LC Paper No. FC120/98-99
(These minutes have been
seen by the Administration)

Ref : CB1/F/1/2

Finance Committee of the Legislative Council

Minutes of the 14th meeting
held at the Legislative Council Chamber
on Friday, 5 February 1999, at 2:30 pm

Members present :

Hon Ronald ARCULLI, JP (Chairman)
Hon CHAN Kam-lam (Deputy Chairman)
Hon Kenneth TING Woo-shou, JP
Hon HO Sai-chu, JP
Hon Cyd HO Sau-lan
Hon Edward HO Sing-tin, JP
Hon Michael HO Mun-ka
Dr Hon Raymond HO Chung-tai, JP
Hon Martin LEE Chu-ming, SC, JP
Hon LEE Kai-ming, JP
Dr Hon LUI Ming-wah, JP
Hon NG Leung-sing
Prof Hon NG Ching-fai
Hon Mrs Selina CHOW LIANG Shuk-yee, JP
Hon CHEUNG Man-kwong
Hon Ambrose CHEUNG Wing-sum, JP
Hon Christine LOH
Hon CHAN Kwok-keung
Hon CHAN Wing-chan
Hon LEUNG Yiu-chung
Hon Gary CHENG Kai-nam
Hon SIN Chung-kai
Dr Hon Philip WONG Yu-hong
Hon Jasper TSANG Yok-sing, JP
Hon Howard YOUNG, JP
Dr Hon YEUNG Sum
Hon Ambrose LAU Hon-chuen, JP
Hon CHOY So-yuk
Hon SZETO Wah
Hon LAW Chi-kwong, JP
Hon TAM Yiu-chung, JP
Hon FUNG Chi-kin

Members absent :

Hon James TIEN Pei-chun, JP
Hon David CHU Yu-lin
Hon Albert HO Chun-yan
Hon LEE Wing-tat
Hon LEE Cheuk-yan
Hon Eric LI Ka-cheung, JP
Dr Hon David LI Kwok-po, JP
Hon Fred LI Wah-ming
Hon Margaret NG
Hon MA Fung-kwok
Hon James TO Kun-sun
Hon HUI Cheung-ching
Hon CHAN Yuen-han
Hon Bernard CHAN
Dr Hon LEONG Che-hung, JP
Hon Mrs Sophie LEUNG LAU Yau-fun, JP
Hon Andrew WONG Wang-fat, JP
Hon WONG Yung-kan
Hon YEUNG Yiu-chung
Hon LAU Chin-shek, JP
Hon LAU Kong-wah
Hon LAU Wong-fat, GBS, JP
Hon Mrs Miriam LAU Kin-yee, JP
Hon Emily LAU Wai-hing, JP
Hon Andrew CHENG Kar-foo
Hon Timothy FOK Tsun-ting, JP
Dr Hon TANG Siu-tong, JP

Public officers attending :

Mrs Carrie LAM, JP
Deputy Secretary for the Treasury

Mr K K LAM
Principal Executive Officer (General), Finance Bureau

Mrs Margaret CHAN
Principal Assistant Secretary for Education and Manpower

Mr K B WAI
Assistant Director of Education (Allocation and Support)

Mr S K LEE
Assistant Director of Education (Services)

Ms Ada Y S FUNG
Project Manager/2 of Housing Department

Miss Monica CHEN
Principal Assistant Secretary for Health and Welfare

Mrs June SHERRY
Assistant Director of Social Welfare (Subventions)

Mrs Eliza LEUNG
Assistant Director of Social Welfare(Elderly and Medical Social Services)

Mr C W KO
Chief Architect of Housing Department

Mr C F REDSTON
Principal Assistant Secretary for the Civil Service (1)

Mr C K WONG
Assistant Director of Accounting Services

Mr Thomas CHAN
Principal Assistant Secretary for the Civil Service (Appointments)

Clerk in attendance :

Ms Pauline NG
Assistant Secretary General 1

Staff in attendance :

Miss Polly YEUNG
Chief Assistant Secretary (1)3

Ms Sarah YUEN
Senior Assistant Secretary (1)4



Item No. 1 - FCR(98-99)72

RECOMMENDATIONS OF THE ESTABLISHMENT SUBCOMMITTEE MADE ON 13 JANUARY 1999

The Committee approved the proposal.

Item No. 2 - FCR(98-99)73

RECOMMENDATIONS OF THE PUBLIC WORKS SUBCOMMITTEE MADE ON 20 JANUARY 1999

2. The Chairman advised that in response to the request of the Public Works Subcommittee (PWSC), Item PWSC(98-99)58 would be dealt with separately.

3. Mr Edward HO declared his interest as partner of one of the consultancy firms for project PWSC(98-99)61.

4. Paper FCR(98-99)73, except Item PWSC(98-99)58, was put to vote and approved.

PWSC(98-99)5889ET Special school in Yau Tong


5. In reply to Mr SZETO Wah's enquiry about the outcome of the consultation with the Ngau Tau Kok Holy Word School (NTKHWS), the Principal Assistant Secretary for Education and Manpower reported that the school authority of NTKHWS was consulted on 21 January 1999 and was generally satisfied with the facilities to be provided in the new school premises. Apart from a few proposed changes which might pose safety risks, the Administration had accepted most of the school's suggestions. Members noted that the estimated additional expenditure of $1.5 million to implement the school's proposals could be met from the provision for contingencies under the project estimate.

6. In this connection, Mr HO Sai-chu, Chairman of PWSC, also referred members to the information note PWSCI(98-99)28 provided by the Administration which had set out the details of its consultation with the school authority.

7. Item PWSC(98-99)58 was put to vote and approved.

Item No. 3 - FCR(98-99)74

LOTTERIES FUND
HEAD 341 - NON-RECURRENT GRANTS
‥ Subhead 138 Chinese Rhenish Church - Hong Kong Synod

8. The Committee approved the proposal.

Item No. 4 - FCR(98-99)75

HEAD 46 - GENERAL EXPENSES OF THE CIVIL SERVICE
‥ Subhead 038 Private tenancy allowance

9. The Committee approved the proposal.

Item No. 5 - FCR(98-99)76

HEAD 120 - PENSIONS
‥ Subhead 017 Surviving spouses' and children's pensions, widows' and orphans' pensions and increases

10. On the number of beneficiaries, the Principal Assistant Secretary for the Civil Service (Appointments) (PAS/CS(A)) advised that at present, there were about 3 000 and 2 349 pension recipients under the Widows and Orphans Pension Scheme and Surviving Spouses' and Children's Pensions Scheme respectively.

11. As regards the reason for a higher than expected number of new awards of dependent pension payments in the year, the Assistant Director of Accounting Services explained that due to an increase in the number of contributors who had passed away and in the number of recipients in the last nine months, the number of new awards was estimated to reach a total of 321 in 1998-99, which was 85 more than the original estimate of 236.

12. In explaining the mechanism for maintaining the real value of pension payments to beneficiaries under the two Schemes, PAS/CS(A) pointed out that the level of payments was adjusted annually on 1 April in accordance with the increase in the Consumer Price Index (A) in the previous year as stipulated in the Pensions (Increase) Ordinance and the Widows and Orphans Pension (Increase) Ordinance. On whether the level of pension payments would be adjusted downwards to reflect the current deflationary trend, PAS/CS(A) said that there were provisions in the two Ordinances to deal with inflation adjustments but there were no provisions on deflation adjustments.

13. The Committee approved the proposal.

14. The Committee was adjourned at 2:50 pm.


Legislative Council Secretariat
May 1999