OFFICIAL RECORD OF PROCEEDINGS Wednesday, 12 ...

LEGISLATIVE COUNCIL ― 12 January 2022

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OFFICIAL RECORD OF PROCEEDINGS

Wednesday, 12 January 2022

The Council met at Eleven o’clock

MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.M., G.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, G.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE STARRY LEE WAI-KING, S.B.S., J.P. THE HONOURABLE CHAN HAK-KAN, S.B.S., J.P. THE HONOURABLE CHAN KIN-POR, G.B.S., J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.M., G.B.S., J.P. THE HONOURABLE PAUL TSE WAI-CHUN, J.P. THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. THE HONOURABLE STEVEN HO CHUN-YIN, B.B.S., J.P. THE HONOURABLE FRANKIE YICK CHI-MING, S.B.S., J.P.

LEGISLATIVE COUNCIL ― 12 January 2022 2

THE HONOURABLE MA FUNG-KWOK, G.B.S., J.P. THE HONOURABLE CHAN HAN-PAN, B.B.S., J.P. THE HONOURABLE ALICE MAK MEI-KUEN, B.B.S., J.P. THE HONOURABLE MARTIN LIAO CHEUNG-KONG, G.B.S., J.P. IR DR THE HONOURABLE LO WAI-KWOK, G.B.S., M.H., J.P. THE HONOURABLE JIMMY NG WING-KA, B.B.S., J.P. THE HONOURABLE HOLDEN CHOW HO-DING THE HONOURABLE SHIU KA-FAI, J.P. THE HONOURABLE CHAN CHUN-YING, J.P. THE HONOURABLE CHEUNG KWOK-KWAN, J.P. THE HONOURABLE LUK CHUNG-HUNG, J.P. THE HONOURABLE LAU KWOK-FAN, M.H., J.P. THE HONOURABLE KENNETH LAU IP-KEUNG, B.B.S., M.H., J.P. THE HONOURABLE VINCENT CHENG WING-SHUN, M.H., J.P. THE HONOURABLE TONY TSE WAI-CHUEN, B.B.S., J.P. THE HONOURABLE DOREEN KONG YUK-FOON THE HONOURABLE CHU KWOK-KEUNG THE HONOURABLE STANLEY LI SAI-WING, M.H.


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DR THE HONOURABLE HOEY SIMON LEE, M.H., J.P. THE HONOURABLE ROBERT LEE WAI-WANG THE HONOURABLE DOMINIC LEE TSZ-KING IR THE HONOURABLE LEE CHUN-KEUNG DR THE HONOURABLE TIK CHI-YUEN, S.B.S., J.P. THE HONOURABLE STANLEY NG CHAU-PEI, S.B.S. THE HONOURABLE CHAU SIU-CHUNG DR THE HONOURABLE DAVID LAM TZIT-YUEN THE HONOURABLE LAM CHUN-SING THE HONOURABLE LAM SO-WAI THE HONOURABLE LAM SAN-KEUNG, J.P. THE HONOURABLE ANDREW LAM SIU-LO, S.B.S., J.P. THE HONOURABLE YIU PAK-LEUNG, M.H. PROF THE HONOURABLE SUN DONG THE HONOURABLE DENNIS LEUNG TSZ-WING, M.H. THE HONOURABLE LEUNG MAN-KWONG, M.H. THE HONOURABLE EDWARD LEUNG HEI THE HONOURABLE CHAN YUET-MING THE HONOURABLE CHAN YUNG, B.B.S., J.P.


THE HONOURABLE SUNNY TAN THE HONOURABLE MAGGIE CHAN MAN-KI, M.H., J.P. IR THE HONOURABLE CHAN SIU-HUNG, J.P. THE HONOURABLE CHAN HOI-YAN THE HONOURABLE JOEPHY CHAN WING-YAN THE HONOURABLE CHAN HOK-FUNG, M.H., J.P. IR THE HONOURABLE GARY ZHANG XINYU DR THE HONOURABLE WONG YUEN-SHAN THE HONOURABLE KENNEDY WONG YING-HO, B.B.S., J.P. THE HONOURABLE EDMUND WONG CHUN-SEK THE HONOURABLE KINGSLEY WONG KWOK, B.B.S., J.P. THE HONOURABLE YANG WING-KIT REVD CANON THE HONOURABLE PETER DOUGLAS KOON HO-MING, B.B.S. THE HONOURABLE TANG FEI, M.H. THE HONOURABLE TANG KA-PIU, B.B.S., J.P. PROF THE HONOURABLE LAU CHI-PANG, B.B.S., J.P. THE HONOURABLE LOONG HON-BIU THE HONOURABLE NGAN MAN-YU


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THE HONOURABLE CARMEN KAN WAI-MUN THE HONOURABLE YIM KONG MEMBERS ABSENT: THE HONOURABLE KWOK WAI-KEUNG, J.P. THE HONOURABLE ELIZABETH QUAT, B.B.S., J.P. DR THE HONOURABLE JUNIUS HO KWAN-YIU, J.P. THE HONOURABLE YUNG HOI-YAN, J.P. DR THE HONOURABLE JOHNNY NG KIT-CHONG, M.H. DR THE HONOURABLE CHOW MAN-KONG THE HONOURABLE NIXIE LAM LAM PROF THE HONOURABLE NELSON LAM CHI-YUEN, J.P. PROF THE HONOURABLE DENNIS LAM SHUN-CHIU, J.P. THE HONOURABLE DUNCAN CHIU DR THE HONOURABLE WENDY HONG WEN THE HONOURABLE KENNETH LEUNG YUK-WAI, J.P. THE HONOURABLE ROCK CHEN CHUNG-NIN, S.B.S., J.P. THE HONOURABLE CHAN PUI-LEUNG


THE HONOURABLE JUDY CHAN KAPUI, M.H. THE HONOURABLE LILLIAN KWOK LING-LAI THE HONOURABLE BENSON LUK HON-MAN THE HONOURABLE LAI TUNG-KWOK, G.B.S., I.D.S.M., J.P. THE HONOURABLE KENNETH FOK KAI-KONG, J.P. DR THE HONOURABLE TAN YUEHENG, J.P. THE HONOURABLE SO CHEUNG-WING, S.B.S., J.P. PUBLIC OFFICERS ATTENDING: THE HONOURABLE JOHN LEE KA-CHIU, S.B.S., P.D.S.M., J.P. CHIEF SECRETARY FOR ADMINISTRATION THE HONOURABLE PAUL CHAN MO-PO, G.B.M., G.B.S., M.H., J.P. FINANCIAL SECRETARY THE HONOURABLE TERESA CHENG YEUK-WAH, G.B.M., G.B.S., S.C., J.P. SECRETARY FOR JUSTICE THE HONOURABLE WONG KAM-SING, G.B.S., J.P. SECRETARY FOR THE ENVIRONMENT DR THE HONOURABLE LAW CHI-KWONG, G.B.S., J.P. SECRETARY FOR LABOUR AND WELFARE THE HONOURABLE FRANK CHAN FAN, J.P. SECRETARY FOR TRANSPORT AND HOUSING


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PROF THE HONOURABLE SOPHIA CHAN SIU-CHEE, J.P. SECRETARY FOR FOOD AND HEALTH THE HONOURABLE EDWARD YAU TANG-WAH, G.B.S., J.P. SECRETARY FOR COMMERCE AND ECONOMIC DEVELOPMENT, AND SECRETARY FOR FINANCIAL SERVICES AND THE TREASURY THE HONOURABLE MICHAEL WONG WAI-LUN, J.P. SECRETARY FOR DEVELOPMENT THE HONOURABLE KEVIN YEUNG YUN-HUNG, J.P. SECRETARY FOR EDUCATION THE HONOURABLE PATRICK NIP TAK-KUEN, J.P. SECRETARY FOR THE CIVIL SERVICE, AND SECRETARY FOR HOME AFFAIRS THE HONOURABLE ALFRED SIT WING-HANG, J.P. SECRETARY FOR INNOVATION AND TECHNOLOGY THE HONOURABLE ERICK TSANG KWOK-WAI, I.D.S.M., J.P. SECRETARY FOR CONSTITUTIONAL AND MAINLAND AFFAIRS THE HONOURABLE TANG PING-KEUNG, P.D.S.M., J.P. SECRETARY FOR SECURITY CLERK IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL THE CHIEF EXECUTIVE TO ADDRESS THE COUNCIL AND ANSWER QUESTIONS PUT BY MEMBERS.


THE CHIEF EXECUTIVE'S QUESTION AND ANSWER SESSION PRESIDENT (in Cantonese): Members please stand up while the Chief Executive enters the Chamber. (The Chief Executive entered the Chamber) PRESIDENT (in Cantonese): The Chief Executive will first address the Council. CHIEF EXECUTIVE (in Cantonese): President and Honourable Members, good morning. First of all, let me congratulate Mr Andrew LEUNG on being re-elected as the President of the Legislative Council (“LegCo”), continuing to lead LegCo in fulfilling its responsibilities in the four years ahead. Today is the first meeting of the Seventh LegCo of the Hong Kong Special Administrative Region (“HKSAR”) of the People’s Republic of China (“PRC”). The display of the national and regional emblems in the Chamber marks a milestone of the political system of HKSAR. The current-term LegCo is the first Council formed by HKSAR in accordance with the decision passed by the National People’s Congress (“NPC”) in March last year and the subsequent amendment of Annex I and Annex II to the Basic Law by the Standing Committee of NPC to implement the improved electoral system of HKSAR, ensuring “patriots administering Hong Kong”. Last Monday, with myself as the Administer of Oath, all 90 Members solemnly took an oath to uphold the Basic Law and swear allegiance to HKSAR of PRC and from then on, you will duly perform the constitutional functions of the legislature. I hereby extend my congratulations again to each and every elected Member and promise that the governing team under my leadership will cooperate wholeheartedly with all Members during my tenure of office. Today is the first Council meeting convened under the current-term LegCo. As our top priority remains to put under control the epidemic situation caused by the Omicron variant with our best endeavours, I believe Members’ questions to be raised later on will focus on this issue. As I have publicly talked about our anti-epidemic efforts on quite a number of occasions during the past week, I would like to take this opportunity of attending the Council meeting to brief Members on our work on three other fronts instead, i.e. to foster an executive-legislature relationship, take forward the development of the Northern Metropolis and reorganize the government structure.


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Executive-legislature relationship Over the years, those who are anti-China and who have attempted to destabilize Hong Kong had tried to politicize council businesses and made it difficult for LegCo to fully perform its functions in fostering mutual cooperation with the executive authorities while exercising checks and balances, and supporting the executive-led approach in developing the economy and improving people’s livelihood. Since the opposition Members left LegCo at the end of 2020, 2021 has been a fruitful year marked with a constructive and interactive relationship between LegCo and the executive authorities with remarkable achievements. LegCo passed 46 Government Bills last year, doubling the average of past years. Over $320 billion was approved for the Government to take forward infrastructure and other livelihood projects. I have also exercised the constitutional power of the Chief Executive to approve in writing two Member’s Bills. Such achievements brought about by the cooperation between the executive authorities and the legislature have opened up an era of good administration and governance. Members of the current-term LegCo have come from different backgrounds, trades or professions which reflect their broad representation and political inclusiveness. Irrespective of whether they were elected through the Election Committee Subsector, functional constituencies or geographical constituencies, they will reflect the voices of different sectors in society, and despite their differences, they will work in harmony for the well-being of the people and the development of Hong Kong. My governing team and I look forward to working in full cooperation with all Members to produce actual results in our work under the improved electoral system, so that our efforts will earn recognition of the public and demonstrate the advantages of the new system and lay a solid foundation for the healthy and long-term development of democracy in Hong Kong. In support of the work of LegCo, I will regularly attend the Question and Answer Sessions of varying durations to respond directly to Members’ questions. I also request officials to give simple, clear and well-justified replies to the oral questions at the Council meetings. In the process of policy formulation, the Secretaries of Departments and Directors of Bureaux should also have formal or informal exchanges with Members and consult the relevant LegCo Panels as early as possible. The Chief Secretary for Administration will also maintain communication with the Chairman and Deputy Chairman of the House Committee


through weekly meetings. The HKSAR Government itself will certainly spare no effort in information dissemination and public communication on policies to enlist public support. Enacting and amending laws are the important functions of LegCo. When delivering the 2021 Policy Address, I announced 40 legislative proposals proposed to be presented to the current-term LegCo. These 40 proposals cover legislative proposals with strong policy content known at the time. They have not included the more technical legislative amendments. Hence, there will eventually more bills to be introduced into the current-term LegCo. Many of the 40 proposals are issues of concerns among incumbent Members, including amending the Copyright Ordinance for which a consultation exercise is underway, introducing mandatory reporting to prevent child abuse, raising the maximum penalties for occupational safety and health offences, abolishing the “offsetting” arrangement under the Mandatory Provident Fund system, streamlining the statutory procedures for land development, and enacting local legislation to implement Article 23 of the Basic Law in Hong Kong. The Chief Secretary for Administration is in the process of coordinating the legislative programme of the current session, which will be submitted to LegCo for reference in due course. It seems that this year’s legislative work will be pretty heavy. The Northern Metropolis The Northern Metropolis is a key plan to map out the future of Hong Kong in the 2021 Policy Address. Its planning concepts and spatial layout will facilitate Hong Kong’s integration into the overall development of our country and help us seize the opportunities brought about by the Greater Bay Area (including Qianhai), as well as our attempt to usher into a new era by addressing problems such as economic transformation, employment, housing, transport and imbalanced territorial development. Since the promulgation of the Northern Metropolis Development Strategy (“the Development Strategy”), as at end of last year, we have taken stock of over 300 editorials and commentary articles. The community in general supports the development of the Northern Metropolis with fairly positive responses, some of which stated that the Government “should be recognized as it has demonstrated a broader and holistic mindset and setting for development”, and “brought hopes that the housing shortage problem could be resolved”, while some pointed out that the Government “should have the determination and courage to act out of the box” to


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rise up to the tremendous challenges posed by the implementation of the Development Strategy. There were many well-intentioned criticisms, including, among others, execution is the key, as well as the need to expedite implementation by streamlining and removing red tapes, overcome the problem of manpower shortage in the construction and other industries, and strengthen cross-bureaux collaboration. To meet the community expectations on the Northern Metropolis, I have urged the relevant bureaux to lose no time in taking follow-up actions on various key issues in respect of the Development Strategy. Before I move on to talk about specific projects, let me reiterate the importance for society to create favourable enabling conditions for the Development Strategy, so as to ensure that the vision can be followed through and accomplished. First, the land development process should be substantially streamlined. To achieve full implementation of the Development Strategy within 20 years, bold decisions should be made to compress the land planning process. The Development Bureau will introduce to LegCo specific proposals on streamlining land development process in this quarter, which will cover a number of ordinances such as the Town Planning Ordinance, the Lands Resumption Ordinance and the Environmental Impact Assessment Ordinance. Second, there should be effective land consolidation and disposal. We will study the development of innovation and technology (“I&T”) land under a mixed development mode. Apart from continuing to develop multi-storey industrial buildings for the production and research and development (“R&D”) undertaken by small and medium enterprises, we will consider adopting the “two-envelope” tender approach for granting land to major I&T enterprises, after taking into account both the technical and price proposals. Such enterprises will be allowed to build R&D or production facilities on their own, thereby attracting high-end manufacturing industries and R&D institutes to establish a presence in Hong Kong. In addition, there is a considerable amount of Tso/Tong land in the Northern Metropolis. The Home Affairs Bureau and the Heung Yee Kuk have convened their first meeting to discuss unlocking the development potential of Tso/Tong land. Third, policies conducive to the development of industries and talents should be formulated. Apart from land policy, we need to be more open-minded in considering policy incentives to attract enterprises and talents from the Mainland


and overseas to come to Hong Kong for development. The Global STEM Professorship Scheme launched in mid-2021 is a huge success, showing the attractiveness of Hong Kong to overseas quality R&D talents. Recently, I have convened inter-bureau meetings within the Government to discuss policies and specific measures to pool and retain talents and human resources in Hong Kong. Fourth, the execution mechanism should be strengthened. As large-scale development projects straddle across various Policy Bureaux, I have proposed in the Policy Address that the next-term Government may consider creating a Deputy Secretary of Department post to steer large-scale regional developments such as the Northern Metropolis and the Lantau Tomorrow Vision, and strengthen high-level steer, promote cross-bureaux collaboration, formulate indicators for performance monitoring, and liaise closely with the Shenzhen Municipal Government. I will talk about the part on reorganization of the government structure a moment later. I hope that Members can actively share their views with the Government on the several aspects mentioned above when discussing the Development Strategy inside and outside the Council in future. I will now brief Members on the progress and direction of several key initiatives. With reference to the transport infrastructure-led concept, the HKSAR Government has discussed three cross-boundary projects of the five railway projects recommended in the Development Strategy with the Shenzhen Municipal Government at the working level. I plan to visit Shenzhen and meet with the leaders of the Municipality for an exchange of views in due course. On the Hong Kong side, the Transport and Housing Bureau is considering the locations for additional stations along the Hong Kong section of the Hung Shui Kiu/Qianhai Railway. Regarding the northern spur line of the Northern Link, we have requested the MTR Corporation Limited to submit technical and financial proposals of the spur line within this year. An important objective of the Development Strategy is to create more land for housing, I&T and commercial development, which involves an additional 600 hectares of land and 160 000 to 180 000 residential units in four areas. The Development Bureau has incorporated the two areas of the San Tin Technopole and the Lo Wu/Man Kam To Comprehensive Development Node into the planning and engineering studies on the San Tin/Lok Ma Chau Development Node, and the New Territories North New Town and Man Kam To that commenced in October


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last year. As for the other two areas, namely the expansion of the Hung Shui Kiu/Ha Tsuen New Development Area (“HSK/HT NDA”) to cover Tsim Bei Tsui, Lau Fau Shan and Pak Nai, and the extension of the Kwu Tung North New Development Area (“KTN NDA”) to cover Ma Tso Lung, the relevant studies will commence within this year. Furthermore, the Development Bureau is planning to rezone around 3 hectares of Business and Technology Park sites in KTN NDA for housing development in the second half of this year. Compared with the new town developments in the past, we have attached greater importance to employment opportunities in the Northern Metropolis. Apart from the San Tin Technopole, HSK/HT NDA within the Northern Metropolis enjoys the advantage of its proximity to Qianhai on the opposite side of the Shenzhen Bay, and has the potential to develop into a business and modern services centre. I have instructed that the Government should take up the role as the pioneer and relocate certain non-location-bound government departments to the Northern Metropolis to promote development of the region and create employment opportunities there. The Development Bureau has already identified a site in KTN NDA for the construction of a government complex. The Government Property Agency will also complete a study in the first quarter of this year to decide on the government offices to be relocated to the Northern Metropolis. To lend support to this move, the Hong Kong Housing Society has taken the lead to set aside space in its Northern Metropolis regional office in Fanling to set up the first proptech co-working space in Hong Kong in collaboration with Cyberport. Start-ups will be invited to set up their businesses in the co-working space within this year. We need to plan early for the provision of major community facilities in the Metropolis to make it a liveable place. When the Secretary for Food and Health and I met with the Chairman and the Chief Executive of the Hospital Authority earlier on, both sides agreed in principle that three hospitals would be provided in the Northern Metropolis either by expansion or construction. Among them, the expansion of the North District Hospital has commenced and will provide an additional 1 500 beds upon completion in 2028. The Kwu Tung North Hospital, which is expected to become the core hospital in the Northern Metropolis, will provide at least 1 600 beds according to preliminary estimates. Given its proximity to the San Tin Technopole, the Kwu Tung North Hospital will serve as a research hospital with comprehensive functions. It will provide treatment and consultation services and engage in medical R&D and fulfil teaching purposes as


well, thus achieving synergy with life sciences industry in the San Tin Technopole. Furthermore, the Food and Health Bureau is considering increasing the number of beds in the proposed Hung Shui Kiu Hospital to over 2 000. In addition to public hospitals, we also plan to allocate land in the Northern Metropolis for the development of private hospitals. Besides, the Home Affairs Bureau will submit funding application to LegCo for the construction of a cultural centre in Fanling within this year. The Northern Metropolis attaches importance to urban-rural integration and coexistence of development and conservation. To ascertain the coverage and management models of the three Wetland Conservation Parks respectively located in Nam Sang Wai, Sam Po Shue and Hoo Hok Wai, the Sha Ling/Nam Hang Nature Park and the Hong Kong Wetland Park Extension Area, as well as to assess the effectiveness of relevant measures on creating environmental capacity, the Environment Bureau is making preparations for the commissioning of a consultancy study within this year. Besides, the Bureau plans to commence the statutory procedures for the designation of Robin’s Nest as a country park in the second half of this year. In addition, the Security Bureau will open up the Sha Tau Kok Pier, currently within a closed area, in the second quarter of this year, allowing group tours to go sight-seeing and shopping in “designated zones” or take a ferry at the Pier to tourist attractions like Lai Chi Wo and Kat O. It is planned that a public consultation on the feasible options of further opening up the Sha Tau Kok Town (except Chung Ying Street) will be carried out by the end of this year. Reorganization of the government structure “One cannot make bricks without straw”. A rationalized government structure will be conducive to promoting policy innovation and enhancing the effectiveness of governance. I have mentioned in the 2021 Policy Address the significance of reorganization of the government structure and put forward five initial ideas. I have also made it clear that such ideas are only intended to stimulate further thought. The current-term Government will, upon consultation with stakeholders, work out a detailed reorganization proposal for discussion by the seventh term LegCo. It will then submit the proposal together with the views of Members to the Chief Executive-elect, to be returned by election on 27 March, to consider whether the proposal should be implemented by the next-term Government.


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After discussion within the Government for three months and having regard to stakeholders’ views, the current-term HKSAR Government has put forth the reorganization proposal as follows:

1. to set up a new Culture, Sports and Tourism Bureau to take over the culture, arts and sports portfolios from the Home Affairs Bureau, as well as the film, creative industries and tourism portfolios from the Commerce and Economic Development Bureau. Consolidating the culture, sports and tourism portfolios currently within the ambits of different bureaux under the Culture, Sports and Tourism Bureau can better steer and promote the development of the cultural industries of Hong Kong, which will be conducive to creating synergy for the development of Hong Kong as an East-meets-West centre for international cultural exchange as stated in the 14th Five-Year Plan;

2. to split the Transport and Housing Bureau into two Policy Bureaux.

The Housing Bureau upon reorganization will take full charge of the housing policy which tops the agenda, especially in expediting public housing production for people to move in as early as possible; optimizing the use of existing public housing resources to help the needy; supporting households who have been waiting for public rental housing allocation for a long time; enriching the housing ladder by making home ownership more affordable; and closely monitoring the private residential market, etc. The Bureau can also focus on steering the Hong Kong Housing Authority and the Housing Department in implementing the array of new initiatives on housing introduced by the current-term Government, review and adjust the measures in a timely manner, as well as maintain close liaison with the Hong Kong Housing Society, the Urban Renewal Authority and the MTR Corporation Limited to increase housing supply by joining forces with public organizations;

3. to retitle the Policy Bureau responsible for transport matters after the

split as the Transport and Logistics Bureau to clearly reflect its dual role of taking charge of both external and internal transport matters. Under the transport infrastructure-led concept, Hong Kong will take forward various local and cross-boundary transport infrastructure projects and conduct territory-wide traffic and transport strategic studies in the next few years. The separate Transport and Logistics


Bureau will be better positioned to focus more on handling these internal transport matters and can also better manage external transport issues, with a view to promoting the development of the maritime transport, air services and logistics industries, as well as consolidating and enhancing Hong Kong’s status as an international transportation centre and an international aviation hub under the 14th Five-Year Plan;

4. to revamp the Food and Health Bureau as the Health Bureau which

will be dedicated to medical and health policies. Apart from making continued efforts to fight the COVID-19 epidemic, the Health Bureau will press ahead with a number of major policy initiatives including implementing the two 10-year Hospital Development Plans, promoting the development of Chinese medicine and drawing up the Primary Healthcare Development Blueprint. To ensure the sustainable development of our public healthcare system and support the development of industries, it is imperative for Hong Kong to update our public health strategies, step up efforts in monitoring and facilitating the development of health technology and R&D of drugs, and resolve the problem of medical manpower shortage. We should also review the existing arrangement for clinical data, clinical trials and drug registration, etc. to assist in promoting the life and health technology industry;

5. to reorganize the Home Affairs Bureau and rename it as the Home and

Youth Affairs Bureau to highlight policy focuses on district administration and youth work. The Home and Youth Affairs Bureau will step up efforts with a district-based approach and enhance social solidarity, as well as review and formulate the overall youth policy and a blueprint for youth development so as to encourage young people to participate in public affairs, and promote, coordinate and oversee the implementation of youth work by various Policy Bureaux. The Bureau will also conduct a comprehensive review on district administration and the way forward of District Councils;

6. to retitle the Innovation and Technology Bureau as the Innovation,

Technology and Industry Bureau to reflect its mission of driving the application of I&T and smart production under the policy of


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re-industrialization. The Innovation, Technology and Industry Bureau will enhance the policy function of re-industrialization and strive to build an industry chain for I&T, which fully covers R&D, financing, production and even commercialization, including exploring ways to attract more advanced manufacturing uses to the San Tin Technopole in the Northern Metropolis so that smart production can take root in Hong Kong, thereby building a more complete I&T ecosystem;

7. to expand the Environment Bureau and rename it as the Environment

and Ecology Bureau to take over the policies on environmental hygiene, food safety, agriculture and fisheries, and veterinary public health etc. currently under the purview of the Food and Health Bureau to achieve better synergy. For example, the collection, recycling, delivery and treatment of waste can, upon reorganization, be brought under the same roof and within the purview of the Environment and Ecology Bureau for greater cost-effectiveness, so as to facilitate the implementation of the policy initiatives on municipal solid waste charging, etc. and better integrate the development of agriculture and fisheries with natural ecology so that the modern agriculture and fisheries industries can be developed in a sustainable manner; and

8. to consolidate and rationalize certain policy portfolios and related

division of work in order to establish dedicated policy desks for such policies and to reduce dispersed functions. Examples include consolidating the currently dispersed policy portfolios on manpower development, poverty alleviation and retirement protection and transferring them to the Labour and Welfare Bureau.

With the aforesaid reorganization proposal, the number of Policy Bureaux will increase from 13 under the current-term Government to 15. I propose that nine Policy Bureaux will be put under the supervision of the Chief Secretary for Administration, while the Financial Secretary will oversee the remaining six in order to achieve a more balanced division of responsibilities between them. As I have pointed out in the part on the development of the Northern Metropolis, the next-term Government may consider the creation of the post of Deputy Secretaries of Departments to take forward and coordinate large-scale


regional developments such as the Northern Metropolis and the Lantau Tomorrow Vision. Other matters requiring high level coordination include cross-bureaux issues such as national security, climate change and manpower policy. However, since whether the post of Deputy Secretaries of Departments should be created or not is a matter of the style of governance, it should be considered by the Chief Executive-elect. We will issue a paper on the reorganization proposal (Appendix) to the LegCo today to brief Members on the details. Under the leadership of the Chief Secretary for Administration, Directors of Bureaux concerned and colleagues responsible would brief Members at relevant Panels of LegCo on the proposal and listen to Members’ views. Members may also express their views during the debate on the motion of thanks in respect of the 2021 Policy Address. We aim to submit the proposal and Members’ views for the Chief Executive-elect’s consideration after the Chief Executive Election on 27 March this year. The current-term Government will render full support by submitting to LegCo the reorganization proposal that is deemed appropriate by the Chief Executive-elect as soon as possible. All vetting and approval procedures concerned should be completed by early June this year to allow sufficient time for the Chief Executive-elect to complete the constitutional procedures of appointing principal officials, so that the new government structure will come into operation starting from 1 July this year. Concluding remarks President and Honourable Members, with the leadership and staunch support of the Central Government, Hong Kong has got back on the right track of “one country, two systems”. This year also marks the important occasion of the 25th anniversary of Hong Kong’s return to the Motherland. In the remainder of my tenure, I will lead my governing team to the best of my ability to work with the new-term LegCo and establish a constructive and interactive relationship between the Government and the legislature. We will work in a rational and pragmatic manner to address long-standing problems in society in order to win the acclaim and recognition from members of the public on the improved electoral system, and to build a bright future together. PRESIDENT (in Cantonese): The Chief Executive will answer questions from Members.

https://www.legco.gov.hk/yr2022/english/counmtg/hansard/cm20220112-translate-e.pdf#nameddest=app_01


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Members who wish to ask questions please press the “Request to speak” button. Questions raised by Members should be as concise as possible. Members should not make arguments when asking questions. After the Chief Executive has answered the question asked by a Member, the Member may forthwith ask a short and to-the-point supplementary question on his/her question. The Member concerned only needs to raise his/her hand and does not have to press the “Request to speak” button again. The first Member to speak is Mr TANG Ka-piu. MR TANG KA-PIU (in Cantonese): President, Chief Executive, I have been away from this Council for five years, but what I am concerned about remains the same, i.e. retirement protection for wage earners. So, when the Chief Executive gave an account of the future legislative work at the very beginning and said that the bill on abolishing the offsetting arrangement would be introduced into the Legislative Council (“LegCo”), this is definitely good news; I also noticed in the Labour Advisory Board that the Chief Executive’s governing team, after some hard thinking, modified certain proposals again and again. Wage earners sometimes wonder whether this is just drawing a cake to satisfy their hunger or something that will really be taken forward as they have waited for 10 years. The “black-clad violence” in 2019 followed by the epidemic in 2020 caused the number of offsetting to hit a historical high, with the offset of the hard-earned money of wage earners amounting to $6.5 billion in the past year. Therefore, I would like to ask the Chief Executive: Having mentioned at the end of your remarks just now that you would complete the legislative work on abolishing the offsetting arrangement within this term with your best endeavours, are you really confident that it can be done so? As far as I know, the task involves amending eight pieces of legislation and enacting a new legislation, which is of great complexity; do you really have confidence in getting it done? The second question is about good governance; as efficiency is widely expected, when can wage earners be genuinely benefited after the legislation has come into effect? PRESIDENT (in Cantonese): Mr TANG Ka-piu, you can only ask one question. Chief Executive, please reply.


CHIEF EXECUTIVE (in Cantonese): Thank you, President, and thank you, Mr TANG. I would like to welcome “Ah Piu” back to LegCo. I can conscientiously tell Members that the bill to abolish the offsetting arrangement has been approved by the Executive Council and is now awaiting the First and Second Reading debates in LegCo. As this is a new term of LegCo, in line with the spirit of cooperation between the executive authorities and the legislature that I have just mentioned, I have asked the Secretary for Labour and Welfare to strive for the setting up of a committee first―I believe it will be a committee on labour affairs―and to brief and discuss with members in the committee first. After that, we will introduce into LegCo the bill to abolish the offsetting arrangement which has been approved by the Executive Council. LegCo will then work on the bill and our cooperation certainly counts; yet it is the task of LegCo to scrutinize and pass legislation. Hence, I hope that we can work together to strive for the passage of this milestone bill to abolish the offsetting arrangement under the Mandatory Provident Fund (“MPF”) system within the current term of the Government, i.e. before 30 June this year. Why do I say that this is a piece of milestone legislation? I started being concerned about it when I was engaged in the work of the Commission on Poverty in the capacity as Chief Secretary for Administration; I conducted a large-scale population policy review and explored the multi-pillar retirement protection system in Hong Kong at that time. Regardless of Members’ views on MPF, it is a very important pillar after all, and we cannot allow this pillar to be weakened by the offsetting arrangement. However, the Government promised that an offsetting arrangement would be made when it introduced MPF back then; and as Mr TANG may aware, we have taken a very long time to come up with this solution. I believe that the community at large, including the business community and employers, are now more supportive of this solution because the Government will be involved and provide more than $10 billion funding to help employers who may be in need in the future, especially small and medium enterprises with financial difficulties. This is a milestone bill to abolish the offsetting arrangement. I hope Members present will assist us so that such an important legislation on labour protection relating to grass-roots workers can be passed in the shortest time. It appears that this will be the first bill to be introduced into the Seventh LegCo, and I also hope that this will demonstrate that the current-term Government is really very much concerned about the welfare of grass-roots workers.


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I believe the next part of the question that Mr TANG would like to put forth is about the timetable. After the passage of this legislation, we have to enact another legislation for setting up a special account; and we will help accumulate some capacity in this account for the offsetting arrangement in the future. This is an upcoming legislation to be dealt with. However, to implement the offsetting arrangement, the most important of all is that we must have an electronic MPF (“eMPF”) platform to complement this legislation or the other legislation mentioned above and implement the relevant arrangement together. By that time, I will also honour another promise, i.e. the SAR Government will help grass-roots workers at the lowest stratum, i.e. those employees who do not need to make MPF contributions themselves right now; the Government will be committed to making MPF contributions for them. I hope all these arrangements would take care of grass-roots workers in Hong Kong. MR TANG KA-PIU (in Cantonese): A short follow-up question. The passage of the legislation does not mean that the legislation will come into effect as I noticed that the Government has been talking about a timetable around 2025; can it be expedited? CHIEF EXECUTIVE (in Cantonese): Mr TANG, my remarks just now have responded to this question, i.e. we have to wait until the commissioning of the eMPF platform that is currently under construction by the Mandatory Provident Fund Schemes Authority, and we more or less have to wait until then to fully implement the abolition of the offsetting arrangement. MS CHAN HOI-YAN (in Cantonese): Chief Executive, “zero” local infection case has been achieved for many months. But just when there is hope that the border will be reopened, the epidemic situation in Hong Kong has evolved drastically as the Omicron mutated virus has spread into the community due to the loopholes in epidemic prevention. To date, there has been multi-generational transmission of infection in Hong Kong and a number of cases with an unknown source of infection are found. The causes and sources of the outbreak are very obvious indeed, but it is a pity that the Chief Executive and the epidemic prevention officials still feel good and praise themselves for tightening social distancing measures in a prompt, resolute and pertinent manner. However, many voices and I myself think that they are just remedying the situation.


Chief Executive, after consulting various infectious disease experts and professors, I think there are two feasible ways to curb further transmission of Omicron in Hong Kong. Firstly, we should follow the Mainland’s example of conducting district-wide mass testing, and in view of the short incubation period of the virus, all people should be tested twice or three times within a week to identify hidden carriers; secondly, we should seize the best opportunity before the Lunar New Year to significantly reduce the flow of people and goods, including implementing the arrangements for working from home immediately. Not only must the number of people going to kindergartens, primary schools, secondary schools and universities be lowered, the number of people going to work must also be lowered to reduce the flow of public transport commuters, so as to fully encourage people to stay home to fight the epidemic. Chief Executive, in the face of Omicron, the most stringent prevention and control measures are really needed. It is definitely better to endure short-term pain than prolong the agony. Is the Government capable of implementing the above two suggestions and cutting the transmission chain immediately so that we can get rid of the virus in time before the Lunar New Year holidays? Earlier, the Chief Executive has spent half an hour explaining the situation in the coming March or June, but I hope that the Chief Executive can take this opportunity to give me a response on the situation before the Lunar New Year as well. Thank you. CHIEF EXECUTIVE (in Cantonese): Thank you, President. Thank you, Ms CHAN. I also welcome Ms CHAN Hoi-yan back to the Legislative Council. Since Ms CHAN is the first Member raising the issue of epidemic prevention today, please allow me to give a more detailed reply. Hong Kong, or the whole world, has been fighting the epidemic for two years. In fact, from January 2020―other places might start 10 or 8 days earlier―we started to fight the epidemic, and today marks the second anniversary of the fight. During the fight against the epidemic, we have been exploring what strategy should be adopted to deal with the epidemic, and the strategy adopted must be in line with the actual situation of Hong Kong. As in the case of democratic development, the strategy must be in line with the actual situation of Hong Kong and cannot be copied from other places; I believe Members here also strongly support that the anti-epidemic work must be in line with the actual situation of


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Hong Kong. I find it hard to accept the criticism that our fight against the epidemic in the past two years has been flawed with loopholes. Such remark from Ms CHAN is unfair to the tens of thousands of people who are involved in the fight against the epidemic at the front line and behind the scenes. Let me cite some figures here. As at last night, the overall number of confirmed cases in Hong Kong was 12 980, with 1 754 confirmed cases and 28 deaths per million population respectively; by contrast, as for the global figures, the number of confirmed cases worldwide has exceeded 300 million, and the number of deaths has not been counted. When calculated on the basis of the total number of confirmed cases, that is, 12 980, we are ranked behind 170 countries and regions in the world. As the number keeps changing every day, Hong Kong’s ranking in this regard is getting a little bit lower day by day. Besides, if calculated on the basis of the rate per million population―Members can view all these figures on the Internet, and there is a real-time website for public access―as I have said earlier, the respective numbers of infection cases and deaths per million population in Hong Kong are 1 754 and 28, which is only 4% of the global average. These are the results of our successful strategy, as well as the efforts of our colleagues and all healthcare workers and frontline workers. This achievement can in no way be described as poor performance in the fight against the epidemic, nor can it be described as being flawed with loopholes. However, as Members may have noticed what I have said over the past few months, every anti-epidemic measure has its consequences. Class suspension at schools, tightening of social distancing measures, and suspension of dine-in service during dinner time all have consequences. Yet, the question is whether or not we can accept these consequences after balancing all aspects involved, because they will affect certain commercial activities and people’s freedom of movement. It is also not possible for every measure to be flawless and non-compliance with these measures occurs all the time, because we are dealing with human beings. I hope that Members will understand that with more than 7 million people in Hong Kong and billions of people in the world, it is very difficult and painful for them to act in accordance with an epidemic prevention strategy and comply with a series of very stringent measures, especially as they have struggled hard for two years already. Of course, on the part of the Government, I take full responsibility for policy formulation, monitoring, law enforcement, prevention, restriction and education, but there is no way to curb all kinds of non-compliance. In fact, cases of


non-compliance are found every day, but people just have not paid attention to them. Taking our home quarantine measure as an example, almost every few days, there are people leaving home whom we must arrest and take to court. Yesterday, there was a case in which a person was sentenced to 14 days’ imprisonment suspended for one year. So far, the court has handed judgment on more than 200 cases of non-compliance with the home quarantine measure. Regarding the condoning off of designated areas, our colleagues have condoned off whole buildings at midnight, requiring all the people living in the buildings to come down for compulsory testing, and it is an offence for those failing to do so. On a recent night, our colleagues carried out several operations of condoning off designated areas. When verification was done the following day, 2.2% of the people were found to be non-compliant―they did not come down to undergo compulsory testing. In other words, 2 out of 100 people did not follow our instructions. We will enforce laws against these non-compliant people, but it is not possible for us to completely prevent such non-compliance. I must tell Members very honestly that I have been facing this kind of incidents frequently over the past two years, and sometimes I am very angry that these people do not follow our instructions. Yet, I think we all must understand that they are human beings. Every time when there is someone being non-complaint, the effectiveness of the fight against the epidemic will definitely be affected. If a person who is a carrier leaves home despite his being required to isolate at home, the virus will be spread everywhere. It is as simple as that. Each time, we learn from our experience and make continuous improvements to achieve the best in aspects including shipping and air transport. However, since Ms CHAN’s question is not directly about the issue of air transport, I will not give a reply in this regard at this moment because I still have to give a response on her other two suggestions. As for the two suggestions, one of them is about testing in designated areas. We are actually conducting this kind of testing, but perhaps our definition is different. We call it RTD (restriction-testing declaration) which has statutory effect. When the Centre for Health Protection is aware of a certain case or some close contacts, which makes us worry that the area or building they are in may pose a risk, we will immediately condone off the building at night and require the people in the building, not only the residents but also those staying in the building, to undergo compulsory testing. Upon completion of the testing the next morning, they will be released only after they are checked and put on wristbands. However,


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as I have said earlier, there will still be omissions. This is testing in designated areas or condoning off whole buildings for testing, which is proven to be highly effective. So far, we have carried out 30 operations of condoning off such designated areas or buildings for testing, and issued compulsory testing order for more than 460 locations; there are also many mobile specimen collection stations. At present, in Tuen Mun district where the risk is relatively high, the public may even go for testing on a voluntary basis without the need of being instructed by us. In the past 10 days or so, we have conducted 900 000 virus tests and countless tracing work, so there has not been―I hope there will not be―any geometric outbreak of Omicron, a highly transmissible mutant strain, in Hong Kong so far. To date, there are only 40-odd cases after more than 10 days since the outbreak. Among the local confirmed cases, 70% of the people (34 people in total) were no longer in the community and were sent to quarantine centres at the time of diagnosis. As Members also know, there are 40-odd cases of local infection, and 70% of which were identified on the first, second or third day of testing at quarantine centres. As Members can imagine, if these few dozens of people had gone into the community, the consequences would have been very serious. If we are asked to give up such effective and targeted testing, and follow another place’s practice of conducting the so-called district-wide mass testing after hastily listening to some views, I will not bear this consequence, and Members do not want to bear this consequence either. While there is a good and proven method in controlling the epidemic, I am asked to give up this method and devote all the manpower and resources to another method which has not been proven or even tried out in Hong Kong. Actually, it is not the case that the latter has not been tried out before. In September 2020, echoed the clarion call of the community, a universal testing was conducted with the help of the Central Authorities who sent 500-odd people for such purpose. This universal testing is not a universal one indeed, because it will not be universal if it is not compulsory. After over 1.4 million people were tested, more than 30 confirmed cases were identified. By contrast, with the 900 000 tests that we have done in a very targeted manner, 70% of the confirmed cases have been found. We already have an answer in our minds as to which method is more effective. Anti-epidemic work is not a slogan, but must be put into practice. Through practice and continuous adjustment, we can come up with the most suitable method for our anti-epidemic work. This is my response to Ms CHAN’s first suggestion.


The second suggestion is about significantly reducing the flow of people. We took a very difficult decision last week to introduce the most stringent measures that had been implemented in the previous four waves of the epidemic―closing all 15 types of premises and prohibiting catering businesses from operating dine-in services in the evening, which get instant results. The measures have delivered immediate results, as evidenced by the drop in people flow in the graph prepared by our research team who monitors the daily people flow illustrated by Octopus usage. To achieve even better results, people will have to stay at home, which is called “lockdown” or “curfew” according to Hong Kong law. In the past two years when we encountered certain critical situations, we thought about this option but did not want to implement it. During the “black-clad violence”, we did think about this option but were reluctant to implement it because we did not know how serious the consequences would be. We have gone through all these storms. Today, we have not yet reached that stage. For the time being, we do not see the need to resort to the measure as mentioned by Ms CHAN just now. Thank you, President. (Ms CHAN Hoi-yan indicated her wish to raise a supplementary question) PRESIDENT (in Cantonese): Ms CHAN Hoi-yan, this Council has spent 13 minutes dealing with your question. Please allow other Members to ask questions. MS CHAN HOI-YAN (in Cantonese): President, it is the Chief Executive who has spent 13 minutes answering my question. Each Member may raise a supplementary question. PRESIDENT (in Cantonese): The Chief Executive has given a detailed reply in response to your question. Please sit down. Mr Stanley LI, please ask your question.


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MR STANLEY LI (in Cantonese): Thank you, President. The Chief Executive has just mentioned that the hard efforts of many frontline healthcare workers have been crucial in the fight against the epidemic in Hong Kong over these two years. I cannot agree more and their efforts deserve our respect and recognition. However, there was an accident in which some flight attendants of Cathay Pacific Airways Limited (“Cathay Pacific”) exploited a quarantine loophole, triggering the fifth wave of virus variant outbreak in the community and causing widespread implications. Although the Government has taken resolute action on this occasion to tighten the anti-epidemic and social distancing measures, the transmission chains in the community have yet to be clearly cut, causing the general public to suffer. Chief Executive, the public are on tenterhooks now, with long queues at testing centres scrambling for vaccinations; the tightening of anti-epidemic measures has affected various industries and people’s livelihood; and suspension of face-to-face classes has made life difficult for parents and students. Members of the public opine that these measures, while extremely necessary, have been implemented by the Government very hastily without sufficient preparation, rendering it difficult for them to adapt. A case in point is what happened in Tuen Mun district last night. People also strongly query why the work of the Government is fraught with mistakes and omissions despite its frequent emphasis on strictly adhering to the principle of guarding against the importation of cases. Worse still, time and again it does not see the need to plug the loopholes after problems have emerged, thus leading to a “disaster”. At present, the Government’s top priority is to restore public confidence in its anti-epidemic efforts. Chief Executive, I think the Government should take the following measures immediately: enhancing the capacity of community testing and vaccination services PRESIDENT (in Cantonese): Mr Stanley LI, you are supposed to ask a question, not put forward suggestions. Please ask your question quickly. MR STANLEY LI (in Cantonese): I would like to ask the Chief Executive: What measures and directions will the Government take in future to guard against the importation of cases, and how will it eliminate the loopholes? Is the Government


capable enough to tackle this wave of infections? If not, and if the situation of the epidemic continues to worsen, will it seek assistance from the country? I hope the Chief Executive can answer my question above. Thank you, President. (Mr Paul TSE indicated his wish to raise a point of order) PRESIDENT (in Cantonese): Mr Paul TSE, what is your point of order? MR PAUL TSE (in Cantonese): As this is the first Council meeting in the current term of the Legislative Council (“LegCo”), I hope that the Chief Executive can speak her mind and reply as she pleases. Nevertheless, we have spent so much time now, and yet many Members are still waiting to ask questions. I hope the President may consider extending the meeting today so as to allow more time for Members to ask questions. Besides, I do not think Ms CHAN Hoi-yan’s question was handled quite properly just now as she should be given a chance to ask a follow-up question after all. If it is matter of time management, we may make our best endeavours to accommodate. However, it is not quite appropriate to suddenly deviate from the established practice under the Rules of Procedure and not allow Members to ask follow-up questions. PRESIDENT (in Cantonese): Chief Executive, please reply to Mr Stanley LI’s question. CHIEF EXECUTIVE (in Cantonese): What Mr LI has just mentioned precisely reflects our difficulties in making decisions over anti-epidemic measures. I fully understand that people are worried, discontented and furious; what Mr LI has reflected is well within our expectation when making the policy decisions. However, in order to fight the epidemic, we have no alternatives. Up to now, I have not seen any of the Government’s anti-epidemic measures win unanimous applause from the public. This is due to their nature―restrictions have to be imposed to prevent every outbreak of public health crisis, and they will certainly and inevitably cause grievances; yet the Government can do a better job. Regarding what happened in Tuen Mun yesterday, a case was identified, and we were concerned that the patient concerned had not sought medical advice promptly and had still lived in Tuen Mun for a period of time after getting infected, which


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might pose a significant risk to the district. Therefore, we have set up a number of mobile specimen collection stations for voluntary virus testing. This morning, I asked the Secretary for Food and Health to extend my gratitude to the contractors of testing centres for their considerable efforts in setting up additional specimen collection stations. Here I would like to appeal to the public to be understanding and tolerant and undergo testing as soon as possible. On Mr LI’s question of whether we are confident and capable, as I have just said, the Government has been doing such work in the past two years, and of course we are confident. Compared with two years ago, the Government has substantially enhanced the relevant capabilities: the daily testing capacity has increased from almost zero to at least 100 000 or even more tests at present; the number of units provided in quarantine facilities has gone up from almost zero to around 4 500 at present; there were very few isolation wards in hospitals at the outset, but now we have at least constructed a temporary hospital, namely North Lantau Hospital Hong Kong Infection Control Centre, with the support of the Central Authorities. In addition to enhanced capabilities, the Government has trained up so many people in fighting the epidemic, so I am confident standing here at this moment. I hope all the people in Hong Kong will also have confidence and work together with us to put the Omicron epidemic under control as soon as possible. Besides, guarding against the importation of cases is a key component of our anti-epidemic strategy because there was no local infection case in Hong Kong for quite some time and all infection cases were imported ones. We have come under heavy criticism over guarding against the importation of cases. You may have seen Western media, Consul Generals and chambers of commerce criticizing us for implementing the harshest measures in the world―perhaps only behind the Mainland of China―to guard against the importation of cases. Today, 150 countries and territories have been specified as Group A specified places, and 15 of them as Group A specified places with enhanced surveillance. Anyone coming from the latter places must not only undergo a 21-day quarantine upon arrival in Hong Kong and produce virus test results and vaccination records before boarding, but also stay in Penny’s Bay Quarantine Centre for the first four days before continuing the quarantine in a hotel. Hong Kong has paid a price for this, and many members of the business community have indicated that Hong Kong’s status as an international centre in various arenas will be affected. However, we have no alternatives because of the need to prevent and fight the epidemic.


You must be thinking that the present incident involves some aircrew members. Here I would like to tell everyone that such a stringent approach to guarding against the importation of cases is adopted under the regulations approved by LegCo. A number of regulations have been made under the Prevention and Control of Disease Ordinance (Cap. 599) after scrutiny by LegCo. Two of them are Cap. 599C and Cap. 599E, which regulate the arrival of persons from the Mainland and foreign places. Coincidentally, both provide for exemption from quarantine under certain circumstances. One of the justifications for exemption is that such persons’ entry into Hong Kong is essential to our economy and functioning of society, thus warranting the exemption. All movement of goods falls under the exemption. We may imagine what would happen to our population of some 7 million without around 8 000 cross-boundary goods vehicle drivers or flights transporting goods to us every day. Therefore, it is an established policy to exempt those involved in air and land transport of goods from quarantine, but exemption does not mean a lack of regulation. There are very stringent quarantine arrangements in place that have to be complied with. This comes back to the question I have just been answering. When some people fail to comply with the requirements, all we can do is conduct investigations and punish them. I can make it very clear here that we will not let off those who breach the quarantine regulations and thus affect the epidemic situation in Hong Kong, and we will definitely pursue the matter by taking legal action. This is what is happening now. Here I wish to state what I expect to happen. Some air transport measures have been tightened in response to the breach of home quarantine requirements by some cargo aircrew members or non-aircrew members. The consequences of these measures will emerge very soon as the air cargo capacity and freight capacity of Hong Kong have dropped substantially. Mr Frankie YICK also keeps nodding because he knows the situation best, that is to say, there will not be much air cargo coming to Hong Kong soon. I wonder if you know Hong Kong fared very well in air cargo transport and freight transport in the past year. In the first 11 months of last year, 4.6 million tonnes of goods were imported by air, compared with 4.5 million tonnes in the whole year of 2020. Hong Kong has been the number one cargo hub in the world. Are we willing to let the epidemic ruin this industry? If this industry is ruined, not only airlines will be affected, all the people will suffer as well. Food is our biggest air import item in terms of weight. As we all know, there are many Japanese restaurants in Hong Kong, yet there are no planes bringing in fresh food. Second to food is electronic products, followed by pharmaceutical products. Their supply will soon be affected by the tightened quarantine measures on freight transport, air cargo transport and aircrew. Therefore, it is envisaged that some products will become very expensive or unavailable soon. Even if the catering industry is allowed to resume normal business, Mr Tommy CHEUNG,


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perhaps no goods will be shipped to Hong Kong. Every policy decision has its consequences. Nevertheless, on the whole, you may rest assured that the SAR Government will handle law enforcement, investigations and punishment, and we will definitely follow up the matter in a serious manner. Thank you, President. MR STANLEY LI (in Cantonese): President, the public’s greatest query is why the Government condoned the breach by Cathay Pacific. What we have just been talking about is actually some flight attendants, not aircrew, who departed from Hong Kong on passenger flights and returned to Hong Kong on cargo flights. Cathay Pacific indicated that this was its own decision, and it even mentioned in its statement yesterday that … PRESIDENT (in Cantonese): Mr Stanley LI, you can only ask a short and to-the-point supplementary question. MR STANLEY LI (in Cantonese): I want to ask the Chief Executive: In this Cathay Pacific incident, did Cathay Pacific make the decision on its own or did the Government knowingly allow it to do so? The company claimed in its statement yesterday that it had submitted a detailed record to the Government. Thank you, President. PRESIDENT (in Cantonese): Mr Stanley LI, I have already reminded you that you can only ask a short and to-the-point supplementary question. Chief Executive, please reply. CHIEF EXECUTIVE (in Cantonese): I cannot talk too much about this incident because it is under investigation and some legal action may be taken. However, I have also noted that the Chairman of Cathay Pacific gave an address last night. Concerning the issue raised by Mr LI, he also admitted that it was their decision, “the company’s decision”―he said in English that “I am very confident, the company’s decision” could meet the Government’s requirements. In this regard, we will conduct a comprehensive investigation. The Government has its position, and we will certainly examine the matter thoroughly and give a full account to the public later.


PRESIDENT (in Cantonese): Members, this Council has spent half an hour on only three Members’ questions, which is far from satisfactory. Will Members please make your questions as short as possible and refrain from raising too many issues in one question. I also hope that the Chief Executive may reply as succinctly as possible. Besides, would the Chief Executive stay for 15 more minutes? CHIEF EXECUTIVE (in Cantonese): No problem, I may even stay for 30 more minutes. PRESIDENT (in Cantonese): Ir Dr LO Wai-kwok, please ask your question. IR DR LO WAI-KWOK (in Cantonese): President, as the Chief Executive said earlier, she proposed in the Policy Address the idea of developing the Northern Metropolis as a blueprint for resolving Hong Kong’s land and housing problems and promoting economic development. Although some regional developments in the New Territories North, such as Kwu Tung North and Fanling North, have already commenced, the Northern Metropolis is still only a concept without any practicable and comprehensive measures, nor is there a concrete timetable and roadmap. I am very glad to hear the Chief Executive’s views on the Northern Metropolis and hope that the Government will come up with a feasible plan as soon as possible. The development plan of the Northern Metropolis should be government-led and consideration should be given to introducing market mechanisms. In particular, we should pay attention to listening to the views and suggestions of the public and conduct extensive discussions with the community to draw on collective wisdom, so that the proposal can be more realistic. As a representative of the engineering sector, I have been calling on the Government to compress the process and remove red tapes, and the Chief Executive has also explained the work in this regard just now. However, may I ask whether the Chief Executive will promise that the relevant Policy Bureaux and departments will launch the construction and infrastructure projects in an orderly manner and enhance their efforts on the forecast and planning of human resources, so that the engineering sector will not be caught again in the vicious cycle of “dying of overwork at one time and starvation at another”?


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CHIEF EXECUTIVE (in Cantonese): I thank Ir Dr LO for the question. The Northern Metropolis, being such a large-scale development, cannot be achieved overnight; and to accomplish it, I fully agree that the Government needs to play a more leading and proactive role. Thus, many initiatives I have just mentioned are those which we have undertaken very proactively; and one of the keys to success, as I mentioned earlier, is streamlining the procedures and removing red tapes. When we take forward the Northern Metropolis or other developments in Hong Kong in the future, Policy Bureaux and departments concerned with lands and construction and so on will definitely work in this direction. We also welcome Members, especially those representing the construction and engineering sectors, to monitor our work and put forward their views. However, the last point raised by Ir Dr LO, i.e. human resources, is one of my concerns. In fact, I noticed that the Hong Kong Construction Association has recently conducted an opinion survey, and the results show that while the respondents have confidence in the future of construction in Hong Kong, they are also worried about the problem of manpower shortage. Thus, I mentioned in my opening remarks that I recently held an internal meeting to particularly review the human resources in Hong Kong. It is found that we apparently face challenges in the supply of both talent and labour. I hope to submit a consolidated paper as soon as possible, so that the Legislative Council can discuss how to pool and retain more talent and human resources in Hong Kong to meet the needs of the upcoming work in various areas. Thank you, President. IR DR LO WAI-KWOK (in Cantonese): President, I am glad about the explanation on human resources given by the Chief Executive. President, given the prevailing low birth rate, ageing population and overall decline in working population in Hong Kong, the problems faced by the engineering profession are also encountered in various trades and industries, and the engineering profession is not the only one facing the problem of manpower shortage. Thus, I hope the Government can formulate a long-term and more comprehensive policy on population and talent. CHIEF EXECUTIVE (in Cantonese): We formulated a population policy a few years ago. As a matter of fact, the Government does not have full control over decisions of having children or not, but it can play a more proactive and positive role in formulating policies on talent. In the reorganization of the government structure this time, we have also consolidated all policy responsibilities concerning


human resources and incorporated them under the purview of the Labour and Welfare Bureau, so that it can conduct a comprehensive review on the manpower or human resources in Hong Kong before formulating policies and handing them over to the relevant departments for implementation. This is the direction of our work. Thank you, Ir Dr LO. REVD CANON PETER DOUGLAS KOON (in Cantonese): Chief Executive, I believe Members should be aware that Hong Kong will soon become a society mainly composed of the elderly population. In a few years’ time, one in every four Hong Kong residents will be an elderly person. About 10 years later, the elderly people will account for one third of our population. I would like to ask the Government whether it will consider appointing a Deputy Secretary of Department (“DSoD”) or a Secretary of Department to coordinate elderly affairs in its reorganization? In fact, various Policy Bureaux are involved in elderly affairs. Very often, cross-bureau cooperation is necessary for tackling elderly affairs, particularly on the housing front. Thank you, Chief Executive. CHIEF EXECUTIVE (in Cantonese): Thank you, Revd Canon KOON, the legislator. I am accustomed to addressing you as the Reverend Canon KOON. Thank you for your question, Revd Canon KOON. In fact, there are a lot of possible options for the reorganization. The next-term Government should consider several issues if it sees the need to coordinate work at a senior level. I have simply highlighted that there is such a need in undertaking national security work just now. People generally think that awareness of national security should only be strengthened on the security front. In fact, it should not only apply to security issues. Awareness of national security has to be enhanced in many areas. I agree with the idea of coordinating elderly affairs. However, we have to leave it to the next-term Government to consider whether a DSoD should be responsible for coordination, or whether a higher-level coordinating committee should be set up to handle the relevant matters. All I can say, however, is that the current-term Government has attached great importance to elderly affairs, including the provision of social security by means of Old Age Living Allowance, care services, etc. We will continue our work in these areas. I thank Revd Canon KOON for his views.


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PRESIDENT (in Cantonese): Revd Canon Peter Douglas KOON, do you have any supplementary question? (Revd Canon Peter Douglas KOON indicated that he had no supplementary question) MR CHAN HOK-FUNG (in Cantonese): The Chief Executive has launched a number of measures in recent years to assist members of the public in home ownership, including the White Form Secondary Market Scheme, the Green Form Subsidised Home Ownership Scheme as well as a “progressive payment” mortgage scheme to be rolled out as she mentioned in an interview earlier on. Indeed, all these deserve applause from the public as it is no wonder that they feel happy about having a stable home. Yet, to many more people, what they truly need is a home that gives them dignity and a roof over their heads. The majority of Hong Kong people agree that our housing policy should focus on eliminating subdivided units (“SDUs”) and resolving the problem of a large number of people waiting for public rental housing (“PRH”) as the two figures continue to soar. The Northern Metropolis Development Strategy proposed in the Policy Address which the Chief Executive delivered earlier gives people hope. But can a clear roadmap and timetable be given to the public, telling them when they can truly have their own home? When will their housing problem be solved so that they can bid farewell to SDUs and be allocated a PRH unit after a three-year wait? I think the public want a clear answer most in this regard. Therefore, I hope the Government can channel its resources into helping the residents with the most pressing housing needs. I would like to ask whether the Chief Executive can provide us with a roadmap and a timetable in this regard. CHIEF EXECUTIVE (in Cantonese): I thank Mr CHAN Hok-fung for his concern about the housing problem. The housing problem is the priority of the current-term Government, and I believe it will also be of utmost importance to the next-term Government since social cohesion will be greatly affected if people are deprived of having a stable home, especially for those in poor living conditions. The current-term Government, with its focus on improving the poor living conditions of the people, has launched transitional housing which has evolved from a concept to the future supply of 20 000 units now. From merely using converted


vacant buildings, transitional housing is now built on sites of over 10 hectares and even utilizes the rooms in guests houses and hotels, with the precise view to improving the living environment of people in dire conditions. As for the roadmap, after delivering the Policy Address, I already outlined that in the next 15 to 20 years, taking into account the various development areas in the Northern Metropolis and the reclamation near Kau Yi Chau under the Lantau Tomorrow Vision, we would have over 1 million units “to supply to the market”―I am adopting the jargon in the real estate industry―1 million units will be “supplied to the market”, discounting the units to be provided by private developers on their own land, or those from redeveloping old districts and conversion. The question now is to make up for lost time and expedite the creation of land for housing development where the Hong Kong Housing Authority (“HA”) can build PRH on. HA has been working very hard recently to compress the construction timetable by adopting the “Modular Integrated Construction method” (“MiC”). Earlier on, I announced that they would build 20 000 PRH units using MiC with an endeavour to launching PRH projects as soon as practicable. If Mr CHAN finds that 15 or 20 years is too long to wait, I have a 10-year housing plan indeed. While sites for all the 300 000-plus units under the 10-year housing plan have been identified, time is again a point of concern. The challenge facing us is how to streamline the procedures before the sites are handed over to HA for housing development. We will do our utmost to satisfy the housing needs of the public. Thank you. MR CHAN HOK-FUNG (in Cantonese): Just now, the Chief Executive talked about constructing transitional housing on a large scale, but everyone is aware of its temporary nature, and the public would like to have a relatively stable home. Since both the Northern Metropolis and the Lantau Tomorrow Vision which the Chief Executive mentioned just now are 10 to 20-year plans, has the Government considered raising the development ratios across the board for some of the development projects planned or in the pipeline, so that the housing supply can be promptly increased, rendering less effort to solve the housing problem in the short run? CHIEF EXECUTIVE (in Cantonese): Thank you, Mr CHAN. As Mr CHAN may know, during the current term of the Government, the plot ratio of sites for the construction of PRH has been raised by as much as 30%. This measure, however, is like fighting the epidemic in that consequences may result if measures are rolled


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out without a limit. If buildings are constructed to 80, 90 or 100 storeys, is the community capable of coping with that? Are there sufficient roads and enough schools? People thus have to believe that, while outsiders often say that our procedures are complicated, these procedures in fact protect the overall interest of our society. The criteria on building height, building intensity and plot ratio in the town planning procedures are all of great public interest. We now strive to streamline the procedures and expedite the approval processes; yet as the current plot ratio is far from being low, to resolve the problem by increasing the plot ratio across the board will be prone to more significant consequences only. Thank you, President. MR FRANKIE YICK (in Cantonese): I believe the Chief Executive should be aware that an incident happened last week concerning the sudden termination of insurance policy coverage of a large number of taxi owners. The leading taxi insurance company sent a letter to the taxi owners concerned in late December, notifying them of termination of insurance policy coverage seven days later without stating the reasons, and the incident shocked the entire sector. We should be aware that vehicle owners have to find another insurer within seven days and there is obviously insufficient time, not to mention that 8 000 vehicles are concurrently involved. Worse still, only a few companies in the market are willing to underwrite taxi insurance. Fortunately, the Insurance Authority (“IA”) has intervened as soon as possible, which avoided bringing a halt to the operation of these 8 000 taxis and causing turmoil in the industry and inconvenience to commuters. In order to prevent the recurrence of similar incidents, I think the Government should extend the notice period for termination of insurance policy coverage from the current seven days to at least 30 days so that more time will be allowed for vehicle owners whose insurance policy coverage has been terminated to switch to another insurance company. In addition, to deal with such unexpected incidents, IA should be empowered to intervene once it detects a similar situation so as to avoid causing panic in the market and confusion. With regard to this incident of termination of insurance policy coverage, I would like to ask the Chief Executive: Will the Government, apart from the above two amendments to the relevant legislation, assist the persons concerned (especially elderly “independent” vehicle owners) in claiming compensation from the insurance companies for the financial losses so incurred?


CHIEF EXECUTIVE (in Cantonese): Thank you, President. Thank you, Mr YICK. Although the incident that happened last week is related to financial affairs, I have expressed my concern about it. As far as I know, IA has made efforts and provided very clear explanations. As the insurance company is now challenging IA and has even lodged a complaint with the Independent Commission Against Corruption, I will not talk much about it here; yet as Mr YICK has just referred to the legal advice on insurance and considers that it can reduce the occurrence of similar incidents in the future, I will ask the Financial Secretary to consider it seriously. As for the compensation, I have announced, in face of another wave of the epidemic outbreak, the launch of a new round of Anti-epidemic Fund (“AEF”), which is just a kind of subsidies. I cannot commit here the disbursement of subsidies specially for the drivers affected in this incident, yet all these issues can be brought up for our discussion and study. Nevertheless, there is a more fundamental issue and it is the taxi industry in Hong Kong. Mr Frankie YICK has discussed with me on one or two occasions, and I also met with the Hong Kong Taxi Council. To a certain extent, this incident has actually reflected that there are problems with the development or even existence of the taxi industry in Hong Kong. Currently, it is not an industry with a solid foundation that promises development, so we will later―it would not be long―submit a proposal to the Legislative Council for discussion on how to enhance the standard of the taxi industry in Hong Kong. With the enhancement of the safety and quality of the taxi industry, the premiums may not be so high; and young drivers may be attracted to join the industry, thus avoiding the situation where elderly drivers are still engaged in the industry. We have to make a holistic consideration. In fact, when something happens in society and arouses public concern, there must be a core issue behind it. I have always encouraged my colleagues to look at the core issue behind the scene rather than merely looking at the surface. After this crisis is over today, there may be crises next year or the year after next. I announce in advance that I have examined the entire taxi proposal; it, though not perfect, can be presented to pool collective wisdom, and the issue of taxi fare increases should also be dealt with. Everything has consequences; to improve the quality of the taxis industry, we have to bear the consequence that a taxi fare adjustment will be required. Thank you, Mr YICK. MR FRANKIE YICK (in Cantonese): I am very thankful to the Chief Executive for mentioning just now that the upcoming fifth round of AEF may cover frontline taxi drivers, but the compensation I just mentioned should be made to vehicle


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owners because vehicle owners but not drivers have taken out insurance. I hope the government departments concerned can assist elderly vehicle owners in claiming for financial losses. CHIEF EXECUTIVE (in Cantonese): President, I will ask the departments concerned to examine the matter. Thank you. MRS REGINA IP (in Cantonese): Thank you, President. Chief Executive, since the Standing Committee of the National People’s Congress (“NPCSC”) enacted for Hong Kong the Law of the People’s Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region (“the National Security Law”) applicable to HKSAR at the end of June 2020, immediate results have been achieved, with the community immediately returning to calmness and order and the public having no need to be in fear when going out. According to Article 23 of the Basic Law, HKSAR shall enact laws on its own to safeguard national security, and the relevant Decision of the National People’s Congress also states that the country is still facing threats and challenges to national security, unity and territorial integrity. Earlier, I have heard the Chief Executive mention the bills to be introduced and, among them, the bill relating to national security is further down the list―the first one she mentioned should be the Copyright Ordinance. Can the Chief Executive provide us with a timetable on when the consultation can be conducted and the progress of drafting the relevant bill? CHIEF EXECUTIVE (in Cantonese): Thank you, President. First of all, the examples I cited just now are not listed in order of priority, rather they are simply listed for Members’ reference. In terms of sequence, the first bill to be introduced to the Legislative Council (“LegCo”) is the one on abolishing the “offsetting” arrangement under the Mandatory Provident Fund system. The enactment of local legislation to implement Article 23 of the Basic Law is a constitutional function of Hong Kong and cannot be delayed any further. I have repeatedly stated in public that we have to follow up immediately on the enactment of local legislation to implement Article 23, and the Secretary for


Security is also fully committed to the relevant work. The timetable I mentioned earlier is to put forward the general framework and content of the enactment of Article 23 legislation for discussion in society during our term of office, that is, before June. I know that some Members here are more proactive than we are, hoping to pass this legislation through three readings in LegCo within the current-term Government, that is, before June. I think this is quite difficult. However, after the proposal is put forward for Members’ discussion, the SAR Government is unlikely to oppose it if Members can do so. This legislation must be enacted properly, because the effectiveness of a law can only be ensured if it is a well-made one. The National Security Law, which NPCSC enacted on 30 June 2020 for our implementation, is a very well-made law. In the year and a half since its implementation, its early effect was to stop violence and curb disorder―as Mrs IP has said, the community has returned to normal immediately. Now, it serves as a “stabilizer”, as people know that there are consequences for endangering national security. According to the National Security Law, we have to prevent, stop and punish; the better the prevention, the less the punishment to be imposed. The local legislative work on Article 23 of the Basic Law is likewise to make a good law. We will carry out this task as soon as possible; perhaps the Panel on Security, after being set up, can commence formal or informal discussions with colleagues of the Security Bureau and the Department of Justice. Thank you, President. MRS REGINA IP (in Cantonese): President, I very much agree with the Chief Executive that legislation must be enacted well. Has the SAR Government ever noticed how good the legislative work in Singapore is? Singapore, though with a much smaller population and a smaller bureaucracy than ours, passed the 200-odd-page Foreign Interference (Countermeasures) Act 2021 in early October last year to prevent external interference, in which there are many aspects we can learn from. I wonder if the Chief Executive has instructed the Security Bureau to conduct studies in this regard. CHIEF EXECUTIVE (in Cantonese): I know that the Security Bureau has drawn reference from overseas experiences when studying the enactment of local legislation to implement Article 23 of the Basic Law. Of course, reference must


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also be drawn from the local implementation of the national security law and case law. I believe we will definitely refer to the examples Mrs IP has just mentioned. In fact, another task is to legislate against fake news, and we must also draw reference from the example of Singapore because Singapore enacted legislation two to three years ago to make it an offence to disseminate false information on the Internet. We will definitely draw reference from these overseas experiences. MR YIU PAK-LEUNG (in Cantonese): Thank you, President. I am grateful that the Chief Executive has promptly responded to the demand of my sector and proposed yesterday to draw on the Anti-epidemic Fund (“AEF”) to render support to sectors affected by the fifth wave of the epidemic. The tourism industry is desperately in need of timely assistance from the Government to address its pressing needs. With the Government’s tightening of the anti-epidemic measures once again, the tourism industry has, so to speak, gone back to zero―zero tourists, zero business and zero income. While tourism has not seen any business revival for two whole years, there is still a big question mark over when quarantine-free travel, air travel and business will resume. As the tourism industry has been hit the quickest and hardest by the pandemic and will be the slowest to recover, it very much hopes that the Government may offer targeted, prompt and continuous support and assistance to various practitioners in the industry, including travel agents, hotels and tourist transport operators. Moreover, there is a genuine need for formulating long-term development plans. In the Policy Address, the Chief Executive has proposed to reorganize the government structure and set up a Culture, Sports and Tourism Bureau. She has also outlined the general direction of this proposal just now. I would like to ask the Chief Executive: How will the Government expedite the preparatory work for setting up the Culture, Sports and Tourism Bureau during “the window period” amid the epidemic and consolidate the resources of various Policy Bureaux, so as to get ready to revitalize the tourism industry in the post-epidemic time and give the industry confidence and motivation to tide over these hard times? CHIEF EXECUTIVE (in Cantonese): Thank you, President. I am grateful to Mr YIU for the question. We fully understand the impact of the pandemic on the tourism industry, which in fact has shown no business revival whatsoever. In the


past year, many other sectors have been on the track of gradual recovery, and some of them have recovered quite well. However, since tourism has indeed remained “frozen”, especially in the case of travel agents which serve inbound and outbound tour groups, we have strived to explore all possible ways to assist them. As Mr YIU may remember, apart from AEF 4.0, some other measures were introduced later to assist the tourism industry. I will announce the rolling out of the fifth round of the AEF measures this week, including an additional support scheme readily prepared for travel agents. With two or three more days to go, the details of it will be announced this Friday, in particular the assistance for travel agents. As hotels have actually been operating and recovering for a period of time by offering staycation deals or serving as quarantine hotels, we will put our focus on assisting the most affected sectors. This is our short-term initiative. Concerning medium and long-term initiatives, we have not missed the chance of making good use of “the window period” to which Mr YIU has referred. We have looked into the future development of tourism in Hong Kong. Among others, I have personally discussed with the relevant Mainland authorities, namely the Ministry of Culture and Tourism, how the tourism recovery may be boosted in the event of the resumption of quarantine-free travel, tourism business and tours or by enhancing visa arrangements, etc. Such discussions are still underway. As for tourism infrastructure, it is hoped that both the redevelopment of Ocean Park and the opening up of Sha Tau Kok Pier, which I have just mentioned, will provide more infrastructure facilities for the tourism industry. Regarding the Culture, Sports and Tourism Bureau, the Tourism Commission and the relevant agencies currently under the Commerce and Economic Development Bureau will, of course, come under the purview of this bureau. However, as the new Policy Bureau will also undertake cultural and sports matters, we will consider in a holistic manner how to capitalize on cultural and sports events and major cultural and sports infrastructure facilities, including the M+ museum which has been opened, the Hong Kong Palace Museum which will be opened, the Kai Tak Sports Park and the East Kowloon Cultural Centre, thereby instilling tourism elements into them. We look forward more views from Mr YIU inside and outside the Legislative Council in future.


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MR YIU PAK-LEUNG (in Cantonese): I thank the Chief Executive for her concern. In fact, having suffered a double blow of “black-clad violence” and the epidemic, the tourism industry has really been severely battered and at the end of its tether. Will the Government consider establishing a business resumption fund to provide assistance for us to relaunch our businesses in the future? CHIEF EXECUTIVE (in Cantonese): We do not have such plans for the time being, but Mr YIU may continue to discuss with the responsible Policy Bureau, which is still the Commerce and Economic Development Bureau at present. MR CHAN CHUN-YING (in Cantonese): Thank you, President. In view of the stable epidemic situation in Hong Kong over the past six months and the Government’s announcement that it would strive for resumption of quarantine-free travel with the Mainland, many trades and industries, especially the service industry, hold a relatively optimistic attitude. Many restaurants have stocked up ingredients and hired temporary staff to prepare for the anticipated business growth during the Lunar New Year. However, with a sudden surge in the number of local infections of Omicron, the Government has to once again tighten its anti-epidemic measures, causing great losses to many trades and industries. Although the Chief Executive has announced the rolling of a new round of the Anti-epidemic Fund as a support measure, many of these small and medium enterprises (“SMEs”) have drawn loans under the Pre-approved Principal Payment Holiday Scheme (“the Scheme”) already. The Hong Kong Monetary Authority (“HKMA”), together with the Banking Sector SME Lending Coordination Mechanism (“the Mechanism”), announced in September last year the repayment deferment for loans under the Scheme to April this year. Yesterday, HKMA announced a further 90-day repayment deferment for trade loans under the Scheme to April this year. Yet, HKMA said that it would consider ways to strike a balance between the risk management of banks and the need of supporting SMEs. However, in the event that the anti-epidemic measures are not relaxed on the 20th of this month, I believe that the businesses of SMEs will be greatly affected, rendering them unable to repay their loans in April as scheduled. As the Mechanism is currently planning for an exit of the Scheme, I would like to ask the Chief Executive: Will consideration be given to immediately lower the ratio of principal repayment for the exit and extend the deferment period of the Scheme?


CHIEF EXECUTIVE (in Cantonese): Thank you, President. Mr CHAN, I cannot give a reply today, but I will ask the Financial Secretary to consider your suggestion. In fact, as far as I know, the Financial Secretary is consulting Members on the 2022-2023 Budget. I believe that the Financial Secretary has listened to your views. Thank you. MR CHAN CHUN-YING (in Cantonese): Alleviating SMEs’ pressure on loan repayments is of course part of it, but most important of all is to improve the entire business environment, which would in turn help SMEs and genuinely relieve their pressure. The Government’s disbursement of electronic consumption vouchers last year was able to give support to many trades and industries as well as boost the overall economic momentum and consumer sentiment. I would like to ask the Chief Executive: Will you consider instructing the Financial Secretary to propose again the disbursement of electronic consumption vouchers in the upcoming Budget? PRESIDENT (in Cantonese): Mr CHAN Chun-ying, what you have raised is indeed a new question.

Chief Executive, will you give a reply to it? CHIEF EXECUTIVE (in Cantonese): As I have mentioned, the Financial Secretary is currently seeking views on the upcoming Budget from various sectors, including Members of this Council. I believe that the Financial Secretary, having concluded the consultation and come up with a holistic plan and certain ideas, will have a discussion with me. MR MICHAEL TIEN (in Cantonese): On behalf of the general public, I would like to express my strong disappointment and dissatisfaction to the Chief Executive and the Government sincerely and honestly today. While all Hong Kong people expect the resumption of quarantine-free travel with the Mainland by the end of this year, and despite repeated calls from the Mainland health authorities and me for the Government to remove the exemption of local crew members from hotel quarantine on their return to Hong Kong from overseas, your Administration has


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all along allowed cargo crew members to follow a set of “self-regulatory home isolation” rules which are virtually non-existent. Cargo crew members are not even required to wear an electronic wristband. Consequently, the virus has spread into the community, leading to the outbreak of the fifth wave of the epidemic. Not only has the hope of resuming quarantine-free travel been dashed, the local economy has been hard hit right before the Lunar New Year, putting the food and beverage, retail and entertainment industries in big trouble. I understand that all the exemptions you brought up just now are just trade-offs. I can understand this. In other words, we will not have fresh food supply if crew members are not exempted. The problem is, however, once concessions and exemptions have been offered, it is no longer possible for the Administration to “turn a blind eye” on the policy front and in its regulatory work. I understand that the arrangement you have just mentioned should apply to crew members who depart Hong Kong on passenger flights and return on passenger flights as well. However, at present, some crew members on outbound passenger flights have returned on cargo flights. As they have claimed that the authorities all along have access to their travel records, the authorities have apparently given their tacit consent. As far as home isolation is concerned, it has always been clearly stipulated that the isolated persons have to wear a wristband. If they are not required to wear a wristband, it is advisable not to require the persons concerned to undergo home isolation because this would be a waste of efforts. After all, what is the reason for them not wearing a wristband? Have they been given tacit consent by your Administration? Last but definitely not least, will you, on behalf of … PRESIDENT (in Cantonese): Mr Michael TIEN, to facilitate the work of interpreters, please speak in either Chinese or English and refrain from code-switching. I would also remind you to raise your question as soon as possible and not to express your views. MR MICHAEL TIEN (in Cantonese): I understand. Last but also most importantly, will the Chief Executive make further concessions by apologizing to all Hong Kong people basically on behalf of the monitoring authorities for their ineffective monitoring? The apology should particularly be extended to the 500 000 Tuen Mun residents because nearly all of them are currently required to undergo a COVID-19 test.


CHIEF EXECUTIVE (in Cantonese): Thank you, President LEUNG. As far as I understand, Mr Michael TIEN has publicly stated that he would adopt an attitude of “no blind support, no blind opposition” after returning to the Legislative Council, and I agree with him. That being said, it is inappropriate to blindly accuse our colleagues who have been working very hard in fighting the epidemic of making concessions, creating loopholes, etc. PRESIDENT (in Cantonese): Chief Executive, please hold on. I would like to draw the attention of a photographer in the public gallery whose camera light is on. Please turn it off. Chief Executive, please continue with your reply. CHIEF EXECUTIVE (in Cantonese): The existing exemption and monitoring system has all along been regulated by law and applicable to air cargo crew only. We will therefore conduct an in-depth investigation into the recent incidents in which passenger crew members have travelled on cargo plane on their return to Hong Kong. As I have said in response to an earlier question, it is not the right time to have a public debate or quarrel at this stage given that an investigation has to be conducted. We will conduct a thorough investigation, follow up seriously and go through all the documents before giving the public an account of the incidents. We will conduct an in-depth investigation into whether there is any violation of the rules by the persons concerned―the Chairman of Cathay Pacific Airways Limited (“CX”) has already confessed in his letter to me that the two crew members concerned have definitely violated the rules―and whether there is any problem with the arrangements of CX and the Government for exempting cargo crew members. It is not possible to explain the ins and outs of the incidents in just one single Question and Answer Session now. Thank you, President. MR MICHAEL TIEN (in Cantonese): President, the crux of the matter is that they should have been required by the authorities to wear a wristband during home isolation. There will be perfunctory supervision on the part of the authorities if they have not done so. I wonder if they have cut their wristbands off after wearing them. I have really racked my brain in vain over this question. Furthermore, the Chief Executive has failed to answer whether she would apologize to all Hong


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Kong people given that their perfunctory supervision has triggered the fifth wave of outbreak. Of course, it is not her intention to cause the outbreak, definitely not. However, I think some departments have been too lenient with CX on the regulatory front. CHIEF EXECUTIVE (in Cantonese): I have spent a long time answering some of Mr TIEN’s questions just now. In fact, the exemption and home isolation arrangements for air cargo crew under the current system have been in place for a very long time, contributing to the delivery of 4.6 million tonnes of cargo to Hong Kong in just the first 11 months of last year alone, not to mention the year before last. No problems have arisen so far. As such, it is inappropriate for people to hastily and blindly claim that the system is not working, or accuse us of negligence of duties and lack of monitoring. After all, they are human beings. I mean there are people breaching the rules every day―As we all know, breaches of rules are found every single day, otherwise law enforcement departments would have no role to play―We will investigate and punish all cases of compliances, and then give an account to members of the public. We have already adjusted and tightened up the rules as warranted. In fact, the rules have been significantly tightened since December last year. This has been our attitude and stance in the fight against the epidemic, and I do not consider that there is any deficiency in such attitude or stance. We will continue to work hard to prevent and control the epidemic by adhering to the principle of “preventing the importation of cases and the spreading of the virus in the community” so as to ward off virus outbreak in the local community. MR CHAU SIU-CHUNG (in Cantonese): Thank you, President. I would like to ask the Chief Executive: With the outbreak of the fifth wave of the epidemic in the community, the Government announced comprehensive tightening of epidemic prevention measures from 7 January, including the cessation of dine-in services at catering businesses in the evening and the closure of 15 scheduled premises. Many of the affected workers approached me during the past few days, reflecting that they had to accept right away such arrangements as work suspension and taking of unpaid leave, causing them to face zero income and their livelihood being affected. The Government further announced yesterday that from 14 January, all kindergartens and primary schools in Hong Kong would have class suspension, putting school bus drivers, school private light bus drivers and nannies once again in the plight of work suspension and zero income. Chief Executive, as the Lunar New Year is approaching, I would like to ask whether you have plans to provide


direct cash subsidies to workers being affected by these prompt, resolute and pertinent anti-epidemic measures, so as to help them tide over this difficult time. Thank you. CHIEF EXECUTIVE (in Cantonese): Thank you, President. As Mr CHAU may aware, I stated in my announcement of the expeditious rolling out of the fifth round of the Anti-epidemic Fund (“AEF”) that in order to facilitate the early disbursement of subsidies to premises affected by the tightening of social distancing policies for our fight against the epidemic, we would adopt the previous round of AEF, namely AEF 4.0, as a blueprint. The premises benefited back then were those being affected, including premises and restaurants with total ban of their businesses as well as premises with cessation of dine-in services in the evening. I am asking directors of bureaux to review afresh the coverage of AEF and extend it to cover other trades and industries being affected by these social distancing measures. From our experience in implementing the previous rounds of AEF, it was difficult to provide assistance to individuals who were unemployed or on unpaid leave. It is not meant to be an excuse for our reluctance to do so, but it is indeed difficult to provide employment protection for these workers. At present, the best way to protect their employment is that corporates should neither dismiss their staff nor close their businesses once the tightening of social distancing measures are put in place. We should have confidence in tiding over the difficulties this time, and we will then be able to resume the business level about two weeks ago that local restaurants were flooded with diners. I heard from my colleagues back then that if you wanted to book a table at a decent restaurant, you had to wait for three months! This was the situation. Mr Tommy CHEUNG told me, “We are not able to recruit dishwashers again. Chief Executive, what can we do?” This was the situation. Therefore, the public should have confidence at this moment. We are making our utmost efforts to put the epidemic under control by closing certain premises for a few days only. We will put forth the relevant arrangements in less than one week from 7 January on which these social distancing measures take effect, that is to say, the arrangements can be announced on 14 January, this Friday. Compared with the previous rounds, it took more than one month for us to launch AEF 3.0 and AEF 4.0. This shows that we want to swiftly respond to social aspirations, hoping that with everyone’s efforts, we can achieve good governance and serve the public in a practical way for the benefits of the community. Thank you, Mr CHAU.


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MR CHAU SIU-CHUNG (in Cantonese): Chief Executive, as far as I know, the disbursement of $6.4 billion in the fourth round of AEF measures was mainly for licensees of certain sectors being affected, but no direct subsidies were disbursed to frontline workers. Of course, it is important for the Government to provide employment support; but under the current anti-epidemic measures, many premises need to be closed immediately. Moreover, once the ban on dine-in services in the evening is in place, some catering premises, such as hot pot restaurants, will no longer have business and their frontline staff have to suspend from work immediately. In view of this, I would like to ask Chief Executive: Will you offer help to these frontline workers through disbursement of cash subsidies, so as to enable them to tide over the Lunar New Year and this difficult time? Thank you. CHIEF EXECUTIVE (in Cantonese): Thank you, President. Mr CHAU, as I have mentioned earlier, we will take AEF 4.0 as a blueprint, in the hope of assisting these premises and in turn their employees so that the latter will not be affected. The Secretary for Labour and Welfare told me that the current manpower supply seems quite tight; if employers hastily offer their staff with less favourable terms of employment, dismissal or arrangement of unpaid leave at this moment because of the closure of the premises for just a few days, I am afraid they can hardly recruit staff for replacement later. This is the message we wish to convey to them. Moreover, I would like to make the same appeal as that raised by the trades, urging landlords to lend a helping hand during this time; with profits made from the significant increase in the number of customers earlier, it is not advisable for them to get the operating premises in trouble due to rental issues. This is what we called concerted efforts. Fighting against the epidemic hinges on our concerted efforts. The combat against the public health crisis of this century cannot be accomplished solely by the Government. Thank you, President. MR LUK CHUNG-HUNG (in Cantonese): Thank you, President. Two employees of Cathay Pacific Airways Limited (“CX”) breached the rules, causing all members of public in Hong Kong to suffer. CX definitely has to bear great responsibility, but a timely solution is called for now. If the Chief Executive simply uses the Anti-epidemic Fund (“AEF”) 4.0 as a blueprint, the public will be very disappointed. As we all know, people have to wait in winding queues now whether it is for vaccination or testing, especially in Tuen Mun; numerous local residents sent me messages and photos today, saying that their work would be affected as they might have to wait for hours before being vaccinated or tested.


Moreover, if the Government adopts the criteria of the previous round of AEF, it will give people an impression that this is about saving the market rather than the people, employees will find that unfair. For instance, CX received $30 billion of subsidies from the Government, but its frontline employees did not get a penny at all; not to mention the seafarers of Hong Kong-Macao ferry services, as well as many casual workers and freelancers. Why cannot the Government offer direct subsidies to employees to relieve their livelihood, instead of simply adopting past practices? While the Government had disbursed subsidies to employers in the previous rounds of AEF, employees still had to take unpaid leave or get the basic salary only, or were even laid off. Will the Government enhance AEF 4.0 so that more trades and industries, in particular the civil aviation industry which was not covered by the previous rounds of AEF measures, will benefit? CHIEF EXECUTIVE (in Cantonese): Thank you, President. I understand that Members representing workers have this strong aspiration. But in fact, we debated this during our discussions of AEF in the past couple of years, and we had repeatedly explained its operation, which is effective. Therefore, with the slight recovery of our economy, the unemployment rate has fallen from 7.2% early last year to the current 4.1%. Further recovery might be on the track if there had not been this round of tightened social distancing measures. We will offer prompt assistance to the operators affected by the closure of premises, and we also hope that they, as employers, will strive to retain their valuable staffing resources. But just now Mr LUK said that the SAR Government subsidized CX, I have to clarify that. Financial Secretary, we are not subsidizing CX, are we? What we have done is to invest in CX. Giving subsidies means helping them, but investing in them means they have to make repayments to us and share us with their returns over the course. MR LUK CHUNG-HUNG (in Cantonese): President, the Chief Executive has not replied how the testing and vaccination services will be increased, in particular, for the convenience of employees. They should not be made to wait for hours to get tested, rendering them unable to go to work afterwards. This is because, as required by many work places, employees have to be vaccinated or tested before they can work there. Can more efforts be made to facilitate employees in this regard? Thank you, President.


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CHIEF EXECUTIVE (in Cantonese): We have continued to enhance the testing capability, including setting up mobile specimen collection stations and extending the opening hours of some testing centres. Tuen Mun is a very special case. The timeline was tight; we had to race against time as we were very worried that local infections might result if there existed in those few days any asymptomatic carriers in the community of Tuen Mun. We hope the public can understand this. Given the tight timeline, we made our greatest effort and the contractors also did their utmost to raise the testing capacity, hoping that the public could cooperate with us. We are sorry that the queuing time may be relatively long this time. But people feel reassured after undergoing the tests and need not worry about the possible existence of one or more silent transmission chains the community. Thank you, President. MR LEUNG MAN-KWONG (in Cantonese): Thank you, President. Chief Executive, I wrote to you in November last year, proposing that the Government should tighten the quarantine restrictions on flight crew members, so as to adhere to the principle of “guarding against the importation of cases”, with a view to achieving the resumption of quarantine-free travel as scheduled. Unfortunately, Cathay Pacific Airways Limited (“CX”) may have exploited the loophole of “departing on passenger planes and returning on cargo planes” and the crew have not complied with the quarantine guidelines, resulting in the situation that we are most worried about right now, i.e. the spread of COVID-19 variants in Hong Kong, hence, the resumption of quarantine-free travel of concern to many Hong Kong people is still nowhere to be seen. I agree with the Chief Executive that controlling the epidemic is the predominant task at present. I also heard the Chief Executive say earlier that she was aware that the public were dissatisfied and angry about the current situation, and that the Government would seriously follow up on some possible violations by CX. As the Chief Executive mentioned earlier, as long as the epidemic is under control, the work in respect of the resumption of quarantine-free travel with the Mainland can be carried out immediately. Just now, the Chief Executive also mentioned in her reply to the questions raised by other Members that some details of the resumption of quarantine-free travel or exchanges with the Mainland were still under discussion and coordination. What I would like to say is that we have received many cases at the district level. As the Lunar New Year is approaching, many people are anxious to return to the Mainland to deal with some legal or asset issues, and even family reunion has been affected. They cannot take a very long vacation leave to return to the Mainland to deal with these issues because they are living from hand to mouth. May I ask the Chief Executive whether the Government will put in place a mechanism to assist


them when the resumption of quarantine-free travel is not possible for the time being, and how the Government and the public can complement each other so that the epidemic can be controlled and quarantine-free travel can be realized as soon as possible? CHIEF EXECUTIVE (in Cantonese): As Mr LEUNG understands, since September last year, with the support of the Central Authorities, we have been making a lot of preparations for the resumption of quarantine-free travel, and the work of which has been 90% to 100% completed. As far as I know, it is not true that the resumption of quarantine-free travel is still nowhere to be seen, because as long as we all work together to ensure that there are no new confirmed local cases for about 14 days, quarantine-free travel will be realizable. It all hinges on our concerted efforts. Even there are long queues for vaccination, we have to get vaccinated anyway; and even being sent to quarantine centres is very inconvenient and the services there are not good enough, we have to take it. So long as we all make efforts, quarantine-free travel will be realizable and the preparations we made are rather comprehensive. However, I am afraid there is no other mechanisms for quarantine-free travel or resumption of the flow of people between the two places, i.e. there is no compassionate arrangements or other mechanisms that can provide privileges at all―apart from officials like me who may be waived from the quarantine requirement upon arrival but are nevertheless subject to “closed-loop management” and are not allowed to go anywhere―I am afraid such mechanisms are really unavailable. I call on everyone to join hands and support the SAR Government’s work in fighting the epidemic. I also call on the public to be tolerant if there is any inconvenience. We should get the Omicron variant under control as soon as possible and quarantine-free travel will then be realizable. MR LEUNG MAN-KWONG (in Cantonese): Thank you, President. Chief Executive, the mechanism I just mentioned is intended to enable the public to return to the Mainland―in fact, I do know that there will not be privileges or other ways to allow the public to return to the Mainland without being subject to quarantine―however, will the Government have any departments or counterparts from which the public may seek assistance when they encounter the more complicated problems mentioned just now, so that they can contact the relevant departments in the Mainland for handling their affairs even when they are in Hong Kong? If so, the problems encountered by some members of the public can be solved before the Lunar New Year.


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CHIEF EXECUTIVE (in Cantonese): Mr LEUNG, you have to be more specific so that I can tell you which Policy Bureau or department will follow up on the matter. For example, FTU reflected to us earlier that some people who were stranded in the Mainland could not return to Hong Kong for medical treatment. So, we arranged for the delivery of medicines or made arrangements through the University of Hong Kong-Shenzhen Hospital. Mr LEUNG, you have to be more specific so that we can decide what further measures should be taken. MR TOMMY CHEUNG (in Cantonese): Thank you, President. Chief Executive, when I met with reporters yesterday, I said that I was grateful to the Chief Executive for her provision of funding in a prompt, resolute and pertinent manner this time. The Chief Executive mentioned just now that other Members might have to reflect their needs to the Secretaries as and when necessary. I have told the Secretary for Education and the Chief Secretary for Administration that business for our lunch box suppliers, like the tourism industry, have been “frozen” for two years, but there have been no measures to assist them. They have all along been left with zero income and are now facing the suspension of afternoon or whole-day classes. I hope the Secretary and the Chief Secretary for Administration can take care of them in this regard. The Chief Executive said earlier that the fight against the epidemic hinged on our concerted efforts. I absolutely agree. I also call on members of my industry, whether they are employers, the management or employees, to strictly adhere to the rules and regulations issued by the Government. We should not allow customers to continue to do things that are non-compliant with the law just for the sake of getting business or “the customer is always right”. While we are thankful to the Chief Executive for announcing on Friday the measures to subsidize our industry in a prompt, resolute and pertinent manner, what our industry wants most is to resume business in the evening. We do not want the Chief Executive to refuse to consider this option because there will be no sashimi for us to sell; we can sell other food products instead. As we have said, if the Chief Executive can relax the policy on Friday and resume the practice before 7 January, we will certainly applaud and cheer, especially when the epidemic situation is getting subsided day by day. However, if the Chief Executive has worries over this, the industry has two other options to propose in the hope that she can let us resume business in the evening.


First, the business hours can be determined flexibly by the operators of the premises; not from six to six, but can they perhaps operate from ten to ten, or eleven to eleven? In fact, for some scheduled premises, including bars, nightclubs and karaokes, all employees have been vaccinated and they only allow those who have been vaccinated to patronize them. If the Chief Executive has worries and does not intend to resume the practice before 7 January, can she allow the scheduled premises to operate during certain hours, such as nine to three or eight to two? Moreover, regarding these scheduled premises, members of the industry have also raised the question that since the Chief Executive has announced that the Government will implement the “vaccine bubble” initiative on 24 February, if she really has worries, can she consider allowing the industry to advance the commencement of the initiative to tomorrow and refuse people who have not been vaccinated to patronize the premises, and at the same time, will the Chief Executive fully relax the measures and allow the premises to resume the practice before 7 January in terms of their business hours and conditions of operation? CHIEF EXECUTIVE (in Cantonese): Thank you, President. We are willing to consider the various proposals mentioned by Mr CHEUNG, on the premise that the epidemic is under control. If the Centre for Health Protection or our colleagues tell me that this is apparently the final stage of the epidemic, that is, the epidemic is under control, I will consider all kinds of proposals. I understand that it is better to provide jobs than subsidies―I am also glad to hear the indication from operators of the premises that they hope the Government will allow them to do business and they are not very keen to receive the subsidies―that is a healthy phenomenon. Thus, we will certainly study the proposal, on the premise of ensuring that there is no outbreak in the community. I would also take this opportunity to make it clear to operators of premises affected by the social distancing measures, including the catering industry, that it is not true that our tightening measures are directed at them because they are not doing a good job. The reason is that many operators of beauty salons and fitness centres have written to me, saying that they had done a very good job and wondered why the Chief Executive was still punishing them. I am targeting not at them, but the flow of people. We appeal to the public, unless it is essential, not to go out and stay home, with a view to reducing the flow of people monitored through the Octopus system which I mentioned earlier. If they are not allowed to watch movies, dine in, visit Chinese restaurants and drink, the flow of people will drop. I must clarify that the measures this time are adopted not because we have noticed


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that some restaurants (perhaps except one) are not doing a good job, but because we need to significantly reduce the flow of people within a very short period of time; and the results are already achieved. Thus, I hope all operators of the premises will understand that I am not targeting at them because they have not done a good job, but because I hope they can help to significantly reduce the flow of people in Hong Kong in this period of time. MR TOMMY CHEUNG (in Cantonese): President, I would like to follow up on the Chief Executive’s reply. Just now the Chief Executive responded that some members of our sector said that they did not need the subsidies, but it is actually not true; we are desperately in need of the subsidies, and the more the better, but what we need more is to be allowed to do business in the evening. I hope the Chief Executive can balance considerations of the epidemic and the economy. Last week, she tightened the measures in a prompt, resolute and pertinent manner; I hope she can also relax the measures in the same manner this time, at least to allow restaurants to operate in the evening. CHIEF EXECUTIVE (in Cantonese): I understand Mr CHEUNG’s views. MR JEFFREY LAM (in Cantonese): Thank you, President. On this day five years ago, the Chief Executive resigned from the post of Chief Secretary for Administration and prepared to run for the Chief Executive election; five years later, the Chief Executive’s determination to make Hong Kong a better place remains unchanged. Today, the Chief Executive put forward a proposal to reorganize the government structure in response to the aspirations of various sectors, and we can see that the Chief Executive is very concerned about the impact of the epidemic on various trades and industries in Hong Kong. We are looking forward to the Anti-epidemic Fund 5.0 to be announced on Friday, which I believe will provide some “life-saving money” to various trades and industries in Hong Kong. Regarding the reorganization of the government structure, I think it meets the expectation of society and can solve the long existing problem of fragmentation of responsibilities. The most important task that comes next is to find some political talents to serve the Government; motivate the civil service to serve the public; and eradicate the bureaucracy which has all along existed. May I ask the Chief Executive, who has been in the public service for 41 years, what political


talents we need most nowadays as our society has changed over time? Do these talents need to be politically sensitive and strictly disciplined, thus setting a good example to others? Thank you, President. CHIEF EXECUTIVE (in Cantonese): Thank you, President. Political talents and political figures include not only the SAR officials, but also Members of the Legislative Council (“LegCo”). Thus, Members have been reminded that they, as part of the political governing team, should pay attention to their behaviour and attitude in all aspects. In my Policy Address, I have highlighted the parts on enhancing the Government’s governance or its ability to govern. In one of the paragraphs, I mention the saying that this “kitchen” is very hot and people will not enter this “hot kitchen”. With the improvement of the electoral system and the implementation of the National Security Law, this “kitchen” has now cooled down. I hope that more people who have the aspirations and commitment to serve the community will join the Government. I believe the Chief Executive-elect will similarly face problems in forming a governing team as I did back then, but I am quite sure that problems to be encountered will be fewer. The reason is that most of the people I contacted back then said that LegCo was a distressing place and they might also be doxxed, making them reluctant to join LegCo. May I ask Members to show their sincerity and good faith in the coming months; I believe that will encourage more talented people to join the next-term SAR Government. MR JEFFREY LAM (in Cantonese): The Chief Executive has just mentioned some criteria for political talents, but many members of the public have pointed out that civil servants nowadays are not familiar with the outside social environment. May I ask the Chief Executive what kind of people, be they civil servants or those recruited from outside, she would recommend to serve the Hong Kong Special Administrative Region? Who does she think would be the more suitable candidates? CHIEF EXECUTIVE (in Cantonese): If Mr LAM’s question is about the civil service, I have made two other proposals in the part on enhancing governance in the 2021 Policy Address which serve to address this phenomenon. First, we will apply the principle of meritocracy to open up the recruitment and appointment of some senior civil service positions to more people. The first of these positions being recruited is the newly created Head of the Civil Service College, which is a very senior position equivalent to the head of a large department. We have


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opened up the position within the Government to our serving colleagues in various grades and those who meet the criteria can apply, and we will also conduct open recruitment. In the future, we will also adopt this approach of meritocracy in appointing other senior civil service positions. Another suggestion is to create dedicated positions with specific responsibilities. There are positions which, though not very senior, have been given special responsibilities in the Policy Bureaux and they play an advocacy role. For example, I have suggested in my Policy Address that child welfare is one of the jobs that should be given an advocacy role. Today, no Member has asked me any question on the child abuse case which happened in the children’s home. The case is indeed heartbreaking. Of course, a Commissioner for Children can in no way serve as a solution to all problems, but at least there will be an officer in the government structure who will always be concerned about children’s welfare, review if the legislation concerning children’s welfare needs to be updated, and check if there is a need to upgrade the requirements for certain child service organizations. Thus, we hope to take forward the proposal of creating dedicated positions with specific responsibilities within the Government to enhance governance. As for the general criticism that public officers are “out of touch with reality”, this inadequacy can be compensated. In this regard, we rely on Members from different backgrounds, trades and professions with broad representation to relay views of the public to LegCo more effectively in the days ahead, so that the executive authorities can have a better grasp of public sentiment and opinion when formulating the relevant policies. Thank you, Mr LAM. PRESIDENT (in Cantonese): Last Member. Mr LAU Kwok-fan, please be brief in raising your question. MR LAU KWOK-FAN (in Cantonese): Thank you, President. I am grateful to the Chief Executive for taking on board my proposal on developing New Territories North into a new centre in Hong Kong in proposing the Northern Metropolis development. I am also very pleased to hear today the Chief Executive’s proposals for developing the Northern Metropolis just three months after the delivery of the Policy Address. The proposals have incorporated some of the responses we have made following the announcement of the Policy Address, including granting lands for private enterprises to design their uses and operations for industrial development, and introducing legislative amendments to streamline land development procedures.


The Chief Executive has also mentioned just now the need to create a post of Deputy Secretary of Department (“DSoD”) to assist in taking forward and coordinating the developments of the Northern Metropolis, but she will leave it to the next Chief Executive to decide whether to create the DSoD post. In fact, apart from the creation of the DSoD post, it is necessary to expedite the development of the Northern Metropolis. One of the proposals is to establish a dedicated body or a dedicated office. I would like to ask the Chief Executive whether she will consider setting up a Northern Metropolis Office before the creation of the DSoD post during the remaining six months of her term of office, thereby expediting certain liaison and coordination work. CHIEF EXECUTIVE (in Cantonese): There should be no conflict between the two, Mr LAU. As a matter of fact, I have mentioned earlier that the development of the Northern Metropolis should not be undertaken outside the Government. In other words, we will not set up a Northern Metropolis Development Council for outsiders to take up the work which should be handled by the Government. If the relevant work is to be handled by the Government, not only should various bureaux be responsible for their respective work, it is necessary to put in place a core department, such as a Northern Metropolitan Office of a certain scale. However, given just a few months left in our term, we should leave it to the next-term Government to consider holistically what form of administrative unit should be adopted―it will be an administrative unit rather than a large department―so as to facilitate that high-level supervision work more effectively. In view of this, I believe that an administrative unit will be put in place, but we have to leave it to the Chief Executive-elect to make a decision. In the meantime, however, we have not slackened in our work. I recently invited a former Director of Planning to assist in formulating the Northern Metropolis Development Strategy, and I have invited him to serve until the end of February this year to continue to coordinate the implementation of the Northern Metropolis project. I can therefore mention in my speech just now that I have already achieved certain results and progress in several tasks. MR LAU KWOK-FAN (in Cantonese): As the Chief Executive said just now, there will be a change of government in six months’ time. How can the Government reassure the public that the beneficial Northern Metropolis project will continue rather than being abandoned or aborted by then as a result of the change of government?


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CHIEF EXECUTIVE (in Cantonese): Thank you, President. Perhaps I should explain with a broader example. Many people have enquired whether the initiatives I have undertaken to take forward would be implemented following the end of the current government term. My response is as follows. Since the resumption of sovereignty, I have noticed strong policy continuity from one term of government to the next, particularly in respect of policies which have been supported by the community. For example, the first question which I have replied was about abolishing the “offsetting” arrangement under the Mandatory Provident Fund (“MPF”) system. To a certain extent, this initiative was proposed by the previous Government, under which I served as the Chief Secretary for Administration. In the absence of opposition from the then Chief Executive, we had proposed the policy to abolish the MPF offsetting arrangements. As long as a policy is supported by the community and the legislature, it will not be completely discarded due to a change of government or a change of the Chief Executive, Secretaries of Departments or Directors of Bureaux. Meanwhile, Members’ encouragement and supervision is certainly necessary for boosting our capability and effectiveness of policy implementation. We will definitely do a better job. Thank you. PRESIDENT (in Cantonese): The Chief Executive’s Question and Answer Session ends. The Chief Executive now leaves the Chamber. Members please stand up. (The Chief Executive left the Chamber) NEXT MEETING PRESIDENT (in Cantonese): I now adjourn the Council until 11:00 am on Wednesday, 19 January 2022. Adjourned accordingly at 1:04 pm.

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Re-organisation of the Government Structure

Purpose

This paper briefs Members on the current-term Government’s proposal of re-organising the government structure for consideration by the next-term Government.

Background

2. To enhance the effectiveness of governance, the Chief Executive hasput forward a number of initiatives1 in the 2021 Policy Address deliveredon 6 October 2021, including five initial ideas about re-organising thegovernment structure to better complement the policy focuses of the HongKong Special Administrative Region (HKSAR) and meet socialexpectations2. As the tenure of the current-term Government will end on30 June 2022, the Chief Executive said that the current-term Governmentshall consult various stakeholders to work out a detailed re-organisationproposal for discussion by the Seventh Term Legislative Council (LegCo)formed on 1 January 2022. The Chief Executive has subsequentlyexplained that such move has taken into account the need for LegCo’sapproval with respect to such issues as legislative amendments, fundingand staffing establishment involved in any major restructuring.Meanwhile, the formation of the new-term Government will take placewhen the Chief Executive-elect, returned by election on 27 March 2022,who after nominating and reporting to the Central People’s Governmentfor appointment of principal officials in accordance with Article 48(5) ofthe Basic Law, swears in with the governing team on 1 July. As such, whatthe current-term Government intends to do is to consolidate the views of

1 Apart from re-organising the government structure, other initiatives to enhance the effectiveness of governance include strengthening the governing team, selecting and appointing senior levels of the civil service in accordance with the principle of meritocracy, advocating dedicated positions with specific responsibilities, and enhancing Government’s capability in information dissemination and public communication. Please see paragraphs 32 to 37 of the 2021 Policy Address for details.

2 Including (i) setting up a Culture, Sports and Tourism Bureau; (ii) splitting the Transport and Housing Bureau; (iii) exploring, upon the split, whether there is room to rationalise the work of the Housing Bureau and the Development Bureau; (iv) expanding the Innovation and Technology Bureau into the Innovation, Technology and Industry Bureau; and (v) re-organising the Home Affairs Bureau into the Youth and District Affairs Bureau.

Appendix

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the community (including the LegCo) for consideration by the next-term Government. After the election of the Chief Executive on 27 March 2022, the current-term Government will submit the proposal together with the views of Members for the Chief Executive-elect to consider whether it should be implemented by the next-term Government and, if so, seek formal approval of the LegCo with respect to the proposed legislative amendments, and funding and staffing requirements involved in the re-organisation.

3. There are three Secretaries of Departments (SoD) and 13 Directorsof Bureaux (DoB) under the current-term Government structure (theorganisation chart is at Annex 1).

Principles

4. The proposed re-organisation has taken into account the followingprinciples:

(i) it should focus on the distribution of policy functions amongpolicy bureaux and the corresponding reshuffling of departmentalfunctions among the bureaux. Revamping or splittingdepartments should be avoided as far as possible;

(ii) it should complement the major policy work of the HKSAR in theforeseeable future, including the development of Hong Kong ascentres/hubs in various sectors as supported in the National 14thFive-Year Plan and livelihood issues of public concern such ashousing and healthcare;

(iii) it should ensure relatively even distribution in the functions acrossvarious bureaux while providing room for review on districtadministration; and

(iv) the new posts involved should largely be confined to additionalposts of directors of the proposed new bureaux and staff of theirrespective offices to minimise the financial implications.

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Latest Proposal 5. The latest re-organisation proposal is as follows:

(i) to set up a new Culture, Sports and Tourism Bureau to take over the culture, arts and sports portfolios from the Home Affairs Bureau, as well as the film, creative industries and tourism portfolios from the Commerce and Economic Development Bureau;

(ii) to split the Transport and Housing Bureau into two policy bureaux, namely the Transport and Logistics Bureau and the Housing Bureau. While the former will focus on Hong Kong’s external and internal transport policy matters (including maritime transport, air services, land transport and city transport) as well as logistics development, the latter will specialise in handling housing matters;

(iii) to re-title the Innovation and Technology Bureau as the Innovation, Technology and Industry Bureau to reflect its mission of driving re-industrialisation with innovation and technology (I&T) and smart production;

(iv) to re-organise the Home Affairs Bureau into the Home and Youth Affairs Bureau to step up district-based efforts, and to formulate and implement more comprehensive youth policy and initiatives; upon re-organisation, the Home and Youth Affairs Bureau will have the capacity to handle the review on District Councils (DC) and the follow-up work;

(v) to expand and re-title the Environment Bureau as the Environment and Ecology Bureau to take over the policies on environmental hygiene, food safety, agriculture and fisheries, and veterinary public health etc. which are currently under the purview of the Food and Health Bureau;

(vi) to revamp the Food and Health Bureau as the Health Bureau which will be dedicated to medical and health policies; and

(vii) to consolidate and rationalise certain policy portfolios and related

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division of work in order to establish dedicated policy desks for such policies and to reduce dispersed functions, including:

- consolidating the policy portfolios on manpower

development, poverty alleviation and retirement protection currently dispersed under the Chief Secretary for Administration’s Private Office, the Labour and Welfare Bureau and other policy bureaux, and transferring them to the Labour and Welfare Bureau3;

- transferring the portfolio on children’s rights under the Constitutional and Mainland Affairs Bureau to the Labour and Welfare Bureau which is responsible for child policy;

- transferring the policy portfolios on women and the Community Investment and Inclusion Fund under the Labour and Welfare Bureau to the Home and Youth Affairs Bureau which is responsible for family issues and promoting community development;

- transferring the Hong Kong Observatory under the Commerce and Economic Development Bureau to the Environment and Ecology Bureau which is responsible for addressing climate change; and

- transferring the public fill management policy under the Environment Bureau to the Development Bureau which is responsible for works programmes and issues related to the construction industry.

3 Specifically, on manpower development, the portfolio on human resources planning currently under

the purview of the Human Resources Planning and Poverty Co-ordination Unit (HRPPCU) of the Chief Secretary for Administration’s Private Office and the policy matters on the admission of talents and professionals under the purview of the Security Bureau will be transferred to the Labour and Welfare Bureau; on poverty alleviation, the Secretariat of the Commission on Poverty and the related work currently under the charge of the HRPPCU will be transferred to the Labour and Welfare Bureau; and on retirement protection, the retirement protection policy aspect of the Mandatory Provident Fund will be transferred from the Financial Services and the Treasury Bureau to the Labour and Welfare Bureau.

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Justifications

6. The re-organisation proposal set out in paragraph 5 above is drawn up after taking account of the past governing experience and stakeholders’ views. It has also taken into account the future policy focuses to better meet public expectations and allow the governing team to address livelihood issues and seize new economic opportunities with dedicated efforts. The justifications are elaborated below.

Housing Bureau

7. Housing has been the most pressing issue for Hong Kong and is expected to remain to be one of the top priorities of the next-term Government. The re-organisation proposal suggests splitting the Transport and Housing Bureau, with the dedicated Housing Bureau taking full charge of the housing policy, especially in expediting public housing production to enable people to be housed as early as possible; optimising the use of existing public housing resources to help the needy; supporting households who have been waiting for public rental housing allocation for a long time; enriching the housing ladder by making home ownership more affordable; and closely monitoring the private residential market, etc. The Secretary for Housing will focus on steering the Hong Kong Housing Authority/Housing Department in implementing the full range of new initiatives on housing introduced by the current-term Government (please see Annex 2 for details), review and adjust the measures in a timely manner, as well as maintain close liaison with other public organisations including the Hong Kong Housing Society, the Urban Renewal Authority and the MTR Corporation Limited.

8. The 2021 Policy Address has mentioned that the Government will explore whether there is room to rationalise the work of the Housing Bureau upon the split and the Development Bureau in order to expedite land supply for housing. After detailed deliberations, we are of the view that the merger of the Housing Bureau and the Development Bureau is not the most appropriate option. As the policy bureau so created upon the merger would be too large and its portfolio overwhelming, the advantage of the original idea of having a DoB and his team dedicated to tackling the housing problem will be lost. In fact, over the years, the current Planning

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and Lands Branch and the Works Branch of the Development Bureau and the departments under its purview, such as the Planning Department, the Lands Department, and the Civil Engineering and Development Department, have established team work and rapport conducive to expediting housing land supply. Hence, a more effective approach would be for the Financial Secretary, who currently chairs the Steering Committee on Land Supply, to step up co-ordination between the Housing Bureau and the Development Bureau under the proposed new government structure, or even consider creating a Deputy SoD4 post to enhance the co-ordination of large-scale land supply for housing with a view to achieving better results.

Health Bureau

9. An ageing population coupled with the COVID-19 epidemic has posed tremendous challenges to the public healthcare system. Looking ahead, in order to safeguard public health and strengthen the provision of services, the Government will not only have to continue to fight the COVID-19 epidemic, it will also need to take forward a number of major initiatives including implementing the two Ten-year Hospital Development Plans, drawing up the Primary Healthcare Development Blueprint, improving hospital services through I&T and other measures, promoting the development of Chinese medicine, and introducing legislative amendments to implement various recommendations put forward in the Report of the Strategic Review on Healthcare Manpower Planning and Professional Development promulgated in 2017. To ensure the sustainable development of our pubic healthcare system and strengthen our capacity to tackle various kinds of diseases and viruses, there is also a pressing need for Hong Kong to review our public health strategies, step up efforts in monitoring and facilitating the development of health technology and the research and development of drugs, and resolve the problem of medical manpower shortage. Meanwhile, clinical data, clinical trials and drug registration are some of the key areas essential to promoting the development of life and health technology. The Hospital Authority and the Department of Health have to conduct a comprehensive review of their

4 According to Article 48(5) of the Basic Law, the principal officials nominated and reported by the Chief

Executive to the Central People’s Government for appointment include, among others, Secretaries and Deputy Secretaries of Departments and DoBs.

7

current practices to support the development of the health technology industry. With the transfer of the policy portfolios on environmental hygiene, food safety, agriculture and fisheries, and veterinary public health currently under the Food and Health Bureau to the Environment and Ecology Bureau, the future Health Bureau will be able to focus on medical and health policies and press ahead with the key initiatives.

10. We have considered combining the policy portfolios of health and social welfare and setting up a Health and Welfare Bureau accordingly to foster medical-social collaboration to provide users, especially the elderly, with more comprehensive care and better service transition. However, given that the two policy areas of health and social welfare have already accounted for nearly 40% of total recurrent government expenditure, such a policy bureau so merged would be too large and difficult for the DoB and his team to focus on handling medical and health as well as social welfare issues. Thus, we have not taken on board the recommendation. Indeed, the welfare sector also has reservations on the idea of combining the policy portfolios of health and welfare.

Home and Youth Affairs Bureau

11. After the unprecedented challenges over the past two years, Hong Kong has restored order from chaos and got back on the right track. We have to rethink how to unite society, in particular the positioning and focus of district affairs and youth policies. With the transfer of the culture, arts and sports policies to the new Culture, Sports and Tourism Bureau, the Home and Youth Affairs Bureau upon re-organisation can strengthen work at the district level to address district issues of daily concern to the public. It can also step up efforts in promoting collaboration among social enterprises through initiatives like the Community Investment and Inclusion Fund and the Enhancing Self-Reliance through District Partnership Programme, building up social capital, and enhancing social solidarity. Furthermore, the Home and Youth Affairs Bureau will review and formulate the overall youth policy and a blueprint for youth development so as to encourage young people to participate in public affairs, and promote, co-ordinate and oversee the implementation of youth work by various policy bureaux.

8

12. Under the proposed distribution of work, while the portfolio and workload of the Home and Youth Affairs Bureau may not be as heavy as that of the other policy bureaux, it is designed in that way so that the new policy bureau can have the capacity to conduct a comprehensive review on district administration and the way forward of DCs. As a matter of fact, the current-term 18 DCs have not been able to fully perform their functions owing to the resignation or disqualification of a large number of members. The recent change in direct elections through geographical constituencies under the improved electoral system of the HKSAR also calls for the Government to re-consider the future of district administration. It has been more than 15 years since the last review of the functions of the DCs was conducted.

Culture, Sports and Tourism Bureau

13. To capitalise on the support for Hong Kong to develop into an East-meets-West centre for international cultural exchange under the 14th Five-Year Plan, the HKSAR Government should provide a top-level leadership for the effective promotion of cultural development. The current arrangement with relevant policies dispersed under the Home Affairs Bureau and the Commerce and Economic Development Bureau is undesirable. In fact, there is no clear boundary between arts and culture and creative industries, particularly in respect of popular culture where so many common stakeholders are involved. Consolidating the work of these two bureaux can foster the integration of different arts and cultural genres, creating synergy to further facilitate the development of arts, cultural and creative industries.

14. In addition, arts and culture, creative industries, sports and tourism can not only complement but reinforce each other’s developments. A diversified environment where Chinese and Western cultures meet, the availability of world-class cultural and sports facilities and a wide variety of cultural and sports events and performances are valuable tourism resources in Hong Kong attracting tourists who are interested in culture and sports. A flourishing tourism sector can help facilitate the development of arts and cultural industries, strengthen our support for elite sports, maintain Hong Kong as a centre for major international sports events, promote sports in the community, enhance professionalism in the sports

9

sector, and develop sports as an industry. The setting up of the Culture, Sports and Tourism Bureau may also pool together relevant departments and advisory and statutory bodies such as the Leisure and Cultural Services Department, Create Hong Kong, the Hong Kong Academy for Performing Arts, the Hong Kong Arts Development Council, the West Kowloon Cultural District Authority, the Hong Kong Arts Centre and the Hong Kong Film Development Council to strengthen the steer and promotion of the development of cultural industries in Hong Kong.

Transport and Logistics Bureau

15. Upon the split of the Transport and Housing Bureau, the policy bureau responsible for transport matters will be renamed as the Transport and Logistics Bureau to highlight the close ties between transport and logistics, as well as the significance of the logistics industries to Hong Kong’s economy. With respect to Hong Kong’s internal and cross-boundary transport, the Transport and Logistics Bureau will focus on steering and co-ordinating a number of major policies, including planning and developing local and cross-boundary transport infrastructure under the transport infrastructure-led approach; taking forward various strategic railway projects in line with the principle of using railways as the backbone of passenger transport system; improving services of public transport such as franchised buses, minibuses, taxis and ferries; promoting “Smart Mobility”; and fostering a pedestrian-friendly environment. Besides, the Transport and Logistics Bureau will be better positioned to focus on taking forward and following through various long-term strategic studies, including the “Traffic and Transport Strategy Study” and the “Strategic Studies on Railways and Major Roads beyond 2030” to meet Hong Kong’s development needs in the long run.

16. In addition to handling matters relating to Hong Kong’s internal and cross-boundary transport, the Transport and Logistics Bureau will also have to better manage and deepen work on our external transport strategies, in particular capitalising on the opportunities brought by the 14th Five-Year Plan and the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) to develop the transportation industry supporting the growth of logistics services. On air transport, the Bureau should play an active role in assisting the Airport Authority Hong Kong to implement the entire Three Runway

10

System in 2024 as scheduled, so as to enhance the passenger and cargo handling capacity of the Hong Kong International Airport, and continue to develop high-end logistics services and expand our aviation network, as well as to increase competitiveness by co-operating with the Mainland cities, in order to reinforce Hong Kong’s status as an international aviation hub. In respect of maritime transport, the Transport and Logistics Bureau should step up efforts to promote the development of a “Smart Port” and high value-added logistics and maritime business services, and increase productivity through wider use of technology to enhance Hong Kong’s status as an international transportation centre.

Innovation, Technology and Industry Bureau

17. The 14th Five-Year Plan indicates clear support for Hong Kong’s development into an international I&T hub. The current-term Government’s leadership and investment in supporting I&T development has been well recognised by the sector and has achieved remarkable results. The current-term Government has so far invested over $130 billion in developing infrastructure, promoting research and development (R&D), nurturing talent, and supporting the industry, etc. Hong Kong’s I&T industry is flourishing at the moment, and the positive interaction among the Government, industry, academia and research sectors has also been strengthened significantly. The number of start-ups has increased by 68% from 2 229 in 2017 to a record high of 3 755 in 2021. At present, there are 12 unicorns in Hong Kong, with several of them incubated at Cyberport or the Science Park. While we have laid a solid foundation for I&T development in Hong Kong, we still need to build a robust I&T ecosystem, which fully covers R&D, financing, production and even commercialisation, in order to escalate our I&T development to an even higher level. Promoting I&T-driven production or re-industrialisation is an area that Hong Kong needs to do much more in future.

18. In fact, the Innovation and Technology Bureau has done a lot of work in promoting re-industrialisation, including providing support to the Committee on Innovation, Technology and Re-industrialisation, encouraging the setting up of hi-tech smart production lines in Hong Kong through various funding schemes, and assisting the Hong Kong Science and Technology Parks Corporation with the upgrading and transformation

11

of three industrial estates and the construction of new advanced manufacturing centres. The re-titling as Innovation, Technology and Industry Bureau clearly indicates re-industrialisation as a standing policy function and work focus of the bureau in future, and relevant stakeholders will know which policy bureau will be their counterpart. To tie in with the development of the San Tin Technopole in the Northern Metropolis, the future Innovation, Technology and Industry Bureau will formulate and implement policies including those on land grant to attract more high value-added and technology-intensive manufacturing processes and production lines to set up operations in Hong Kong to enhance the I&T ecosystem.

Commerce and Economic Development Bureau

19. It is proposed that the Commerce and Economic Development Bureau upon re-organisation will no longer take charge of tourism and creative industries. Instead, it will focus on trade and commerce and strive to consolidate and enhance Hong Kong’s status as an international trade centre under the 14th Five-Year Plan, as well as develop Hong Kong into a regional intellectual property trading centre. In fact, the COVID-19 epidemic and geo-political developments in recent years have created many uncertainties affecting Hong Kong’s business environment. Fortunately, the 14th Five-Year Plan, the development of the GBA, the expansion of the Qianhai Co-operation Zone as well as the Belt and Road Initiative have presented vast opportunities for Hong Kong. We must get prepared for this new engine of economic development and speed up integration into the overall development of our country, so as to enhance the level and capacity of Hong Kong’s economic development. The Commerce and Economic Development Bureau will actively seek accession to the Regional Comprehensive Economic Partnership Agreement, strive to forge Free Trade Agreements and Investment Agreements with more economies, strengthen commercial, trade and investment relations with our trading partners through Invest Hong Kong and our overseas Economic and Trade Offices, and enhance support measures for small and medium enterprises to assist them to explore more business opportunities both in the Mainland and overseas markets.

12

20. In addition, the Commerce and Economic Development Bureau will continue to promote the development of telecommunications and broadcasting, including monitoring the work of Hongkong Post and Radio Television Hong Kong.

Environment and Ecology Bureau

21. The policy functions of the Environment Bureau will be enlarged to take over environmental hygiene, food safety, agriculture and fisheries, and veterinary public health from the Food and Health Bureau. The Bureau will then be renamed as the Environment and Ecology Bureau to better reflect its mission, including driving climate action, promoting biodiversity and related work in these areas etc. Transferring the above policy portfolios from the Food and Health Bureau to the Environment and Ecology Bureau can achieve synergy in a number of policy areas. For example, on waste reduction and recycling, bringing the collection, recycling, delivery and treatment of waste, currently managed by two bureaux as separate processes, under the same roof and within the purview of the Environment and Ecology Bureau will allow the Bureau to effectively consolidate and transform the 3 000 refuse collection points in the territory into integrated waste management facilities for one-stop collection and recycling of household refuse for greater cost-effectiveness and enhanced support for community recycling of resources, so as to better align with the policy principle of waste reduction and recycling. An integrated waste handling process will also facilitate the implementation of municipal solid waste charging in future. On the other hand, the development of the agriculture and fisheries industries requires a favourable ecological environment. As a policy advocate of ecological conservation, the Environment and Ecology Bureau will help facilitate the development of modern agriculture and fisheries industries in a sustainable manner, including promoting the integration of agriculture and fisheries activities with natural ecology, so as to help identify diversified development opportunities for local agriculture and fisheries industries other than production.

22. Besides, in terms of organisational structure, upon the proposed re-organisation, the Environment and Ecology Bureau shall be solely in charge of the Agriculture, Fisheries and Conservation Department which

13

currently falls under the purview of two policy bureaux. Co-operation between the Environmental Protection Department and the Food and Environmental Hygiene Department will be strengthened. As the work of the Hong Kong Observatory is crucial to climate change, it will also be more logical to transfer it from the Commerce and Economic Development Bureau to the Environment and Ecology Bureau.

Rationalising Other Policy Work

23. At present, policy functions with respect to manpower development, retirement protection and poverty alleviation are dispersed under different policy bureaux, which is undesirable. According to the re-organisation proposal, policy areas which are closely related will be put under one single policy bureau. This will address the problem of dispersed functions across different bureaux and reduce the need for cross-bureaux co-ordination, thereby enhancing efficiency in governance and improving the policy formulation process.

24. We also propose to take the opportunity of this re-organisation to achieve a more balanced division of responsibilities between the Chief Secretary for Administration and the Financial Secretary. Nine policy bureaux will be put under the supervision of the Chief Secretary for Administration, while the Financial Secretary will oversee the remaining six. As stated in paragraph 8, the current-term Government is of the view that the creation of the post of Deputy SoD to provide higher level co-ordination for large-scale regional developments such as the Northern Metropolis and the Lantau Tomorrow Vision, as well as cross-bureaux issues such as national security, climate change and manpower policy, etc. could be considered. However, since whether the post of Deputy SoD should be created or not is a matter of the style of governance, it is proposed that the decision should be left to the Chief Executive-elect. By the same token, while it is proposed in the re-organisation that the time-limited Human Resources Planning and Poverty Co-ordination Unit under the Chief Secretary for Administration’s Private Office should be dissolved with its major duties transferred to the Labour and Welfare Bureau, the way forward with respect to the Policy Innovation and Co-ordination Office, which reports directly to the Chief Executive, would be considered by the Chief Executive-elect.

14

Proposed New Structure 25. According to the re-organisation proposal set out in paragraph 5, the number of policy bureaux will increase from 13 to 15 under the new government structure. The new government organisation chart is at Annex 3. Among the 15 policy bureaux, the work and structure of the following two policy bureaux will remain unchanged:

(i) Civil Service Bureau

(ii) Education Bureau

The remaining 13 policy bureaux, which are either newly established or re-organised in various degrees, include:

With changes in structure:

(iii) Commerce and Economic Development Bureau

(iv) Culture, Sports and Tourism Bureau

(v) Environment and Ecology Bureau

(vi) Health Bureau

(vii) Home and Youth Affairs Bureau

(viii) Housing Bureau

(ix) Transport and Logistics Bureau

With areas of work reshuffled:

(x) Constitutional and Mainland Affairs Bureau

(xi) Development Bureau

(xii) Financial Services and the Treasury Bureau

(xiii) Labour and Welfare Bureau

15

(xiv) Security Bureau

Re-titled to reflect existing functions:

(xv) Innovation, Technology and Industry Bureau

26. Under the re-organisation proposal, the increase in manpower in accordance with the principle stated in paragraph 4(iv) mainly involves the relevant staff of the offices of the two newly-created DoBs, including two DoBs, two Under Secretaries, two Political Assistants, two directorate civil servants (i.e. Administrative Assistant to the DoB) and a certain number of supporting staff (such as Press Secretaries, Personal Secretaries and clerical staff). Making reference to the average estimated expenditure (covering salaries and office overhead) of the existing offices of the DoBs in the current financial year, the annual total expenditure of each DoB office amounts to approximately $16 million. However, as individual offices may have different establishments and expenditures given their work nature, a more accurate estimate could only be made upon consideration of the re-organisation proposal by the Chief Executive-elect. In addition, we propose that the next-term Government should seek the approval of the LegCo for the reinstatement of the post of the Director of Environmental Protection to alleviate the workload caused by the previous merger of the Environment Bureau and the Environmental Protection Department, particularly in taking forward the Hong Kong’s Climate Action Plan 2050. We also propose that the existing time-limited positions in relevant bureaux be retained in view of policy needs. The LegCo will be briefed on the details of the financial implications of the staff establishment in due course.

Public Reaction 27. Following the delivery of the 2021 Policy Address, the Chief Executive, SoDs and DoBs have listened to the views of stakeholders, including representatives of organisations/groups and relevant personalities from various sectors. The majority of them have expressed support for the direction of the re-organisation.

16

Way Forward 28. The DoBs concerned will brief Members on the latest re-organisation proposal at relevant panels and listen to Members’ views. Members may also express their views during the debate on the motion of thanks on the 2021 Policy Address.

29. As mentioned in paragraph 2 above, we aim to submit the proposal and Members’ views for the Chief Executive-elect’s consideration after the Chief Executive Election on 27 March 2022. The current-term Government will render full support by submitting to the LegCo the re-organisation proposal that is deemed appropriate by the Chief Executive-elect, and introducing the necessary legislative amendments for scrutiny5 by the LegCo as soon as possible. The staffing and financial proposals involved in the re-organisation will be submitted to the Establishment Subcommittee and the Finance Committee for scrutiny and approval respectively. All vetting and approval procedures concerned should be completed by early June 2022 to allow sufficient time for the Chief Executive-elect to complete the constitutional procedures of appointing principal officials, so that the new government structure will come into operation starting from 1 July 2022.

Hong Kong Special Administrative Region Government

12 January 2022

5 Some of the relevant statutory functions exercised by SoDs and DoBs have to be transferred as a result

of the re-organisation of the Government. According to Section 54A of the Interpretation and General Clauses Ordinance (Cap. 1), the Legislative Council may by resolution provide for the transfer to any public officer of statutory functions of another public officer.

Department

of

Justice

Secretary for

Food and Health

Secretary for

Development

Secretary for

Education

Secretary for

Constitutional

and Mainland

Affairs

Secretary for

Commerce and

Economic

Development

Secretary for

Transport and

Housing

Secretary for

Security

Secretary for

Home Affairs

Secretary for

Financial

Services and

the Treasury

Chief Executive

Secretary for

Justice

Chief Secretary

for

Administration

Financial

Secretary

Administration

Wing

Registration

and

Electoral

Office

Working

Family and

Student

Financial

Assistance

Agency

University

Grants

Committee

Secretariat

Civil

Engineering

and

Development

Department

Agriculture,

Fisheries

and

Conservation

Department

Food and

Environmental

Hygiene

Department

Government

Laboratory

Department of

Health

Home Affairs

Department

Information

Services

Department

Civil Aviation

Department

Transport

Department

Marine

Department

Hong Kong

Police Force

Auxiliary

Medical

Service

Civil

Aid Service

Government

Flying

Service

Correctional

Services

Department

Fire Services

Department

Innovation and

Technology

Commission

Invest

Hong Kong

Hong Kong

Economic and

Trade Offices

(Overseas)

Intellectual

Property

Department

Trade and

Industry

Department

Radio

Television

Hong Kong

Office of the

Communications

Authority

Companies

Registry

Government

Logistics

Department

Inland Revenue

Department

Official

Receiver's

Office

Rating and

Valuation

Department

Government

Property

Agency

Constitutional

and Mainland

Affairs

Bureau

Education

Bureau

Development

Bureau

Food and Health

Bureau

Home Affairs

Bureau

Transport and

Housing

Bureau

Security

Bureau

Commerce and

Economic

Development

Bureau

Financial

Services and

the Treasury

BureauHong Kong

Monetary

Authority

Audit

Commission

Independent

Commission

Against

Corruption

Office of

The

Ombudsman

Public

Service

Commission

Secretary for the

Civil Service

Joint Secretariat

for the Advisory

Bodies on Civil

Service and

Judicial Salaries

and Conditions

of Service

Civil Service

Bureau

Housing

Department

Architectural

Services

Department

Customs and

Excise

Department

Office of the

Government

Economist

Office of the

Government

Chief

Information

Officer

Offices in the

Mainland and

Taiwan

Post Office

Secretary for

Labour and

Welfare

Labour

Department

Social

Welfare

Department

Labour and

Welfare

Bureau

Secretary for the

Environment

Hong Kong

Observatory

Environment

Bureau

Environmental

Protection

Department

Drainage

Services

Department

Lands

Department

Buildings

Department

Planning

Department

Land Registry

Water

Supplies

Department

Electrical &

Mechanical

Services

Department

Immigration

Department

Highways

Department

Census and

Statistics

Department

Human

Resources

Planning and

Poverty Co-

ordination

Unit

Secretary for

Innovation and

Technology

Innovation

and

Technology

Bureau

Policy

Innovation and

Co-ordination

Office

Treasury

Efficiency

Office

Tourism

Commission

Legal Aid

Department

Leisure and

Cultural

Services

Department

ORGANISATION CHART OF THE CURRENT-TERM GOVERNMENT

Annex 1

Annex 2

New Housing Initiatives

Announced by the Current-term Government

Overall Strategies • Enrich the housing ladder to meet the needs of different families.• Launch the Starter Homes (SH) Pilot Project for Hong Kong Residents.• Revise the public/private split of new housing supply from 60:40 to

70:30 with housing land allocation further tilted towards public housing.• Increase housing land supply – 350 hectares of land have been identified

to produce 330 000 public housing units, which will be sufficient to meetthe public housing demand in the coming ten-year period (i.e. from2022-23 to 2031-32) under the Long Term Housing Strategy (LTHS);secure 170 hectares of land in the coming ten years for the provision of100 000 private housing units through land sales or putting up railwayproperty developments for tender.

• Re-allocate private housing sites for public housing.• Raise domestic plot ratio for public housing sites by up to maximum

30% where technically feasible to increase supply.• Delink the price of Home Ownership Scheme (HOS) flats from market

prices and price the Green Form Subsidised Home Ownership Scheme(GSH) and SH units on HOS basis to make home ownership formembers of the public more affordable.

• Regularise the GSH and White Form Secondary Market Scheme.• Put up for sale recovered Tenants Purchase Scheme flats with the sale of

HOS and GSH flats.• Release the unsold GSH flats of Ching Fu Court and Dip Tsui Court for

purchase by applicants holding a valid Public Rental Housingapplication for more than a year.

• Tighten alienation restrictions on HOS and GSH flats.• Revise the land premium arrangement for the Hong Kong Housing

Society (HKHS) to allow HKHS to maintain financial viability inbuilding public housing.

- 2 -

Expediting Public Housing Construction • Provide personal steer and monitoring by the Chief Executive on the 120

public housing projects involving more than 200 000 units in the latterfive-year period (i.e. from 2027-28 to 2031-32) of the coming ten yearsunder the LTHS to ensure timely land and housing production.

• Adopt more widely Modular Integrated Construction and innovativeconstruction technology.

• Adopt new design and construction contracts to optimise the housingconstruction process with more market participation.

Support for Households Waitlisted for Public Rental Housing for a Long Period of Time • Launch the three-year Cash Allowance Trial Scheme to provide cash

allowance to eligible General Applicant households for public rentalhousing.

• Impose tenancy controls on subdivided units.• Launch the Funding Scheme to Support Transitional Housing Projects

by Non-government Organisations (NGOs) to provide 20 000transitional housing units in total.

• Launch the Pilot Scheme to Subsidise Using Rooms in Hotels andGuesthouses as Transitional Housing to support NGOs in making use ofrooms in hotels and guesthouses as transitional housing.

Optimal Use of Existing Public Housing Resources • Implement the Full Rent Exemption Scheme for Elderly Under-

occupation Households by the Hong Kong Housing Authority (HKHA)to enable elderly under-occupation households with all family membersaged 70 or above and other eligible elderly households to enjoy lifetimefull rent exemption upon their transfer to suitably sized units.

• Facilitate the launch of the Flat for Flat Pilot Scheme for Elderly Ownersby HKHS.

• Launch the enhanced Letting Scheme for Subsidised Sale Developmentswith Premium Unpaid by HKHS and HKHA.

- 3 -

Collaborate with Public Sector to Increase Supply • Provide more SH or other types of subsidised sale flats by the Urban

Renewal Authority (URA) in its redevelopment projects.• Commence pilot Civil Servants’ Co-operative Building Society Scheme

redevelopment projects by the URA with some sites allocated to developpublic housing units.

• Press ahead with the development at Siu Ho Wan Depot site by MTRCLto provide public and private housing units.

• Entrust HKHS to develop three urban squatter areas into public housingprojects.

Unlocking Land Potential through Redevelopment • Redevelop four HKHA’s factory estates as public housing.• Invite HKHA to study the redevelopment of Sai Wan Estate and Ma Tau

Wai Estate.• Redevelop Shek Lei Interim Housing.• Redevelop Tai Hang Sai Estate to provide units for re-housing existing

tenants and SH units.

Maintaining Healthy Development of Private Residential Market • Amend the Lands Department Consent Scheme requiring developers to

offer for sale no less than 20% of the total number of residential unitsthat are subject to the relevant pre-sale consent at each turn of sale.

• Raise the maximum property value eligible for mortgage loans for first-time home buyers and other buyers under the Mortgage InsuranceProgramme.

1. Departments with new reporting bureaux under the proposed re-organisation.

Annex 3

ORGANISATION CHART OFTHE GOVERNMENT UNDER THE PROPOSED RE-ORGANISATION

* Policy Innovation and Co-ordination Office not shown in this chart.

Notes:

Chief Executive

Secretary for Justice Chief Secretary for Administration

Financial Secretary

Public Service Commission

Office of The

Ombudsman

Independent Commission

Against Corruption

Audit Commission

Department ofJustice

Administration Wing

Legal Aid Department

Secretary for the Civil Service

Secretary for Constitutionaland Mainland

Affairs

Secretary for Labour and

Welfare

Secretary for Security

Hong Kong Monetary Authority

Office of the Government EconomistCivil Service

Bureau

Constitutional and Mainland Affairs Bureau

Labour and Welfare Bureau Security Bureau

Joint Secretariat for the Advisory

Bodies on Civil Service and Judicial Salaries and

Conditions of Service

Registration and Electoral

Office

Offices in the Mainland and

Taiwan

Correctional Services

Department

Customs and Excise

Department

Government Flying Service

Hong Kong Police Force

Immigration Department

Labour Department

Social Welfare Department

Auxiliary Medical Service

Civil Aid Service

Fire Services Department

Secretary for Transport and

Logistics

Transport and Logistics Bureau

Civil Aviation Department

Highways Department

Marine Department

Transport Department

Secretary for Culture,

Sports and Tourism

Culture, Sports and Tourism

Bureau

Leisure and Cultural Services

Department1

Tourism Commission1

Secretary for Commerce and

Economic Development

Secretary for Development

Secretary for Financial

Services and the Treasury

Commerce and Economic

Development Bureau

Development Bureau

Financial Services and the Treasury Bureau

Intellectual Property

Department

InvestHong Kong

Office of the Communications

Authority

Post Office

Radio Television Hong Kong

Trade andIndustry

Department

Hong Kong Economic and Trade Offices

(Overseas)

Architectural Services

Department

Buildings Department

Civil Engineering and

Development Department

Drainage Services

Department

Electrical & Mechanical

Services Department

Lands Department

Land Registry

Planning Department

Water Supplies

Department

Census and Statistics

Department

Companies Registry

Government Logistics

Department

Government Property Agency

Inland Revenue

Department

Official Receiver's

Office

Rating and Valuation

Department

Treasury

Secretary for Innovation, Technology and Industry

Innovation, Technology and Industry Bureau

Innovation and

Technology Commission

Office of the Government

Chief Information

Officer

Efficiency Office

Housing Bureau

Secretary for Housing

Housing Department

Secretary for Education

Secretary for Environment and Ecology

Secretary for Health

Secretary for Home and

Youth Affairs

Education Bureau

Environment and Ecology

BureauHealth Bureau

Home andYouth Affairs

Bureau

University Grants

Committee Secretariat

Working Family and Student

Financial Assistance

Agency

Environmental Protection

Department

Agriculture, Fisheries and Conservation Department1

Department of Health

Food and Environmental

Hygiene Department1

Home Affairs Department

Information Services

Department

Hong Kong Observatory1

Government Laboratory1

OFFICIAL RECORD OF PROCEEDINGS Wednesday, 12 ...

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