LegCo Paper No. FC 12/96-97

FINANCE COMMITTEE

Minutes of the proceedings of the Meeting held on
19 July 1996 at 2:30 p.m. in the Legislative Council Chamber

Members Present :

    Dr Hon YEUNG Sum (Chairman)
    Hon Mrs Elizabeth WONG, CBE, ISO, JP (Deputy Chairman)
    Hon Allen LEE, CBE, JP
    Hon Martin LEE, QC, JP
    Hon Edward S T HO, OBE, JP
    Hon Ronald ARCULLI, OBE, JP
    Hon Mrs Miriam LAU Kin-yee, OBE, JP
    Dr Hon Edward LEONG Che-hung, OBE, JP
    Hon Albert CHAN Wai-yip
    Hon CHEUNG Man-kwong
    Hon Michael HO Mun-ka
    Dr Hon HUANG Chen-ya, MBE
    Hon Emily LAU Wai-hing
    Hon LEE Wing-tat
    Hon Eric LI Ka-cheung, OBE, JP
    Hon James TO Kun-sun
    Dr Hon Samuel WONG Ping-wai, MBE, FEng, JP
    Dr Hon Philip WONG Yu-hong
    Hon Howard YOUNG, JP
    Hon Zachary WONG Wai-yin
    Hon Christine LOH Kung-wai
    Hon James TIEN Pei-chun, OBE, JP
    Hon CHAN Kam-lam
    Hon CHAN Wing-chan
    Hon Andrew CHENG Kar-foo
    Hon Paul CHENG Ming-fun
    Dr Hon Anthony CHEUNG Bing-leung
    Hon CHEUNG Hon-chung
    Hon CHOY Kan-pui, JP
    Hon Albert HO Chun-yan
    Hon Ambrose LAU Hon-chuen, JP
    Dr Hon LAW Cheung-kwok
    Hon LAW Chi-kwong
    Hon LEE Kai-ming
    Hon LEUNG Yiu-chung
    Hon Bruce LIU Sing-lee
    Hon MOK Ying-fan
    Hon NGAN Kam-chuen
    Hon SIN Chung-kai
    Dr Hon John TSE Wing-ling
    Hon Lawrence YUM Sin-ling

Members Absent :

    Hon Mrs Selina CHOW, OBE, JP
    Dr Hon David K P LI, OBE, LLD (Cantab), JP
    Hon NGAI Shiu-kit, OBE, JP
    Hon SZETO Wah
    Hon LAU Wong-fat, OBE, JP
    Hon CHIM Pui-chung
    Hon Frederick FUNG Kin-kee
    Hon Fred LI Wah-ming
    Hon Henry TANG Ying-yen, JP
    Hon LEE Cheuk-yan
    Hon CHAN Yuen-han
    Hon CHENG Yiu-tong
    Hon David CHU Yu-lin
    Hon IP Kwok-him
    Hon LAU Chin-shek
    Hon LO Suk-ching
    Hon Margaret NG
    Hon TSANG Kin-shing

Public Officers Attending :

    Mr A R CLARK, JP
    Secretary, Port Development Board
    Mr Bernard LAM, JP
    Director of Civil Engineering
    Miss Sandy CHAN
    Principal Assistant Secretary for Housing (2)
    Mr Victor SO, JP
    Executive Director of Hong Kong Housing Society
    Mr Ambrose LAM
    Director (Finance and Administration) of Hong Kong Housing Society
    Mr Patrick NIP
    Principal Assistant Secretary for Trade and Industry
    Miss A C WATERS, JP
    Director of Intellectual Property
    Mr Stephen MAK, JP
    Assistant Director of Information Technology Services
    Mr Bowen LEUNG, JP
    Secretary for Planning, Environment and Lands
    Dr E G PRYOR, JP
    Principal Government Town Planner of Planning Department
    Ms Brenda AU
    Senior Town Planner of Planning Department
    Mr M J STOKOE
    Director of Environmental Protection
    Mr Elvis AU
    Principal Environmental Protection Officer of Environmental Protection Department
    Mr S P LAU, JP
    Assistant Director of Agriculture and Fisheries
    Mr William SHIU
    Principal Assistant Secretary for Housing (1)
    Mr Trevor KEEN
    Principal Assistant Secretary for Planning, Environment and Lands
    Mr C M MO, JP
    Principal Government Land Agent of Lands Department
    Mr Philip CHAN
    Principal Assistant Secretary for Security
    Mr B W MUNFORD, QPM, CPM
    Director of Management Services of Royal Hong Kong Police Force
    Mr Alex MA
    Chief Systems Manager of Royal Hong Kong Police Force
    Mr Daniel CHENG
    Principal Assistant Secretary for Health and Welfare (Medical)
    Dr FUNG Hong
    Deputy Director (Hospital Planning and Development) of Hospital Authority
    Mr P L KWAN
    Project Director of Architectural Services Department
    Ms Lorna WONG
    Principal Assistant Secretary for Health and Welfare (Elderly Services)
    Mr Paul WONG
    Assistant Director of Social Welfare (Subventions)
    Mrs Leslie HUNG
    Assistant Director of Social Welfare (Elderly and Medical Social Services)
    Mr Mike STONE, JP
    Deputy Secretary for the Civil Service
    Ms Maria KWAN, JP
    Deputy Secretary for Economic Services
    Ms Susan A LUKE
    Principal Assistant Secretary for Economic Services
    Mr Albert LAM
    Director of Civil Aviation
    Mr Alex AU
    Deputy Air Traffic General Manager
    Miss Angelina FUNG
    Principal Assistant Secretary for Education and Manpower
    Professor TAM Sheung-wai, OBE,JP
    Director of the Open Learning Institute of Hong Kong
    Mrs MOK WONG Wai-man
    Librarian of the Open Learning Institute of Hong Kong
    Mr S A A GAFOOR
    Principal Executive Officer, Education and Manpower Branch
    Mr K H LAU
    Assistant Director of Housing

    In Attendance :

    Mr K C KWONG, JP
    Secretary for the Treasury
    Mr Kevin HO, JP
    Deputy Secretary for the Treasury (1)
    Mrs Carrie LAM
    Deputy Secretary for the Treasury (3)
    Mrs Lilian WONG
    Principal Executive Officer (General), Finance Branch
    Miss Pauline NG
    Clerk to the Finance Committee
    Mrs Constance LI
    Chief Assistant Secretary (Finance Committee)
    Mr Andy LAU
    Senior Assistant Secretary (Finance Committee)

    The Chairman advised that a long agenda had been proposed by the Administration as this was the last meeting of the Finance Committee (FC) in the 1995-96 legislative session. To avoid overloading members with too many papers at one time, he had discussed with the Administration and agreed that, starting from the next session, not more than six discussion items should be included for each meeting except in very justifiable circumstances. If necessary, FC would meet every Friday in the new session to discuss financial proposals.

    Item No. 1 - FCR(96-97)46
    RECOMMENDATIONS OF THE ESTABLISHMENT SUBCOMMITTEE MADE ON 1 JULY 1996 AND 9 JULY 1996

    2. The Committee approved the proposal.

    Item No. 2 - FCR(96-97)60
    RECOMMENDATION OF THE ESTABLISHMENT SUBCOMMITTEE MADE ON 17 JULY 1996

    3. The Committee approved the proposal.

    Item No. 3 - FCR(96-97)47
    RECOMMENDATIONS OF THE PUBLIC WORKS SUBCOMMITTEE ON NON-AIRPORT CORE PROGRAMME MADE ON 1 JULY 1996 AND 10 JULY 1996

    4. At the request of a member, the Chairman directed that two items PWSC(96-97)32 and PWSC(96-97)43 be voted separately. The proposal in FCR(96-97)47, except the two items PWSC(96-97)32 and 43, was put to vote and approved.

    PWSC (96-97)32 41 FS Sheung Shui Slaughterhouse

    5. Messrs SIN Chung-kai and Albert CHAN Wai-yip indicated that while they were in support of the construction of Sheung Shui Slaughterhouse, they were gravely dissatisfied with the Government’s lack of an overall plan to reprovision old slaughter-houses currently situated in densely populated area. They considered that the Government should also reprovision the Tsuen Wan Slaughterhouse as in the case of Kennedy Town abattoir.

    6. The item was put to vote: the majority of members supported the proposal, while Messrs SIN Chung-kai and Albert CHAN Wai-yip voted against the proposal. The item was approved by the Committee.

    PWSC(96-97)43 107AP Dredging of Rambler Channel and Its Approaches

    7. Members noticed that according to the supplementary information note [PWSCI(96-97)8] issued to members before the meeting, even the Agriculture and Fisheries Department (AFD) considered that any effects of contaminants like heavy metals and other organochlorine pollutants on the Chinese White Dolphins were likely to be long-term. The disposal of contaminated mud at East Sha Chau might have adverse impact on the survival of Chinese White Dolphins which, incidentally, had been identified as a mascot for the Hong Kong Special Administrative Region. As AFD had commissioned a two-year study to ascertain such potential impacts, it was suggested that the disposal of contaminated mud at East Sha Chau should discontinue until the outcome of the study commissioned by AFD was known.

    8. In response, the Secretary, Port Development Board (Secy/PDB) advised that the independent studies conducted so far indicated that the current dredging and disposal method was regarded as the most appropriate, and there was no evidence of adverse environmental impacts from the disposal of contaminated mud at East Sha Chau. The Director of Environmental Protection further advised that to leave the contaminated mud at the dredged channel would pose a greater environmental risk than to dispose it properly at East Sha Chau. The Assistant Director of Agriculture and Fisheries added that the Government would continue to monitor the East Sha Chau disposal ground, and so far the findings did not reveal any serious threat to the survival of the Chinese White Dolphins.

    9. Some members noted that the location at East Sha Chau was selected in 1992 before the environmental impacts on the affected areas were fully assessed. Since AFD also acknowledged that there could be long term impact of the proposed disposal of contaminated mud at East Sha Chau and would commission a further study on the potential impact on Chinese White Dolphins, they considered it advisable for the Government to discontinue the disposal works pending the outcome of the study.

    10. On the consequences of discontinuing the dredging or disposal works, Secy/PDB emphasized that port development was important to the economy of Hong Kong as it generated about 20% of Hong Kong’s GDP, and port and port-related business provided employment for over 600,000 of our workforce. Delays in the project would have significant effects on Hong Kong’s capabilities to trade, considering that the container port of Hong Kong was not deep enough to accommodate the largest vessels which had already come into service.

    11. After discussion, some members including members of the Democratic Party maintained the view that, whilst they had no objections to the dredging itself, they had reservations about disposing contaminated mud dredged from the Rambler Channel at East Sha Chau, in view of the potential impact on the Chinese White Dolphins.

    12. The Chairman then put the item to vote: 10 members voted for the proposal, 28 members against and none abstained.

    Ayes :

    Hon Edward S T HO Hon Eric LI Ka-cheung
    Dr Hon Samuel WONG Ping-wai Dr Hon Philip WONG Yu-hong
    Hon Howard YOUNG Hon CHAN Kam-lam
    Hon CHAN Wing-chan Hon Paul CHENG Ming-fun
    Hon CHOY Kan-pui Hon NGAN Kam-chuen

    (10 members)

    Nos :

    Hon Allen LEE Hon Martin LEE
    Hon Ronald ARCULLI Hon Mrs Miriam LAU Kin-yee
    Dr Hon LEONG Che-hung Hon Albert CHAN Wai-yip
    Hon CHEUNG Man-kwong Hon Michael HO Mun-ka
    Dr Hon HUANG Chen-ya Hon Emily LAU Wai-hing
    Hon LEE Wing-tat Hon James TO Kun-sun
    Hon Zachary WONG Wai-yin Hon Christine LOH Kung-wai
    Hon Andrew CHENG Kar-foo Dr Hon Anthony CHEUNG Bing-leung
    Hon Albert HO Chun-yan Hon Ambrose LAU Hon-chuen
    Dr Hon LAW Cheung-kwok Hon LAW Chi-kwong
    Hon LEE Kai-ming Hon LEUNG Yiu-chung
    Hon Bruce LIU Sing-lee Hon MOK Ying-fan
    Hon SIN Chung-kai Dr Hon John TSE Wing-ling
    Hon Mrs Elizabeth WONG Hon Lawrence YUM Sin-ling

    (28 members)

    13. The proposal was negatived.

    Item No. 4 - FCR(96-97)48
    LOAN FUND
    HEAD 251 - HOUSING
    Hong Kong Housing Society

    • Subhead 114 Sandwich class housing

    14. The Chairman advised that the proposal had been discussed at the FC meeting on 21 June 1996, but withdrawn by the Administration in view of members’ request for further information. The Administration had since provided supplementary information to members and discussed with the LegCo Panel on Housing on 3 July 1996.

    15. Mr LEE Wing-tat, Chairman of the Housing Panel, informed members that the Panel supported the proposal after the meeting. In response to his concern about the progress in the Government’s delivery of sites and production of housing flats, the Principal Assistant Secretary for Housing (2) advised members that the Administration would endeavour to meet the housing production targets as scheduled and to resolve any problems encountered in the delivery of sites. She also clarified that the proposed loan would be released in stages to the Housing Society for payment of land premia for the sites, and would not lock in significant resources in one go and would not therefore have any impact on other public projects .

    16. A member expressed concern about the pricing policy for sandwich class housing. As the question touched on a wider policy aspect, the Chairman advised that the subject should be dealt with at the Housing Panel.

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    17. The Committee approved the proposal.

    Item No. 5 - FCR(96-97)49
    CAPITAL WORKS RESERVE FUND
    HEAD 710 - COMPUTERISATION
    Intellectual Property Department

    • New Subhead "Computerisation of the Patent Registration System"

    HEAD 78 - INTELLECTUAL PROPERTY DEPARTMENT

    • Subhead 001 Salaries

    18. Members noted that the item had been discussed at the FC meeting on 21 June 1996 and withdrawn by the Administration in view of members’ request for supplementary information. The present paper provided the supplementary information requested.

    19. In response to enquiries, the Principal Assistant Secretary for Trade and Industry confirmed that the fundamental justification of the computerised system for patents registration was independent of the passage of the specific contents of the Patents Bill now under scrutiny by the Legislative Council. The proposed computer system was to enable Hong Kong to maintain a register of patents in line with international practice, for the purpose of providing continuing protection of existing and new patents in Hong Kong after 1 July 1997.

    20. The Committee approved the proposal.

    Item No. 6 - FCR(96-97)61
    HEAD 118 - PLANNING DEPARTMENT
    • Subhead 700 General other non-recurrent

    "Consultancy study on sustainable development for Hong Kong"

    21. Members noted that the proposal was discussed at the last meeting held on 12 July 1996 and withdrawn by the Administration in the light of members’ comments and queries. Supplementary information had been provided by the Administration in the present paper. Members also noted that the estimated costs were reduced from $41.7 million to $40 million.

    22. Referring to the replies from the Secretary for Planning, Environment and Lands (SPEL) dated 17 and 18 July 1996, a member asked the Administration to clarify the processes for coordinating any possible changes to existing policies and plans arising from the proposed consultancy study. In response, SPEL advised that many of the existing large scale infrastructure projects were only at the early stage of planning, and the actual works still had to await the completion of various administrative and statutory processes. By the time these projects were to be implemented, the findings of the proposed consultancy would be available. If any changes to policies were considered necessary, these would be coordinated at the Chief Secretary level after consultation with the relevant policy secretaries, members of the public, the Legislative Council and other interested bodies. He stressed that as the study was to recommend on long-term planning strategies some ten to fifteen years ahead, there would be sufficient time to modify policies and plans. He assured members that the Central Government and the Executive Council had discussed and accepted the policy of sustainable development and its implications. The Government’s intention had also been reflected in the Third Review of the White Paper on the Environment.

    23. In reply to members, the Principal Government Town Planner of Planning Department (PGTP/PD) advised that the consultancy study would identify the problems and possible solutions associated with the pressures on resources and the environment generated from the population growth by 2011. Possible solutions could include such matters as improvements to existing sewage treatment systems or a new policy on fuel used by vehicles. SPEL added that the study was to find an integrated approach to set up community-based goals for the sustained development of Hong Kong. He emphasized that economic development, social needs and a good environment were not mutually exclusive.

    24. On the population estimates for 2011, SPEL clarified that it was only an assumption for strategic planning. Adjustments would be made to the population estimates with reference to the 1996 By-Census findings.

    25. Referring to the costs of the environmental and ecological baseline studies which represented almost half of the consultancy fees, PGTP/PD advised that the main objective of the consultancy study was to collect fundamental information in these areas. It was envisaged that the studies would need to cover a period of four seasons, and a lot of fieldwork and consultation with local experts would be required.

    26. Responding to a member’s question, SPEL advised that it would be important to promote public awareness and to have wide public consultation for the purpose of developing values and targets for future territorial development. As regards the timetable for public consultation, PGTP/PD advised that there would be twelve tasks, and some would be conducted in parallel. Public consultation would be phased to tie in with the delivery of technical reports arising from these studies. The Administration would also consult the Legislative Council on the findings of these reports. PGTP/PD undertook to provide members with a detailed programme on the consultancy study.

    xx

    27. The Committee approved the proposal.

    Item No. 7 - FCR(96-97)57
    CAPITAL WORKS RESERVE FUND
    HEAD 710 - COMPUTERISATION
    Government Secretariat : Housing Branch
    • New Subhead "Integrated Housing Information System"
    HEAD 150 - GOVERNMENT SECRETARIAT : HOUSING BRANCH
    HEAD 47 - INFORMATION TECHNOLOGY SERVICES DEPARTMENT
    HEAD 82 - BUILDINGS DEPARTMENT
    HEAD 91 - LANDS DEPARTMENT
    HEAD 118 - PLANNING DEPARTMENT
    HEAD 162 - RATING AND VALUATION DEPARTMENT
    • Subhead 001 Salaries

    28. Referring to the decrease in recurrent cost as compared to the figures provided to the LegCo Panel on Housing, the Principal Assistant Secretary for Housing (1) (PAS/H1) clarified that the estimates provided then were only preliminary calculations subject to further refinement. In the light of Panel members’ view, the Administration had carefully reviewed the system requirements and the possibility of further resource re-deployments. The Administration had now arrived at a lower and more realistic cost estimate for consideration by FC.

    29. On the suggestion that members of the public and the Legislative Council should be allowed access to the housing-related information stored in the proposed system, PAS/H advised that the Government was pursuing the suggestion to enhance transparency. He assured members that the information system would enable the Administration to improve the efficiency in responding to the Legislative Council on housing-related questions.

    30. In reply to a member, the Assistant Director of Information Technology Services Department (AD/ITSD) clarified that while the hardware of the proposed system would normally have a life span of five to six years, the software might serve a longer period if it could still meet the needs of the user departments. While the system would be under the supervision of the Housing Branch with input from over ten user departments, the ITSD would provide the necessary technical support and review its progress and effectiveness. PAS/H also agreed to review whether there was a need to coordinate, through the proposed computer system, the publication of various housing-related reports issued by departments.

    xx

    31. The Committee approved the proposal.

    Item No. 8 - FCR(96-97)56
    CAPITAL WORKS RESERVE FUND
    HEAD 710 - COMPUTERISATION
    Lands Department
    • New Subhead "Office Automation System for Lands Administration Office"

    32. A member commented that for computerisation projects of this kind, the Administration should also provide information on the anticipated benefits in terms of savings and enhancement of productivity. In response, the Secretary for the Treasury (S for Tsy) advised that computerisation projects were mainly justified on grounds of cost-effectiveness, and the savings to be achieved could be measured in terms of reduction in the number of staff or avoidance of future staff increases. He said that for the project under discussion, a cost-benefit analysis had been given at the enclosure though the savings arising from the implementation of the project were not readily quantifiable. Acknowledging the member’s concern that such projects should not only provide convenience to staff, but should also lead to some improvements in services to the public, the Principal Assistant Secretary for Planning, Environment and Lands (PAS/PEL) advised that the proposed system would enable the Lands Department to respond more quickly to public enquiries.

    33. As regards the evaluation of benefits to be achieved upon computerisation, AD/ITSD advised that reviews would normally be carried out six months after implementation of the computerisation projects. The Chairman suggested that the Administration should provide the relevant Panel a copy of the review report in due course.

    xx

    34. The Committee approved the proposal.

    Item No. 9 - FCR(96-97)53
    CAPITAL WORKS RESERVE FUND
    HEAD 710 - COMPUTERISATION
    Royal Hong Kong Police Force
    • Subhead A028YU Implementation of information technology strategy

    35. Members were generally in support of the Police requirements for modern information technology to maximise existing resources and to enhance efficiency. However, as the project was originally approved by FC in 1993, members expressed concern that there appeared to be delays in system implementation and the realization of anticipated savings. In response, the Director of Management Services of the Royal Hong Kong Police Force (DMS/RHKPF) admitted that the project had been delayed by about 18 months due to some re-engineering work to accommodate extra requirements and increase in workload. As a result, the present proposal sought an increase of $66 million in commitment to meet the increased costs. He assured members that Government was committed to achieving the anticipated savings of 569 posts upon implementation of the computerised systems. In 1996-97, 88 posts would be deleted as seven systems had been completed, and a further 317 posts would be deleted in 1997-98. He undertook to provide a breakdown of the posts scheduled for deletion.

    xx

    36. As to whether the computerised systems would bring about improvements to the report room procedures, DMS/RHKPF advised that the systems aimed at improving services to the public, and would facilitate crime search and retrieval of records such as loss reports. As regards enhancement of report room efficiency, the target was to complete the procedures within 3 1/2 hours, and urgent and life-threatening cases would be given priority. He added that word processing facilities would also be provided in the proposed systems.

    37. Concerning the monitoring of computerisation projects, DMS/RHKPF advised that the Department made regular progress reports to the Information Technology Strategy Steering Committee comprising representatives of the Finance Branch, ITSD and the policy branch. He assured members that the Department would endeavour to achieve the project deliverables on schedule.

    38. The proposal was approved.

    Item No. 10 - FCR(96-97)54
    CAPITAL WORKS RESERVE FUND
    HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
    Medical Subventions
    • Subhead 8012MD Kwong Wah Hospital - Low Block extension

    39. Several members sought clarifications on the background leading to the problem of incompatibility of the two projects submitted to FC for approval in 1993 and 1994. They queried why the problem could not be identified earlier before making the financial submissions. In response, the Administration explained that by tradition, capital projects of subvented hospitals were undertaken by consultants, as in the case of the re-provisioning project approved in 1993. The costs of such projects were to be shared between the hospitals concerned and the Government. Subsequently, in the context of an overall review of the refurbishment requirements of hospitals, the Hospital Authority sought the assistance of the Architectural Services Department (ASD) to undertake a refurbishment project for the main building of the Kwong Wah Hospital, and requested funding approval from FC in 1994. At the time the funding requests were made, only initial feasibility studies had been conducted, and the proposed projects were considered feasible as independent projects. However, when ASD proceeded with the detailed technical assessment following funding approval, interface problems were identified. In view of the space constraints and the blockage to the main entrance, ASD considered it inadvisable to proceed with both projects at the same time within a confined location. The hospital therefore had to look for other development options and the original proposals were shelved. The revised design in the present proposal would overcome the space constraint problem and provided flexibility for better planning and space utilisation. It would also result in greater cost-effectiveness due to a larger net usable area and a cheaper construction cost per square foot. In response to members’ request, the Administration undertook to provide an information paper on the background and developments leading to the present proposal, and to provide a cost comparison with similar projects.

    xx

    40. A member commented that the Administration should report to FC at an early stage when major changes were contemplated for approved projects. S for Tsy agreed that members should be kept informed. He noted that on financial control grounds, changes in the scope of projects approved by FC had to be resubmitted to members for approval. But where the changes were so significant that they would affect the provision of services for the achievement of a particular policy objective, as was the case in point, he considered it more appropriate for the development to be reported to the relevant LegCo Panel.

    41. Some members expressed concern whether consultancy fees had been paid for the original reprovisioning project approved in 1993 but not undertaken, the Administration agreed to provide further information to members. The Administration also noted members’ advice that, to avoid recurrence of similar situations, these projects should be examined carefully before seeking funding approval.

    xx

    42. The Committee approved the proposal.

    Item No. 11 - FCR(96-97)55
    CAPITAL WORKS RESERVE FUND
    HEAD 708 - CAPITAL SUBVENTIONS AND MAJOR SYSTEMS AND EQUIPMENT
    Medical Subventions
    • New Subhead "Reprovisioning of South Kwai Chung Specialist Out-patient Clinic"

    43. Noting that the proposed specialist clinic would be a ten-storey building situated at the upper hill of Lai King, some members expressed concern that the existing transport facilities might not be adequate. In response, the Principal Assistant Secretary for Health and Welfare advised that the Princess Margaret Hospital where the proposed clinic would be built was accessible by public light buses. To ensure that users of the clinic would be adequately served by public transport, the Deputy Director (Hospital Planning and Development) of Hospital Authority (DD/HA) advised that the Hospital Authority would follow up with the Transport Department and the District Board on the transport facilities.

    44. On the target average waiting time for new cases to receive specialist treatment in the New Territories South region, DD/HA advised that the existing waiting time for first appointment ranged from two to twelve weeks. The target would be to reduce it to below six weeks. In this respect, a member expressed dissatisfaction that there was no plan to improve the specialist clinic facilities for Tuen Mun residents who now suffered a much longer waiting time (i.e. about five months). He therefore queried the Administration on the priorities of improvement projects of this kind. In response, DD/HA advised that priorities were based on the demands in the districts and the conditions of the existing facilities. There were also plans to improve the specialist clinics in Tuen Mun. He agreed to provide further information on the average waiting time for specialist treatment in different districts, and the improvement programme for these facilities. The Chairman advised that the subject should more appropriately be dealt with by the relevant Panel.

    xx

    xx

    45. On the demolition of an existing four-storey staff quarters to make way for the construction of the specialist clinic, DD/HA advised that these quarters were now vacant following a change in staff housing policy after the establishment of the Hospital Authority. He undertook to provide further information on the utilisation of staff quarters.

    xx

    46. In reply to an enquiry, DD/HA advised that the Princess Margaret Hospital and Yan Chai Hospital would be able to meet the demands in the New Territories South region.

    47. On the additional recurrent expenditure, DD/HA advised that it comprised staff costs for about 20 nurses and some clerical staff, and other charges to meet electricity expenses for central air-conditioning. He took note of a member’s suggestion that a breakdown on the recurrent expenditure should be included in future papers.

    xx

    48. The proposal was approved.

    Item No. 12 - FCR(96-97)52
    LOTTERIES FUND
    HEAD 341 - NON-RECURRENT GRANTS
    • Subhead 896 Tung Wah Group of Hospitals

    49. On the policy governing the naming of donors for welfare capital projects, the Assistant Director of Social Welfare (AD/SW) advised that the sponsors to be named must contribute at least 20% of the project costs. For the present project, the donor(s) had undertaken to contribute $16 million which represented 20% of the total project estimate ($84 million). Should there be an increase in costs due to inflation or delays in construction, the sponsor would be requested to top up to 20% of the total expenses. AD/SW confirmed that the sponsors were aware of this requirement.

    50. Referring to the progress in meeting the targets for provision of welfare and rehabilitation services, AD/SW assured members that the targets would be fully achieved by 1998. The projects concerned were at present either under construction or awaiting allocation of suitable sites.

    51. The Committee approved the proposal.

    Item No. 13 - FCR(96-97)58
    HEAD 28 - CIVIL AVIATION DEPARTMENT
    • New Capital Account Subhead "Temporary Air Traffic Control Officers"

    52. Several members expressed dissatisfaction that the Government had yet to introduce the unified terms of appointment for expatriate and local staff, while many public organisations had already done so. As the anticipated vacancies would arise only in mid-1997, they had serious reservations that the Government was still contemplating to fill such vacancies by overseas recruitment. As overseas terms were more favourable than local terms particularly in the payment of housing allowance, they considered the arrangement inequitable in principle.

    53. In response, the Deputy Secretary for the Civil Service (DS/CS) advised that, in accordance with the existing Civil Service Regulations, the Government could only offer appointment either on overseas or local terms. In deciding whether a candidate should be appointed on overseas terms, the Government would base on the following considerations:-

    1. the candidate must not be a habitual resident of Hong Kong/Macau/Taiwan/China;
    2. he/she did not have a general background in Hong Kong/Macau/Taiwan/China; and
    3. he/she would suffer a material degree of dislocation if appointed on local terms.

    54. Responding to members’ queries, DS/CS further advised that while the Government had proposed to discuss with the Joint Liaison Group (JLG) a set of common terms of civil service appointment, the progress had been slower than expected. In this connection, he noted that Legislative Council Members had also written to JLG and the United Kingdom representative on JLG had promised to arrange early substantive discussion with the Chinese side. Pending the finalisation of the common terms of appointment, all civil service appointments had to be based on existing rules and regulations as mentioned above.

    55. On the additional costs to be incurred for employing staff on overseas terms, DS/CS advised that the difference was mainly on housing benefits, and the additional amount was approximately $16,000 per officer per month. He pointed out that the current rate of housing allowance for expatriate contract officers would only enable these officers to rent a reasonable, rather than extravagant accommodation during their contract period.

    56. As regards the proportion of civil servants appointed on overseas terms in recent years, DS/CS advised that 24, 20, 16 and 46 officers were offered overseas terms during the years 1992 to 1996. Comparing to about 7,000 to 9,000 new recruits each year, the number of overseas officers was rather insignificant. He added that expatriate officers were only engaged in case of genuine need, and the majority was for airport-related posts.

    57. On the recruitment difficulties of the Air Traffic Control Officer (ATCO) grade, the Director of Civil Aviation (DCA) explained that previous exercises only managed to recruit about half of the target number. He also advised that there was no local supply of qualified ATCOs except from in-service training. In the past ten years, the ATCO grade of the Civil Aviation Department experienced two major incidences of wastage, but the situation had stabilised recently. As to whether the Government should review the existing salary structure of the grade to attract more local candidates to join the grade, DCA considered that the existing terms were reasonable, and there were favourable responses to the latest recruitment exercise.

    58. Some members queried that it would be unnecessary to recruit from overseas if the Department had made genuine efforts to recruit locally. In reply, the Deputy Secretary for Economic Services (DS/ES) advised that despite the local recruitment efforts, there would still be a shortfall of 16 ATCO IIIs by mid-1997, mainly due to the increased demand in connection with the opening of the new airport. DCA explained that new recruits would require three years training to be qualified for non-radar operations. He confirmed that all ATCO IIIs would be promoted to the rank of ATCO IIs as soon as they became qualified for radar control duties, but due to the exceptionally large training demand in the next few years, there would be insufficient trainers at ATCO II level. The Department therefore proposed to hire 16 experienced officers from overseas as ATCO IIs for a fixed term of three years to bridge the gap.

    59. Some members enquired whether it would be possible to engage these overseas officers as consultants rather than civil servants so that the Government could offer a remuneration package comparable to the local terms. DS/CS advised that this was technically possible, subject to the operational considerations of the recruiting department. In this respect, DCA advised that local terms could not attract overseas candidates in the air traffic control field as they were highly marketable over the world.

    60. Some members were of the view that the Administration actually had sufficient time to conduct local recruitment to test the availability of local candidates before pursuing the option of overseas recruitment. In response, DS/ES explained that this would not be practicable due to the time constraint. She advised that the lead time for overseas recruitment normally took nine to twelve months to complete (including the stringent medical checks for the ATCOs). In addition, it was international practice to provide a six-month conversion training for new recruits after they had reported duty. DCA stressed that the Department was subject to a tight timetable and it was important to ensure adequate staffing for the opening of the new airport. In this connection, a member commented that insufficient experienced officers for airport operation would seriously hamper the efficiency and safety of flight operations.

    61. After discussion, several members remained dissatisfied that the Administration had not made attempts to recruit on local terms before resorting to overseas appointment. As the subject had been deliberated at great length, the Chairman directed that no further question might be asked and the proposal should be put to vote.

    62. The proposal was put to vote: 20 members voted for the proposal, 15 members voted against and two abstained.

    Ayes :

    Hon Allen LEE Hon Edward S T HO
    Hon Ronald ARCULLI Hon Mrs Miriam LAU Kin-yee
    Hon Eric LI Ka-cheung Dr Hon Samuel WONG Ping-wai
    Dr Hon Philip WONG Yu-hong Hon Howard YOUNG
    Hon Christine LOH Kung-wai Hon James TIEN Pei-chun
    Hon CHAN Kam-lam Hon CHAN Wing-chan
    Hon CHOY Kan-pui Hon Ambrose LAU Hon-chuen
    Dr Hon LAW Cheung-kwok Hon LEE Kai-ming
    Hon Bruce LIU Sing-lee Hon MOK Ying-fan
    Hon NGAN Kam-chuen Hon Mrs Elizabeth WONG

    (20 members)

    Nos :

    Hon Martin LEE Hon Albert CHAN Wai-yip
    Hon CHEUNG Man-kwong Hon Michael HO Mun-ka
    Dr Hon HUANG Chen-ya Hon LEE Wing-tat
    Hon James TO Kun-sun Hon Zachary WONG Wai-yin
    Hon Andrew CHENG Kar-foo Dr Hon Anthony CHEUNG Bing-leung
    Hon Albert HO Chun-yan Hon LAW Chi-kwong
    Hon LEUNG Yiu-chung Hon SIN Chung-kai
    Dr Hon John TSE Wing-ling

    (15 members)

    Abstentions :

    Hon Emily LAU Wai-hing Hon Lawrence YUM Sin-ling

    (2 members)

    63. The proposal was approved.

    Item No. 14 - FCR(96-97)59
    HEAD 176 - SUBVENTIONS : MISCELLANEOUS
    • New Capital Account Subhead "Grant to the Open Learning Institute of Hong Kong for the establishment of an electronic library"

    64. Members were in support of the proposed electronic library which was of vital importance to the teaching and learning in a tertiary institution. In reply to a member, the Director of the Open Learning Institute advised that according to the existing library rules, the facility would be available for use by staff and students, but not graduates of the Institute or students of other institutes.

    65. The proposal was approved.

    Item No. 15 - FCR(96-97)51
    CAPITAL WORKS RESERVE FUND
    HEAD 701 - LAND ACQUISITION
    HEAD 91 - LANDS DEPARTMENT
    • Subhead 221 Clearance of Crown land - ex-gratia allowances
    Ex-gratia domestic removal allowance

    66. Members generally supported the principle that improved rates should be adopted for the ex-gratia domestic removal allowance for families compulsorily cleared into public housing. However, some members were also concerned that the rates did not realistically reflect the actual fitting-out costs, and sought clarification on the basis of calculating these rates. In reply, the Assistant Director of Housing explained that the rate for basic fitting-out allowance was based on the tender price index, and larger families were given higher rates in view of the larger accommodation requiring fitting out. Some members considered that in most cases, these rates were insufficient and requested the Government to review the rates to ensure that these were realistic. PAS/PEL noted the suggestion, adding that it was the Government’s intention to carry out annual reviews of the rates.

    67. The proposal was approved.

    Item No. 16 - FCR(96-97)50
    CAPITAL WORKS RESERVE FUND
    HEAD 701 - LAND ACQUISITION
    Home Purchase Allowance

    68. Members supported the proposal in principle, particularly in relation to the objective to curb speculation. However, they expressed reservations about the details of the scheme such as the calculation of compensation and the implementation plan, and considered that these would require further deliberations. They therefore requested the Administration to withdraw the proposal so that the details could be thoroughly discussed at the relevant Panel before FC was invited to take a decision on the proposal. In response, PAS/PEL advised that he preferred not to withdraw the paper as there would be insufficient time to re-submit the proposal to the Executive Council and the Legislative Council in this legislative year. S for Tsy suggested and the Chairman agreed that the proposal should be put to vote.

    69. The proposal was put to vote and was negatived.

    70. The Committee was adjourned at 6:00 p.m.

    Legislative Council Secretariat
    28 October 1996


    Last Updated on 27 November 1998