Issued by Hong Kong Special Administrative Region Government Information Services
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Wednesday, September 3, 1997 CONTENTS ======== 1. CE talks of Hong Kong transition, trade ties in Malaysia 2. CE's transcript 3. CE's speech in Malaysia 4. FS to visit China 5. FS's transcript 6. Notice to meet international banking supervision standards 7. Route Twisk remains closed for two more weeks 8. Need for teacher registration stressed 9. Beware of bogus model hunter 10. Land Registry statistics for August released 1. CE talks of Hong Kong transition, trade ties in Malaysia ******************************************************** Hong Kong's smooth transition and two-way trade and investment ties with ASEAN nations were raised during meetings between Hong Kong SAR Chief Executive, Mr Tung Chee Hwa, and Malaysian leaders today (Wednesday). In his first overseas trip as Chief Executive, Mr Tung held what he described as 'very useful discussions' first with Malaysia's Deputy Prime Minister Anwar Ibrahim and then with Malaysia's Prime Minister, Dr Mahathir bin Mohamad. Talks were also held with Malaysian Minister of Transport Ling Liong Sik and Minister of Foreign Affairs Abdullah bin Haji Ahmad Badawi. Mr Tung and his wife were also honoured at a reception hosted by China's Ambassador to Malaysia, Mr Qian Jin Chiang, at the Chinese Embassy. During his meeting with Mr Anwar, the Chief Executive stressed it was very much "business as usual" in Hong Kong and that there had been no change in lifestyle. He told the Malaysian Deputy Prime Minister that Hong Kong's economy was very strong and that under the 'One Country, Two Systems' concept Hong Kong had retained its common law system and its own monetary system. During talks with Malaysian Prime Minister Dr Mahathir, Mr Tung stressed the importance of nurturing and developing two-way trade and investment ties between Hong Kong, Malaysia and other ASEAN nations. The recent financial turmoil in Asian currency markets was also discussed. "I am sure it is only a short-term phenomena. Malaysia has made outstanding achievements in the past two decades. It has a very strong economy and I am sure it will go from strength to strength," Mr Tung said during the talks. Mr Tung said he also discussed livelihood issues including housing and education with Dr Mahathir. At a Chinese Embassy reception in his honour, Mr Tung told foreign dignitaries and guests that July 1, 1997 was a very special day for everyone in Hong Kong. "It was a day which filled our hearts with pride and with confidence," he said. "Pride, that after 156 years, Hong Kong was at last reunited with her family, with China, to become a member of a large family. "Confidence in the sense that being masters of our own destiny we know Hong Kong will be better tomorrow for our children and for our grandchildren." Mr Tung said that all branches of Government - Judiciary, Legislative and Executive - were functioning normally. He said the lifestyle to which Hong Kong people had become very accustomed had not changed and that the economy continued to expand. "The fact is the very foundations of 'One Country, Two Systems', Hong Kong people governing Hong Kong with a high degree of autonomy is laid as we move forward during the last two months," he said. "I have come to Malaysia with a view to explain to my friends what has happened after July 1, 1997. "I have also come to strengthen a very important relationship between Hong Kong and Malaysia, to compare notes as we move forward. Indeed there are areas where we can share our experience." Mr Tung earlier told reporters that Hong Kong's 'very important trade relationship' with Malaysia had been growing at about 25 per cent per annum. "It is an important relationship which we want to strengthen," he said. "We also have a very important relationship with the ASEAN nations. Trade growing at 21 per cent over the last five years and Malaysia this year takes the chair of ASEAN, so it is appropriate for me to be here as the first stop of my overseas trip and to have the opportunity to meet with the Prime Minister and the Deputy Prime Minister. "It was a very useful discussion." End 2. CE's transcript *************** Following is the transcript of remarks to reporters by the Chief Executive, Mr Tung Chee Hwa, after meetings with Malaysian Prime Minister Dr Mahathir bin Mohamad and Malaysian Deputy Prime Minister Anwar Ibrahim in Kuala Lumpur today (Wednesday): I arrived in Malaysia at noon time today and was very warmly welcomed by the Malaysian Government. I was able to have discussions with the Deputy Prime Minister and also just now with the Prime Minister. It was a very useful discussion. I explained to the Prime Minister the transition, the fact that the transition has been very smooth, that all the three branches of our government in Hong Kong - the Executive, the Legislative and the Judiciary - are all working very well and moving forward with pride and confidence. Hong Kong is moving forward very well. As you know, Hong Kong has a very important trade relationship with Malaysia which has been growing at about 25 per cent per annum. It is an important relationship which we want to strengthen. The fact that, that we also have a very important relationship with the ASEAN nations. Trade growing at 21 per cent over the last five years and Malaysia this year takes the chair of ASEAN so it is appropriate for me to be here as the first stop of my overseas trip and to have the opportunity to talk to the Prime Minister and the Deputy Prime Minister. It was a very useful discussion. End 3. CE's speech in Malaysia *********************** Following is the speech by the Chief Executive, Mr Tung Chee Hwa, at a reception at the Chinese Embassy in Malaysia today (Wednesday): Mr Ambassador, Your Excellencies, Distinguished Guests, Ladies and Gentlemen, I am delighted to be here. I'm grateful for the very warm reception Ambassador and Mrs Qian has accorded to me and my wife. I am also greatly honoured by the reception, the very warm reception, the Malaysian Government has accorded to me today. This is my first overseas trip as Chief Executive of the Special Administrative Region. I am very grateful for the support and encouragement of the Central Government when I began to plan this trip. July 1, to all of us in Hong Kong, was a very special day. It was a day which filled our hearts with pride and with confidence. Pride, that after 156 years, Hong Kong was at last reunited with her family, with China, to become a member of a large family. Confidence in the sense that being masters of our own destiny we know Hong Kong will be better tomorrow for our children and for our grandchildren. Since July 1, all branches of our Government - Judiciary, Legislative and Executive - are functioning normally. Lifestyle to which we are very accustomed to in Hong Kong has not changed. Economy continues to expand. Indeed, Hong Kong is moving forward with confidence into the 21st Century. The fact is the very foundations of "One Country, Two Systems", Hong Kong people governing Hong Kong with a high degree of autonomy is laid as we move forward during the last two months. I have come to Malaysia with a view to explain to my friends what has happened after July 1, 1997. I have also come to strengthen a very important relationship between Hong Kong and Malaysia, to compare notes as we move forward, indeed there are areas where we can learn from Malaysia. My visit is very short but already this afternoon having talking with the Prime Minister, the Deputy Prime Minister and the Minister of Transport we have had very useful exchanges. Mr Ambassador, I am grateful once more for your warm hospitality and I look forward to welcoming to Hong Kong one of these days. May I propose a toast to Malaysia, to China and to Hong Kong. End 4. FS to visit China ***************** The Financial Secretary, Mr Donald Tsang, will leave Hong Kong tomorrow (Thursday) for a five-day visit to three cities in Mainland China. This is his first official visit to China since he became Financial Secretary in 1995. Mr Tsang will first visit Shanghai and Suzhou before flying to Chengdu in Sichuan to launch a seminar on the Securities Market of Hong Kong. The seminar is the first of its kind organised in China since the Handover. Announcing this today (Wednesday), a Government spokesman said: "The purpose of Mr Tsang's visit is to strengthen ties with senior officials in the three cities, particularly on finance, economy and trade fronts. "Mr Tsang will take the opportunity to introduce to mainland enterprises the opportunities that Hong Kong can offer as their window onto the world." In Shanghai, Mr Tsang will call on senior officials of the Shanghai Municipal Government and the Planning Commission of Shanghai People's Government as well as the senior management of the Shanghai Stock Exchange. To familiarise himself with Shanghai's port facilities, Mr Tsang will tour the Shanghai Container Terminal, the largest container terminal in Mainland China as well as the largest Hong Kong investment in Shanghai. The Financial Secretary will also visit the Pudong New Area, the city's newly developed area which is designed to be the flagship of modernisation and international trade. The Financial Secretary will also host a dinner organised by the Trade Development Council (TDC) for government officials, bankers and business leaders of the city. In Suzhou, Mr Tsang will visit the Suzhou Industrial Park which is a large-scale co-operative project with the Singapore Government to provide modern industrial and supporting facilities in the region. While in Suzhou, he will also call on senior officials of the local Municipal Government. The highlight of Mr Tsang's visit will be at Chengdu where he will launch the Seminar on the Securities Market of Hong Kong on Monday (September 8). The Seminar is jointly organised by the TDC, the Securities and Futures Commission (SFC) and the Stock Exchange of Hong Kong (SEHK) to introduce to mainland enterprises the capital raising opportunities in Hong Kong and to explain to them the listing procedures. Mr Tsang will deliver a keynote speech at the opening. Other important speakers at the seminar will include the Governor of Sichuan Provincial People's Government, Mr Song Bao Rui; the Chairman of the SFC, Mr Anthony Neoh; the Chairman of SEHK, Mr Edgar Cheng and representatives from the China Securities Regulatory Committee. While in Chengdu, Mr Tsang will also meet senior officials of the Chengdu Municipal Government and the Sichuan Provincial Planning Commission. Mr Tsang will return to Hong Kong on Tuesday (September 9). End 5. FS's transcript *************** Following is the transcript of the answers given by the Financial Secretary, Mr Donald Tsang, to questions at a media session at the Central Government Offices Press Room this (Wednesday) afternoon:- Question: Mr Tsang, are you easy about leaving Hong Kong during this time of exceptional turbulence? FS: Very easy at all. Our market is not all that turbulent after all. Our currency is very stable. The fact that the stock market and the futures market move up and down is the sort of things we would expect following the neighbouring markets' movement. And what I believe in and what I strongly believe in is the strength and robustness of the Hong Kong market. And I still believe Hong Kong is a very reasonable and very attractive place for investment whether it is on real estate or securities. For that reason, I am not fussed at all. I think it is in fact the best time for me to move around. This is the only rainbow opportunity that I can travel outside Hong Kong. Question: You might say that the fact that you and Mr Tung are away at the same time. Does it indicate your great confidence in Hong Kong financial position? FS: I always have confidence in Hong Kong's financial position. But the fact that Mr Tung and I are not here at the same time is simply incidental. End 6. Notice to meet international banking supervision standards ********************************************************** The Banking Ordinance (Amendment of Seventh Schedule) Notice 1997, designed to keep Hong Kong's banking regulatory framework on a par with international standards, will be published in the Gazette on Friday (September 5). The Notice, endorsed by the Chief Executive in Council at the Executive Council meeting on August 26, will come into effect on December 31. Announcing this today (Wednesday), a Government spokesman said the Notice would achieve the effect of requiring locally incorporated institutions applying for authorisation under the Banking Ordinance to satisfy the Hong Kong Monetary Authority that they would maintain adequate capital against the fluctuations in the value of foreign exchange and commodities, and financial instruments such as debt securities, equities, etc held for trading purpose. The new requirement would also be applicable to the existing locally incorporated authorized institutions. "In view of the expansion of banking institutions' activities in trading financial instruments, the Basle Committee on Banking Supervision (Basle Committee) issued the 'Amendment to the Capital Accord to incorporate market risks' in January 1996," the spokesman said. "The objective of this Basle initiative is to require banking institutions to maintain capital against credit risk (i.e. the risk of counterparty default) in addition to market risk (i.e. the risk of fluctuations of market prices of foreign exchange and commodities, and financial instruments such as debt securities, equities, etc held for trading purposes). "The Basle Committee's recommendations are generally accepted as international banking supervision standards." The spokesman said Hong Kong was committed to keep the local banking regulatory framework on a par with international standards and the amendment would enable Hong Kong to comply with the Basle Committee's new recommendation. "The Hong Kong Monetary Authority will issue a guideline to authorised institutions setting out the details of the requirements to enable them to conform with the amendment before it becomes effective on December 31, the same date the Basle Committee's recommendation will be implemented," he added. The Banking Advisory Committee, the Deposit-taking Companies Advisory Committee, the Hong Kong Association of Banks and the Deposit-taking Companies Association have been consulted on the local implementation plan of the Basle Committee's new recommendation and they are generally supportive. End 7. Route Twisk remains closed for two more weeks ********************************************* Route Twisk section between Tai Mo Shan Country Park Management Centre at Tsuen Kam Au and Lui Kung Tin will remain closed for two more weeks. A spokesman for the Highways Department said today (Wednesday) that the department has exerted effort 24 hours daily since landslide occurred at the Lookout in repairing the slope. Nevertheless, re-opening of the road to traffic even for only one lane would expect two weeks from now depending on the weather due to technical difficulties. The failed slope is about 40 metres high with a gradient of about 60 degree. Loosen soil/boulders on its west were removed with the help of a specially built temporary access while those at the lower part would be removed on a scaffolding. Boulders on the top and on its east have to be removed by blasting which needs extreme care and safety precaution on the advice and help of Mines Department. Shotcreting and other safety measures can then be taken after all cracked rocks and loose soils are removed. The spokesman said: "The department undertakes to re- open the road at the shortest possible time provided it is safe." The complete closure of the 3/4-kilometre section of Route Twisk hampers the direct link between Yuen Long and Tsuen Wan. Traffic and transportation have to be diverted and longer travelling time are needed. In addition, the closure of Route Twisk has created difficulties to some students and teachers who need to use the road for their journey to travel to schools. The Education Department called on school heads concerned seeking their co-operation to apply the school rules on punctuality flexibility in case students affected were late for school. Landslides at the site occurred on August 22, 23, 24 and 25. End 8. Need for teacher registration stressed ************************************** The Education Department today (Wednesday) reiterated the need for tutorial schools to employ only those teachers who are registered with, or permitted by, the department. A department spokesman said that under Section 42 of the Education Ordinance, teachers of all schools, including tutorial schools, must be either Registered Teachers or Permitted Teachers. "In the case of permitted teachers, they can only teach the subjects and classes in the school specified in their permit," the spokesman said. People who violate this Section of the Education Ordinance face a maximum penalty of $5,000 and imprisonment for two years upon conviction. The spokesman added that tutorial schools should not charge any fees other than those approved beforehand by the Education Department. Approval for any additional charges, including examination fees, registration and withdrawal fees, must be displayed at a prominent position at the school along with the Fees Certificate. The maximum penalty for violation of this provision, Section 61, of the Education Ordinance is a fine of $5,000 and imprisonment for one year. The law also requires that any teacher should not teach more than 45 students at any one time. However, there is also a limit to the maximum accommodation for each classroom and this should be displayed in a prominent position in the room. The spokesman advised students who intend to enrol in tutorial schools to check whether the school, the premises and the courses have been registered with the Education Department. In addition to the Fees Certificate, tutorial schools are required to display in a conspicuous place in each of the registered premises the Registration Certificate showing the name of the school in English and Chinese, address and registration number. Students and parents are welcome to verify the above information, or other details such as permitted accommodation for each room, as well as duration and fees of scheduled courses, with the department's District Education Offices (DEOs) or the Registration Section. "Complaints against irregularities may be directed to our DEOs." Students as consumers may seek a refund of course fees if the expected services are not delivered. End 9. Beware of bogus model hunter **************************** The Environmental Protection Department (EPD) today (Wednesday) appealed to members of the public to be cautious when being approached by bogus agents purporting to be looking for models to advertise environmental protection messages. The appeal came after the department had received a number of calls from members of the public who had been approached by people claiming to be looking for models to take part in a production jointly organised by the department. They were later asked to pay a fee ranging from several hundred to $20,000 for photo sessions or other activities. An EPD spokesman said the department was not involved in any such production and suggested any one who suspected himself or herself has been cheated to report the matter to the police. End 10. Land Registry statistics for August released ******************************************** The Land Registry received 15,299 sale and purchase agreements for building units last month (August), including residential and non-residential properties. The figure represented a decrease of 32.6 per cent from the previous month but an increase of 53.4 per cent over August last year. The total considerations of these agreements were $64.2 billion, down 44.4 per cent from last July but up 117.8 per cent over August last year. The figures were contained in the monthly statistics released today (Wednesday) by the Land Registry on deeds relating to property transactions received for registration in the Urban and New Territories Land Registries in August 1997. Relevant statistics for July 1997 and August 1996 were provided for comparison. Figures on sale and purchase agreements received for the past 12 months and the year-on- year rate of change were also released. There is usually a time lag between the execution of deeds and their lodgement for registration. The figures mentioned above reflect only the number of deeds lodged for registration in August. End PROVISIONAL LEGISLATIVE COUNCIL MEETING SUPPLEMENT CONTENTS ======== 1. Use of pyrotechnics in shooting films 2. Legal basis for transfer of prisoners before July 3. Interest of students would be protected 4. SARG operates a liberal visa policy 5. Roles of VTC and ERB will be strengthened 6. Implementation of the Basic Law 7. Land for container back-up and open storage uses 8. Clearance of illegal cultivation on slopes 9. Public housing building maintenance works 10. Conviction of contempt of Court 11. Traffic volume of the harbour-crossings 12. Tax concession offered by neighbouring countries 13. Traffic accidents in rural area 14. Family planning services for new arrivals 15. Implementation of Electricity (Wiring) Regulations 16. Comprehensive programme to tackle air pollution 17. Study on elderly on CSSA 18. "Repo agreements" between HKMA and other countries 19. Protecting the interests and rights of investors 1. Use of pyrotechnics in shooting films ************************************* Following is a question by the Hon Ma Fung-kwok and a reply by the Acting Secretary for Broadcasting, Culture and Sport, Mrs Rita Lau, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council: (a) of the measures in place to control the use of pyrotechnics and explosives by the film industry in shooting films, and how such control is exercised currently; (b) whether it will consider establishing a "film blasters" licensing system so that competent persons will be able to obtain the requisite license upon passing a qualifying examination and use pyrotechnics and explosives lawfully for the purpose of shooting films; and (c) if the answer to (b) is in the affirmative, what specific criteria will be adopted by the Broadcasting, Culture and Sport Bureau to assess the competence of applicants for the licence; and whether training courses will be provided to assist film workers in obtaining the licence? Reply: Madam President, (a) The following control measures are in place to control the use of pyrotechnics in shooting films: (i) The use of pyrotechnics in shooting films is regulated by Section 59 of the Dangerous Goods (General) Regulations (Cap 295), and a permit is required for such activities. The Secretary for Broadcasting, Culture and Sport and the Director of Marine are the authorities responsible for issue of permits for the discharge of pyrotechnics on land and on water respectively. They will consult relevant departments (including the Hong Kong Police Force, Fire Services Department, Mines and Quarries Division of the Civil Engineering Department, and the Electrical and Mechanical Services Department), and set licensing conditions relating to fire precautions and the protection of public safety before approving any application for a permit. (ii) A pyrotechnician responsible for the discharge of pyrotechnics must be registered with the Commissioner of Mines before a permit is granted. This is to ensure that pyrotehcnics are discharged by a pyrotechnician who is experienced in discharging pyrotechnics and producing pyrotechnic effect. A pyrotechnician is usually required to give a demonstration in respect of the discharge of pyrotechnics which is the subject of a permit application. (iii) A licence and a permit issued by the Commissioner of Mines is required for storage and conveyance of pyrotechnics respectively. (iv) A declaration of fitness issued by the Marine Department is required for a vessel carrying or conveying pyrotechnics. (v) The use of fuel gas in film shooting should comply with the relevant provisions of the Gas Safety Ordinance (Cap 51). Under the Registration of Gas Installers and Gas Contractors Regulations, any gas installation work should be carried out by a registered gas installer employed by a registered gas contractor. (vi) A dangerous goods licence should be obtained from the Director of Fire Services for using more than 20 litres of petrol in shooting films. (vii) The Hong Kong Police Force (HKPF) does not have specific control measures at present. However, the use of modified firearms and blank ammunition will require an exemption permit issued by the Licensing Division of the HKPF. The Police Public Relations Branch should be informed of the film-shooting three working days in advance. To ensure compliance with the conditions set out in the permits, the Mines and Quarries Division of the Civil Engineering Department conducts surprise checks. Depending on the scale of the approved activities, the Marine Department will deploy its launches to patrol the waters concerned. If necessary, they will notify the Marine Police to be on the alert. Officers of the Marine Department on board its patrol launches will also closely monitor such activities. (b) While the Government has adopted measures to assess the competence of pyrotechnicians in using pyrotechnics for shooting films, there is no statutory requirement for a pyrotechnician to be registered. We shall review the existing application procedures and arrangements, and shall consider carefully the feasibility of introducing a pyrotechnician licensing system if its establishment is conducive to the safe use of pyrotechnics in film shooting by the film industry. (c) Apart from pyrotechnics, dangerous goods such as fuel and inflammable gas will also be used in making films to enhance the effect and the sense of reality of explosion scenes. To protect the safety of film-making personnel and the public, any new proposals on the regulation of the use of pyrotechnics will require careful examination by the relevant Government departments. We intend to consult and discuss with the film industry on implementation standards with a view to coming up with a regulatory system which can protect public safety on the one hand and is user and business friendly to the film industry on the other. End 2. Legal basis for transfer of prisoners before July ************************************************* Following is a question by the Hon Mrs Elise Tu and a reply by the Secretary for Security, Mr Peter Lai, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council whether all prisoners of Britain, European and North American nationalities serving prison terms in Hong Kong were sent back to their countries of origin shortly before the reunification of Hong Kong with the Mainland, while requests for the same treatment from prisoners whose countries of origin are in the "Third World" were rejected; if so, what the relevant details were? Reply: Madam President, Prior to July 1, 1997, transfer of prisoners between Hong Kong and another country were effected under the following arrangements: (i) Transfer between Hong Kong and 23 countries, which include 20 European countries and the USA, Canada and Turkey, may be effected under the Council of Europe Convention on the Transfer of Sentenced Persons, which was extended to Hong Kong by the Repatriation of Prisoners (Overseas Territories) Order 1986 as subsequently amended. (ii) Transfer between Hong Kong and Thailand may be effected under the UK-Thailand Agreement on the Transfer of Offenders and on Co-operation in the Enforcement of Penal Sentences, which was extended to Hong Kong by the Repatriation of Prisoners (Overseas Territories) Order 1986 as subsequently amended. (iii) Transfer between Hong Kong and the United Kingdom may be effected pursuant to an arrangement between the Hong Kong Government and the United Kingdom Government in November 1988, and on the basis of the provisions of the Council of Europe Convention on the Transfer of Sentenced Persons, such an arrangement was given legal effect by virtue of section 1 of the Repatriation of Prisoners Act 1984 extended to Hong Kong by the Repatriation of Prisoners (Overseas Territories) Order 1986 as subsequently amended. Taken together, these arrangements provide for the transfer of prisoners between Hong Kong and 25 countries, most of which are in Europe and North America. Transfer of prisoners between Hong Kong and other countries of the world, including most so-called "third world" countries, was not legally possible under any of the above three arrangements. In the first six months of 1997, a total of eight prisoners were transferred out of Hong Kong to continue to serve their sentences in their home countries. These include one to Turkey, one to Norway, one to the Netherlands, two to Canada, two to the UK and one to Ireland. In the same period 11 prisoners were transferred into Hong Kong to continue to serve their sentences; these include 10 from Thailand and one from USA. No request for outward transfer of prisoners who meet the legal requirements mentioned above has been refused. End 3. Interest of students would be protected *************************************** Following is a question by the Hon Chan Choi-hi and a reply by the Secretary for Education and Manpower, Mr Joseph W P Wong, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council: (a) of the actions taken by the Education Department in dealing with those institutions of continuing education and tutorials schools which enrol students prior to registration as a school under the relevant legislation; (b) of the number of complaints against such institutions received by the Education Department over the past three years, and the nature of such complaints; and (c) whether the Education Ordinance will be amended to stipulate that all institutions of continuing education and tutorial schools be not allowed to enrol students before registration? Reply: Madam President, (a) The Education Department will contact those unregistered schools which have placed enrolment advertisements and remind the school operators that the school cannot start operation before it is granted approval for provisional registration. Otherwise, they will contravene the Education Ordinance. Besides, the Education Department will try its best to assist the applicant complete the registration procedures as soon as possible. Separately, the Education Ordinance stipulates that unregistered schools cannot claim in advertisements that they are registered. (b) From September 1, 1994 to July 31, 1997, the Education Department has received a total of 358 complaints about school registration, of these about 300 were related to tutorial schools. Most of the complaints concerning unregistered tutorial schools includes complaints about school operation without registration, the rest are about expensive school fees, inadequate fire safety facilities etc. (c) The Education Ordinance applies to all schools and organisations offering education programmes. There is a practical need for many schools to enrol students, while their applications are being processed, so as to proceed with the necessary preparation and administrative work such as employment of teachers, arrangement of classes, timetabling, procurement of furniture and teaching equipment etc. If the Government amends the Education Ordinance disallowing enrolment of students before schools are provisionally registered, it would affect the operation of these schools. Therefore the Government does not intend to amend the relevant provisions in the Education Ordinance. However, in order to more effectively protect the interest of students, we are actively considering whether it is necessary to amend the existing legislation to prohibit schools from collecting fees or any other charges before they are provisionally registered. End 4. SARG operates a liberal visa policy *********************************** Following is a question by the Hon Lo Suk-ching and a reply by the Secretary for Security, Mr Peter Lai, in the Provisional Legislative Council today (Wednesday): Question: On July 16 this year, the Immigration Department published a list of countries and regions with which visa- free arrangements have been made, thus enabling persons from about 170 countries and regions to visit Hong Kong on a visa-free basis and stay for periods varying from not more than seven days to one month, three months or six months. The list shows that only British citizens may stay in Hong Kong for six months. In this connection, will the Government inform this Council of the reasons for according Britain a visa-free arrangement which is different from those granted to other countries, bearing in mind that Hong Kong and Britain are no longer bound by any special constitutional relationship after the change of sovereignty? Reply: Madam President, Before April 1, 1997, British citizens are allowed to enter Hong Kong visa-free and to stay in Hong Kong for one year without any conditions on each entry. In late 1996, because of the impending change of relationship between the UK and Hong Kong, the Administration proposed a number of changes to the privileged immigration status of British citizens. For British citizens who intend to visit Hong Kong, the Administration proposed to continue to allow visa- free entry but to allow a maximum visa-free visit period of six months and to impose visitor's condition on them. In formulating the visa policy towards nationals of a particular country, we take into consideration a number of factors such as the economic, social and cultural relationship between Hong Kong and that country, the number of tourists coming to Hong Kong from that country and vice versa, whether nationals of that country have a record of giving immigration control problems, and the treatment granted to Hong Kong travellers by that country (although it is not our policy to operate on a strictly reciprocal basis.) The proposal to allow British citizens a maximum visa-free visit period of six months was made after considering these factors. It should be noted that HKSAR passport holders also enjoy a maximum visa-free visit period of six months to the UK. The proposal received considerable support during the public consultation period and in the (then) Legislative Council, and was implemented on April 1, 1997. Madam President, I should just like to add that, in keeping with the object of maintaining Hong Kong as an international financial, trading and touristic centre, we operate a liberal visa policy. Thus, while about 84 countries grant visa-free access to BN(O) passport holders, and about 40 countries grant visa-free access to HKSAR passport holders, we grant visa free access to about 170 countries. We only impose a visa regime where it is justified by practical circumstances; for example, where it is necessary for the protection of Hong Kong's security, or for effective immigration control. It should also be borne in mind that imposing a stringent visa regime involves additional resources to process visa applications, particularly in respect of a country from which there is a substantial visitor traffic, and may adversely affect Hong Kong's tourist income. Our inclination is therefore to be more, rather than less liberal. Hong Kong's visa regime is reviewed from time to time in light of the prevailing circumstances, and we would keep in view the need to update our visa policy in the future. End 5. Roles of VTC and ERB will be strengthened ***************************************** Following is a question by the Hon Cheng Yiu-tong and a reply by the Secretary for Education and Manpower, Mr Joseph W P Wong, in the Provisional Legislative Council today (Wednesday): Question: It is learnt that the British Hong Kong government had indicated that it would, before the change of sovereignty, complete the task of mapping out a comprehensive manpower training strategy for Hong Kong straddling the next century. In this connection, will the Government inform this Council: (a) whether the British Hong Kong government had formulated the above manpower training strategy for Hong Kong before July 1; if so, what the contents are; if not, why not; and (b) if the reply to the first part of (a) above is in the negative, whether the Hong Kong Special Administrative Region Government is making efforts to take up this task; if so, of the estimated timeframe for promulgating and implementing the relevant strategy; if not, why not? Reply: Madam President, It is the Government's manpower policy to ensure that our workforce is equipped with the necessary skills and expertise to sustain and improve Hong Kong's economic competitiveness. This policy has two component parts. One is related to our mainstream education system which aims to provide our students with generic language, analytical and communicative skills in the school sector and with further personal and professional development in the tertiary sector. The other is to provide our workforce with the necessary vocational training and retraining in keeping with changes in our industrial and economic developments. My reply will focus on the latter part. In 1996 we commissioned consultancy studies to carry out strategic and organisational reviews of the Vocational Training Council (VTC) and the Employees Retraining Scheme (ERS) which are the main publicly-funded bodies responsible for our manpower training and retraining. The objective of both reviews was to identify areas for improvement and to submit recommendations which would enable the VTC and the ERS to be more dynamic and responsive in meeting market demands and more cost-effective in delivering their services. Review of the VTC ----------------- In the report, the consultants identified a number of key areas that needed to be addressed by the VTC. They also came up with a number of recommendations which sought to enhance the VTC's flexibility and market responsiveness to keep abreast with Hong Kong's changing economic needs. After consultation with employer and employee groups, the Manpower Panel of the former Legislative Council and the VTC itself, we were able to announce in June this year that there was general acceptance of the major recommendations in the report. Following on from this review, the Executive Director of the VTC has prepared a five-year strategic plan to take the Council into the next century. This plan is being considered by the VTC. Review of the ERS ----------------- The consultancy study on the ERS review came up with eight proposals. The main thrust was that the ERS should be more tightly focused on providing retraining for adult workers with low standards of formal educational attainment, in particular those who had been affected adversely by economic restructuring. Following a public consultation exercise, we also announced in June this year that there was general support for these proposals and that the Government endorsed most of them. For ease of reference, the relevant documents setting out the Government's decision on the outcome of the reviews of the VTC and ERB are attached to the written version of this reply. We will continue to monitor the progress of implementing the recommendations arising from the review. Conclusion ---------- Based on the outcome of the reviews, the respective roles of the VTC and the ERB will be strengthened as a key element of the Government's Manpower strategy which will lead the Hong Kong Special Administrative Region (SAR) into the 21st century. The Education and Manpower Bureau of the Hong Kong SAR Government will continue to oversee the work of the VTC, ERB and other training bodies. We will play a coordinating role to ensure adequate provision of training and retraining either generally or in specific industries. For example, we have recently set up a working group to examine, among other things, the manpower and associated training needs of the construction industry. We will also continue to ensure that our education policy complements our manpower policy, particularly in enhancing the language and information technology skills of our future workforce. End 6. Implementation of the Basic Law ******************************* Following is a question by the Hon Ip Kwok-him and a reply by the Secretary for Justice, Miss Elsie Leung, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council: (a) of the major problems encountered by various departments in the implementation of the Basic Law; as well as the nature of such problems; (b) as it is reported that the Department of Justice lacks the relevant data and manpower in handling problems encountered by various departments in the implementation of the Basic Law, whether the Government has any plans to rectify the situation; if so, of the details of such plans; if not, why not; and (c) given the problems encountered by Government departments in the implementation of the Basic Law; whether the Government will strengthen the training of civil servants in this regard; if so, what the details are? Reply: Madam President, As members are aware, the implementation of any new legislation gives rise to questions of interpretation since there may not be enough case precedents as guidance. The same is true of the Basic Law, which is not just a piece of local legislation, but is a detailed written constitutional document for the Special Administrative Region, regulating almost all aspects of life here. My answer to the first part of this question reflects this fact. The main areas on which government bureaux and departments have sought advice from this department relate to the interpretation of Basic Law provisions and their application to particular practical situations. They have arisen in three main areas - first, in the review of existing legislation to ensure they are consistent with the Basic Law and, if not, to adapt them accordingly; secondly, in the formulation of new policies and legislation which involve the interpretation of the Basic Law provisions; thirdly, in the context of litigation, or threatened litigation, based on the Basic Law. With regard to the second part of the question, there is no shortage of data or manpower in my department to handle these problems. Advice on the Basic Law is mainly, but not exclusively, given by the Basic Law Unit. Since its establishment on April 1, 1997, the strength of the Unit has been doubled from two to four counsel. If the workload of the Unit is at any time particularly heavy, other counsel will be assigned to assist it, in order to ensure that legal opinions reach departments promptly. In addition, my department has a Basic Law Litigation Task Force, which includes representatives from various divisions. This task force can be called upon to make a rapid response in respect of any litigation relating to the Basic Law. My department has a good collection of legal materials in respect of the Basic Law. What it lacks, and what is currently unavailable, are case precedents dealing with the many questions of interpretation that arise. We will, of course, be building up our collection of materials as and when case precedents and other relevant texts become available. With regard to the third part of the question, the arrangements for training civil servants are considered adequate. The Civil Service Training & Development Institute has been organizing regular seminars on the Basic Law for civil servants since 1995, in order to raise their awareness and understanding in this respect. 20 of these seminars were held in 1996, and they are now being arranged almost every month. My department has contributed to these seminars, by supplying both materials and expert speakers. A Self-learning Booklet on the HKSAR Basic Law and computer disk have also been prepared for civil servants, and over 130,000 of these have been distributed. These materials are now being updated. Specific training courses for particular bureaux and departments are arranged as and when needed. The Basic Law is also covered in the curriculum of China studies courses organised by the Civil Service Training & Development Institute, such as the course commissioned to the Tsinghua University of Beijing. Some departments also include sessions on the Basic Law in their induction or other in-house training programmes. End 7. Land for container back-up and open storage uses ************************************************ Following is a question by the Hon James Tien and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Provisional Legislative Council today (Wednesday): Question: According to operators in the container transport industry, most of the sites in San Tin reserved by the Government for container back-up use are still being used as fish ponds. As these sites are not easily accessible and have no drainage facilities, they are not suitable for use as container back-up areas. In this connection, will the Government inform this Council: (a) of the measures in place to resolve the above problems, and whether it is possible to identify other suitable sites for the operators of the existing container yards and car parks for container trucks in San Tin to carry on their business; (b) of the proportion of the containers stored in the container yards and the car parks for container trucks in San Tin to the total number of containers in Hong Kong; and (c) whether it has any plan to provide, in the vicinity of Lok Ma Chau border control point, a car park for large container trucks and a container yard for temporary storage of containers? Answer: Madam President, (a) About 68 hectares of land in San Tin (the San Tin site) to the immediate south-west of the Lok Ma Chau Control Point is zoned "Other Specified Uses (Container Back-up Uses)". The planning intention of this zoning is to accommodate the anticipated increase in cross-boundary freight transport. Implementation of the San Tin site for container back-up uses has been investigated in the "Pilot Study on Port Back-up Development at San Tin". A recommended outline development plan and layout plans with proposed new road networks have been prepared to guide development. The Study has also identified the need for further detailed studies including traffic impact assessment, drainage impact assessment, environmental impact assessment and ecological impact assessment and engineering feasibility study. However, as the San Tin site is covered by fish ponds, actions on the further studies were withheld pending the findings of the Study on the Ecological Value of Fish Ponds in Deep Bay Area (Fish Ponds Study). Upon completion of the Fish Ponds Study later this year, the Administration will decide on the way forward including the appropriate use and development of the San Tin site. On the other hand, a total of 374 hectares of land has been earmarked for container back-up and open storage uses on the rural outline zoning plans for various parts of the New Territories. Planning permission may also be sought from the Town Planning Board to develop the land within the "Other Specified Uses (Service Stations)" and "Undetermined" zones along both sides of San Sham Road for container back- up uses. (b) We do not have the information because both the number of containers stored in the container yards and the car parks for container trucks in San Tin and the number of containers in Hong Kong vary from day to day. (c) The area surrounding Lok Ma Chau Control Point falls within the study area of the Planning and Development Study on North-Western New Territories to be commissioned by the Planning Department later this year. The study would examine the development potential of the area, including the feasibility of providing additional sites for container back-up purposes. End 8. Clearance of illegal cultivation on slopes ****************************************** Following is a question by the Hon Chan Kam-lam and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Provisional Legislative Council today (Wednesday): Question: Residents in Kwun Tong have complained that some slopes in the district have been illegally used for growing vegetables, resulting in a loosening of the earth and thus endangering the safety of the slopes concerned. In this connection, will the Government inform this Council whether: (a) the authorities concerned are aware of the above situation; if so, whether any actions have been taken to clear the illegal cultivation in the slopes concerned; (b) similar incidents have occurred, or similar complaints received, in other districts; (c) prosecutions have been instituted against the offenders and if so, what the penalties are; and (d) the Government will conduct a territory-wide survey on such illegal use of slopes, in particular the slopes which are in the vicinity of residential buildings and housing estates, so as to safeguard public safety? Reply: Madam President, (a) We are aware that some slopes on Government land in Kwun Tong have been used illegally for cultivation. District Lands Office/Kowloon East has started clearing the illegal cultivation on these slopes; (b) we have received a number of similar complaints in other districts; (c) no prosecution has been instituted so far as the ordinance concerned requires the Government to first post notices on the land requiring cessation of the illegal occupation of the land in question and the culprits usually disappear once the notices are posted. We shall continue to keep the situation under observation. The ordinance provides a fine of $10,000 and imprisonment for six months if a culprit has successfully convicted; and (d) in view of work priorities, the Government does not intend to carry out such a survey at the moment. We will continue to take clearance action on illegal cultivation upon detection during patrols made by district lands staff or receipt of complaints. End 9. Public housing building maintenance works ***************************************** Following is a question by the Hon Choy Kan-pui and a written reply by the Secretary for Housing, Mr Dominic Wong, in the Provisional Legislative Council today (Wednesday): Question: It is learnt that some persons were arrested by the Independent Commission Against Corruption recently for involvement in certain public housing maintenance works which were suspected to be carried out with inferior materials and workmanship. In this regard, does the Government know whether the authority concerned will take any actions or remedial measures to ensure that those maintenance works suspected to be carried out with inferior materials and workmanship will not affect public safety; if so, what the details are? Reply: Madam President, The Independent Commission Against Corruption is currently investigating corruption allegations in connection with the maintenance works of 12 public housing estates in Wong Tai Sin and Tuen Mun. Since only simple and routine building maintenance and decoration works are involved, public safety will not be affected. As the case is still being investigated by the Independent Commission Against Corruption, it will not be appropriate to provide details at this stage. Once the Independent Commission Against Corruption investigation is concluded, the Housing Department will conduct a thorough examination of the maintenance works involved and take remedial measures if necessary. End 10. Conviction of contempt of Court ******************************* Following is a question by the Hon Chim Pui-chung and a written reply by the Chief Secretary for Administration, Mrs Anson Chan, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council: (a) of the total number of cases in which the defendant was convicted of contempt of court, in the past three years; (b) of the maximum penalty imposed in the above cases; and (c) given that the judge can be responsible for both prosecution and adjudication in the trial of cases of this nature, whether the authority concerned will review such a situation? Reply: Madam President, My reply to parts (a) to (b) of the question is as follows:- (a) The Judiciary does not keep detailed statistics on the number of cases of contempt of court. Nonetheless, as far as the Judiciary is able to ascertain from available records, there was a total of 21 convictions of contempt of court between 1994 and 1996 in the then Supreme Court, District Court and Magistrates' Courts. (b) The maximum penalty imposed in these 21 cases was nine month's imprisonment for breaching an order made by a High Court judge. (c) A judge or magistrate has the power to impose summary punishment on a person who commits a contempt in the face of the court. A review of that power was included in the Law Commission's Report on Contempt of Court, which was completed in December 1986. The Commission concluded as follows: "We entertain no doubt that the power to deal with a contempt committed in its face is one that a court must of necessity continue to possess. There will be examples of conduct which need to be restrained and punished at once if the machinery of justice is to function properly." The Commission noted that, under the modern approach, the power of summary punishment should only be used when "it is imperative to act immediately" and has to be exercised "with scrupulous care". The existence of an independent and professional judiciary and an appeal system are ample safeguards against abuse. A review of the present situation is not considered necessary. End 11. Traffic volume of the harbour-crossings *************************************** Following is a question by the Hon Mrs Miriam Lau and a written reply by the Secretary for Transport, Mr Nicholas Ng, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council of: (a) the average daily traffic volume of each of the three cross-harbour tunnels in the territory since the Western Harbour Crossing was opened to traffic on April 30 this year, together with their respective traffic volumes during the rush hours in the morning (i.e. from 7.30 am to 9.30 am) as well as during the rush hours in the evening (i.e. from 5.00 pm to 7.00 pm); and (b) the types of vehicles using the three cross- harbour tunnels, together with their respective proportions to the average daily traffic volume in each of the three tunnels? Reply: Madam President, The average daily and peak hour traffic running through the Cross Harbour Tunnel, Eastern Harbour Crossing and Western Harbour Crossing in July 1997 is as follows - Daily/Peak hour traffic through cross harbour tunnels in July 1997 AM Peak PM Peak Tunnels Daily average hourly hourly Cross Harbour Tunnel 120,800 5,650 6,180 Eastern Harbour Crossing 82,600 5,250 5,690 Western Harbour Crossing 19,500 1,320 1,640 As regards the average daily traffic by vehicle types in each of the tunnels, relevant statistics are shown in the Annex. Members will note that the bulk of vehicle types is made up of private cars and taxis, ranging from 68 per cent to 77 per cent of the total. This is followed by light goods vehicles and double deck buses. End 12. Tax concession offered by neighbouring countries ************************************************ Following is a question by the Hon James Tien Pei-chun and a written reply by the Secretary for Treasury, Mr K C Kwong, in the Provisional Legislative Council today (Wednesday): Question: Will the Government undertake a thorough comparison between the respective tax incentives offered to industrial and commercial corporations by the Hong Kong Special Administrative Region Government and those by our neighbouring major competitors such as South Korea, Singapore, Taiwan and Malaysia, so that the industrial and commercial sectors in Hong Kong can make reference to such a comparison when giving their views on the "Profits Tax Review Consultation Document"? Reply: Each economy has unique characteristics in its tax structure, regulatory framework and overall business environment. Hong Kong gives a general incentive to the industrial and commercial sectors by maintaining a low, simple and predictable profits tax regime which applies across the board to all sectors. Other economies in the region offer a variety of tax incentives in different forms to selected sectors. Since these tax incentives vary so greatly in relation to different industries, different levels of investment and over different periods, making a thorough comparison between them and the position in Hong Kong would be exceedingly difficult, is unlikely to be meaningful and might indeed be misleading. We will therefore welcome comments on the Profits Tax Review Consultation Document which are focused on the intrinsic merits and demerits of our own system. End 13. Traffic accidents in rural area ******************************* Following is a question by the Hon Mrs Miriam Lau and a written reply by the Secretary for Transport, Mr Nicholas Ng, in the Provisional Legislative Council today (Wednesday): Question: Will the Government inform this Council: (a) whether statistics are available on traffic accidents occurring on roads in village areas; if so, of the number of such accidents involving pedestrians in each of the past three years; (b) of the speed limits imposed on roads in village areas; (c) what measures are in place to ensure the safety of pedestrians if both vehicles and pedestrians are allowed to use these roads; and (d) whether it will consider building road humps on these roads in order to reduce the speed of vehicles? Reply: Madam President, Our traffic accident database system classifies and records the type of roads according to their location, the speed limit imposed, the number of traffic lanes on the road and whether or not pavement/pedestrian footpath is provided. There is unfortunately no such category as "village road". Nevertheless, for the purpose of this reply, we would assume that the normal understanding of a village road is that it is in the New Territories located outside new town areas, has a speed limit of 50km/hr or less (which is the normal lower end of the speed limit), has two lanes or fewer and does not have a footpath on at least one side of the road. Applying these criteria to our traffic accident database, we have found that the number of pedestrian accidents over the last three years on these roads is as follows: 1994 16 1995 14 1996 15 45 For comparison, during the same period, there were a total of 695 pedestrian accidents on all roads in the New Territories located outside new town areas and has a speed limit of 50km/hr or less, and a total of 15,115 pedestrian accidents on all roads in the territory. For pedestrians' safety, we put in place footpaths of adequate width on all public roads wherever practicable. In addition, the following measures are implemented, where necessary: (a) erection of safety barriers and guardrailings to protect pedestrians or channel them onto the footpaths; (b) provision of appropriate crossing facilities such as cautionary, zebra or signal-controlled crossings at suitable locations; and (c) erection of warning signs to alert drivers of pedestrians crossing or moving ahead. (d) As regards road humps, they are mainly used on private roads within housing estates where speeds are generally kept below 20 km/h. These humps may also be used for single track access roads in the vicinity of village housing where it is desirable to maintain low traffic speeds. However, if motorists, particularly motorcyclists, have not adequately reduced their speed when passing over the road humps, accidents may easily occur. We therefore do not normally use road humps, but install warning signs to alert motorists of any particular hazard ahead and advise them to reduce speed as appropriate. End 14. Family planning services for new arrivals ***************************************** Following is a question by the Hon Mrs Peggy Lam and a written reply by the Acting Secretary for Health and Welfare, Mr Gregory Leung, in the Provisional Legeislative Council today (Wednesday): Question: As the families of new arrivals from the Mainland who have come to settle in Hong Kong generally have a large number of children, will the Government inform this Council what measures are in place to assist them in family planning? Reply: Madam President, The Department of Health's maternal and child health centres (MHCs) and the Government subsidized Family Planning Association of Hong Kong (FPA) provide family planning services to people who need such services. The services include advice on birth control and infertility counselling, and are available to new arrivals in the 49 MHCs and eight FPA clinics located throughout the territory. New arrivals from the Mainland are distributed a "Guidebook on Services for New Arrivals in Hong Kong" published by the Home Affairs Department (HAD) when they enter Hong Kong. The Guidebook contains information on the family planning services available. New arrivals may also make inquiries at public medical institutions and the District Offices of HAD. The health care staff of the MHCs will provide information on family planning services to the new arrivals when they attend the MHCs with their children for child health services. The Social Welfare Department and related social service organisations will also refer the new arrivals who need family planning advice to the relevant agencies. End 15. Implementation of Electricity (Wiring) Regulations ************************************************** Following is a question by the Hon Chan Choi-hi and a written reply by the Acting Secretary for Economic Services, Mr Leo Kwan, in the Provisional Legislative Council today (Wednesday): Question: It is reported that since the implementation of the Electricity (Wiring) Regulations, tests on electrical installations have yet to be carried out in some 75% of buildings in Hong Kong. In this connection, will the Government inform this Council: (a) of the measures adopted by the department concerned to expedite completion of tests on electrical installations in these buildings; (b) whether the procedure for tests on electrical installations will be streamlined so as to assist Owners' Corporations, mutual aid committees and property owners to complete the tests as early as possible; and (c) whether greater emphasis will be given to publicising the stipulations of the Regulations; if so, of the publicity strategy to be adopted? Reply: The Electricity (Wiring) Regulations came into operation in June 1992. Under the regulations, owners of certain types of low-voltage fixed electrical installation shall have their installations inspected, tested and certified at least once every five years by a registered electrical contractor. (a) The Electrical and Mechanical Services Department (EMSD) has been publicising the requirements under the Electricity (Wiring) Regulation to increase public awareness of the action required of owners of the electrical installations concerned and the publicity campaign is continuing. As most of the buildings where testing of installations have yet to be conducted are those without Owners' Corporations or property management agencies, EMSD is working closely with the Home Affairs Department to assist owners in completing the periodic test. (b) The periodic tests are carried out by registered electrical contractors. Owners of electrical installations need only to hire such a contractor to carry out the work and then submit the test certificate issued by the contractor to EMSD for endorsement. (c) EMSD has been publicising the requirements of the Regulations since their enactment. Announcements on television and radio, which started in April 1996, are continuing. Another 2.3 million copies of a flyer reminding the public of the periodic test requirement are being distributed to all households together with electricity bills from July to November this year. End 16. Comprehensive programme to tackle air pollution *********************************************** Following is a question by the Hon Lau Kong-wah and a written reply by the Secretary for Planning, Environment and Lands, Mr Bowen Leung, in the Provisional Legislative Council today (Wednesday): Question: In view of the poor air quality in recent days, particularly on August 19 and 20, will the Government inform this Council: (a) of the causes leading to the poor air quality in recent days; (b) of the long-term and interim measures in place to tackle the problem of poor air quality; (c) whether the poor air quality situation has occurred more frequently in recent years; and (d) of the effect of such a situation on the health of the general public? Reply: Madam President, (a) The poor air quality on August 19 and 20 was caused by high concentrations of ozone and nitrogen dioxide, which are formed primarily from pollutants from vehicle emissions and, to a lesser extent, industrial activities. Their high concentrations on these two days were due to the calm air associated with the onset of typhoon, which impeded the normal dispersion of air pollutants. (b) The Administration has already implemented a comprehensive programme to abate air pollution within the statutory framework provided by the Air Pollution Control Ordinance. I have given a full account of the specific air pollution control measures in reply to an oral question at the sitting of the Provisional Legislative Council on July 16, 1997. We will continue to require polluting industrial processes to adopt the best practicable measures to minimise emissions through licensing controls, and will adopt the most stringent standards on vehicle emissions and fuel quality once they are technologically and practically feasible. In the long term, we would aim to reduce the number of diesel vehicles, which are the main source of fine particulates and nitrogen dioxide, by replacing part of them with vehicles operating on cleaner motor fuels such as gas. To this end, we shall launch a trial of liquefied petroleum gas (LPG) taxis later this year to ascertain their technical feasibility in Hong Kong and to gauge the operating cost data for devising a viable motor fuel strategy to improve air quality. (c) While the average levels of ozone and nitrogen dioxide in ambient air and respirable particulates in urban roadside appear to be increasing, the frequency of days of serious air pollution is determined mainly by weather conditions. Since the launch of the Air Pollution Index on June 6, 1995, there were six incidents of high Air Pollution Index, of which five took place in 1996. A trend cannot be established yet. (d) A number of research results in some countries have shown that air pollution is associated with increased morbidity and mortality in patients with underlying respiratory or heart disorders. Vulnerable groups such as young children and the aged are at a higher risk of developing respiratory symptoms when exposed to air pollution. End 17. Study on elderly on CSSA ************************ Following is a question by the Hon Hui Yin-fat and a written reply by the Acting Secretary for Health and Welfare, Mr Gregory Leung, in the Provisional Legislative Council today (Wednesday): Question: In March/April this year, the Government revealed to the former Legislative Council and social service organizations that two studies on elderly recipients of assistance under the Comprehensive Social Security Assistance (CSSA) scheme were being conducted. One of the studies focused on the living conditions of the elderly who were CSSA recipients, while the other centred on studying the living conditions of the elderly who were eligible for CSSA but had not applied for it as well as their reasons for not applying. The Government indicated at the time that the results of these studies would be taken into account when a review of the rate of CSSA payment for the elderly and other aspects of the CSSA scheme, such as the prescribed asset limit, was undertaken. In this connection, will the Government inform this Council whether: (a) the two studies mentioned above have been completed; if so, when the results will be released; (b) elderly groups, social service organisations and the public will be consulted on the findings of the studies; if not, why not; and (c) the Government will consult elderly groups, social service organisations and the public when undertaking a review of the rate of CSSA payment for the elderly and the prescribed asset limit; if not, why not? Reply: President, (a) The survey component of the study on the elderly on CSSA has been completed. The report is being prepared and we expect work on this study to be completed within this month. The other study on non-CSSA elderly has also commenced and is expected to complete towards the end of this year. Members and relevant parties will be informed of the findings as and when the studies are completed. (b) and (c) We have been listening to the views of relevant parties as well as Members in relation to CSSA payments to the elderly. The two studies in question, specifically commissioned to solicit first hand the views of the 'affected parties', are part and parcel of the consultation exercise. End 18. "Repo agreements" between HKMA and other countries ************************************************** Following is a question by the Hon Chim Pui-chung and a written reply by the Acting Secretary for Financial Services, Mrs Rebecca Lai, in the Provisional Legislative Council today (Wednesday): Question: The Hong Kong Special Administrative Region Government recently lent US$1 billion from its Foreign Exchange Fund to Thailand for rescuing the Thai baht. However, the arrangement was not made by means of a bilateral repurchase agreement through the Hong Kong Monetary Authority (HKMA). In this connection, will the Government inform this Council: (a) of the nature and effects of the bilateral repurchase agreements made between the HKMA and its counterparts in the relevant countries; and (b) whether the procedures for using the Foreign Exchange Fund to assist foreign countries will be reviewed; if not, why not? Reply: Madam President, (a) The bilateral repurchase agreements the HKMA signed with ten other central banks and monetary authorities in the Asian region are agreements, in times of need, for the parties to those agreements to exchange between themselves US Treasury securities for US dollar cash balances for a short period of time. They are in effect agreements for lending US dollars against the full collateral of US Treasury securities without the assumption of credit risks to each other. The purpose of the bilateral repurchase agreements is for parties to those agreements to assist each other in enhancing the liquidity of their foreign reserves held in the form of US Treasury securities. (b) Whenever the Exchange Fund is used for this or any other strategic purpose, it is used strictly in accordance with the provisions of the Exchange Fund Ordinance laid down by the legislature. End 19. Protecting the interests and rights of investors ************************************************ Following is a question by the Hon Ngan Kam-chuen and a written reply by the Acting Secretary for Financial Services, Mrs Rebecca Lai, in the Provisional Legislative Council today (Wednesday): Question: It was reported that the branch manager of a securities company went missing recently and some investors suspected that they had been cheated of large sums of money. In this connection, does the Government know: (a) how does the Securities and Futures Commission (SFC) supervises broker's firms to ensure their strict compliance with the "Management, Supervision and Internal Control Guidelines for Persons Registered with or Licensed by the Securities and Futures Commission" so as to protect the rights and interests of investors; (b) whether the SFC has investigated, or has taken any disciplinary action against, those broker's firms which were alleged to have breached the above Guidelines since the promulgation of the Guidelines; (c) of the present progress of the plan under which investors can open individual Investor Accounts directly with the Central Clearing and Settlement System; and (d) of the measures which will be adopted by the SFC to enhance individual investors' knowledge of their own rights and interests? Reply: Madam President, (a) The Securities and Futures Commission (SFC) is responsible for supervising the market operation and ensuring that the relevant laws and regulations are observed. In respect of licensed intermediaries, it has made it clear that day to day compliance is the responsibility of management of the licensed entities. The publication of the Code of Conduct in February 1994 and the Management, Supervision and Internal Control Guidelines for Persons Registered with or Licensed by the SFC in May 1997 is to set out the Commission's clear expectation of management by the licensed entities. Consistent with the approach, the Commission has also taken the following steps in ensuring compliance - (i) ensure through its licensing procedures that only apparently fit and proper persons are licensed and authorised to manage licensed entities; (ii) undertake an extensive inspection programme which focuses on adherence to the Code and the Guidelines; and (iii) require action to remedy defects in systems, investigate and take action where it becomes aware of serious breaches. (b) Inspection visits are part of SFC's ongoing work in ensuring compliance. Since the publication of the Guidelines in May 1997, the SFC have conducted 135 inspection visits of registered or licensed entities which have led to three further inquiries and one restriction notice being issued. (c) Access to Central Clearing and Settlement System (CCASS) is currently limited to market intermediaries. The Hong Kong Securities Clearing Corporation, which is responsible for running the CCASS, is further developing the System to enable direct investor participation. Technical details are being worked out and progress so far remains on schedule. Direct access by investors is expected to be introduced from mid-1998 onwards. (d) The SFC has taken a number of initiatives to enhance investors' knowledge of the market and to improve their ability to protect their own rights and interest when investing in the market. These include the setting up of an Investor Education Unit in April 1996; the publications of a series of booklets and uploading their contents on the Internet; the launching of a series of educational stories on both newspaper and the Internet; broadcast of documentaries and publicity programmes on TV; operation of a telephone hotline to handle investor enquiries and complaints; and participation in exhibitions and seminars. The Commission will continue these activities, while also developing more publications on topics of interest, exploring other media for dissemination of educational messages, and co-ordinating educational activities with the Exchanges and other market bodies. End
