LC Paper No. LS 220/98-99
Paper for the House Committee Meeting
of the Legislative Council
on 25 June 1999
Legal Service Division Report on
Resolution under section 29 of Public Finance Ordinance (Cap. 2)
The Secretary for Trade and Industry has given notice to move a motion under section 29 of the Public Finance Ordinance (Cap. 2) at the Legislative Council meeting on 30 June 1999. The purpose of this motion is to seek the Legislative Council's approval to set up a statutory fund called the Innovation and Technology Fund.
2. The proposed resolution provides that the Financial Secretary, or a public officer designated by him, will be responsible for the administration of the Fund. The Fund will have such appropriations from the general revenue as may be approved by the Legislative Council and other moneys as may be received by the Fund. It will be used to finance projects that contribute to innovation and technology upgrading in the manufacturing and service industries, as well as projects that contribute to the upgrading and development of the manufacturing and service industries, in accordance with such terms and conditions as may be specified by the Finance Committee.
3. A special meeting of the Panel on Trade and Industry held on 14 June 1999 had already discussed the proposed framework for the establishment of the Fund (please refer to LC Paper No. CB(1)1483/98-99(01)). A Legislative Council Brief (Ref: TIBCR 12/39/1) was issued on 17 June 1999 with similar contents. Members will note from the Paper and the Brief that the Administration has proposed that an advisory structure to undertake project assessment and monitoring will be set up, that individual projects costing more than $15 million each will be subject to the Finance Committee's approval and that this Fund will replace the Industrial Support Fund (ISF) and the Services Support Fund (SSF) as the funding source of projects which contribute to innvovation and technology upgrading as approved by the ISF and SSF. These proposals are not provided for in the proposed resolution.
4. In paragraph 19 of the LegCo brief, the Administration states that the Commission on Innovation and Technology, the Industry and Technology Development Council and the Trade and Industry Panel of the Legislative Council have been consulted. They generally supported the proposal.
5. According to the draft speech of the Secretary for Trade and Industry, another paper will be submitted to the Finance Committee on the detailed arrangements of the Fund for Members' discussion on 2 July 1999.
6. The legal and drafting aspects of the draft resolution are in order. Members are hereby reminded that notice of motion to amend the proposed resolution should be given on or before 23 June 1999.
Ho Ying-chu, Anita
Assistant Legal Adviser
Legislative Council Secretariat
21 June 1999