication) Ordinances do not bind the Crown, will now apply to the HKSARG and State organs as defined. "Such presumption is applicable in nearly all common law jurisdictions. Examples are the United Kingdom, New Zealand, Australia and the HKSAR is merely preserving such a presumption. The presumption does not apply to the common law, which was binding on the Crown and is now binding on the HKSARG and relevant State organs. Many important areas of the law are governed by the common law, including contract, civil wrongs ('torts'), and some areas of employment and property law. The general criminal law (as opposed to regulatory offences) will continue to apply to employees of the HKSARG and State organs, subject to the special rules concerning the Garrison that have already been enacted." End 5. Future railway development being studied **************************************** The Government today (Tuesday) commissioned a joint venture consultant comprising MVA Asia Ltd and Maunsell Consultants Asia Ltd to conduct the Second Railway Development Study (RDS-2). The 18-month study will help the Government formulate an updated comprehensive Railway Development Strategy comprising a preferred railway network expansion plan. It will also help to form a recommended institutional framework for the development of a safe, reliable, efficient, environmentally acceptable and commercially viable rail system to help sustain the territory's economic, social, land and housing development up to the year 2016. The scope of RDS-2 will include: * a network development study; * a series of topical studies on specific issues such as a possible fourth rail harbour crossing; and * an institutional study on aspects of railway planning, implementation and operation. On the commissioning, a government spokesman said planning for the next phase of railway development was necessary to meet changing demands of the future. He said: "Since the completion of the first Railway Development Study (RDS-1), there had been significant changes to the planning context within which the study was conducted, in particular an upward revision of the total population forecast to 8.1 million by 2011. "These changes, together with the Government's enhanced housing programme and Hong Kong's continued economic development, have pointed to the need for a comprehensive study on the expansion of Hong Kong's railway network. "We have to select railway projects that Hong Kong will need to develop after the three priority projects in the RDS-1. "We also need to set new priorities and implementation timing." The RDS-1 was completed in 1993. Based on the study findings and public views, the Government formulated the Railway Development Strategy in December 1994. The study had recommended high priorities for the implementation of three projects: the West Rail, the Mass Transit Railway's Tseung Kwan O Extension, and the Ma On Shan to Tai Wai Link which is to couple with an extension of the Kowloon-Canton Railway from Hung Hom to Tsim Sha Tsui. They are planned for completion in the next few years. The RDS-2, costing about $35 million, will be supervised by the Railway Development Office of the Highways Department. End 6. Hong Kong's telecommunications industry enters a new era ******************************************************** The telecommunications industry of Hong Kong has entered a new era following the early surrender of the exclusive licence of the Hongkong Telecom International Limited (HKTI) this (Tuesday) morning. Speaking at a ceremony to mark the formal surrender of the exclusive licence this morning, the Secretary for Economic Services, Mr Stephen Ip, said the early termination of the exclusivity in external telecommunications was of great significance for the territory. "Not only will Hong Kong consumers gain direct benefits amounting to $17 billion, the liberalisation of the international telecommunications market will bring in large amount of investment, stimulate the economy and create employment opportunities - not just in telecommunications but in the service industries which are underpinned by telecommunications. "It will eliminate the hindrance caused by the exclusivity in the introduction of new technology and will help maintain Hong Kong's position as the pre-eminent telecommunications hub in the region," he said. Mr Ip firmly believed that, under a fully liberalised telecommunications market, coupled with a fair competitive environment, Hongkong Telecom (HKT) and other telecommunications operators would be able to provide higher quality, more innovative and more cost-effective services to the community. Also officiating at today's ceremony were the Information Infrastructure Special Adviser of Economic Services Bureau, Mr Alex Arena, and the Director-General of Telecommunications, Mr Anthony Wong Sek-kei. Representing the HKT were its Deputy Chief Executives, Messrs Alistair Grieve and Norman Yuen and Finance Director, Mr David Prince. After 18 months of dialogue, the Government reached an agreement with HKT on January 20, 1998, to terminate HKTI's exclusive licence today, eight and a half years ahead of its scheduled expiry in October 2006. The agreement also allows for external service-based competition to begin on January 1, 1999 and for external facilities-based competition to begin on January 1, 2000. In return, the Government will pay a sum of $6.7 billion as compensation to HKT. It will also waive all royalty payable by HKTI to the Government on its exclusive rights from January 20, 1998. Hong Kong Telephone Company will be permitted to raise its residential line tariffs gradually in the next three years provided that it will increase the contestibility in the local telephone services market by allowing its competitors to access at least half of its residential exchange lines by January 1, 1999. The Government paid $3.35 billion to HKT today as the first tranche of the cash compensation. The balance will be paid on July 1, 1998. End 7. Exchange Fund reports satisfactory results in a historic year ************************************************************* The Hong Kong Monetary Authority (HKMA) today (Tuesday) announced the audited results of the Exchange Fund at end-1997 with total assets up 19% to HK$636.6 billion and a 10% growth in accumulated surplus (1996: 8%). "Growth in the accumulated surplus is a reflection of the performance of HKMA's steady management of the Exchange Fund. The 10% increase in a year of volatility and the most serious financial crisis in Asia can be considered satisfactory under difficult conditions", said an HKMA spokesman. The HKMA has continued to undertake a prudent approach and adopted largely a defensive bond and currency strategy in the first half of last year as markets were volatile. In the second half of 1997, the HKMA extended the duration of the bond holdings as markets improved. The strategy was successful in producing a steady and low volatility return. Outlook for 1998 remains uncertain as volatilities in the OECD equity and bond markets are expected to increase while the outlook for US interest rates is mixed. "The HKMA will continue with its prudent management of the Exchange Fund in 1998 to achieve consistent returns and high liquidity with minimum volatility, in full compliance with the guidelines set down by Exchange Fund Advisory Committee", said the spokesman. End 8. Environmental Impact Assessment more transparent ************************************************ A new piece of legislation, which marks a major milestone in planning against pollution from major developments, will come into operation tomorrow (Wednesday). The Environmental Impact Assessment Ordinance (EIAO) aims to avoid, minimise and control adverse environmental impacts of designated projects through the application of the environmental impact assessment (EIA) process and an environmental permit system. The legislation not only makes the present administrative EIA process a statutory one, but also provides opportunities for the public to express concern on the possible impact from developments, Principal Environmental Protection Officer, Mr Elvis Au said. "Under the new Ordinance, certain designated projects that have potential for adverse environmental impacts must comply with the EIA requirements, and obtain environmental permits for their construction and operation. "Compared to the existing EIA system, one of the major improvements is that measures recommended in EIA would be enforceable under the Ordinance. "It is an offence to construct, operate or decommission certain types of projects listed in the Ordinance without environmental permits or contrary to the environmental permit conditions. "Another major improvement is that the public could be involved at an early stage of the project planning and design. "The new Ordinance provides for the public to raise environmental concerns which the EIA should address, and comment on the EIA report prior to its approval," he said. The Ordinance was enacted in February 1997. The associated technical memorandum and regulations were approved in June and November last year. Mr Au said the statutory EIA process would be transparent as the public could access the information under the Ordinance through the EIA Ordinance Register Office at 27th floor, Southorn Centre, Wanchai. Certain information can also be accessed through the EIA Ordinance website (http://www.info.gov.hk/epd/eia). The Technical Memorandum on the Environmental Impact Assessment Process and A Guide to the Environmental Impact Assessment Ordinance can be obtained from the EIA Ordinance Register Office. The Ordinance, the technical memorandum, the associated regulations and other guidance materials are also available at the Ordinance website. Any further enquiries can be made to the EIA Ordinance Register Office at 2835 1835 and by fax 2147 0894. End 9. Improved services for disabled passengers ***************************************** The Transport Department will introduce a more convenience travelling scheme for disabled passengers from tomorrow (April 1). A new certificate enabling the picking up or setting down of people with disabilities in restricted zones by both taxis and private cars will be issued. Speaking on the details of the scheme today (Tuesday), a spokesman for the department said: "This is a continuous effort to enhance the mobility of the disabled." At present, disabled passengers have to apply separately two certificates which enable them to board or alight from taxis and private cars in restricted zones. The "Certificate for Picking Up or Setting Down of Disabled Taxi Passengers in Restricted Zones" was introduced in 1993. The scheme has been extended in 1996 with the launching of another certificate for disabled private car passengers. "After reviewing the two certificates, the department decided to combine and simplify existing arrangements for the convenience of disabled persons," the spokesman added. Under the new scheme, a disabled person who wishes to board or alight from a private car or taxi in a restricted zone may issue to the driver a certificate with the passengers' name, vehicle registration number and details of the journey. The driver can show it to the Police to prove that he has just let a disabled passenger board or alight if he is intercepted. "However, picking up or setting down activities will only be allowed on condition that no hazard or major disruption will be caused to other road users. "Nor are these activities allowed along expressways or in 24-hour restricted zones," the spokesman said. The spokesman reminded private car or taxi drivers that they are not allowed to wait in restricted zones for disabled passengers in all circumstances. Persons with the following mobility problems are eligible to apply for the certificate: * wheelchair users; * visually impaired persons (totally blind or severely low (vision); * Users of walking aids, for example, with artificial leg, crutches, calipers, four legged walking aid; and * person with mobility problem who are certified by doctors, occupational therapists or physiotherapist, or recommended by rehabilitation organisations' social workers. Eligible persons may contact designated organisations under the Hong Kong Council of Social Services for application of the certificate. "The certificate is non-transferable and should only be used by the person to whom it has been issued," the spokesman added. End 10. Trial placement scheme for mentally handicapped *********************************************** The Selection Placement Division (SPD) of the Labour Department will launch a "Trial Scheme for the Mentally Handicapped" in early April to encourage employers to offer job vacancies to the mentally handicapped. The scheme, funded by the Queen Elizabeth Foundation for the Mentally Handicapped, is aimed at enhancing employers' understanding of the working abilities of the mentally handicapped and to place the mentally handicapped to open employment. Under the scheme, participating employers will receive a financial incentive which equals to 50 per cent of the wages paid to the mentally handicapped employee during the one-month trial placement period, with a ceiling of $3,000. A Certificate of Appreciation will be awarded to the employers who continue to employ the mentally handicapped for another month after the trial placement period. Placement officers of the SPD will actively follow up on the performance of the mentally handicapped employees and assist them to settle into employment as soon as possible. A Certificate of Commendation will be presented to those mentally handicapped employees who have successfully completed the trial placement period as an encouragement. Interested employers and people with mentally handicap are welcomed to approach the regional offices of SPD for more details of the scheme: * Hong Kong office - tel: 2852 4801 * Kowloon office - tel: 2755 4835 * New Territories office - tel: 2417 6190. End 11. HK will not delay ISM Code implementation ***************************************** Hong Kong will neither extend the deadline for implementing the International Safety Management (ISM) Code nor entertain any exemption from any provisions of the ISM Code which will become effective internationally on July 1 this year, the Director of Marine, Mr Tsui Shung-yiu, said today (Tuesday). Speaking at a ceremony to present ISM certificates to 26 companies operating Hong Kong registered ships, Mr Tsui said that Hong Kong had taken an early decision on this issue and the Marine Department had developed its ISM Code implementation scheme. "ISM Code is considered a very significant international initiative and should be implemented without diluting the underlying objectives," Mr Tsui said. "The ISM Code can be implemented successfully only if everyone involved understand what they must do and extend the fullest co-operation to others who will be participating in the process. On the implementation deadline of ISM Code, Mr Tsui said: "The International Maritime Organisation (IMO) has made it very clear that there is no extension of the implementation deadlines." "Also, the IMO's Maritime Safety Committee has also approved a draft resolution that authorises flag States to prohibit ships from sailing if they fail to comply with the ISM Code by the deadline," he added. In the process of developing the ISM Code implementation scheme, Mr Tsui noted that the Marine Department in 1995 had undertaken detailed consultation and discussion with the trade and industry through the Shipping Consultative Committee. Mr Tsui said: "The agreed arrangements for certification is a pragmatic compromise between the need for the Administration to have a hands-on control over the effective implementation and the economic benefits of utilising the expertise from the world-wide network of Classifications Societies." Mr Tsui further noted that the ISM Code will prove to be one of the most influential initiatives taken by the industry for ensuring safer ships and cleaner seas. "The ISM Code represents a component of invaluable importance to improve safety of life at sea and preserve the marine environment from pollution by ships," he said. Under the ISM Code, it requires that ships should carry a copy of the Document of Compliance (DOC) issued to the operating company and a Safety Management Certificate (SMC) issued to the vessel. The DOC and SMC, under the provisions of the International Convention for Safety of Life at Sea (SOLAS Convention), will be statutory safety certificates to be carried by the relevant ships for the compliance with ISM Code. An absence of ISM certificates on a ship will mean that the ship does not meet the SOLAS Convention requirement and should not be permitted to trade. Turning to the preparation for the ISM Code implementation, Mr Tsui noted that the ISM Code would first become mandatory for passenger ships, oil tankers, chemical tankers, gas carriers, bulk carriers and high speed craft on July 1 this year. He was also delighted to inform that the Marine Department had so far audited in conjunction with the Recognised Organisations all companies located in Hong Kong and operating Hong Kong registered ships. Mr Tsui said: "Eighty-five per cent of the companies operating Hong Kong registered ships and 78 per cent of the ships have already been audited." "I am confident that all Hong Kong registered ships required to carry the ISM certificates will comply with the ISM certification requirements by the deadline on July 1, 1998." On the actions on those ships failing to comply with ISM certification requirements, the Mr Tsui noted that his department intended to adopt a series of procedures. The first one is that ships not complying with ISM requirements will be detained if they come to Hong Kong after July 1, 1998. Secondly, such ships will be allowed to sail out provided they have no other detainable deficiency and the flag administration confirms that necessary action is being taken. Thirdly, the department will also advise such ships that they will not be allowed back to Hong Kong until they conform to ISM certification and that they will be kept on the watch list of the department's Vessel Traffic Centre. The fourth one is to inform the next port of ships' ISM deficiency. At the ceremony, the Mr Tsui thanked the early initiatives taken by the ships owners, ship managers and the assistance from the Hong Kong Shipowners Association which were attributable to the smooth progress of ISM certification. He further paid tribute to the Classification Societies who on behalf of the department audited the companies and the ships under extreme time pressures. End 12. Appointment of Directors of Hong Kong Mortgage Corporation Ltd ************************************************************** The Hong Kong Mortgage Corporation Limited (HKMC) held its first Annual General Meeting (AGM) today (Tuesday). Other than Mr Edwin C K Lau who had not offered himself for re-appointment, all the other Directors were re-appointed by the Financial Secretary for another term. Mr Edwin Lau has been replaced by Mr Peter T S Wong. Mr Wong is currently Head of Consumer Banking, Hong Kong and China, Standard Chartered Bank. The Directors of the HKMC are appointed by the Financial Secretary on a personal basis. According to the Articles of Association of the Company, at each Annual General Meeting, all those Directors who are not Executive Directors shall retire but shall be eligible for re- appointment. Hence, the term of appointment of the current Directors (other than the Executive Directors) will run until the next Annual General Meeting to be held around March 1999. Following is the composition of the new Board of Directors: The Hong Kong Mortgage Corporation Limited Board of Directors Mr Donald Y K Tsang (Chairman) Mr Joseph C K Yam (Deputy Chairman) Mr Ronald J Arculli Mr Alex M C Au Mr Norman T L Chan (Executive Director) Mr Eddy C Fong Mr Tom Y Hsiao Dr Huang Chen-ya Mr Rafael S Y Hui Mr David K P Li Mr Ngan Kam-chuen Mr Andrew L T Sheng (Executive Director) Mr Dominic S W Wong Mr Peter T S Wong Ms Anna H Y Wu End 13. Schooling for returned emigrants explained ****************************************** In response to media enquiries on schooling for returned emigrants, a spokesman for the Education Department today (Tuesday) said the Government welcomes returnees to integrate into the main stream education. The spokesman said that these students might seek admission to schools adopting English as the medium of instruction (EMI) in the public sector. Some of these schools admit non-Chinese speaking students. In addition, three schools under the Direct Subsidy Scheme (DSS) also use English as the medium of instruction. These schools charge fees affordable to most parents. "We also encourage schools to offer remedial teaching and other activities for pupils who need help to cope with the school curriculum," the spokesman said. For those parents who prefer a non-local curriculum for their children, they may choose international schools or the English Schools Foundation (ESF) schools which are the major recipients of non-Chinese speaking students and returnees who wish to pursue a non-local curriculum. The spokesman said that parents of the returnees are welcomed to approach their respective District Education Offices or the Private School Review Unit for information and advice. An information sheet on "Education Facilities for Non-Chinese Speaking Children" is also available for collection at the District Education Offices and the Education Department Headquarters. End 14. Property owners fined for tax evasion ************************************* A man and his wife were fined a sum of $60,000 in total for tax evasion. Luk Kam-tim, the first defendant, and his wife Kwok Shiu-may, the second defendant, were prosecuted for failing to inform the Commissioner of Inland Revenue in writing of their chargeability to Property Tax for the years of assessment 1990/91 to 1994/95, contrary to Section 80(2)(e) of the Inland Revenue Ordinance (Cap. 112). The couple appeared in Western Magistracy today (Tuesday) and pleaded guilty to all charges. The couple, both being employees in the banking sector, are the joint-owners of a property at Euston Court, 6 Park Road, Hong Kong. According to the remuneration package offered by the employer of the first defendant, the couple let the aforesaid property to the first defendant's employer who in turn provided the property to the first defendant and his family as quarters. During the years of assessment 1990/91 to 1994/95, the couple received rental in respect of the property from the first defendant's employer and the value assessable to property tax amounted to $1,383,300. The defendants were chargeable to Property Tax for the years of assessment 1990/91 to 1994/95 in respect of the rental income. They did not inform the Commissioner of Inland Revenue in writing of their chargeability to tax until the Inland Revenue Department issued to them an enquiry letter and subsequently the tax returns in 1996. The court was told that as a result the couple had evaded tax of $159,710. A spokesman for the Inland Revenue Department reminded the public that every person chargeable to tax for any year of assessment must inform the Commissioner of Inland Revenue in writing that he is so chargeable not later than 4 months after the end of the basis period for that year of assessment unless he had already been required to furnish a tax return. A person who fails to notify chargeability without reasonable excuse shall be guilty of an offence and is liable to a maximum fine of $10,000 for each charge and a further fine of three times the amount of tax undercharged. End 15. Monetary statistics for February 1998 ************************************* According to statistics published today (Tuesday) by the Hong Kong Monetary Authority, total deposits continued to rise in February 1998, while loans and advances fell. Deposits Total deposits increased by 1.4% in February 1998, having risen by a modest 0.2% in January 1998. HK$ deposits rose by 1.9%, reversing a decline of 2.2% in January, while foreign currency deposits grew by 0.8%. During the month, HK$ demand deposits rose by 3.8% while savings deposits increased sharply by 14.0%. The rises reflected partly the return of "lai-see" cash to the banking system in the form of demand and savings deposits after the Lunar New Year, with cash held by the public declining by 13.5%. On the other hand, time deposits dropped by 1.5% in February, along with falling interest rates and reduced volatility in regional financial markets. Analysed by currency, US$ deposits rose by a modest 0.1%, having increased strongly by 4.8% in January, while non-US$ foreign currency deposits rose by 1.6%, following a growth of 1.8% in the previous month. Loans and advances Total loans and advances fell by 2.9% in February. In line with the slowdown in economic activities across the region, offshore loans shrank by 5.8%, while domestic loans contracted by 0.4%. Of the total credit for use in Hong Kong, loans for trade financing dropped by 2.9%, while other loans declined by 0.1%. During the month, HK$ loans contracted by 0.3%, while foreign currency loans dropped by 4.8%. As HK$ deposits rose while HK$ loans fell, the HK$ loan-to-deposit ratio declined to 113.0% at end-February, from 115.5% at end- January. Money supply HK$ M1 contracted by 4.9% in February, as a 13.5% decrease in cash held by the public more than offset the rise in demand deposits. Meanwhile, both HK$M2 and HK$M3 were up by 1.1%. In the twelve months to February, HK$M1 dropped by 12.2% but both HK$M2 and HK$M3 grew by 4.0%. For enquiries, please contact the Press and Publications Section, Hong Kong Monetary Authority (tel no: 2878 8261). End 16. Noisy piling hammers to be phased out ************************************* Noise level generated from percussive piling will be significantly reduced as a more stringent control on noisy hammers comes into effect tomorrow (Wednesday). The tightened control, under the Noise Control Ordinance, will phase out the use of three types of noisy hammers - diesel, pneumatic and steam hammers in built-up areas and replace them with quieter alternatives such as the hydraulic ones. Principal Environmental Protection Officer, Mr Chan Kam-sun, said hydraulic hammers were more environmentally friendly than the old noisy hammers. "They are about two to nine dB(A) quieter under the same site conditions and will not emit filthy smoke," he said. The phasing out of the three types of noisy hammers will be implemented in stages starting from April 1998 in accordance with "the Technical Memorandum on Noise from Percussive Piling" issued under the Ordinance. After the final phase on October 1, 1999, the use of noisy hammers in built-up areas will not be authorised in construction noise permits. Nonetheless, they could still be used in remote areas. Mr Chan said the Environmental Protection Department would progressively refuse to issue permits for the use of these noisy hammers, starting with piling sites closest to sensitive receivers such as schools or dwellings. "The phasing out programme has given sufficient time for suppliers of quieter alternatives to meet the demand and reduce the impact on the construction industry," he said. Mr Chan added that the Administration had already taken the lead in promoting the use of alternative environmentally friendly methods in public works and housing projects since July 1, 1997. Carrying out percussive piling without a permit, or not in accordance with the permit conditions, will be liable to a maximum fine of $100,000 on first conviction, $200,000 on second or subsequent convictions, and a further fine up to $20,000 for each day during which the offence continues. End 17. VIIs and a VM depart on orderly repatriation flights **************************************************** A group of 238 Vietnamese (including 237 illegal immigrants and one migrant) returned by air to Hanoi, Vietnam, today (Tuesday) on the 115th and the 116th flights under the Orderly Repatriation Programme (ORP). The returnees comprise 215 men, 22 women and one boy. The majority of them arrived in Hong Kong in 1997, with one in 1991 and three in 1996. The group brought to 12,098 the total number repatriated on ORP flights since October 1991. End 18. New strategic road project takes shape ************************************** The Highways Department today (Tuesday) awarded one of the largest single consultancy assignments to Mott Connell Limited for the investigation and preliminary design of the Route 10 - North Lantau to Yuen Long Highway. The consultancy, at a lump sum fee of $89 million, will help determine a single route alignment as well as the preferred structural forms together with their preliminary designs. The engineering and environmental feasibility of the recommended route will also be examined. The proposed 17.5 km-long route, formerly known as Sham Tseng Link, will stretch from north Lantau to Yuen Long via Tsing Lung Tau and So Kwun Wat. Works on the route are scheduled to commence in 2002 for completion in 2007. The estimated cost for the project is around $22 billion (at December 1996 price level). Speaking on this project at today's press conference, the Director of Highways, Mr Leung Kwok-sun, said this section of Route 10, together with Deep Bay Link, Route 10 - Hong Kong Lantau Link and Route 7 (Belcher Bay to Aberdeen), would form part of the strategic Western Highway between Hong Kong and Shekou in Shenzhen. "Cross-boundary traffic is expected to increase substantially necessitating a new road link. "The route will form an integral part of the Crosslinks road network to accommodate cross-boundary traffic flow via the Western Highway and the proposed Lingdingyang Bridge," Mr Leung said. Mr Leung said the route, being an important component of the Hong Kong road network, would cater for the future growth generated by the Lantau port development and within the North West New Territories (NWNT). According to the newly released Territorial Development Strategy Review, the population forecast in NWNT is expected to reach 1.4 million by 2011. "The route is designed to meet the future traffic demand of NWNT. It will offer relief for the Lantau Link, Tuen Mun Road and Yuen Long Highway, thus help ease traffic congestion in the region. "Furthermore, in the event that Lantau Link is closed for various reasons, the route can provide an alternative for traffic to and from Lantau and the new airport in Chek Lap Kok," he added. The scope of the road project includes: * about 3 km of dual 3-lane road on North Lantau (which includes 0.6 km dual 3-lane tunnel and a toll plaza) from the future Lantau Port Expressway Interchange to Kwai Shek; * about 2 km of dual 3-lane bridge, Tsing Lung Bridge, spanning across the Ma Wan Channel from Kwai Shek to Tsing Lung Tau; * about 3.5 km of dual 3-lane road from Tsing Lung Tau to So Kwun Wat (which includes two sections of dual 3-lane tunnel of 2 km and 0.4 km respectively); * about 2 km of dual 2-lane link road from So Kwun Wat to Tuen Mun Road; * about 7 km of dual 2-lane road from So Kwun Wat to Yuen Long Highway near Tin Shui Wai (which includes a dual 2-lane tunnel of 5 km); * construction of the So Kwun Wat Interchange and Tuen Mun Road Interchange; * construction of an interchange with the Yuen Long Highway; and * associated geotechnical, landscape and drainage works, ancillary buildings and depots for operation and maintenance, toll facilities, electrical and mechanical installations, traffic control and surveillance system, as well as environmental mitigation measures. As recommended in the feasibility study completed early this year, the road project will be constructed in four separate packages. Mr Leung noted that the construction of the 2-km long Tsing Lung Bridge would take the longest time to complete. "The bridge design will be a complicated one because it needs to provide adequate clearance above the shipping channel but at the same time keep the bridge towers below the new airport height envelop. "When completed, it will be comparable to the Tsing Ma Bridge and the soon-to-be completed Ting Kau Bridge both in scale and in grandeur," he said. End 19. Sewerage works in Central adopts new contract management ******************************************************** The Government will adopt a new contract management method in carrying out a sewerage improvement project in Central and Western to reduce the impact on people's livelihood caused by excavating roads. A spokesman for the Drainage Services Department (DSD) said today (Tuesday) that about 10 kilometres of existing sewers would be reconstructed under the contract - "Central and Western Interceptor and Reticulation Sewers - Upper Catchment". Under the contract, sewers ranging from 22.5 centimetres to 105 centimetres in diameter will be reprovisioned in residential and business areas at Pok Fu Lam Road, Bonham Road, Caine Road, Hollywood Road, Robinson Road, Conduit Road and Queen's Road Central. "Upon completion of the works, it will improve the capacity of the existing sewers to cater for future increase in sewage. The maintenance costs as well as pollution to stormwater drains will be reduced following the removal of improper connections," the spokesman said. During the construction, excavation of roads will be controlled by way of Works Orders issued to the contractor. An engineering consultancy firm - which has been commissioned to supervise and monitor the project - will be responsible for issuing the orders. The consultant engineer will assess the impact of road opening to the public as well as traffic conditions. They will only issue such an order when they are satisfied with the safety measures to be adopted by the contractor, the actual site conditions and the contractor's readily available resources. "The mechanism can keep the number and extent of road openings to a minimum at any time. This will in turn help ensure timely completion of the project," he added. The works are due to begin in April for completion in three years. The contract was awarded to Sun Fook Kong (Civil) Limited at a cost of about $213 million. The project will be supervised by the Maunsell Consultants Asia Limited on behalf of the DSD. End 20. Hong Kong Monetary Authority tender results ******************************************* Tender date : 31 March 1998 Paper on offer : EF Bills Issue number : Q175 Issue date : 1 April 1998 Maturity date : 29 April 1998 Amount applied : HK11,489 MN Amount allotted : HK$5,000 MN Average yield accepted : 5.18 PCT Highest yield accepted : 5.25 PCT Pro rata ratio : About 15 PCT Average tender yield : 5.32 PCT - - - - - Tender date : 31 March 1998 Paper on offer : EF Bills Issue number : Q813 Issue date : 1 April 1998 Maturity date : 2 July 1998 Amount applied : HK$7,248 MN Amount allotted : HK$2,000 MN Average yield accepted : 5.92 PCT Highest yield accepted : 5.95 PCT Pro rata ratio : About 89 PCT Average tender yield : 6.07 PCT - - - - - Hong Kong Monetary Authority **************************** Tender to be held in the week beginning - 6 April 98:- Tender date : 7 April 1998 Paper on offer : EF Bills Issue number : Q814 Issue date : 8 April 1998 Maturity date : 8 July 1998 Tenor : 91 Days Amount on offer : HK$2,000 + 500 MN - - - - - Tender date : 7 April 1998 Paper on offer : EF Bills Issue number : H861 Issue date : 8 April 1998 Maturity date : 7 October 1998 Tenor : 182 Days Amount on offer : HK$1,000 + 300 MN End 21. Seven groups to raise funds next month ************************************** Seven organisations have been granted permission to raise funds next month (April), a spokesman for the Social Welfare Department said today (Tuesday). They will either sell flags, tokens or similar items, or place donation boxes in designated public places. There will be a new arrangement for an additional flag day on April 15, which is a Wednesday. "Members of the public are welcome to call the Department's hotline 2343 2255 or SWD Headquarters on 2832 4311 for enquiries and feedback on the extra flag day," he said. He also urged members of the public to call the department's hotline in case of any doubt regarding the fund-raising organisations. Any organisation planning to hold activities involving collection of money or sale or exchange for donation of badges, tokens or similar articles in a public place for charitable purposes should apply for a public subscription permit from the Social Welfare Department. The spokesman appealed to organisers to take precautions against any possible fraud. "Sellers should display the permit or carry copies of the permit for inspection upon request if the fund-raising is mobile," he said. The spokesman also advised them to prepare guidelines for sellers, setting out the places and the schedule for selling and the collection points for bags. "Organisers should inform the Police in case of loss of property, and seek their help when fraudulent acts, such as tampering of collection bags or making unauthorised selling, are found," he added. Permits are given to the following organisations for raising funds in April: Flag Day -------- Event Date Organisation ---------- ------------ April 4 Pentecostal Church of Hong Kong April 11 Ocean Park Conservation Foundation April 15 (Wed) The Neighbourhood Advice-Action Council April 18 KELY Support Group April 25 Christian Concern for the Homeless Association Public Subscription ------------------- Event Day Organisation --------- ------------ April 5 Yan Chai Hospital April 25 Land of Virtue Centre Ltd End
