UPDATED AGENDA FOR FINANCE COMMITTEE MEETING
TO BE HELD ON FRIDAY, 27 APRIL 2012, AT 3:45 P.M.

Declaration of interest :Please refer to Rules 83A and 84 of the Rules of Procedure of the Legislative Council for rules regarding pecuniary interest to be disclosed.

Item No.Subject
1.FCR(2012-13)14CAPTIAL WORKS RESERVE FUND
HEAD 710 - COMPUTERISATON
Government Secretariat: Education Bureau
New Subhead "Infrastructure Enhancement for Education Information System"

(This item invites Members to approve a new commitment of $157,017,000 for enhancing the information technology infrastructure of the Education Information System of the Education Bureau.)

(In attendance : Under Secretary for Education/Deputy Secretary for Education (6)/Chief Systems Manager (Information Technology Management), Education Bureau)

(Discussed by Education Panel on 9 January 2012)

2.FCR(2012-13)15LOAN FUND
HEAD 252 - LOANS TO SCHOOLS/TEACHERS
Subhead 104 Loans to non-profit-making international schools
Capital assistance loan to the Kellett School Association Limited

(This item invites Members to approve -

(a)an increase in commitment under Head 252 Loans to Schools/Teachers
Subhead 104 Loans to non-profit-making international schools of the Loan Fund by $203.83 million; and

(b)an allocation of $203.83 million from the Loan Fund for providing an interest-free loan to the Kellett School Association Limited towards meeting part of the construction cost of its new school premises at the juncture of Kai Cheung Road and Wang Kwong Road, Kowloon Bay, Kowloon.)

(In attendance : Under Secretary for Education/Deputy Secretary for Education (2)/Principal Assistant Secretary for Education (Infrastructure and Research Support))

(Discussed by Education Panel on 13 February 2012)

3.FCR(2012-13)16CAPITAL WORKS RESERVE FUND
HEAD 701 - LAND ACQUISITION
Ex-gratia allowances for mariculturists affected by marine works projects in Hong Kong waters

(This item invites Members to approve –

(a)for the current mechanism for granting ex-gratia allowance to mariculturists affected by marine works projects in Hong Kong waters, an extension of the applicability of the proximity criterion to cover large-scale marine mud dredging or reclamation fill deposition operations;

(b)as a one-off, special arrangement taking account of the number and scale of planned marine works projects at Western waters in the next few years, the payment of a special ex-gratia allowance to affected mariculturists of the fish culture zones located at the Western waters; and

(c)the revisions to the survey methodology for calculating the rates of ex-gratia allowance for mariculturists affected by marine works projects.)

(In attendance : Secretary for Food and Health/Permanent Secretary for Food and Health (Food)/Director of Agriculture, Fisheries and Conservation/Assistant Director of Agriculture, Fisheries and Conservation (Fisheries))

(Discussed by Food Safety and Environmental Hygiene Panel on 13 March 2012)

4.FCR(2012-13)17CAPITAL WORKS RESERVE FUND
HEAD 701 - LAND ACQUISITION
Ex-gratia allowances for fishermen affected by marine works projects in Hong Kong waters

(This item invites Members to approve an increase in the basis for calculating the ex-gratia allowance for fishermen affected by marine works projects –

(a)from seven years to 11 years’ notional value of fish catch in the affected area in respect of marine works resulting in a permanent loss of fishing grounds; and

(b)from three years to five years’ notional value of fish catch in the affected area in respect of marine works resulting in a temporary loss of fishing grounds.)

(In attendance : Secretary for Food and Health/Permanent Secretary for Food and Health (Food)/Director of Agriculture, Fisheries and Conservation/Assistant Director of Agriculture, Fisheries and Conservation (Fisheries))

(Discussed by Food Safety and Environmental Hygiene Panel on 13 March 2012)

5.FCR(2012-13)18LOAN FUND
HEAD 262 - PRIMARY PRODUCTS
Subhead 101 Fisheries Loans
Subhead 132 Fish Marketing Organization Loan Fund - fishing moratorium loan scheme

(This item invites Members to approve –

For Subhead 101 Fisheries Loans

(a)expanding the scope of the Fisheries Development Loan Fund (FDLF) to provide loans to capture fishermen and owners of fish collectors at an interest rate at 2.5% per annum (p.a.), for switching to more sustainable fisheries operations and other fisheries-related operations, and for carrying out projects that will reduce fuel consumption or carbon footprint of their operations (without increasing fishing effort);

(b)providing one-off loans to owners of trawlers and fish collectors affected by the trawl ban at an interest rate at 1% p.a. for the full term of the loan tenure, if the application is submitted on or before 31 December 2015, for upgrading their vessels to operate outside Hong Kong waters, or switching to more sustainable fisheries operations and other fisheries-related operations, or for carrying out projects that will reduce fuel consumption or carbon footprint of their operations (without increasing fishing effort);

(c)adjusting the security requirements of the FDLF as follows –

(i)in respect of all loans, lifting the existing requirement of providing guarantors if the borrower has provided acceptable/sufficient securities such as bank guarantee, properties and vessels;

(ii)in respect of loans not exceeding $500,000, lifting the collateral requirement if the borrower has provided at least one guarantor for the loan and the income and assets of the guarantors will be able to repay in case of default of the borrower; and

(iii)accepting up to 95% of the construction cost of a newly constructed fishing vessel or fish collector, or 95% of the estimated market selling price of a vessel provided as collateral;

(d)streamlining the loan processing procedures;

For Subhead 132 Fish Marketing Organization Loan Fund - fishing moratorium loan scheme

(e)increasing the loan ceiling per vessel of the fishing moratorium loans from $150,000 to a maximum of $250,000, which may be revised on the advice of the Fish Marketing Advisory Board (FMAB) taking into consideration fuel price, operating environment of the fishermen and the details of the fishing moratorium, provided that the maximum amount for each loan would not exceed $300,000; and

(f)under exceptional circumstances and on the advice of the FMAB, adjusting the interest rate charged on borrowers from 2% p.a. down to a minimum of 1% p.a..)

(In attendance : Secretary for Food and Health/Permanent Secretary for Food and Health (Food)/Director of Agriculture, Fisheries and Conservation/Assistant Director of Agriculture, Fisheries and Conservation (Fisheries))

(Discussed by Food Safety and Environmental Hygiene Panel on 10 April 2012)

6.FCR(2012-13)19HEAD 152 - GOVERNMENT SECRETARIAT : COMMERCE AND ECONOMIC DEVELOPMENT BUREAU (COMMERCE, INDUSTRY AND TOURISM BRANCH)
Subhead 700 General non-recurrent
New Item "Mega Events Fund"

(This item invites Members to approve the creation of a new commitment of $150 million for extending the operation of the Mega Events Fund to attract more internationally-acclaimed mega events to Hong Kong and reinforce Hong Kong’s position as the Events Capital of Asia.)

(In attendance : Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)/Commissioner for Tourism/ Deputy Commissioner for Tourism/Assistant Commissioner for Tourism)

(Discussed by Economic Development Panel on 26 March 2012)

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