OFFICIAL RECORD OF PROCEEDINGS Thursday, 16 February 2017 The Council continued to ...

LEGISLATIVE COUNCIL ― 16 February 2017

OFFICIAL RECORD OF PROCEEDINGS Thursday, 16 February 2017 The Council continued to meet at Nine o'clock MEMBERS PRESENT: THE PRESIDENT THE HONOURABLE ANDREW LEUNG KWAN-YUEN, G.B.S., J.P. THE HONOURABLE LEUNG YIU-CHUNG PROF THE HONOURABLE JOSEPH LEE KOK-LONG, S.B.S., J.P. THE HONOURABLE JEFFREY LAM KIN-FUNG, G.B.S., J.P. THE HONOURABLE WONG TING-KWONG, S.B.S., J.P. THE HONOURABLE STARRY LEE WAI-KING, S.B.S., J.P. THE HONOURABLE CHAN HAK-KAN, B.B.S., J.P. THE HONOURABLE CHAN KIN-POR, B.B.S., J.P. DR THE HONOURABLE PRISCILLA LEUNG MEI-FUN, S.B.S., J.P. THE HONOURABLE WONG KWOK-KIN, S.B.S., J.P. THE HONOURABLE MRS REGINA IP LAU SUK-YEE, G.B.S., J.P. THE HONOURABLE PAUL TSE WAI-CHUN, J.P.

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THE HONOURABLE LEUNG KWOK-HUNG# THE HONOURABLE CLAUDIA MO THE HONOURABLE MICHAEL TIEN PUK-SUN, B.B.S., J.P. THE HONOURABLE STEVEN HO CHUN-YIN, B.B.S. THE HONOURABLE FRANKIE YICK CHI-MING, J.P. THE HONOURABLE WU CHI-WAI, M.H. THE HONOURABLE YIU SI-WING, B.B.S. THE HONOURABLE MA FUNG-KWOK, S.B.S., J.P. THE HONOURABLE CHARLES PETER MOK, J.P. THE HONOURABLE CHAN CHI-CHUEN THE HONOURABLE CHAN HAN-PAN, J.P. THE HONOURABLE LEUNG CHE-CHEUNG, B.B.S., M.H., J.P. THE HONOURABLE ALICE MAK MEI-KUEN, B.B.S., J.P. DR THE HONOURABLE KWOK KA-KI THE HONOURABLE KWOK WAI-KEUNG THE HONOURABLE DENNIS KWOK WING-HANG DR THE HONOURABLE FERNANDO CHEUNG CHIU-HUNG DR THE HONOURABLE HELENA WONG PIK-WAN

#

According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council.

LEGISLATIVE COUNCIL ― 16 February 2017 THE HONOURABLE IP KIN-YUEN THE HONOURABLE MARTIN LIAO CHEUNG-KONG, S.B.S., J.P. THE HONOURABLE POON SIU-PING, B.B.S., M.H. DR THE HONOURABLE CHIANG LAI-WAN, J.P. IR DR THE HONOURABLE LO WAI-KWOK, S.B.S., M.H., J.P. THE HONOURABLE CHUNG KWOK-PAN THE HONOURABLE ALVIN YEUNG THE HONOURABLE ANDREW WAN SIU-KIN THE HONOURABLE JIMMY NG WING-KA, J.P. DR THE HONOURABLE JUNIUS HO KWAN-YIU, J.P. THE HONOURABLE HO KAI-MING THE HONOURABLE LAM CHEUK-TING THE HONOURABLE HOLDEN CHOW HO-DING THE HONOURABLE SHIU KA-FAI THE HONOURABLE SHIU KA-CHUN THE HONOURABLE WILSON OR CHONG-SHING, M.H. THE HONOURABLE YUNG HOI-YAN DR THE HONOURABLE PIERRE CHAN THE HONOURABLE CHAN CHUN-YING THE HONOURABLE TANYA CHAN THE HONOURABLE CHEUNG KWOK-KWAN, J.P.

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THE HONOURABLE HUI CHI-FUNG THE HONOURABLE LUK CHUNG-HUNG THE HONOURABLE LAU KWOK-FAN, M.H. DR THE HONOURABLE CHENG CHUNG-TAI THE HONOURABLE KWONG CHUN-YU THE HONOURABLE JEREMY TAM MAN-HO DR THE HONOURABLE LAU SIU-LAI#

MEMBERS ABSENT: THE HONOURABLE JAMES TO KUN-SUN THE HONOURABLE ABRAHAM SHEK LAI-HIM, G.B.S., J.P. THE HONOURABLE TOMMY CHEUNG YU-YAN, G.B.S., J.P. THE HONOURABLE KENNETH LEUNG THE HONOURABLE CHRISTOPHER CHEUNG WAH-FUNG, S.B.S., J.P. DR THE HONOURABLE ELIZABETH QUAT, J.P. THE HONOURABLE CHU HOI-DICK THE HONOURABLE KENNETH LAU IP-KEUNG, M.H., J.P. THE HONOURABLE NATHAN LAW KWUN-CHUNG# DR THE HONOURABLE YIU CHUNG-YIM# #

According to the Judgment of the Court of First Instance of the High Court on 14 July 2017, LEUNG Kwok-hung, Nathan LAW Kwun-chung, YIU Chung-yim and LAU Siu-lai have been disqualified from assuming the office of a member of the Legislative Council, and have vacated the same since 12 October 2016, and are not entitled to act as a member of the Legislative Council.

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PUBLIC OFFICERS ATTENDING: THE HONOURABLE MATTHEW CHEUNG KIN-CHUNG, G.B.S., J.P. CHIEF SECRETARY FOR ADMINISTRATION PROF THE HONOURABLE ANTHONY CHEUNG BING-LEUNG, G.B.S., J.P. SECRETARY FOR TRANSPORT AND HOUSING THE HONOURABLE EDDIE NG HAK-KIM, S.B.S., J.P. SECRETARY FOR EDUCATION DR THE HONOURABLE KO WING-MAN, B.B.S., J.P. SECRETARY FOR FOOD AND HEALTH THE HONOURABLE WONG KAM-SING, G.B.S., J.P. SECRETARY FOR THE ENVIRONMENT THE HONOURABLE LAU KONG-WAH, J.P. SECRETARY FOR HOME AFFAIRS THE HONOURABLE STEPHEN SUI WAI-KEUNG, J.P. SECRETARY FOR LABOUR AND WELFARE THE HONOURABLE ERIC MA SIU-CHEUNG, J.P. SECRETARY FOR DEVELOPMENT MR JOHN LEE KA-CHIU, P.D.S.M., P.M.S.M., J.P. UNDER SECRETARY FOR SECURITY PROF SOPHIA CHAN SIU-CHEE, J.P. UNDER SECRETARY FOR FOOD AND HEALTH

CLERKS IN ATTENDANCE: MR KENNETH CHEN WEI-ON, S.B.S., SECRETARY GENERAL MISS ODELIA LEUNG HING-YEE, DEPUTY SECRETARY GENERAL

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MS ANITA SIT, ASSISTANT SECRETARY GENERAL MISS FLORA TAI YIN-PING, ASSISTANT SECRETARY GENERAL MS DORA WAI, ASSISTANT SECRETARY GENERAL MR MATTHEW LOO, ASSISTANT SECRETARY GENERAL

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MEMBERS' MOTIONS PRESIDENT (in Cantonese): This Council will continue with the second debate session of the Motion of Thanks. The debate themes are "Land, Housing, Transportation, Environment and Conservation".

MOTION OF THANKS Continuation of debate on motion which was moved on 15 February 2017 MR LEUNG YIU-CHUNG (in Cantonese): President, since LEUNG Chun-ying assumed office, he has been saying that housing is the top priority of work of the Government. As his term of office is about to end, I suppose that he should have made some achievements in implementing housing policies to which he has accorded top priority, even if he has reneged on his promises on other important policies. Unfortunately and regrettably, I can say for sure that the performance of the current-term Government on implementing housing policies is nothing but a failure, a complete failure. The problem is that the current-term Government has not only failed to make improvements, its performance is even worse than that of the Government of the last term. LEUNG Chun-ying will now hand over his undelivered promises to the next Government. Thus, he plays the same old tune in this year's Policy Address, without proposing any new ideas. Secretary Prof Anthony CHEUNG once told the Legislative Council Panel on Housing that in order to solve the current housing problem, housing supply, particularly the supply of public housing, must be increased. President, isn't he saying that "my mother is a woman"? Isn't he talking rubbish? Who doesn't know that more housing units should be built to solve the housing problem in Hong Kong? The question is: How come the Government, particularly the current-term Government, fails to produce more housing units to meet the people's needs? LEUNG Chun-ying committed during his election campaign that people would be allocated a public rental housing ("PRH") unit in three years. But, as we all know, the waiting time has now increased from 3 to 4.7 years. The problem has worsened, hasn't it? LEUNG Chun-ying promised that 75 000 PRH units would be produced in the five years during his term of office, but up till

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now, only 51 000 units have been completed in the first four years, representing a shortfall of 24 000 units. Do Members think that 24 000 units can be produced this year? It seems unlikely that the promise will be fulfilled. It is stated in the Policy Address this year that for the five-year period from 2016-2017, 71 800 PRH units will be produced. Even if such units can really be produced, there is still a shortfall of at least 5 000 units as last year's policy address stated that 76 700 units would be produced in five years. LEUNG Chun-ying cannot fulfil any of his promises, nor can he achieve any of his goals. In fact, we surely know that in order to solve the housing problem, more housing units must be produced, but the Government has all along failed to do so. The problem of public housing has not been solved, what about private housing? The level of private property prices hits record high every year, and even every month too. A survey showed that the median property price was 19 times the annual median household income in Hong Kong, the highest in the world. Among the four necessities of clothing, food, housing and transportation, housing is the most basic necessity, as well as the most basic right of the people. Unfortunately, buying a flat in Hong Kong has all along been plaguing the public. Many people cannot afford to buy their own homes, and hence they cannot start a family and live a normal life. Most young people toil all through their lives for home ownership, and even if they have purchased a flat, they have to worry about mortgage payments because they have become "mortgage slaves". How can these problems be solved? Young people are forced to forgo their dreams and interests; they care about nothing but making money to buy their own homes. As such, how will they not be disappointed with society? How will they not be aggrieved? More miserable still, no matter how hard many families save money, they simply cannot afford to buy their own homes. However, they are ineligible to apply for PRH because their income and assets have exceeded the upper limits. What can they do? They are forced to pay high rents and live in small subdivided units with poor conditions. According to the figures provided by the Census and Statistics Department, there are 88 000 subdivided units in Hong Kong, but the number differs greatly with that estimated by the community. Let us ignore the number estimated by the community and use the government figure of 88 000 subdivided units as the basis of our discussion. It is stated in the Policy Address that the Government will produce 70 000-plus PRH units within the five-year period. Even if all

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these units will only be allocated to households of subdivided units, there is still a shortfall; what should we do? How can Hong Kong people, particularly the younger generation, find suitable accommodation? Do they have a way out at all? President, the current-term Government cannot solve these problems and worse still, the public officers are unwilling to take up responsibilities. With the housing problem becoming more serious, the Government has only shirked its responsibility, and Secretary Prof Anthony CHEUNG even asked Members not to waste time and procrastinate on various pretexts. President, I have to stress here that we Members have the responsibility to relay the views of the public, monitor the work of the Government and point out the problems in administration. Certainly, suggesting ways of improvement is also one of our responsibilities. Unfortunately, has the Government listened to our views? Has the Government made reference to our proposals to solve problems? I think the Government should not keep telling people to "shut up" when they are pointing out the problems. Certainly, housing units cannot be produced in a day. Nonetheless, many members of the public are living in a dire situation owing to the housing problem. Thus, the Government should adopt a multi-pronged approach and formulate short- and medium-term measures to solve the problem, such as reintroducing tenancy control as we have repeatedly proposed. We have specifically proposed that the Government can introduce tenancy control on properties below a certain rateable value, while properties above that value are exempted. How did the Government respond to this flexible approach? The Government only said that it could not be implemented, full stop. We asked the Government to provide transitional housing. The Government said that this could not be done and it would rather produce long-term housing, and then it just ignored our request. We asked the Government to redevelop old PRH estates; the Government again rejected our request, saying that redevelopment of old PRH estates would affect people on the PRH Waiting List. We are not proposing the redevelopment of an entire PRH estate in one go; redevelopment can take place one block after another, which will reduce the number of people who need to be rehoused to new PRH estates. Redevelopment of old PRH estates and construction of new PRH estates can also be carried out at the same time. Nevertheless, the Government once again refused to adopt our proposals and did nothing. Regarding our suggestion to develop the brownfield sites, the Government said that the proposal involved many problems and studies had to be conducted.

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President, we have been making proposals all along, but the Government only responded briefly, saying that all these proposals were not feasible and ignored us. It does not matter that the Government considers our proposals infeasible, but does the Government have any specific and better proposal? Unfortunately, the Government has done nothing at all and has not suggested any solutions. Therefore, we think that the Government has no intent to solve problems. What infuriates people more is that LEUNG Chun-ying often plays little tricks and even causes social dissension on the issue of housing. In the Policy Address this year, he has arbitrarily classified country park sites into more valuable and less valuable categories and specifically pointed out that the less valuable sites would be used for building residential care homes for the elderly and PRH estates. This tactic does not help resolve the housing problem. Instead, it stirs up unnecessary disputes in society and makes those who are concerned about environmental conservation and those who have urgent housing needs stand on opposite sides; what good will this bring? This is not a proper way to resolve the problem. Of all the methods, LEUNG Chun-ying picks the approach which will cause disputes and conflicts. In fact, it is untrue that there is no land for development in Hong Kong; the sites have only become the assets of "government-business-rural-triad". The Wang Chau incident is a most convincing example. All along, LEUNG Chun-ying and his parties with vested interest simply have not regarded livelihood problems as their prime task. They claim that they have accorded top priority to solving the housing problem, but what does "top priority" mean? In fact, it is just an excuse for engaging in political wrangling and obtaining benefits. To protect the parties with vested interest, they use various means to cause dissension, create conflicts and tear society apart. What good will this bring to Hong Kong? I really hope that the Government of the next term will end LEUNG Chun-ying's line. In particular, I hope that the Chief Executive-elect will understand that it is important to refrain from adopting LEUNG Chun-ying's overbearing and autocratic approach. What should be done instead? One should sincerely listen to public opinions so as to resolve the problems of Hong Kong. President, I so submit.

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MR CHAN KIN-POR (in Cantonese): President, the Policy Address this year has responded to a lot of social concerns and made a number of concrete proposals. I am going to express all my views in one go. First of all, I would like to discuss an issue that the insurance sector and I are concerned about. As stated in the Policy Address, after the core fund, the next objective of the Mandatory Provident Fund Schemes Authority ("MPFA") is to put in place an eMPF, a centralized electronic platform, to facilitate the standardization, streamlining and automation of the MPF scheme administration, thereby further reducing costs and paving the way for "full portability". I have always advocated simplifying the MPF administrative process because one of the reasons attributing to high MPF charges is the excessively high administrative fees; the costs are really high because huge expenses on manpower and paper are involved. I would like to give an example for illustration. As the core fund is about to be launched, many employees have received a briefing document; some have even received several copies of the same document, with dozens of pages for each copy. All trustees in Hong Kong have sent out more than 4 million copies with similar contents. As it is required by law that such a document must be sent, the expenses cannot be saved, and the amounts incurred are included in the administrative costs. Just the postage alone incurs some $10 million, excluding the expenses on manpower, paper and printing. This is only one example. Since the administrative processes required by law have to be handled manually, such as handling a large number of documents each month, the high compliance cost has directly pushed up the administrative costs. Therefore, the industry has been advocating the simplification of administrative process in the past few years. We welcome that the Government has finally determined to implement a centralized electronic platform, and hope that it can be implemented expeditiously so as to reduce the administrative costs. In order to gain all administrative operators' support for the centralized electronic platform to achieve the best operating efficiency, the Government should consider the operation of the electronic platform by the industry in the future. On MPF fees, the average MPF fees is now 1.57%, but some industry players have reflected to me that the actual fees are lower, may be only 1.4% because the figures released by MPFA have not taken into account MPF rebates or discounts. Simply put, most schemes have currently offered discounts or

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rebates, but the current rates released by MPFA are only the rates on the book but not the actual rates. I do not understand why MPFA has all along failed to provide the discounted rates. I hope that MPFA will release the actual charging rates as early as possible, so as to increase transparency and reflect the actual situation. Another focus of the insurance sector is the Voluntary Health Insurance Scheme ("VHIS"). As stated in the Policy Address, the Government will implement the specific arrangements for VHIS and examine the details of providing tax deduction for the purchase of health insurance products. The discussion on VHIS has straddled over two terms of government and a consensus has basically been forged. I hope the Government will implement the proposed scheme as soon as possible to benefit the middle class. If they use private hospitals more often, more public resources will be released for the needy. As for a high-risk pool, I hope the Government will continue to study and figure out the long-term commitment of the Government, so that high-risk individuals can take out insurance and the requirement of guaranteed acceptance can genuinely be implemented. Regarding the tax deduction offered for health care insurance, I hope that the Budget to be announced next week will make public the specific tax deduction arrangements. I also hope that this is only a start, and a tax deduction mechanism will in future gradually extend to other insurance items related to people's livelihood, such as annuities and insurance related to health and retirement. I always believe that encouraging members of the public with the means to take out insurance for their future life is tantamount to the Government paying for soya sauce while the public paying for the chicken. By providing a little incentive to encourage the public to assume responsibility for their future, the Government can in turn reduce the long-term public expenditure. This is really a smart move. With regard to the current reform of turning voluntary health insurance into medical insurance, the Government has said very little on the hospital and medical charges, which take up a large proportion of the premium. The Government has the responsibility to rectify the inadequacies of the medical profession and cap the increase in medical expenses at the inflation level. At present, the medical inflation is much higher than the general inflation; if the

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medical inflation cannot be capped, the premiums will be on the increase. Therefore, the Government has the responsibility to keep making efforts to reform our private medical system. The Policy Address also mentions that the Hong Kong Trade Development Council and the Hong Kong Financial Development Council will join hands with industry representatives to strengthen the promotion of our financial services industry outside Hong Kong. I believe they will promote insurance services to tie in with the development of the Belt and Road Initiative. Regarding the newly established Independent Insurance Authority ("IIA"), the industry is waiting for IIA to start its work, hoping that IIA will be able to implement and enforce the powers conferred by law. In the process of enacting legislation, the Government has made many verbal promises, but some problems are yet to be unresolved and require clarification and follow up. For example, on provisions concerning the best interests of the agents and details of the appeal mechanism, the Government should follow up expeditiously and alleviate the worries of the insurance industry, so as to ensure that in duly protecting all insurance practitioners, consumers are also given due protection. The Policy Address proposes to progressively abolish the "offsetting" of severance payments or long service payments with MPF contributions. The proposal contains three key elements, including the abolition will have no retrospective effect and employers' MPF contributions before the implementation date of the proposal will be "grandfathered". I also agree that the Government should share the additional expenses of the employers to ensure the smooth transition of the mechanism and prevent a large number of small and medium enterprises ("SMEs") from closing down. I believe the proposal adopts a middle-of-the-road and pragmatic approach, and can balance the interests of the business and labour sectors. I hope both parties will understand that if they all stand firm, it will be detrimental to the community and employees. It is my hope that various parties will adopt an attitude of mutual understanding and mutual accommodation in order to work out a proposal that is acceptable to all; if necessary, the Government may have to offer greater assistance to SMEs. In respect of social security, the Government proposes to enhance the Old Age Living Allowance by adding a higher tier of assistance and relaxing the asset limits for the existing allowance, so as to increase substantially the number of elderly persons to be benefited. I welcome the Government's proposal and agree

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that the existing means-tested social security system should continue. Together with Comprehensive Social Security Assistance and "fruit grant", 74% of elderly persons will be benefited and the coverage is really extensive. The Government should continuously review whether the amount of allowance is sufficient. In my view, the Government should exempt the MPF contributions of the elderly when calculating their assets. As such contributions are the savings of the elderly over the years, or their "funeral money" which they live on in their lifetime, such amount should be exempted. The Policy Address also discusses land development and conservation issues. While it proposes to incorporate more land with high ecological value into country parks, it also considers allocating a small proportion of land on the periphery of country parks with relatively low ecological and public enjoyment value for public housing and non-profit-making purposes. I agree with this sort of land exchange concept of the Government, and disagree that no changes should be made to land in the countryside, at least we can discuss whether it is worth doing so. I have always supported land reclamation outside the Victoria Harbour. The Policy Address mentions that technical studies on reclamations in Siu Ho Wan, Lung Kwu Tan and Ma Liu Shui will be completed this year, and reclamation in Sunny Bay, Lantau Island is under planning. I think this is a right direction and the Government should implement the proposed projects boldly. Finally, I would like to talk about sports. The Government has decided to increase a large number of sports facilities; in the next five years, a total of some $20 billion will be spent to launch 26 projects to develop new or improve existing sports and recreational facilities. I have always advocated a healthy life and in my view, if members of the public are sound in body and mind, the whole society will develop in a healthy way, and people in the community will be happier. Unfortunately, in Hong Kong, people experience great stress in work and life, most of them do not have the opportunity to exercise and they do not engage in recreational activities from which they can draw emotional support, hence they are sick in body and mind. Many young people prefer indulging in the online world to going out and make friends. A substantial increase in a large number of recreational and sports facilities can promote the atmosphere of physical activities, help the community find emotional support and through sports, increase the sphere of social life of young people. Therefore, I earnestly support the Government's decision. It is absolutely worthwhile to invest $20 billion but

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I think the Government should make greater efforts in terms of work-life balance. Although the Government has this awareness and concept, it has actually done very little. Let me reiterate, the Government should instruct various departments to consider how their employees can maintain a work-life balance. As such, parents of each family can spend time with their children, and each family in Hong Kong can lead a happier life. The whole community can in turn be happy. Regardless of who will become the Chief Executive, as long as the Government fails to attach importance to this, I believe Hong Kong people will not be happy. Now that we have ample fiscal reserves, I believe the Government can absolutely make greater efforts so that we can spend more time with our family members or really go on vacation. The Government must pay attention to that. I so submit.

MR YIU SI-WING (in Cantonese): President, the Policy Address has clearly mapped out the long-, medium- and short-term planning for the supply of land. With regard to the long-term vision, it proposes to develop by reclamation in the New Territories, develop underground space as well as country parks with no ecological value, with a view to increasing future land supply. Under the current political environment, the fact that the Chief Executive has put forward such controversial land proposals before his departure well reflects his readiness to shoulder responsibilities for future land development. In respect of short- to medium-term housing policies, the current-term Government is determined to achieve an overall increase in housing supply. However, owing to factors such as difficulties in land resumption and filibustering in the Legislative Council, though the housing production target might not be met, a foundation has been laid for the next-term Government to continue with the housing production programme. All in all, I opine that in handling the housing problem, this Policy Address is committed and accountable. Hong Kong is small but densely populated, and the scarce land resources will certainly deplete one day. To prepare for the rainy days, we must look for new supply of land other than the existing land resources. Macao has long been aware of the same problem that we are now facing, and that is, a lack of natural resources will undermine the future development. This is why in 2009 Macao leased a piece of land from the Zhuhai authorities for the construction of the University of Macau. In late 2015, the Central Authorities released for the first time a clear demarcation of Macao's maritime and land zones, thereby tripling the

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size of the territory under Macao's jurisdiction, which was originally 30 sq km only. From then on, Macao can create land through reclamation and develop tourism-related maritime and leisure water sports facilities. This has well demonstrated that the Central Government fully supports Macao's development into a world centre of tourism and leisure, and such a move is even more forward-looking than the liberalization of gambling monopoly in 2002. On the contrary, in the case of Hong Kong, the HKSAR Government has recently signed an agreement with the Shenzhen Municipal Government to develop high-tech research in the Loop. However, the opposition party described this development as Hong Kong being integrated with the Mainland, and Members representing the Information Technology functional constituency even refused to show their support on the pretext of inconvenient transport links. The opposition camp is trying to exploit the mentality of regional protectionism to stop Hong Kong from progressing and remain in seclusion. And yet, when we were overtaken by our neighbouring countries, the opposition camp in turn attacked the HKSAR Government for being incompetent and inept. I hope members of the public who have been hoodwinked can take a good look at the situation, cast aside their prejudice, put the overall interests of Hong Kong in the first place and put forward constructive proposals in an objective manner. President, the current-term Government has stressed in each of its policy address over the years that housing is a top priority, but there has been little mention of commercial and hotel sites. Recently, of the six hotel sites adjacent to the Cruise Terminal in the Kai Tak Development Area ("KTDA"), the Planning Department proposed to rezone three of them into residential sites, and only one residential site adjacent to the Kwun Tong Typhoon Shelter will be rezoned for hotel development. It is expected that the number of hotel rooms will be reduced by 1 000 as a result. With regard to the Kai Tak Fantasy project under the KTDA project, this year the Government will invite a tender for the Kai Tak Tourism Node in the area to develop the so-called third largest man-made attraction. The tourism-related facilities in the area include a cruise terminal, the Kai Tak Sports Park, etc. Upon the completion of the Kai Tak Sports Park, which can accommodate 50 000 people, a lot of performances, concerts and major sports events will be held, thereby generating a huge demand for hotel accommodation. The originally scheduled six hotel sites in the vicinity are excellent in the sense that they overlook the Victoria Harbour and may attract high-spending tourists.

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The provision of six quality hotels will create economies of scale, thereby enhancing our high-end reception capacity. The tourism sector expects those sites to be put to the market as early as possible. If there are only three adjacent hotel sites, the economies of scale will be greatly reduced. I think that the Government should not arbitrarily rezone the hotel sites into residential sites simply due to a fall in tourists in recent years. As we may be aware, the construction of hotels takes time and the duration from tender invitation to project delivery may require at least three or four years. It would be too late if we identify hotel sites when there is an upsurge in visitor arrivals. I strongly request the Government to carefully consider the proposal of rezoning three hotel sites, and when necessary, consider rezoning certain sites for service apartment hotel development. President, the Policy Address proposes to change the Wan Chai Sports Ground to convention and exhibition venues and convert the Hong Kong Convention and Exhibition Centre to provide trendy facilities, in order to fill the gap of insufficient local recreation facilities. As far as I understand, local residents and Legislative Council Members have expressed dissatisfaction with the proposed change of the Wan Chai Sports Ground to convention and exhibition venues, worrying that this might have an implication on the community amenities. I hope the Government will ensure proper changeover and promptly provide replacement facilities for the affected residents and athletes. At present, the Wan Chai Sports Ground is an important competition and training ground. According to the Government's plan, upon the commissioning of the Kai Tak Sports Park, mega performances and major games previously held at the Hong Kong Stadium will be held at the Kai Tak Sports Park. By then, the Hong Kong Stadium will assume the current role of the Wan Chai Sports Ground. Nonetheless, in order to achieve this, it is necessary for the Hong Kong Stadium to do some touch-up works and provide more running tracks. I hope that the Administration will, in light of the needs of the sports sector, carry out the conversion works and arrange timely coordination to facilitate the smooth transition of venues. President, the Guangzhou-Shenzhen-Hong Kong Express Rail Link ("XRL") will be commissioned in the third quarter of next year. Although the Hong Kong Section is only 26 km long, there will be a total of 15 platforms in the Hong Kong Terminus to connect with the national express rail network in the future, with a view to integrating with the Mainland high-speed rail network

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which stretches for 19 000 km. Upon the commissioning of XRL, the journey time from Hong Kong to Guangzhou will be reduced from 100 minutes to 48 minutes; it takes about eight hours to Beijing; about six hours to Kunming and about four hours to Xiamen. A population of nearly 100 million will be within the reach of a four-hour journey time from Hong Kong's West Kowloon Terminus, covering provinces such as Fujian, Hunan and Wuhan. In future, the planning and construction of China's high-speed rail include a Beijing-Moscow-Paris-London cross-boundary rail, and the journey time is only 48 hours. Travelling on a high-speed rail directly from Hong Kong to London is no longer a dream. Hong Kong's XRL does not, as some people have thought, merely provide more convenient transport between Hong Kong and Shenzhen or Guangzhou; instead it is a super rail network connecting the entire Greater China and even provides direct access to Eurasia. In this connection, the HKSAR Government should, before the commissioning of XRL, expeditiously reach a consensus with the Mainland on the implementation of arrangements for "co-location of boundary control" ("co-location arrangements") on lawful and reasonable grounds. If travellers are unable to complete immigration clearance at Hong Kong's West Kowloon Terminus, but have to alight from the train for immigration clearance en route at Futian, Shenzhen or complete the clearance on the train, their convenience will be seriously undermined. It is impossible for rail stations nationwide to set up control points for Hong Kong's XRL, or else XRL will be no different from the existing MTR Intercity Through Train and cannot integrate with the nation's high-speed rail network. By implementing the co-location arrangements, travellers will be able to complete the necessary clearance procedures in Hong Kong and reach their destination or interchange with other railway lines in the Mainland. Only in so doing can XRL achieve its intended purpose. The controversy over the implementation of the co-location arrangements is how, on the premise of complying with the Basic Law, the Mainland procedures relating to immigration, customs and quarantine can be completed within the designated area of the West Kowloon Terminus. The co-location arrangements are not unprecedented. While Britain and France are both independent sovereign countries, clearance procedures of both sides are completed in the Paris station of the high-speed train (the Eurostar) which runs through the English Channel. As the co-location arrangements involve

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complicated legal and operational issues, they must be actively dealt with by the two governments. Therefore, the Government should proactively liaise with the Central Authorities and, having regard to international precedents, expeditiously implement the co-location arrangements for XRL within the framework of the Basic Law. With regard to the implementation of the co-location arrangements, Hong Kong people and enterprises are most concerned about which cities are directly accessible by XRL upon its commissioning, and the respective journey time required. We hope the Government can make the best use of time and liaise with Mainland railway authorities, such that the implementation timetable, routing and frequencies of XRL can be made public as early as possible. In that case, enterprises may make investment plans and explore business opportunities at their earliest convenience, having regard to the routing and frequencies of XRL. Travel agencies may also work on the ticketing process and travel itineraries, whereas members of the public can make their travel plans earlier. Some members of the public told me that upon the commissioning of XRL, they can travel directly from Hong Kong to Fujian to visit their relatives in the Mainland without having to interchange midway. As we all know, for provinces such as Fujian and Shantou alone, there are millions of people having certain connections with Hong Kong, which is a huge number, and even Mr CHAN Hak-kan said he is one of them. Therefore, I think XRL is essential to Hong Kong people. President, since the Hong Kong-Zhuhai-Macao Bridge ("HKZMB") will commission soon, adjustments should be made to the routes of cross-boundary coaches in the light of the shortened journeys. At present, more than 600 cross-boundary coaches travel via the Shenzhen Bay Port ("SBP") every day and about half of them will then go to the western regions in Guangdong, such as Zhongshan, Shunde, Panyu, Jiangmen and Xinhui via the Humen Bridge. It is expected that following the commissioning of XRL, passengers will mostly travel to and from Hong Kong via the Hong Kong Boundary Crossing Facilities, and the number of passengers using SBP will be significantly reduced. The Government proposes to issue 300 cross-boundary coach quotas for HKZMB, among which 200 are newly issued quotas and the remaining 100 will be transferred from coaches serving SBP. Yet, members of the trade opine that the problem cannot be fully addressed if only 100 quotas are transferred from

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SBP. The reason is, upon the commissioning of HKZMB, it is estimated that the majority of passengers travelling to the western regions of Guangdong will use the new boundary crossing instead. Therefore, they suggest that the Government should transfer another 200 quotas from SBP to the new boundary crossing, which will add up to a total of 300, so as to provide convenience for more travellers. The commissioning of HKZMB will provide greater convenience for members of the public and travellers, thereby facilitating the interaction among Guangdong, Hong Kong and Macao. It is hoped that the Government will expedite the progress of the project and strive to complete it as scheduled. President, I so submit.

MR JEFFREY LAM (in Cantonese): President, I recall that when Chief Executive Mr LEUNG Chun-ying delivered his first policy address after his assumption of office, he adopted the housing problem, a prime public concern, as the main theme and stated that the problem should be tackled through land supply. In this year's Policy Address, the last one in his tenure, he still accords the housing problem his top priority and I believe most people would agree to his approach. One of the highlights of the Policy Address is to actively identify land for housing production, especially public housing, with the aim of helping the needy to be allocated a public rental housing ("PRH") unit or to purchase their own homes. One of the specific means is to build public housing on land on the periphery of country parks with relatively low ecological value. I understand that some people in the community have great reservations over housing production in country parks. I hope that different people and different stakeholders can consider this issue in a calm, objective and pragmatic manner. The Country Parks Ordinance came into effect in 1976. Initially, protection was given to five country parks, namely Shing Mun, Kam Shan, Tai Tam, Lion Rock and Aberdeen, the total area of which was merely 4 032 hectares. The Government has gradually included more country parks and increased the number of green belts or conservation zones. To date, there are 24

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designated country parks and 17 special zones, covering a total area of 44 300 hectares, representing close to 40% of the total area of Hong Kong. If other green belt areas and derelict land are included, they will represent over 60% of the total area of Hong Kong. Surely, country parks are paradises in our busy city. Like many members of the public, I yearn for such places and cherish them. But one cannot have his cake and eat it. Land resources are not inexhaustible, especially in such a tiny place like Hong Kong. A right balance must be struck between development and conservation. If the Government makes use of land on the periphery of country parks with relatively low ecological value and few public activities for building public housing and elderly homes, so that tens of thousands of families can have a decent home, and large number of elderly people can be well taken care of, wouldn't this be more meaningful? President, even though the SAR Government has attained certain achievements in identifying land for housing production over the past four-odd years, it cannot be denied that the number and quality of housing units produced is far from satisfactory, and the number of PRH units produced still fails to meet the target. In recent years, property prices remain sky-high, and flats priced at $4 million for first-time home buyers are most extinct in the urban areas. Many middle-class people and small families have accumulated great grievances: longer waiting time for PRH, record number of applications for Home Ownership Scheme ("HOS") housing, ever-increasing rents and shrinking living space. Every family is plagued by the housing problem. If the Government cannot increase land and housing supply in the short to medium run, I am afraid that public grievances will run amok. It is estimated that by 2039, the population in Hong Kong will reach 8.9 million. According to the current land use density and infrastructure development plans, by 2039, apart from the development projects implemented, Hong Kong needs an additional 1 500 hectares of land to accommodate 8.9 million people, or about 3.1 million households. As a responsible Government, it must adopt a multi-pronged approach and plan ahead to provide long-term housing supply. Of course, the development of country parks is a sensitive issue, in particular under the prevailing political climate and social environment. I believe that it will be very difficult for the Government to truly engage in the

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studies and reviews. I hope that certain political parties and groupings will seriously take into consideration people's needs for living and working in peace and contentment, they should not indiscriminately hinder the Government's land development endeavour. As a responsible Government, it must rise up to challenges to implement policies that it considers beneficial to society, and it should not back off because of strong objections by certain people. Another issue related to housing production is labour. Although I believe the LEUNG Chun-ying Government is determined to take forward housing provision plans, I am worried if there is sufficient manpower to carry out the large-scale land development works and various private and public housing construction projects when the relevant policies are put into implementation. We always compare the relationship between land and housing as that of flour and bread. Without flour, how can we have bread? Yet, to make bread, other than a sufficient supply of flour, we also need a certain number of bakers, or construction workers in the sense of housing production. At present, when bakers are in short supply, even if there is flour, how can we produce a sufficient amount of bread within a specified time frame? In the next few years, many large-scale works projects are due to commence, and housing production also involves various reclamation, land development and construction works. Moreover, as many construction workers are now approaching the retirement age, and coupled with serious manpower wastage, the problem of manpower shortage in the construction industry is obviously aggravating. I am worried that even if the Chief Executive has proactively increased land supply, without sufficient construction workers, the progress of housing production will be hampered and the target will not be met. As a result, many people waiting for PRH allocation or hoping to acquire their own flats will be gravely disappointed. I agree that the Government's labour policy should first safeguard the employment of local residents and workers, but if certain industries and trades are already suffering from acute manpower shortage and having regard to the urgency of works projects, the Government should adopt a flexible approach and allow the importation of labour in the short run. I believe that the SAR Government should act promptly to address the people's urgent concerns. Hence, it must address squarely the problem of shortage of construction workers. Apart from providing proper training in the local labour market, it should also review afresh

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the actual situation of various industries. Without affecting the employment of local workers, it should import foreign labour according to the needs of various industries. Next, I would also like to talk about the "curb" measures. President, since the introduction of the Special Stamp Duty in late 2010, the Government has introduced increasingly harsh measures to the residential property market, making it even harder for aspiring home buyers to realize their home ownership plan. In the face of various "curb" measures, flat owners are reluctant or even refuse to sell their flats, so as to avoid paying the increased stamp duty, leading to a drastic decrease in the supply of second hand flats. The industrial and commercial sectors have great reservations over certain provisions of the "curb" measures which warrant our special attention. According to the Government, these are exceptional measures introduced during exceptional times, with the view to promoting a healthy development of the property market. If we just look at the number of transactions, the "curb" measures have effectively reduced the number of property transactions by half, leading to a slowdown in the market. However, in terms of property prices, after the introduction of "curb" measures, property prices are still on the rise, and the rate of increase is particularly high for small to medium-sized flats. The public expect that property prices will be lowered to an affordable level after the introduction of the "curb" measures, but in reality, prospective home buyers still cannot afford to buy their own homes and tenants have to pay even higher rents. The "curb" measures have only suppressed the rise in property prices but fail to solve the problem at its root. As a matter of fact, both the industrial and commercial sectors and the general public wish to see property prices remain stable. They support the Government in formulating measures to bring the property market back to a healthy state, but even if "curb" measures are introduced, it cannot overlook the impacts of other factors. We have time and again expressed our views and put forward suggestions, hoping that the Government will review the "curb" measures rather than "trim the toes to fit the shoes". President, the "curb" measures cannot solve the housing problem of Hong Kong. In the final analysis, the Government should expeditiously increase land supply, relax the restriction on plot ratio and keep construction costs under control as far as possible. Various sectors in society should also support the

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Government in identifying land for housing production. The prevailing problems cannot be resolved by opposing land development on the one hand and complaining about the sky-high property prices on the other. With an increasing supply of public and private housing, we hope that the property market will return to a normal state expeditiously, so that people can live and work in peace and contentment. President, in respect of the proposal stated in the Policy Address to progressively abolish the "offsetting" of severance payments or long service payments with Mandatory Provident Fund ("MPF") contributions, the Business and Professionals Alliance for Hong Kong and various major chambers of commerce have repeatedly voice their objection in the past. However, owing to the pressure exerted by the labour sector, urging the Chief Executive to make good of his promise, the Government has eventually disregarded the strong views of the industrial and commercial sectors and incorporated the offsetting arrangement in this year's Policy Address. Once again, I express my objection to the offsetting arrangement. The industrial and commercial sectors will definitely continue to argue on the basis of reason and relay their views to the Government in the future consultation exercise. President, concerning the proposal in the Policy Address to progressively abolish the offsetting arrangement, the commercial sector considers that the new proposal brings harm before any benefits as there is the possibility that some employers may, for the sake of saving the future expenses on severance payments and long service payments, lay off employees with many years of service and then hire new employees later. Moreover, once the offsetting arrangement is abolished, employers have to set aside extra funds for severance payments and long service payments. Since 98% of the enterprises in Hong Kong are small and medium enterprises ("SMEs"), they may not be able to afford. The Government proposes to share part of the expenses on severance payments and long service payments of employers in the 10 years after the abolition of the offsetting arrangement. The Government's share will decrease year by year and employers will have to bear the full expenses after 10 years. I find this proposal unacceptable. The Government has neither made an assessment based on the actual figures and the extent of the impact, nor has it consulted the commercial sector. Even though the Government promises to share part of the expenses on severance payments and long service payments, its contribution is insignificant. In the first one or two years, the Government will

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share part of the expenses, but in later years, the proportion of the share will be next to minimal. By promising to share part of the SMEs' expenses, the Government merely wants to coax the industrial and commercial sectors into accepting this proposal, which is unfair to employers. Besides, severance payments and long service payments are under the category of unemployment protection while MPF is one of the pillars of employees' retirement protection, but not covering all their retirement protection. At the time when MPF was established, the authorities recognized that the functions of severance payments, long service payments and MPF had overlapped; hence an offsetting arrangement was proposed to avoid employers making double payments. The so-called offsetting arrangement does not in fact offset the money entitled by employees; rather it only allows employees to withdraw the money in advance to pay for their expenses when they are unemployed. President, the commercial sector has always opined that employees' retirement protection should be a long-term commitment borne jointly by employers, employees and the Government, and retirement protection should be dealt with separately from employment protection. The community should not bow to the pressure of populism and the labour sector and regard the effective offsetting arrangement as a means enabling employers to evade responsibility. We demand the Government to make long-term commitment; the Government cannot wash its hands of the arrangement after 10 years, while the industrial and commercial sectors have to bear full responsibility. The Government should not think that by settling the issue of offsetting arrangement, employees' present dissatisfaction with the MPF benefit can be alleviated. If the Government is unwilling to make a long-term commitment, the issue on retirement protection cannot be properly addressed. President, in recent years, Hong Kong society has become increasingly politicized, radical and polarized, giving rise to an intensified sentiment against the business sector and the rich, and the emergence of radical populism. Just look around the world, the United Kingdom is leaving the European Union, Donald TRUMP has become the President of the United States, the risks of geopolitical have been escalating, the shadow of terrorism is haunting us and the economic outlook is highly uncertain. While Hong Kong's industrial and commercial sectors are plagued by internal and external troubles with many problems relating to the tax system and business environment remain outstanding, the Government has stipulated the statutory minimum wage rate, proposed to abolish the offsetting arrangement of MPF and to legislate for standard working

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hours, thereby exerting great pressure on the industrial and commercial sectors. In the long run, Hong Kong's competitiveness will be undermined and our economic development jeopardized. President, in recent years the marginal profits of SMEs have been very low, we can even say that they are not making any profits. In the face of rising labour costs, progressive tightening of labour laws, and the rise of welfarism and populism, the industrial and commercial sectors have been the target of criticism. However, even though SMEs are faced with all sorts of problems such as increasing operation costs, difficulties in financing and opening accounts with banks, and shortage of labour and talent, the Government has yet to give any active response. In respect of the two policies on identification of land for housing production, and care for the elderly and poverty alleviation, the Government has put forward sound proposals, heading towards the right direction. However, as the construction industry and the care sector have been plagued by persistent manpower shortage, who are going to work in these sectors? The industrial and commercial sectors are not requesting for labour importation in all sectors, and they are not ignoring local workers' interests. The problem is that at present, we do not have construction workers to carry out the works projects, and there are no new entrants. As for the sectors which undertake obnoxious duties, such as the care sector, the number of employers is decreasing. In dealing with these problems, why is the Government unwilling to listen to the views of the industrial and commercial sectors? As a matter of fact, all developed economies in the world have imported a suitable number of foreign workers and have a loose policy to admit talent. We hope that the Government will make greater efforts in tackling these issues in the next few months. We also hope that the new Chief Executive will also take into account the needs of the industrial and commercial sectors, have a broad vision to attain long-term economic development, and improve the people's qualities of lives. President, I truly believe that a free market environment, stable government policies, and favourable business conditions can facilitate the smooth development of the economy. When the economy thrives, people will live and work in contentment, and the industrial and commercial sectors will be more than willing to pass on the benefits to society and help those in genuine need in the community. However, if the labour policies are welfare-oriented and inclined to

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exert pressure on the industrial and commercial sectors, not only will the deep-rooted problems remain unsolved, but the antagonism between employers and employees will intensify, thus giving rise to more social conflicts. President, I so submit.

MR CHAN HAK-KAN (in Cantonese): President, before I proceed to speak, I would like to commend the Secretariat for setting the themes of "Land, Housing, Transportation, Environment and Conservation" for this debate session. Grouping these policy areas under the same umbrella can certainly enable Members to have a more focused discussion on the relevant contents of the Policy Address. If the Government can adopt the Secretariat's practice and consider these four areas holistically, I am sure that not only can the discussion and communication among Directors of Bureaux be improved, but the Government's policies in respect of land development, housing and conservation can also achieve better results. As we often say, development and conservation go hand in hand. If conservation is neglected by the Government in the course of land development, the public will certainly have strong views about it. But if the Government only concentrates on conservation at the expense of development, the public will suffer from housing shortage. That is why I maintain that if the Government can consider these four areas in a holistic manner, leapfrog development can be achieved in respect of housing production. Thus I often suggest that the two policy areas of development and housing should be bundled together. Taking this opportunity, I would like to impress upon the next Chief Executive as well as the next term of Government―no matter who the office-bearers are―the importance of bundling these two areas under a new Policy Bureau, so that housing and development can go hand in hand with due consideration also given to the element of conservation. I believe that such an approach will be conducive to the development of new towns and the conservation of sites with ecological value. The current-term Government is in its twilight days. I still recall that before the Chief Executive assumed office, he had already singled out housing as the main thrust of his government. As a result, many people had great expectations for him. Although property prices and rents remain high, the volume of housing production is less than expected, and the waiting time for

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public rental housing ("PRH") has extended to over four years on average, the current-term Government has indeed demonstrated unprecedented vigour in identifying land for housing production, so much so that several Chief Executive contenders have pledged to continue with the existing housing policies. Of the three Secretaries now present in the Chamber, some has indicated that he would not stay on, but I believe that some Secretaries would like to play a role in the next-term Government. I hope they can continue with the existing meritorious housing policies which are effective in addressing the problems concerned. I recall that many people have criticized the last-term Government for lacking a vision. In October last year, the current-term Government promulgated "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" to set out the broad directions for future development, with the main thrust of developing Hong Kong into a liveable high-density city. Such a move has, so to speak, responded to some aspirations of the public. I also recall that the term "liveable" had also been used by the Chief Executive in his 2013 Policy Address. At that time, the focus was primarily about ensuring the right amount of living space for Hong Kong people. I notice that the focus of the term may have been changed as "liveable" is not only about the amount of living space, but more importantly, the quality of living. It is quite understandable why the Government has made this adjustment because land supply in Hong Kong is still highly restricted. But I definitely do not agree that the Government should bow to reality simply because land is in short supply. As we can see, more and more so-called "nano units" or "coffin-sized units" are now in the market. Whether people can live in a reasonably-sized unit is still a very important matter. If the problem of living space cannot be resolved, let alone the quality of living. Over the years as a Member of the Legislative Council, I have been asking the Chief Executive and the relevant public officials repeatedly what can be done to resolve the increasingly serious housing problem? What measures can be taken by the Government to help ordinary citizens who are in dire straits? As indicated by some recent reports, rents for private housing have soared during the Lunar New Year. For ordinary citizens or small families with a monthly income of around $20,000 to $30,000, a large proportion would go towards rental payment. I really have no idea how these people can cope with other living expenses. As a matter of fact, the long waiting time of 4.7 years for PRH has made the life of many grass roots living in subdivided units, cubicle apartments or even "coffin-sized units" even more miserable.

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The Chief Executive has reiterated time and again that increasing land supply is the only solution to the housing problem. But where do we find land? I take my hat off to the Chief Executive for floating the idea of developing country parks for public discussion. But as we all know, developing country parks is a touchy subject in society. So, instead of pursuing such a controversial proposal, why can't the Government adopt the approach of "resolving the simple issues before the difficult ones" by according development priority to brownfield sites, a policy we have all along supported? If the Government fail to tackle the development of brownfield sites first, I think society will find it hard to accept the proposal of developing country parks. In this year's Policy Address, the Government proposes to conduct a comprehensive study on all brownfield sites in the territory. In fact, we had proposed the same idea a long time ago and have been urging the Government to do so, otherwise the situation that commonly arose in the Council in the past would continue. Opposition Members would continue to put forth some specious arguments, for instance, they would maintain that brownfield sites must be developed first. They would hold up a map, pointing out that there are many brownfield sites in the North District. However, when we compare the locations of those brownfield sites against the plan for the North East New Territories New Development Areas ("NENT NDAs") proposed by the Government, what they mean by brownfields sites to be developed as a matter of priority turn out to be the areas of Ping Che/Ta Kwu Ling, which have already been covered under NENT NDAs. In other words, the Government is always the loser while opposition Members can always get the upper hand for only what they say is true. Secretary Eric MA, instead of having both sides keep acting irresponsibly or blaming each other aimlessly, or allowing the opposition camp to discredit the Government, please show us a map of the brownfield sites and tell opposition Members loud and clear that the brownfield sites they are referring to are the areas of Ping Che/Ta Kwu Ling which have already been covered under NENT NDAs. They should not make things up to discredit the Government again or willfully criticize the Government for grabbing land blindly. Whenever the matter of brownfield development is raised, the question which invariably comes up for the Government is the handling of existing industrial operations or inhabitants on the brownfield sites. If the Government

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does not have a sound compensation scheme, brownfield development will be immensely difficult, and the entire process will also be prolonged. Eventually, it will be those ordinary citizens waiting for PRH allocation who suffer. Therefore, in the course of developing new areas, the Government must provide reasonable compensation to the affected residents and business operators. As far as the current compensation mechanism is concerned, I do not think any affected persons will accept the Government's compensation and move out because given the existing high property prices, they can hardly use the amount of compensation to find a new premises for accommodation or restarting their businesses. Hence I think the Government should ditch the old approach when handling the issue of rehousing. Otherwise, it will only give rise to more conflicts in society. The Government should adopt a more flexible approach and make reasonable compensation offers to the affected residents and business operators, so that they would move out willingly. As I said at the outset, the two areas of housing and development are inextricably linked. If the Development Bureau does not have any housing resources of its own for rehousing the affected residents, they may have to ask the Transport and Housing Bureau for PRH units or Home Ownership Scheme ("HOS") flats. But some affected residents may not be eligible for subsidized housing, or they do not want to wait a long time. If the Development Bureau has some housing resources of its own for rehousing the residents affected by development, I think better rehousing arrangements can certainly be made. I also recall that in his previous policy addresses, the Chief Executive has pledged to help more people achieve home ownership and further improve the housing ladder. But so far, a sound housing ladder has yet to be built because the Government has been concentrating on the short-term goal of curbing market demand, so much so that the long-term goal of increasing housing supply and helping home buyers have taken a back seat. As such, the Government has yet to fulfil the pledge of an average three years' waiting time for PRH allocation, while HOS production has also failed to meet the target and the supply of private housing falls short of expectation. To further improve the housing ladder, I hope both the current-term Government and the next-term Government can seriously consider re-launching the Sandwich Class Housing Scheme, the Tenants Purchase Scheme and the Home Starter Loan Scheme, as well as implementing measures to expeditiously achieve the goal of an average three years' waiting time for PRH allocation.

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President, one of the highlights of this year's Policy Address in respect of conservation is the establishment of a conservation fund, which is also a proposal made by the Democratic Alliance for the Betterment and Progress of Hong Kong over the years in the Council. In the New Territories, many sites of ecological significance or buildings with conservation value are privately owned. If the balance is tilted towards conservation, the ownership rights of private owners may be undermined. But if the owners can freely use the site or property for development, any talk about conservation is practically meaningless. That is why the Government's present proposal to establish a conservation fund can be an effective means to resolve the conflicts between conservation and development in respect of both land sites and buildings. Regarding the conservation of Sha Lo Tung, as well as the establishment of a preparatory committee for setting up the conservation fund and further promoting the revitalization of remote rural areas, I give my absolute support and hope that the pilot schemes can be extended to different aspects of conservation work. As I often cited in the past, upon the establishment of a conservation fund in the United Kingdom, for castles with high historical and conservation value, the authorities can, after undergoing an assessment system, even acquire the whole castle and then entrust it to a historical-cultural organization for conservation. Afterwards, the castle will open to the public, so that people can learn more about local history. I think this is an all-win approach for the Government, the owners as well as the public, and should be implemented as soon as possible. Now I will turn to environmental issues. In response to the United Nations Climate Conference held in France last year, the Government proposed in last year's policy address that an inter-departmental committee would be chaired by the Chief Secretary for Administration to steer and coordinate implementation work for combating climate change. One year later, it is stated in this year's Policy Address that at the end of last year, the inter-departmental committee chaired by the Chief Secretary submitted a report proposing to adopt measures of mitigation, adaptation and resilience to combat climate change, with a view to reducing the carbon intensity in Hong Kong from the 2005 level by 65% to 70% by 2030; and the recommendations have been accepted by the Chief Executive. Meanwhile, the Hong Kong's Climate Action Plan 2030+ report was released by the Government at the end of last month, outlining its medium- and long-term action in combating climate change and setting out the carbon emission reduction target. The report is essentially an action plan jointly formulated by 16 bureaux

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and departments under the Steering Committee on Climate Change to achieve Hong Kong's new carbon emissions reduction target. I truly believe that combating climate change is by no means an easy task. To meet the target, it would require multi-pronged actions taken by all relevant departments in a proactive manner. In this year's Policy Address, the Chief Executive proposes to further promote the use of renewable energy ("RE"). One of the measures is to earmark $200 million for the provision of RE installations in government buildings and venues as well as community facilities in order to take forward solar power generation projects, and so on. As a matter of fact, Hong Kong is lagging far behind our neighbours in the development of RE. In those places, RE is used not only in government buildings, but also private properties. For example, in the Mainland, under the Golden Sun Demonstration Project launched by the Government as early as in 2009, solar panels were installed in the rooftop of suitable residential buildings with relevant government support and subsidies. In other places, the government will install solar energy installations in public places to promote the development of RE. But in Hong Kong, only the Water Supplies Department has, under a pilot scheme, implemented two pilot floating photovoltaic systems in Shek Pik Reservoir and Plover Cove Reservoir. I hold that we are indeed lagging far behind other places in this regard. Of course, we all know that the installation of a large number of solar panels will have a long cost-recovery period. But with major advancement in solar energy technology nowadays, I think the cost-recovery period can be greatly reduced. Besides, if only the cost factor is taken into account when implementing environmental projects, the social meaning involved may be undermined because the aim of undertaking such projects is not only about saving energy and reducing emissions, but they also serve to educate the public and allow us to do our part as a world citizen. Hence, I hope the Government will stop acting passively as before in exploring the use of solar energy technology, wind power generation and other RE sources. Instead, it should work proactively to increase the share of RE sources in the total use of energy in Hong Kong. Last but not least, I would like to talk about the policy of waste management. I am aware that Secretary WONG Kam-sing will soon brief the Legislative Council on municipal solid waste ("MSW") charging. I am also aware that the Secretary once indicated to the media that should MSW charging

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be introduced, the levy was $1 to $2 for each household per day. To the Secretary, $1 to $2 per day may be a small amount. But may I ask the Secretary to do some calculations. A levy of $2 per day will add up to $60 per month. Such a level of MSW levy will substantially increase the livelihood burden of grass-roots families. Therefore, I hope the Secretary will take into account the financial hardship of low-income families when setting the level of levy so that they will not be overburdened. While the use of economic means to drive behavioural change is effective to a certain extent, the authorities must also duly consider the affordability of grass-roots families. Otherwise, it might affect the smooth implementation of the scheme and give rise to a whole host of evasive acts. Hence, the Secretary should seriously consider the points I just raised. Of course, apart from the levy, do we have sufficient recovery facilities in the community? Can more work be done to achieve waste reduction at source? How effective is such work at present? As we have been asking these questions on different occasions many times before, I will not repeat them again. Finally, I must say a few words about the use of the MSW levy. I hope the Secretary will adopt a new angle of fiscal management, such that the levy will be used on a dedicated-funds-for-dedicated-use basis to promote the recycling and environmental industries, so as to further improve Hong Kong's waste management policy. President, my speech for this debate session ends here.

Thank you.

MR SHIU KA-FAI (in Cantonese): President, first of all, I would like to thank Secretary for the Environment Mr WONG Kam-sing regarding environmental issues. While the sky above Hong Kong was often overcast with dark clouds and the air was murky a few years ago, we can often see an azure sky with white clouds in recent years. I believe that this is the result of the various tasks undertaken by the Environment Bureau, including communication with the Mainland. I believe many Hong Kong people are well aware of the Bureau's work, for which I express my gratitude to them. Based on my observation as a new Member, whenever the Government introduces a policy pertaining to my industry, there are strong repercussions within the trade. Surprisingly, when the Environment Bureau has recently implemented the recovery of waste electrical equipment, many members of the

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trade have relayed to me that the Bureau has generally accepted the views expressed by them during the discussions in previous years. In my view, the Bureau should continue with this practice by maintaining communication with various stakeholders, rather than hastily introducing policies without consulting stakeholders beforehand, thereby deepening social conflicts. I am not sure whether Director of Electrical and Mechanical Services Mr Frank CHAN is working under the Environment Bureau. Mr CHAN is one of the good officials who are rarely seen. At district levels and on various occasions, he has been strongly supported by the trade. I believe that good communication facilitates the implementation of policies. Almost 2 000 people from the beauty industry took part in a protest rally this month. What did this imply? With regard to this issue, I will have a detailed discussion with Secretary for Food and Health Dr KO Wing-man later. I also hope to discuss transportation matters with Secretary for Transport and Housing Prof Anthony CHEUNG. Hong Kong's overall transportation networks, including MTR and trains, are operating on a mass transportation model. I express my support for this. The Government has recently introduced a concessionary fare of $2 per trip for the elderly. I believe that the Bureau must have provided rigorous support to make this finally happen. This can be regarded as a benevolent policy. Regarding bus services, Taiwan introduced a new measure a few years ago to provide local people with real-time information on the arrival time of buses on various routes. I consider it necessary for the Secretary to expeditiously provide the public with clear information about the waiting time needed so that they can decide whether to wait or not. I hope that the Bureau will implement this specific measure for the benefit of the public. Regarding the "co-location of boundary control" arrangement, as I mentioned yesterday, this task is by no means easy. However, Secretary Prof Anthony CHEUNG must persevere and never let China leave Hong Kong out. If we cannot play a part in the Guangzhou-Shenzhen-Hong Kong Express Rail Link, there will be dire consequences. Hence, I hope that Secretary Prof Anthony CHEUNG will persevere. With regard to the Development Bureau, I have to relay to Secretary Eric MA my views on many issues. As we all know, housing is the biggest issue currently confronting Hong Kong. In this connection, the speech delivered by

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Mr Jeffrey LAM just now is quite appropriate. He and I share similar views. In the past, we only talked about the problem with the "flour"―a metaphor for land. The current problem, however, concerns both the "flour" and the "baker". The Policy Address suggests a bold and decisive approach to reclamation. I express my support as long as reclamation is to be carried out in remote areas but not the Victoria Harbour. Swimmers who are concerned about the habitat of dolphins and seahorses will certainly voice their opposition by then. I hope that residents of "caged homes" will come forward as well to make their voices heard, telling others how much they have to pay for rent each month and the plight of living in "caged homes". I also support using some lands of country parks where few people visit for housing construction. We may never visit these areas in our lifetime, nor know where they are located. Why don't we develop them to help those in need? I also support using brownfield sites for housing construction, although it is necessary to consider how to resettle the stakeholders, such as members of the logistics and car industries. If agricultural lands are involved, farmers who used to farm there must also be properly resettled. More than 300 000 people are waiting for allocation of public rental housing in Hong Kong. Some of them are even living in "caged homes". Secretary Eric MA shoulders heavy responsibilities and his work will never be easy. We only hope that he can persevere. Other than the problem with "flour", we seldom talked about the "bakers" in the past. However, we must also face up to the labour shortage problem of the construction industry. As we all know, Hong Kong has almost achieved full employment in recent years. While workers can easily find a job, it is difficult for many companies to recruit staff. This applies to every sector, including retail, wholesale, catering and transport. As mentioned by Mr Frankie YICK, many minibus drivers are over 70 years old. Three drivers are aged over 210 years old all told. The manpower problem has yet to be resolved. If we compare Hong Kong with other relatively developed cities, we will note that Singapore has imported 1.4 million workers, accounting for 38% of its workforce; Macao has also imported 30% of its workers; Hong Kong, meanwhile, has only a few percent of workers imported. While some worker representatives have been working very hard for the interests of local workers, I have to point out the fact that Hong Kong has been importing workers. Just think clearly. There are in fact 300 000 Filipino and Indonesian foreign domestic helpers in Hong

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Kong. We know full well whether they are imported workers. If we expel all of the 300 000 foreign domestic helpers, all working women have to return home to take care of their family. The few elite women sitting in the front rows in this Chamber will also have no choice but to return home to take care of their children. Employing low-skilled workers from overseas can help unleash the potential of local labour force, enabling some people to go out to work, and in turn make money to pay for foreign domestic helpers. Similarly, other industries are all facing the same problems. Construction workers for erecting formwork and bar benders can make as much as $2,000 to $3,000 a day. I am definitely not jealous of them, and I even hope they can earn more. However, their wages are part of the construction costs. In the past, the average construction cost was $2,000 per square foot; a friend of mine told me that it has risen to $5,000 now. By simple calculation, based on the cost of $5,000 per square foot, the construction cost of a 600-square-feet flat is $3 million already. The land premium, commonly known as the "flour price", has not even been included. How is it possible for property prices to go down? The problems will not be resolved no matter how much land is reclaimed. The importation of workers falls within the remit of Secretary for Labour and Welfare. As a responsible Policy Bureau, it should bring the labour shortage problem to the attention of the Government. There are views that importing a large number of workers will definitely lower the wages. However, Hong Kong people should think it over. As I said just now, an ordinary worker earns about $10,000-odd to $20,000. While their wages may be relatively high, given the high property prices, workers in fact have to face inflation as well and thus cannot benefit from the relatively high wage level. Second, there will also be a change in Hong Kong's demographic structure. After a decade or so, just like the President, I will be in my sixties, falling into the age group of one third of Hong Kong's population. By then, every two young people will have to financially support one elderly people. As the elderly people have no working ability, should we simply turn all of the 300 000-odd foreign domestic helpers into permanent Hong Kong residents? I guess Hong Kong people will not give their consent. We should really take labour importation into serious consideration. If imported workers were to become Hong Kong residents, it is logical for us to get worried. However, this is actually not the case. If they intend to work in Hong Kong this year, they have to get a visa. If

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Hong Kong's economy worsens next year and local people cannot find a job, these foreign workers will not have their visas renewed and they will be required to leave immediately. In this way, job opportunities will be reserved for Hong Kong people. On population control, we can absolutely adjust the number of imported workers. Unlike the Mainland friends who come to settle in Hong Kong on one-way permit under the quota of 150 people per day, imported workers will never become Hong Kong residents after coming to Hong Kong. They can only work in Hong Kong during the validity period of the visa granted. Overstaying is an offence which renders them liable to arrest. It is as simple as that. Hence, the number of imported workers can be adjusted. Given the current shortage of manpower, I hope that the Bureau and the Government will seriously consider the importation of workers. I will discuss other issues in the next debate session. Thank you, President.

MR MARTIN LIAO (in Cantonese): President, in view of the time constraint, I would like to focus my speech on energy policy in this session. This year's Policy Address does not say much about this issue. The main reference to this issue is found in the section "Climate Change and Energy", where it is mentioned that the Government will gradually replace most of the electricity generated from coal-fired plants with cleaner energy by 2030, negotiate the new Scheme of Control Agreements ("SCAs") with the power companies to promote renewable energy ("RE") power generation, and take forward a number of large-scale RE projects. The 10-year SCAs with the two power companies will expire next year. Given that electricity generation accounts for 70% of the carbon emissions in Hong Kong, the new SCAs will have a bearing on whether Hong Kong can honour its undertaking to combat climate change in collaboration with the international community, and reduce our carbon intensity by 65%-70% by 2030 compared with the 2005 level. The perspective of environmental protection is a natural focus of attention, but we should also bear in mind that electricity is an important strategic material in society, as well as an indispensable element and cost in people's daily lives and industrial and commercial activities. Electricity charges place a considerable burden on grass-roots families and those small and medium enterprises with high electricity consumption. The social responsibility of the power companies,

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which control the supply of electricity and monopolize the market, is higher than that of ordinary companies, and the Government must properly regulate the supply of electricity and the market from the perspective of protecting the public interest. So, energy policy is an important livelihood and economic issue. We must deal with this issue from multiple perspectives in a holistic manner. In his briefing on the Policy Address initiatives, Secretary K S WONG disclosed certain terms of the new SCAs under negotiation. Members of the community are eagerly looking forward to the coming into effect of several of these terms, the objectives of which include reducing the permitted rate of return of the power companies, improving the fuel costs charging arrangement, introducing mechanisms to promote the development of RE by the private sector, and requiring the power companies to pave the way for introducing potential new suppliers in future. However, as the specific contents of the new SCAs are still unavailable, members of the community can only wait and see whether the new SCAs will live up to public expectations in the end. President, while it is generally believed that the demand for cleaner energy will naturally lead to upward pressure on electricity tariffs, electricity tariffs are actually affected by many other factors, including the tariff setting mechanism which has long been criticized for being unfair to consumers. Early this year, the two power companies announced tariff reductions, but these reductions are actually increases in disguise, with the basic tariffs of the two power companies going up by 3.7% and 3.2% respectively. It is only because of the need to return a total of $7 billion by which consumers have been overcharged for fuel costs, as well as the availability of special rebates arising from a government refund of overpaid rent and rates, that the two power companies' net tariffs (i.e. electricity charges to be actually received) can be reduced by 2% and 17.2% respectively. President, there have long been calls from the community for reforming the local electricity market. For instance, judging by the low-risk natural monopoly in the power sector and the low interest rate environment that has persisted for years, is the permitted rate of return of 9.99% under the existing SCAs too high? The Government once commissioned an independent consultant to review the risk free rate, the cost of equity and the cost of borrowing in the electricity market, and after the review, the consultant suggested that the permitted rate of return could be reduced to the range of 6% to 8%. Under the new SCAs, how much room is there for lowering this rate of return? Moreover, the power companies' current approach of directly charging consumers for fuel costs is tantamount to

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transferring all the risk of fluctuations in international fuel prices to the public. This being the case, what incentives are there for the power companies to look for cheaper fuel? Members of the public hope that the Government can take the opportunity of negotiating the new SCAs to iron out such matters, so as to ensure reasonable tariffs, create flexibility in responding to calls for carbon reduction, and promote the development of RE power generation with a new mindset. Actually, in the long run, RE power generation may even help stabilize tariffs. For example, according to a study conducted under the auspices of the Central Policy Unit a few years ago, Hong Kong has great potential for solar power generation, and the electricity generated from rooftop photovoltaic ("PV") panels may amount to 10% of our total power generation output for one year. It is expected that with the continuous reduction in installation costs and the offer of government subsidies, solar power generation will be able to compete on price with traditional coal-fired power generation ultimately, even without subsidies. Regrettably, in terms of development on this front, Hong Kong has been lagging behind its overseas counterparts which have long adopted novel business models for developing solar power. For instance, in Seoul, in recent years, apart from asking energy companies to commit at least almost HK$5 billion to solar projects, the local government has also leased out public facilities at concessionary rates to encourage private solar projects, and the public can invest in these projects by subscribing to specific funds. In Singapore, under the SolarNova programme launched three years ago, buildings with smaller solar PV potentials are grouped together so that private solar companies can bid to operate solar PV systems on these buildings; building owners can also raise funds through a crowdfunding platform which allows investors to be rewarded with regular payouts. In the light of the above, I believe members of the public do hope that the authorities will, in addition to earmarking $200 million for the provision of RE installations in public buildings and community facilities as stated in this year's Policy Address, adopt a new mindset for formulating a comprehensive blueprint to support the development of RE and help promote a green economy. President, I so submit.

MR CHAN HAN-PAN (in Cantonese): President, today we discuss the motion of thanks on the Chief Executive's Policy Address. It was rather difficult for the motion of thanks to get passed in the past few years and I hope the motion of

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thanks on this Policy Address, which I consider pragmatic and constructive, will be passed. However, there are definitely quite a lot of issues that we can discuss. I think this Policy Address contains pretty good initiatives such as the Government's plans for future housing supply, the proposal to set up a conservation fund, as well as the promotion of re-industrialization. The first thing Donald TRUMP did after assuming office is re-industrialization because a lot of employment opportunities can thus be created and the entire economic spectrum widened. Last month, I moved a motion on the Hong Kong Planning Standards and Guidelines ("HKPSG") for discussion in the Legislative Council. Today, I will mainly focus my discussion on housing and transport issues. In respect of housing construction, the Government often faces strong objections at the consultation stage, mostly because of transport issues. For this reason, transport and housing come under the jurisdiction of the same Policy Bureau. However, as we have seen, the Government has not performed well in coordinating these two areas in the past. That is why I have to highlight these problems today. If Members have been to Yuen Long, they will know that Yuen Long had a small population in the past and the living environment was very comfortable. But nowadays, if the Secretary has a chance to go to Yuen Long on Saturdays, I am afraid that his quick step will kick the heel of the person walking in front of him. If the Secretary drives, he may get lost because the traffic is obstructed. Why is this so? It is because there is a lack of ancillary facilities to cope with the increasing population in Yuen Long, consequently affecting people's quality of life. In my opinion, before increasing the population of a certain area, transport facilities and adequate ancillary facilities should be provided. The Government provides good transport facilities in East Kowloon. As mentioned in the Policy Address, the construction of the East Kowloon Line will be implemented in advance in a gradual manner. The East Kowloon Line links up the Kwun Tong Line in the north of Kwun Tong, connecting the Diamond Hill Station of the Shatin to Central Link and Po Lam Station of the Tseung Kwan O Line. Basically, this Line is parallel to the Kwun Tong Line and serves as an alternative route between Tseung Kwan O and Kowloon. A number of large-scale development projects will be connected by this Line, such as the development of

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Anderson Road and Jordan Valley. It is estimated that there will be about 73 000 residents in the area and better planning may already be implemented when they move in by phrases. However, I also hope that the Government will be more aggressive in developing this Line by considering a further extension from the Po Lam Station to Clear Water Bay, connecting The Hong Kong University of Science and Technology ("HKUST") and the Sai Kung area. On weekends, the traffic in Sai Kung is very congested as there is only one road for public transport in the area. In case of a traffic jam, the traffic in the whole area will be paralysed. Moreover, the frequent movement of students in and out of the area will increase the traffic flow. Basically, almost all universities in Hong Kong are served by railways, with the exception of HKUST. If the Line can be extended by 1 km from the Po Lam Station, railway services will be provided to HKUST, making it the transportation hub in the whole area and the traffic conditions will be greatly improved.

(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

Over the years, I have pointed out time and again that the incessant increase in population of New Territories West has not been complemented by corresponding railway growth. As stated in the Policy Address, the Hung Shui Kiu project will provide 61 000 flats; the Yuen Long South project 27 700 flats and the Kwu Tung North project 60 000 flats, making up a total of 148 700 flats. If we also include the property projects of MTR stations along the West Rail Line, such as Kam Tin South private development project, some 200 000 flats will be provided, that is, the population will increase by 600 000 to 700 000 people. If the seven-car trains serving the West Rail Line are replaced by eight-car trains, the carrying capacity will be increased by 14%; if the signal system is improved and the West Rail Line is connected to the future Shatin to Central Link, the carrying capacity will be increased by about 37%. The present population of New Territories West, Yuen Long, Tuen Mun and Tin Shui Wai is about 1.3 million. About 410 000 people, that is, about 30% of the population, travel on the West Rail every day. If the population of New Territories West increases by 600 000 to 700 000 in the future, an additional 200 000 people will travel on the West Rail. In other words, 50% of the population will travel on the West Rail in the future, excluding the population along Tuen Mun South. Why do I cite these figures? I would like to tell the Government that the West Rail Line cannot handle the future population growth in New Territories West,

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including Yuen Long South, Kam Tin South and Kwu Tung North. While the Government allows many people to move into those areas, it fails to provide adequate ancillary transport facilities. I think this is not comprehensive planning, and more seriously, it can be said that this is irresponsible planning. The Tuen Mun and Tsuen Wan District Councils had proposed 10 years ago that the Government should consider constructing the Tuen Mun to Tsuen Wan Link ("TM-TWL"). Why is TM-TWL so important? If you have travelled on the West Rail, you will know that most passengers get off in Tsuen Wan. TM-TWL will be built along the coast in Tuen Mun, passing through So Kwun Wat where a large amount of land can be released for housing construction by the Government, and reaching Tsuen Wan along Castle Peak Road. TM-TWL can be connected to the West Rail and Tsuen Wan Line, and then to Kwai Chung and Sha Tin. The East Rail, West Rail and Tsuen Wan Line will be connected by TM-TWL. Should there be problem with any railway line, passengers may transfer to another line via TM-TWL. The New Territories as a whole will have more comprehensive transport connection arrangements and its resistance against adversity will be consolidated. However, in the past, the Government considered that TM-TWL incurred very high construction cost and there was not enough population to support this rail. In fact, the construction cost was high because the Government planned to build a coastal railway which might involve a lot of reclamation works, thus pushing up the cost. There are actually inexpensive ways to build TM-TWL. The population served by TM-TWL is more than that served by the South Island Line. How come the South Island Line can be built but not TM-TWL? The Government simply cannot give us a reason. In the long run, the Government will build a cross-harbour railway extending from Tuen Mun to Lantau Island and then connecting it to the East Lantau Metropolis and then to Kennedy Town. As we know, constructing a cross-harbour railway may not be completed even after 30 years as the progress of the East Lantau Metropolis project is not yet known and we do not know whether the project can kick off. On the other hand, the residents of New Territories West are increasing and they cannot possibly wait for a cross-harbour railway. We should consider other alternatives. The Government proposes in the Policy Address that it will consider the construction of Route 11 but it cannot underestimate the difficulty of the proposal because the authorities must consult residents of the housing estates along the

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way. In the past, when the authorities consulted residents on Route 10, they had strong objections. While we welcome restarting the construction of Route 11, we cannot ignore the difficulty. In the case of TM-TWL, the two District Councils basically support the project, and I believe the Sha Tin District Council will not have any objection if it is consulted. Therefore, even though the Government rejected the development of TM-TWL and the Tsuen Wan to Sha Tin Link in the Railway Development Strategy 2014, we hope it will reconsider the construction of TM-TWL. As the Government has arranged so many people to settle in Yuen Long and Tuen Mun, it should do something for the residents of these districts. Another issue that affects the quality of life of residents is parking. We have discussed the traffic congestion problem in Hong Kong many times. I mentioned last month when I discussed HKPSG that the number of registered vehicles had increased from 690 000 to 810 000, an increase of 18% in five years. The construction of roads had increased by 0.8% from 2003 to 2013. By 2020, the progress of road works will begin to slow down and the increase in the total length of road will drop to 0.4%. As reflected by the figures, the increase in the total length of roads is lagging far behind the growth rate of vehicles, traffic congestion is thus inevitable. In connection with the demand for parking spaces, the Government completed the Report on Parking Demand in 1995 and subsequently the second study was conducted in 2002. Fifteen years have passed and the Government has not come up with new measures. Instead, it wishfully thinks that by suppressing the growth in parking space, the growth in vehicles will slow down. However, the Government has taken 15 years to confirm that the policy of controlling vehicle growth by suppressing parking space growth is a total failure. If the policy is successful, how come the number of cars has increased so rapidly in the past 15 years? Why does the Government still continue to suppress parking space growth? Unless the Government is trusting to luck, I think it cannot solve this problem at all. I have recently studied the supply of parking spaces in relation to public housing planning. There are 14 000 households in Kwai Luen Estate but there are no parking spaces. There will be an increase of 600-odd households in Lower Kwai Chung Estate in the future. Can Members imagine how many parking spaces the Government will provide in this estate? The Government will only provide 16 parking spaces. It will only provide 16 parking spaces for

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600 units, and some of the residents may be driving commercial vehicles or chauffeur-driven cars; if the Government does not provide parking spaces, where are they going to park the car? They can only park in the waste land nearby but those sites may be resumed for housing construction. Moreover, the car parks in the vicinity are already full and the rents have increased from $2,000 to more than $4,000. As regards newly constructed properties, the Government has specified in the new HKPSG that parking spaces will be significantly reduced if the small units are within 500 m of railway stations. I wonder where vehicles should be parked in the future. Recently, a government officer who was once responsible for planning work told me that in the course of Tsim Sha Tsui planning, officials spent two years considering how they could discourage people from driving to Tsim Sha Tsui. If no parking spaces were provided in Tsim Sha Tsui, people would not go there by car. But the traffic in Tsim Sha Tsui would be seriously congested after the intake of buildings; he finally concluded that parking spaces should be provided in the area. At present, the fact that some buildings in Tsim Sha Tsui have no parking spaces is attributed to the planning blunder at that time. If planning is not improved today, the problem of traffic congestion will be very serious in the future. If Members have the opportunity to visit places like Tai Po, Tsuen Wan and Yuen Long during holidays, they may wonder why the traffic of these places, which are quite far away from the urban areas, are so congested. The reason is that there are no additional parking spaces in these areas while the Government has repeatedly increased the population of the areas. If the Government wants to encourage the public not to drive to the urban areas, it should implement a Park and Ride Scheme. All the Government's Park and Ride car parks are fully occupied. The Government hopes that the public will park their cars at the Kam Tin West Rail Station under the Park and Ride Scheme, and then use the mass transit system; yet, all the car parks are fully occupied. Over the years, the Democratic Alliance for the Betterment and Progress of Hong Kong has made 10 requests concerning the parking policy but the Government has not responded to any one of them, and no policy has been formulated to address the issue. The Government has slightly changed in recent years and said that it would examine the supply of parking spaces for commercial vehicles. Why does the Government not examine the supply of parking spaces for all vehicles? If the Government only

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solves the problem of parking spaces for commercial vehicles, the streets will still be heavily parked with private cars, which is no different from streets being heavily parked with goods vehicles. Therefore, I hope the Government will no longer adopt an "ostrich policy"; though the problem has not yet emerged, it still exists. The Government has also indicated that it may introduce a number of other policies to reduce people's incentive to buy cars in accordance with the advice of the Transport Advisory Committee. We agree that it is appropriate to reduce vehicle growth, but should this be done by merely raising fines for illegal parking? The Government should also consider if the public are convinced. While the Government has not provided parking spaces, the public have paid taxes for their car as required by law; hence, unless the public are discouraged from buying cars or cannot afford to buy cars, they will still buy cars. Parking spaces were available at the time of car purchase, but now no parking spaces are available as the sites have been used for housing construction. The Government built houses but did not provide parking spaces. In some areas, the number of parking spaces has even dropped by 3 000, how can the car parking demand of the public be met? For this reason, the imbalance of planning and housing construction will continue to emerge in the future. If the Government does not take this opportunity to improve the planning policy, I believe the problem will continue to arise. I also note that the Government has mentioned the "pedestrian-friendly" policy in the Policy Address. The "pedestrian-friendly" has four themes: "Make it smart"; "Make it connected"; "Make it enjoyable" and "Make it safe". We have repeatedly reflected this direction to the Chief Executive and we also endorse the Universal Accessibility Programme launched by the Government. The Government has proposed building hillside elevators since 2009 so that residents living on mountainside can use elevators for direct access to MTR stations or urban areas. However, 10 years have passed but the Government has been very slow in implementing hillside elevator works. A number of elevator works have been completed but the projects were carried out by other engineering companies but not the Government. How come other engineering companies can complete the works expeditiously while the Government is progressing so slowly? A large number of hillside elevator projects are still in the queue. The residents hope that elevators can be built so that they need not get up early to wait for minibuses or walk downhill; their legs have gradually become weak.

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An old lady told me that when she moved to the hillside housing estate, she could walk up and down the stairs carrying two bags of food on both hands and her son on her back. She was only 40 years old then but she is now 60 years old; she has waited for 20 years. Now, she can only carry certain things but cannot carry anything on her back when she walks up and down the stairs. When we told her that the Government would build an elevator there, she said that the Government had already said so for 10 years but the proposal has yet to be implemented. The public have really waited long enough. We hope the Government can adopt a compromise approach and set up a standing fund for hillside escalators and elevators to cope with the relevant expenses and speed up the overall planning, design and construction of the projects. If a special fund is set up for the project, I believe funding will be available much faster than provisions under the Public Works Programme. This year, there are more than 9 000 public works projects under different Heads of Expenditure of the Capital Works Reserve Fund but funding has yet to be approved despite hours of meetings held. Can Members guess how long a small slope elevator project in a certain area has to wait? This kind of small public works projects, such as the Wo Tong Tsui Street elevator project, can only be submitted to the Finance Committee after it has been mentioned in the Policy Address. Hence, we consider that it is very important to set up the hillside fund and we also hope that the Government can make some efforts, allocating $5 billion for the construction of a number of elevators, so Government's "pedestrian friendly" policy can really be implemented public will not have to wait endlessly. I will speak again in other sessions on other issues. President.

elevator such as that the and the

Thank you, Deputy

MR WONG KWOK-KIN (in Cantonese): Deputy President, this is the Chief Executive's last Policy Address in his tenure and also his swansong Policy Address. In fact, since he was elected the Chief Executive in 2012, the criticisms, attacks and invectives against him and his governance have never stopped. Even today, when we debate the motion of thanks in this Chamber, the situation remains the same.

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Deputy President, some of those criticisms and attacks may be related to facts, but more are personal attacks, with an aim to murder the integrity of the Chief Executive, or even to demonize the office of the Chief Executive. Consequently, there are great difficulties in implementing policies in Hong Kong over the past five years and society has been torn apart. Many major projects and policies proposed in the Chief Executive's manifesto to be implemented or overhauled have been delayed or even defeated. A typical case in point is of course the veto of the proposed restructuring of the government framework (that is five secretaries of departments and 14 directors of bureaux) by the opposition camp even before Chief Executive LEUNG Chun-ying assumed office. As regards the Innovation and Technology Bureau which was approved by many people, it was only formally established in the fourth year of his tenure, leaving him little time to carry out the relevant work. Some attribute the predicament and conflicts faced by Hong Kong in the past five years to CY's lust for wrangling. But as the saying goes, "It takes two to tango", there is some kind of sense in it. Should we put all the blame on one person alone? Or are there other complicated political factors? Have the pan-democrats no responsibility whatsoever? I believe people of Hong Kong who can think rationally should have an idea. Deputy President, after Chief Executive LEUNG Chun-ying announced that he would not seek re-election, in order to continue with the attacks and criticisms against the Government and his successor, the opposition camp created the false proposition of "LEUNG Chun-ying 2.0" to attack certain candidate. It seems that whatever policies LEUNG Chun-ying has implemented in Hong Kong are all wrong, and any association with LEUNG must be severed. However, as I just said, the Chief Executive has encountered great difficulties in governance over the past five years and policy implementation has constantly been impeded. Many policies only managed to make half a step forward at a very late stage of his tenure. If the next Government does not follow up but discontinue with these policies, does it mean that all efforts made in the past five years will be wasted and every policy has to start from scratch? As today's society attaches great importance to sustainability, can a constant change in policy meet people's expectations? This question must be considered by the future Chief Executive.

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As a matter of fact, if measures are discontinued to avoid being "LEUNG Chin-ying 2.0", does that mean the Old Age Living Allowance introduced by LEUNG Chun-ying will be scrapped on 1 July this year? Will the construction of flats offered under the Green Form Subsidised Home Ownership Pilot Scheme ("GFHOPS") be stopped? Will the development of new land be stopped? Will there be no more investment in innovative technology? It is very normal for the new-term Chief Executive to continue implementing the livelihood measures introduced by the incumbent Government, as well as to improve and enhance them. In particular, some commendable measures, such as the policies on poverty alleviation, care for the elderly and housing, as well as proposals concerning labour interests such as abolishing the offsetting mechanism of the Mandatory Provident Fund Scheme, should continue and be enhanced. To smear the continuation of such policies as "LEUNG Chun-ying 2.0 version" is not only unfair to the incumbent Government but also the next Chief Executive. Deputy President, housing is the greatest concern of the incumbent Government and the Chief Executive. In fact, the objective factors leading to the surge of property prices in the current Government include the proliferation of external capitals and the persistently low interest rate in the past few years, as well as the former Donald TSANG Government's failure to timely adjust the land and housing policies. Like Hong Kong, in many places in the world, including the Mainland, Europe, North America and Australia, property prices also keep rising. This is a significant consequence attributed to the quantitative easing policy adopted in the United States and some European countries. Comparatively speaking, the incumbent Government has worked very hard to address this problem. For example, soon after the assumption of office, it speedily resumed the construction of Home Ownership Scheme ("HOS") flats, and then introduced subsidized housing schemes such as GFHOPS and the Interim Scheme to Extend the HOS Secondary Market to White Form Buyers, with a view to re-establishing the home acquisition ladder of public rental housing, subsidized housing and private housing. Its efforts should be acknowledged. When it comes to regulation of property prices, the incumbent Government has acted swiftly but not sloppily. For instance, it has replaced land auction with land tender and introduced various "curb" measures to suppress speculation

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instantly. The previous Government did not implement any such policies. The incumbent Government has also re-introduced the Long Term Housing Strategy and set a new 10-year housing production target. All these are more proactive measures which should be carried out by the next Government and the new Chief Executive; enhancement and development are also needed to bring about a more diversified and better housing development. Deputy President, some may argue that all such measures in respect of housing are useless as property prices continue to rise and the waiting time for allocation of public rental housing has increased from three years to 4.7 years. However, may I ask, if such measures were not implemented, could you imagine what the housing situation in Hong Kong would have become? Over the past few years, the Government's efforts to increase housing supply have been repeatedly impeded. Infill developments have been opposed by the local community, and the strongest criticism against the Government is using lands in country parks for housing construction instead of developing brownfield sites. Deputy President, it is a fact that the Government lacks land for housing production; it is also a fact that there is a need to develop land. As the previous Government did not have land reserves, the task to develop land lies with the incumbent Government. As a matter of fact, the incumbent Government was under unfair criticisms before assumption of office, so much as that it lacks sufficient empowerment. Land development is extremely difficult as the interests of different people and stakeholders are involved. For example, the development of North East New Territories was met with obstacles as soon as the Chief Executive assumed office; the development of Lantau Island was also thwarted; the development of artificial islands in the Central Waters, reclamation and development of rural areas with low ecological value are all opposed. If all the lands in country parks cannot be used, how can we develop more land? I believe people who ask the Government to develop brownfield sites and deal with the problems involving rural areas may also be aware that these lands involve very complicated private property rights and it will take a long time to resolve these issues. Will the housing problems be resolved just by developing brownfield sites? Besides, many important economic operations are taking place on these sites, involving such industries as logistic, transportation and recycling. To develop the brownfield sites, it is necessary for the Government to find land to meet the needs of these industries.

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In fact, housing development does not merely involve building flats, development of community facilities are also needed. Owing to the interlocking effect, things can only be done with long-term planning and determination. Despite the fact that the incumbent Government faces difficulties in all aspects, the Chief Executive has great determination in resolving the housing problem. At least he is willing to tackle the tasks of land and housing development through short-, medium- to long-term strategies. His efforts should be acknowledged. The next Chief Executive should continue to make a greater effort in developing land. He/she should not stop or even back down when faced with obstacles and return to the old path of real estate hegemony. Deputy President, one of the special phenomena in Hong Kong in recent years is that more and more people are very prone to criticize. The more vicious and severe their criticisms, the more attention and support they will get. As a result, more and more people tend to criticize, so much so that the Government dares not take any action. Fettered by criticisms, the incumbent Government's hands are often tied as it gets the blame for whatever it does. However, can a city be developed and can social harmony be fostered through criticism? Or is concerted effort needed to achieve development? Or should certain people stretch out their hands to take the olive branch offered by others in order to achieve social harmony? Therefore, I hope that when colleagues evaluate this Policy Address, Chief Executive LEUNG Chun-ying, or even the future Chief Executive, they should not merely criticize but should lend a helping hand and work together to resolve Hong Kong's problems; otherwise, our deep-rooted problems will never be resolved no matter how the Government is changed and who will become the next Chief Executive. Deputy President, I will stop for now.

MR HUI CHI-FUNG (in Cantonese): With regard to environmental issues, I would like to focus my discussion on the subject concerning the development of country part as stated in the Policy Address. This is precisely the issue raised by Mr WONG Kwok-kin earlier on. Let us first look at a counter-argument. If members of the public only read paragraphs 113 to 116 of the Policy Address, they may think that LEUNG Chun-ying has changed his ingrained nature and finally stopped pursuing the

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development of country parks. But is this the case? For example, paragraph 113 states that the Government has incorporated Tai Long Sai Wan into country parks in 2013, whereas paragraph 115 mentions that the Government will establish a preparatory committee for the setting up of a conservation fund, and will "seek to conserve and revitalize the ecology and culture of rural areas based on the sustainability principle, and respond to the aspirations of urban dwellers for urban-rural symbiosis." All these sound very attractive indeed, but the devil is in the next paragraph. In paragraph 117, LEUNG Chun-ying indicates that we should "consider allocating a small proportion of land on the periphery of country parks with relatively low ecological and public enjoyment value for purposes other than real estate development, such as public housing and non-profit-making elderly homes", and "[t]his issue matters to the well-being of our next generation and warrants serious deliberation of its pros and cons by the society." First of all, I must reiterate the Democratic Party's stance that there is no need for Hong Kong to develop country parks. As a matter of fact, there is a lot of abandoned agricultural land in the New Territories which can be resumed if the Government offers compensation in accordance with the law. What is more, a large number of sites are currently granted under private recreational leases. Hence, if the Government reviews the relevant leases and resumes some of the sites in a reasonable manner, considerable land can be made available immediately for public housing development.

(THE PRESIDENT resumed the Chair)

Let me return to LEUNG Chun-ying's proposal to build houses on land in country parks. On the day he appeared on a television programme after the delivery of the Policy Address, he mentioned that land on the periphery of country parks did not require any subsidy from taxpayers, and flats built on such sites could be sold at cost by only recovering the costs of infrastructure and superstructure work. As a result, the selling prices of such flats would be lower than those of the Home Ownership Scheme flats. He thus hoped that the proposal would be examined by the community so that the housing problem could be expeditiously resolved. His remark sounded very attractive. But when the programme host asked why he decided to develop country parks, a proposal met with greater opposition, but not brownfield sites, he replied that the Government

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was not reluctant to develop brownfield sites, but as such sites had certain uses, such as the socio-economic roles played by the manufacturing industry, they could not be released easily. The programme host then followed up and asked why the site of the Fanling Golf Course was not used for housing development, LEUNG Chun-ying said that the Government had pledged to protect trees, therefore in places where trees were densely grown, massive falling of trees would be required. I am never aware that LEUNG Chun-ying has so much affection for trees. So, where on earth is the tree legislation that we have discussed for years? Another example is the Cadogan Street Temporary Garden in the Western District, where hundreds of trees were felled by the Government in one-go for no reason. I do wonder if LEUNG Chun-ying has schizophrenia. I will further discuss the tree issue later on. After listening to his reply, members of the public may immediately come to realize that the Government does not develop brownfield sites in Wang Chau not because the sites have certain uses, but because of the rural leaders and local tyrants behind the scene. The tree factor is not crucial in the case of the Fanling Golf Course, the crucial factor is the members of the Golf Course, who are high-ranking officials and bigwigs. It is not difficult for the public to understand that this is nothing but LEUNG Chun-ying's practice of bullying the weak and fearing the strong. It is as simple as this. As to whether this is a case of "government-business-rural-triad", I believe society will make a fair judgment. After all, it is hard to change people's impression of him. At present, while 930 hectares of land have been earmarked by the Government for Village Type Development, major private developers also hold about 1 000 hectares of agricultural land, and there are also brownfield sites in the New Territories. The Democratic Party opines that the Government should give priority to develop these sites, for example, resume the idle agricultural land in accordance with the Lands Resumption Ordinance for public housing construction. The public generally considers that the development of country parks should be the last resort when no other options are available. Furthermore, country parks are not just stretches of grassland as some people have claimed, stringent planning procedures have been involved and therefore changes should not be made arbitrarily. If country parks with low ecological or public enjoyment value can be destroyed, will this encourage members of the public to disrupt their ecological value and seal them off from public enjoyment? As a result, incidents of arson at Nam San Wai and soil fills in Tuen Mun and Yuen Long have occurred. Has the Government taken enforcement action

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against disruption of the ecological value of country parks? Has the Government instituted prosecution against public enjoyment of country parks being disrupted? How many prosecutions have been instituted? Now the Government is telling us, since the country parks have been disturbed and have low ecological value, they should be used to build houses. This is nonetheless putting the cart before the horse. I must stress that the identification of land requires a consensus between the Government and people from all walks of life, and such consensus must be reached through formal consultation, but not "soft-lobbying" with a handful of high-ranking officials and bigwigs, as well as rural and triad members. However, with no mandate from the people, it is impossible for the LEUNG Chun-ying Administration to solicit public support and provide relief at difficult times. The future SAR Government should learn a lesson from LEUNG Chun-ying, and look for options other than the development of country parks to address the land problem in Hong Kong. Back to trees, the problem relating to incense trees mentioned by LEUNG Chun-ying in the Policy Address is a cause for concern and he has highlighted the main points. As we can see, endangered species including trees have been massively stolen. And yet, even if a person is caught red-handed, police officers would only caution him against felling trees and arrest him for theft, without knowing that the stolen goods are incense. This shows that the existing legislation and enforcement action have failed to reflect the harm and severity of unlawful stealing of endangered species. Therefore, it is essential to conduct a thorough review in respect of the legislation, enforcement officers and enforcement policies, which is a correct move. Nonetheless, while LEUNG Chun-ying highlighted the significance of trees in the Fanling Golf Course, trees were felled time and again. Has he ever thought of the tree legislation that I have mentioned just now? In the absence of tree legislation, unlawful felling of trees will continue. This would send a message to the public that trees can be felled, and development is the absolute principle. In view of the potential hazards of trees at the moment, all trees should be felled. Do Members still remember the removal of the stone-wall trees on Bonham Road? Society has paid a high price for this. When residents of the Central and Western District saw the removal of the tree that has been standing there for decades, their hearts were torn with agonizing pain.

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Therefore, do not think that the tree legislation only protects human lives, it also offers protection to trees to enable the co-existence of man and trees. Of course, just as the Government has said time and again, it is more important to protect human lives and properties. How many more lives of pregnant women, elderly persons and children should be taken before the Government agrees to enact the tree legislation, so as to protect members of the public on the one hand and save trees from being felled on the other? This is what the Government owes us, but the Policy Address is completely silent on this. Given that LEUNG Chun-ying has expressed his grave concern about trees, he should enact the well-deserved tree legislation for Hong Kong. This year's Policy Address has also looked into the enactment of legislation to prohibit the sale of certain endangered species and to phase out the trade in ivory, which is worth encouraging. I also hope that the Environment Bureau will expeditiously embark on a public consultation on legislating to prohibit the sale of certain products of endangered shark species, so as to promote the habit of less consumption of shark fins which Hong Kong people have cultivated in recent years. Speaking of conservation, I must talk about the preservation of buildings with historic significance. At present, there are serious deficiencies in the policy on preservation of historic buildings. For buildings that have a very long history but little aesthetic appeal and are not intact, the Government considers that they have no conservation value. Cochrane Street in Central is an example. Though the oldest tenements of Hong Kong are situated at that street, the Government thinks it is nothing more than building remains given that the aesthetic value is low. It thus takes the stance that preservation is not important at all. For buildings that are highly attractive in appearance and intact but do not have a long history, the Government again does not see the need for preservation and considers that they can be demolished and rebuilt as commercial buildings. One of the examples is the General Post Office Central. In fact, the General Post Office, City Hall, Star Ferry Pier and Queen's Pier in Central were built around the same period of time. Thus, the historical ambience in the area fully reflects the architectural features of Hong Kong back then and the history that Hong Kong people consider worth preserving. Notwithstanding that, given the relatively short history of these buildings spanning only 40-odd years, they fail to escape from the fate of being torn down and cannot be conserved. For some buildings which have a long history with high aesthetic and conservation values, preservation is not possible owing to private property rights. The Ho Tung

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Gardens is an example. On the other hand, the State Theatre was only graded after repeated attempts. Furthermore, there are cases where the buildings concerned are declared monuments, but they just collapsed after being handed by the Government to certain organization for follow-up actions. One example is the Central Police Station. As we can see, the entire policy on preservation of historic building is plagued with problems. Buildings, be they accorded Grade 1 or Grade 2 status, can be torn down, examples of which include the Star Ferry Pier and the Queen's Pier. Let me wait and see how much effort the Government is going to exert to preserve the State Theatre. It is possible that owing to the pressure of re-development or private property rights, the Theatre may eventually be demolished. If a building is privately owned, we surely understand the need for development. But what about government buildings? As we may be aware, the grading of historic buildings, the composition of the Antiquities Advisory Board ("AAB") and its discussions are unprofessional. Some of its members have never studied history, archaeology or architecture. To put it frankly, all of them are "LEUNG's fans" and they will certainly toe the line of the LEUNG Chun-ying Government in respect of housing production and development. They will also measure history in terms of GDP and economic growth. In recent years, AAB has been criticized for being unprofessional and has very often, under the influence of private ownership and government intervention, conducted some unprofessional and inaccurate studies. Although many community groups have invited international conservation experts and local academics to refute the findings of such studies, the Government has never dared to engage in open discussion so that the truth can become clearer. Therefore, I think there is a pressing need to reform AAB and the grading system of Hong Kong's historic buildings. With regard to issues of other policy areas, I will speak again later on. would like to express my gratitude to Mr LEUNG.

I

MR LUK CHUNG-HUNG (in Cantonese): President, to begin with, the Secretariat has rightly assigned the themes of this session for discussion: land, housing, transportation, environment and conservation are areas which are interrelated yet sometimes in conflict.

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At present, the housing problem is the biggest conflict in Hong Kong society. While rent becomes higher and higher, flats are smaller and smaller in area. Young people are unable to get married and establish their family due to the housing problem. The community is riddled with conflicts of all kinds, giving a loose rein to the exploitation of real estate hegemony. To develop land for housing construction, it is necessary to strike a balance amongst transportation, environment and conservation issues. Regrettably, political conflicts have never ceased in the Council over the past few years. A culture has spread across the legislature. In particular, the opposition camp has developed a mentality of "ride the donkey". What does that mean? I bet you have heard about that fable. It means the Government is wrong for whatever it does. The opposition camp has set environmental and conservation against land and housing, so much as that environment and conservation are so important that housing construction definitely should not proceed before the problem of transportation is totally resolved. To resolve the housing and land problem is already beset with difficulties, and under such logic, it even becomes more difficult to make a move. This is the overall political environment. I greatly welcome the Chief Executive for not forgetting his original intent even in the last Policy Address of his tenure and put housing problem at the top agenda to respond to people's concern. I particularly endorse the current-term Government for recommencing the Long-term Housing Strategy that has been shelved for years, and laying down a 10-year housing target to quantify housing supply, so as we can see for ourselves whether the Government has met the target. In the past few years, the production volumes of public and private housing have been increasing steadily, and the number of private housing under construction rose from only 10 300 units in 2011 to over 25 000 units in 2016. In the coming three to four years, over 90 000 public and private housing units will be in supply. Regarding public rental housing ("PRH"), only 68 000-odd units were completed from 2012 to 2016, but the completion of some 94 000 units are expected between 2016 and 2020. It seems that some progress has been made, yet as I have said at the outset, owing to external factors, in particularly, the incessant launching of quantitative easing policy by the United States after the financial tsunami and the close to zero interest rate for an extended period of time, the property market can hardly cool down under such loose borrowing conditions. Though "curb" measures of Doubled Ad Valorem

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Stamp Duty, Special Stamp Duty, Buyer's Stamp Duty or Ad Valorem Stamp Duty at a flat rate of 15% have been launched, the surging property prices cannot be stopped. This is a fact. Despite an increase in PRH supply, the waiting time for allocation gets longer, and it is now 4.7 years. These are the facts we have to face. However, we cannot blame the current-term Government, especially Chief Executive LEUNG Chun-ying, for all these problems. This is absolutely unfair as far as the facts are concerned, but if individual colleagues pick on someone, then I have nothing to say. We have to seek truth from facts. The Hong Kong Federation of Trade Unions ("FTU") has been advocating "public rental housing as the mainstay and the Home Ownership Scheme flats as a secondary support, supplemented by the private market" as the guiding principle of housing policy over the years. While the production volume of PRH has increased, we hold that a higher target should be set in order to shorten the waiting time. We hope that 33 000 PRH units can be built every year. Meanwhile, we also hope that youth hostel units can be provided, so that the waiting time can be shortened for non-elderly singletons, and young people can also have a place to live while saving money for buying their own flats. Although the current-term Government has already started building youth hostels, the quantity is still very small. I hope the Government can do more in this regard. Another problem is the selling price of Home Ownership Scheme ("HOS") flats. The latest phase of HOS near Choi Hung is priced at about $7,000 per square foot, meaning that the cost of a flat of some 300 sq ft or 400 sq ft is over $3 million. I trust we will be stunned by such a price, which is beyond the affordability of the sandwich class. I have asked the Secretary many times about this matter, yet he failed to give me a direct response. What is meant by the sandwich class? We have to define it first, and it refers to the group of people whose incomes just exceed the upper limits for PRH but they cannot afford to buy HOS flats or private housing. At present, the income ceilings for PRH application are: $16,000-odd for two-person households (probably a newly-wed couple not having any children); $22,000-odd for three-person households (presumably a couple with a child). People with such incomes definitely cannot afford to buy HOS flats priced at over $3 million. Therefore, FTU proposes to launch the "Easy Home Ownership Scheme" ("EHOS") under HOS, which serves

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similar functions as the Green Form Subsidised Home Ownership Pilot Scheme which was derived from PRH scheme. In our view, on the premise of not affecting PRH supply, separate land should be identified for launching EHOS as proposed by FTU for the sandwich class. As such, the entire housing ladder can be more comprehensive, with PRH, EHOS, HOS and private housing, targeting the need of households with an income between $16,000 and $30,000. Apart from EHOS, the Government should also examine seriously the pricing of HOS flats. In the 1990s, when the property market was not overheated, the Government set the prices of HOS flats at 60% of the market rate. However, today, the Government insists on setting the prices of HOS flats at 70% of the market level for reason of meeting the affordability of applicants. Nevertheless, since the Government has lowered the threshold, the current income ceiling for applicants is about $50,000. The Government takes $50,000 as the limit in determining the affordability of applicants. While those with a monthly income of $50,000 can surely afford a flat of $3 million, what about the households with a monthly income of some $20,000? Secretary, they are not eligible to apply for PRH. We thus hold that the Government shall consider handling the problem with a multi-pronged approach. After all, there are always more solutions than problems. Besides the policies of identifying land and building new HOS flats that I mentioned just now, the authorities have to implement some short-term measures as well. As the Government has failed to honour its pledge of three-year waiting time for PRH allocation, it should undertake the responsibility. In my view, there are two measures that must be taken forward urgently and expeditiously. First, it is the rent allowance. Since the Government has made a solemn pledge of three-year waiting time for PRH allocation, but has failed to honour the pledge, it should offer rent allowance to people with financial needs, so as to relieve their rental burdens in the private property market. Second, it is the tenancy control. Tenancy control has to be reinstated on certain small residential units, particularly subdivided units. I understand that a comprehensive implementation of tenancy control may arouse great controversy in the community, yet it is indeed pressing to draw a line on the rent level of those small units charging lower rents (such as subdivided units). According to survey findings, rents for subdivided units have definitely "outperformed the market" over the past few years with a per annum increase of 14% to 15%. The grass roots are thus being cruelly oppressed. This is a problem which must be solved urgently.

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The Government has explained repeatedly that rent allowance will push up the rents of private housing, such that members of the public may have greater difficulty in renting a flat. The Secretary has given this pretext so many times that I can even recite it. However, in my view, there are always more solutions than problems. The question is how the measure can be refined to minimize the side effects, or such side effects may not rise; the Government is just over-worried. For instance, people receiving rent allowance will not tell their landlords loud and clear that they are so happy to receive rent allowance and ask the landlords for an increase in rent. This will not be the case. In fact, rents are set based on market demand and supply. If market demand and supply remain unchanged, how will the rent level be pushed up by a small amount of rent allowance? I definitely do not subscribe to this argument. The Government also said that landlords will not let out their flats after tenancy control is imposed. This runs contrary to common sense. Landlords are eager to let out their flats as soon as possible, why will they leave their flats vacant instead of letting them out? Thus, I hope the Government will have the commitment to discard such stubborn views, and take on board our specific opinions in a practical and realistic manner. Certainly, public housing construction in the district will sometimes meet with resistance, including some unreasonable obstructions. As I have said earlier, the recent PRH project in Tai Po has also been filibustered for weeks by the opposition camp. The situation is really bad. They even impede the project of PRH allocation to people in need, and justify their opposition by nitpicking. Besides, local residents also have to face some practical problems, including those related to traffic and community facilities. Some people think that PRH residents will reduce their entitlement to community facilities. I hereby strongly urge the Government to adopt an approach synergizing inter-departmental and inter-bureau efforts to consider the practice of private developers when building public housing. Private developers will surely build shopping arcades alongside with housing development. We are not encouraging the Government to build shopping arcades; but facilities required by residents, such as markets, sports centres, libraries or public clinics should be developed simultaneously with PRH projects. As such, I trust it will be much easier to rally support at the local level. Lastly, housing and land are after all political problems. If the Government can adequately resolve these problems, we believe that social grievances, conflicts and confrontations will be dispelled greatly. Thank you, President.

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MS ALICE MAK (in Cantonese): President, I welcome that the Chief Executive has reiterated and showed the Government's determination to solve the housing problem in his swansong Policy Address. The line "If I could get a mansion with a thousand, ten thousand rooms" from a poem depicts people's aspiration for housing in society. It is a basic responsibility of the Government and Members to enable people to live and work in peace and contentment. Despite the present economic downturn, the trading atmosphere in the property market is still exuberant. In the circumstances, the Government's commitment to housing supply is all the more important. The Government must bring peace and stability to people's basic livelihood. As Mr LUK Chung-hung mentioned just now, the Hong Kong Federation of Trade Unions ("FTU") has been advocating a housing development strategy based on "public rental housing ('PRH') as the mainstay and Home Ownership Scheme ('HOS') flats as secondary support, supplemented by the private market" since the early 1980s. The reason behind this strategy proposed by us is that we hope to build a sustainable, reliable and stable home acquisition ladder or housing ladder, so that people from every stratum can live in their own homes. As we have seen recently, the housing problem in Hong Kong is mostly a confidence problem. Whenever the authorities offer subsidized flats in the public housing sector under the Green Form Subsidised Home Ownership Pilot Scheme, HOS, and so on, people scramble to apply for them. Why? Because they are very worried that property prices will keep rising. To solve their home acquisition problem, they scramble to make such applications. How can this confidence problem be solved? This is my second term of office as a Legislative Council Member. As far as I can see, the Government is willing to seek land for increasing the supply of PRH or subsidized housing in many new development areas ("NDAs"), such as those in Hung Shui Kiu and Tung Chung. FTU has carried out many site visits and given many opinions to the Government. For instance, we have conducted studies and held discussions on the modes of public housing development, the number of public housing units and the impact of public housing on residents currently living in the districts concerned, and we have submitted our views to the Government. But, as we have often said, the ultimate solution to the problem is still to increase housing supply. And this problem facing the Government has to do with land.

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It seems that the Government (including the Directors of Bureaux) is not quite willing to respond to a point that I have often made recently. The point made by me is that the Hong Kong Housing Authority ("HA") should consider working with the Urban Renewal Authority ("URA"). In other words, URA should, after acquiring sites, work with HA to construct public housing in urban areas. As these sites are "spade ready", it is procedurally easier to get on with housing construction on these sites than to change the use of land in other NDAs or districts. Besides, the construction of more public housing in urban areas will allow people to live in urban areas. However, the two Directors of Bureaux have given the same reply time after time. Secretary Prof Anthony CHEUNG has replied that if we are to ask URA to build flats, we must consider its financial situation because it operates on a self-financing basis, and it is uncertain whether it has the financial capacity to undertake the work, among other things. All these are technical issues. The key question is whether we are willing to adopt this approach to expeditiously increase the supply of land, so as to facilitate the construction and development of public housing in urban areas. The Government has said time and again that URA has a resource problem to solve, but why did the Government finance the establishment of URA in the first place? Why is it necessary to have government representatives on the URA Board? Why are several Legislative Council Members sitting on the URA Board? This is because URA is not just a self-financing developer but a public body with a mission to make contributions to community renewal. URA was established with an injection of $10 billion from the Government to replace its predecessor, the Land Development Corporation ("LDC"). Back then, URA inherited 25 development projects from LDC. Most of these projects involved places with pre-existing street economic activities or bazaars in urban areas, such as Graham Street and Yue Man Square at Kwun Tong Town Centre. Because of URA's development approach, the Government has to consider how the $10 billion should be used after land acquisition. When collaborating with private developers in tendering exercises, URA can only act according to the "highest bidder wins" principle, which has led to exorbitant land prices for sites acquired by URA. In addition, developers will certainly build luxury properties or high-priced housing to make profits. In the eyes of the public, URA has driven small traders away from urban areas or old districts to make way for

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lucrative real estate projects, resulting in the disappearance of the street economy and places like "Wedding Card Street". Successful applicants for public housing can only live in remote areas. As URA will award its projects to the highest bidders in the tendering exercises after land acquisition, private developers are bound to build high-priced housing, and as a consequence, the districts concerned will be devoid of street economic activities. If URA works with HA, these problems can be solved. URA should work with HA to construct public housing and build flats affordable to the grass roots in urban areas. In fact, this is URA's mission. We must take into consideration the whole picture of urban renewal. We do not want to see high-priced housing that we do not need in old districts. In his two previous policy addresses, the Chief Executive mentioned that URA had to develop subsidized sale flats. De Novo is a halfway successful example. Since De Novo was not built as subsidized sale flats at the beginning, the prices of its units may be on the high side, but this is a good try after all. As long as the Government and URA are willing to consider constructing public housing in urban areas, all technical issues such as financial commitment and construction cost are resolvable. Some people always say that URA cannot undertake such work as it has to take into account the $10 billion. Actually, this sum of money also came from the Government's coffers. If URA works with HA to construct public housing, it can also help the Government increase the supply of PRH, unless the Government says that this cannot be done and that any land in URA's possession must be used for making money. If the Government does not intend to use land for making money, but wants to solve the housing problem for the public, then it is possible for URA and HA to work together on housing construction. URA is under the Development Bureau, while HA is under the Transport and Housing Bureau. As the Directors of the two Bureaux are here today, I hope that they can listen and respond to my views. I also hope that the persons seeking nomination for the Chief Executive election can listen to my views, and expeditiously think of ways to find "spade ready" sites in urban areas for constructing more public housing. Why do I stress the need to construct public housing in urban areas? Let us not forget that when carrying out its urban renewal work, URA often drives grass-roots people out of the old districts concerned, and they may be those who

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live in subdivided units and cubicle apartments. While the objective of URA's housing construction projects is to renew urban areas, these projects have caused some grass-roots people to encounter livelihood and housing difficulties. That is why I have stressed that public housing should be constructed in urban areas to help the grass roots achieve home ownership. Neither this year's Policy Address nor the policy addresses delivered in the past few years mentioned anything about how to help grass-roots people living in subdivided units and cubicle apartments solve their housing problem. Members may simply say that the Government can definitely help those people and shorten the waiting time for public housing as long as it increases housing supply, but the fact is that the Government's current housing production has fallen well short of the target. As there is no standard tenancy agreement for tenants of subdivided units to sign, some of them have seen their rents increase twice in one year, and some have even fallen victim to "speculation on water and electricity"―that is, they have been overcharged for use of water and electricity. The Government has never put in place any administrative policy to help tenants of subdivided units. When the grass roots see the authorities build high-priced housing in old districts but they are forced to move out, oppressed by their landlords and overcharged for use of water and electricity, how can they be happy? How can they live and work in peace and contentment? As Mr LUK Chung-hung also mentioned just now, FTU has floated the idea of tenancy control, but the relevant Director of Bureau has said that this is not feasible because the introduction of tenancy control would lead to a reduction in the number of flats for rent, which would not do tenants any good, and the provision of a rent allowance would just serve to benefit landlords in the end. FTU has proposed a three-pronged approach to help grass-roots people living in subdivided units and cubicle apartments: first, tenancy control should be imposed only on low-priced buildings and old buildings, that is, buildings with a rateable value below $60,000, because subdivided units and cubicle apartments are mostly found in these buildings; second, the Government should offer a rent allowance; and third, the Government should levy a vacant property tax. We wish to help those people through this three-pronged approach, but if the Government says that this is not feasible, what else can be done? How can we help those who live in subdivided units and cubicle apartments? Members, when you see a child having to do his homework on his bed, will you feel sad? Our suggestion for building new PRH would, most often than not, spark a huge

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backlash from residents of neighbouring areas. In their view, given the already inadequate ancillary transport facilities and community facilities in the district at present, if more people move into and live in the district, the situation would get worse, and the community and facility problems will become more serious. Transport is a critical issue. It is most unfortunate that the Secretary for Transport and Housing is responsible for tackling problems relating to sea, land and air transport on top of the housing problem. Can the Secretary be allowed to focus more on tackling transport problems? We very much hope that the new Government to be led by the next Chief Executive can consider establishing a Development and Housing Bureau while putting transport matters in the hands of an independent Policy Bureau responsible for handling sea, land and air transport affairs; only in this way can the authorities devise a long-term transport strategy. Regrettably, the Railway Development Strategy released a couple of years ago did not include the proposal to construct the Coastal Railway between Tuen Mun and Tsuen Wan ("TM-TWL"). On the one hand, the Government says that it will not construct TM-TWL, but on the other, it allows people to move into Hung Shui Kiu and Yuen Long South. How can so many people be allowed to live in the Northwest New Territories? How should the relevant transport problem be solved? While Tuen Mun Road was eventually widened after many years, it is still plagued by traffic congestion. The compartments of West Rail trains are still crammed full of passengers. Do you think this problem can be solved simply by increasing the number of train cars? Without TM-TWL, people who are moving into the NDA in question will become "oxen for opening up wasteland", as in the case of those who moved into Tung Chung years ago. Residents of Tung Chung have acted as "oxen for opening up wasteland" for many years. At long last, the authorities intend to take forward its plan to develop Tung Chung West, and there may be an additional MTR station in Tung Chung West in the future. However, the population intake of the housing development there will not tie in with the commissioning of the railway concerned. The authorities want people to move into NDAs, but these people will not be provided with railway services until after they have lived there for several years and gradually formed a sufficiently large group of residents. Why should people be so treated? Therefore, in my opinion, the Government has to think of ways to perfect the facilities and transport services for the whole community, so as to reduce the impact on existing residents and minimize the resistance to the construction of

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public housing in NDAs or on other sites. I hope that the Government will expeditiously increase housing supply to solve the housing difficulties facing the public, particularly the grass roots. I will speak again in other sessions. President, I so submit.

MS YUNG HOI-YAN (in Cantonese): President, the Chief Executive said in the Policy Address that the projected supply of first-hand residential properties for the coming three to four years was 94 000 units at end-December last year. This is 45% higher than the figure at the beginning of the current-term Government, and a record high over the past 12 years. Nevertheless, the Chief Executive also admitted that "the waiting time for PRH units has increased notably. If the Government and the community do not resolve to expedite the identification of land for housing production, the housing problem will remain a tough nut to crack." According to the Long Term Housing Strategy Annual Progress Report 2016 submitted by the Transport and Housing Bureau in December last year, the supply of public rental housing ("PRH") has not met the target and there is a shortfall of 9 100 units. At present, the number of applicants on the PRH Waiting List has almost reached 300 000. Even if the Well-off Tenants Policies are to be revised, only a small number of people will be affected and the problem of a long PRH Waiting List may not be alleviated. Thus, I hope that the Government can explore how public housing production can be expedited so as to fulfil the promise of accommodating PRH applicants in three years. President, according to the figures published by the Census and Statistics Department in April last year, expenditure on housing is the greatest financial burden for every household among the four areas of clothing, food, housing and transportation. The average monthly expenditure on housing is almost $10,000 per household, which is about 34% of the total expenditure, representing an increase of 40% as compared with the figure in 2009-2010 and it is a record high. Besides, according to the latest International Housing Affordability Survey published by Demographia (a global property consultancy in the United States) at the beginning of this year, Hong Kong ranked first among the 20 places with the

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highest property prices. The median house price is 18 times the median household income in Hong Kong, indicating that our property prices are extremely difficult to afford. Apart from bearing the heavy burden of housing expenditures, Hong Kong people have to live in small housing units with poor conditions. According to figures provided by the Government, from 2013 to 2015, the number of subdivided units has increased by more than 30% to about 88 000, and the number of people living in these units has increased to almost 200 000. We know that recently, a fire broke out in a subdivided unit in Sham Shui Po, resulted in one death and two injuries. Many subdivided units have problems with structure and fire safety. If residents of subdivided units are evicted, they will really be made homeless. Thus, I hope the Government can provide appropriate support for them and adopt the proposal of the New People's Party to re-examine the option of producing transitional housing. President, being able to afford good housing has become an extravagant wish to many members of the public nowadays. I hope the Government can tackle this problem in two main areas. First, review the current policy on urban planning. Second, review the current policy on rezoning. In fact, the Government should not only consider developing new towns, it should also identify, in old urban areas, vacant sites or sites which have been sold but yet to develop and facilitate their development. It should also revitalize buildings or schools in old urban areas. In addition, I hope the Government can improve the transport services and ancillary tourism facilities in some remote villages in New Territories East such as Sha Tau Kok or Sai Kung, so that the people can really live and work in peace and contentment, and have easy access to quick transport links. Furthermore, I would like to talk about building maintenance and management which is closely related to housing. The problems of ageing buildings and ageing population in Hong Kong are equally pressing, and the Government has to formulate corresponding measures expeditiously. It is stated in the Policy Address this year that the Government will launch Phase 3 of the Building Management Professional Advisory Service Scheme to enhance support for owners of old buildings, and assist owners of "three nil" buildings in forming owners' corporations ("OCs"), and support OCs in discharging their responsibilities. However, these measures will only offer limited support to small owners. My suggestion is that the Government should allocate additional

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resources to establish a one-stop, inter-departmental support and services platform and designate the Home Affairs Bureau to coordinate the work, so as to offer small owners more comprehensive and efficient support and assistance in building maintenance and management. President, if buildings can be properly maintained and managed, the housing units can be more durable, thus reducing wastage in the property market. This will undoubtedly have a positive effect on the supply of residential property. President, I so submit.

IR DR LO WAI-KWOK (in Cantonese): President, various subjects to be discussed in this session actually involve the long-term development and overall planning of Hong Kong. Given that Hong Kong is small but densely populated, it is imperative for urban planning to place emphasis on the overall picture of economic development and people's livelihood, taking into consideration the implementation of different policy objectives. It is not only important to increase land and housing supply and support the development of industries, but also vital to develop comprehensive transport infrastructure network and community facilities, as well as increase economic activities to provide employment opportunities for residents living in the new towns, so that Hong Kong can cope with the short-, medium- and long-term development needs. Hence, the complexity and difficulty involved can be imagined. In October 2013, I moved a motion in this Council, urging the SAR Government to formulate long-term infrastructure planning with the development needs of society over the next 20 to 30 years in mind, and formulate overall planning in areas concerning the population policy, urban development, land planning, housing supply, industrial policy, green infrastructure, transportation and logistics, training of talent and quality of life, etc., in order to promote sustainable development. The motion was passed without amendment, indicating the importance attached to the matter by most Members. I am pleased to see that the Government has embarked on the planning study on "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" and is currently launching the public engagement exercise. I hope that the Administration will step up publicity and promotion, so as to attract people from all walks of life to engage in thorough discussions. In my opinion, Hong Kong's long-term overall planning must incorporate more elements of a smart city.

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Many major cities around the world, such as London, Amsterdam, Singapore and Seoul, have already launched their smart city projects. This demonstrates that future urban development will be based on artificial intelligence, focusing on the application of green and intelligent technological outcomes. And, through innovative plans, development concepts such as opening up, innovation, green development and sharing will be implemented to improve the standard of urban planning, construction and management, as well as the quality of living and overall competitiveness. I notice that in this year's Policy Address, this topic is incorporated under Innovation and Technology. According to the Administration, it is committed to developing Hong Kong into a smart city and has appointed a consultant to carry out a study. Furthermore, it will promote the establishment of a Common Spatial Data Infrastructure, use Kowloon East as a smart city pilot area and improve the use of resources by leveraging information and communications technology solutions. I have proposed to the SAR Government time and again that the promotion of smart city should go in tandem with the intellectualization of infrastructure. In the planning of new development areas, the Government should formulate comprehensive plans on various software and hardware infrastructures in respect of communication, distribution system, smart home, green buildings, etc. so as to strive to create a green and smart community and enhance the development of related industries and professional services. President, housing is the most important livelihood issue in Hong Kong and is closely related to the supply of land. According to the latest estimates released by the Planning Department, Hong Kong requires at least 4 800 hectares of land up to 2046, and even if the ongoing short-, medium- and long-term land supply initiatives are timely implemented in full, we will still need to identify at least another 1 200 hectares of land. Where does the land come from? This is not a purely technical issue. Rather, it is about whether various sectors of society can seriously discuss the future development visions and livelihood needs of Hong Kong, and reach the necessary consensus. People from the industrial, commercial and professional sectors and I always agree that the SAR Government should adopt diversified planning options, which include increasing the plot ratio subject to specified conditions, changing land use, speeding up land resumption for redevelopment, implementing the development of North East New Territories and the Loop, conducting reclamation on an appropriate scale outside

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Victoria Harbour as well as exploring the development of rock cavern and underground space, with a view to building a long-term land reserve and timely adjusting the land supply. As for the proposal to reorganize the land use of brownfield sites and release them for development, it is worth supporting so long as the economic operations on the brownfield sites concerned are properly relocated. As stated in this year's Policy Address, country parks currently account for 40% of the total land area of Hong Kong, six times that of our total residential land. The Government may consider allocating a small proportion of land on the periphery of country parks with relatively low ecological and public enjoyment value for purposes other than real estate development such as public housing and non-profit-making elderly homes. As these issues involve different areas and a great number of stakeholders, disputes are inevitable. However, in the face of a serious shortage of land, we must seriously consider: How great is public demand for country parks? What should be the proportion of country parks in the total land area of Hong Kong? Is there compatibility and proper balance between development and conservation? Is country park land only restricted to non-real estate development? Without serious discussions to resolve these disputes, any attempt to promote the implementation of various planning and development projects in Hong Kong will certainly face a myriad of obstacles. According to the latest projections, the housing supply target for the next decade from 2017-2018 is 460 000 units, including 200 000 public rental housing ("PRH") units and 80 000 subsidized sales flats. However, the supply of land still lags far behind development needs. To be fair, the efforts of the current-term SAR Government in addressing housing problem are evident to all. However, just as the Chief Executive has pointed out in his last Policy Address, if the Government and the community do not resolve to expedite the identification of land for housing production, the housing problem will remain a tough nut to crack. Colleagues of the Business and Professionals Alliance for Hong Kong ("BPA") and I have suggested to the Government that 3% of the land in green belt areas could be rezoned for residential use to provide affordable flats for the middle class or young families. It is expected that about 270 000 units can be provided. I hope that when the relevant Secretary speaks later on, he will give some responses or explanations in this regard.

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Of course, in order to effectively address the housing problem, apart from striving to increase supply, the SAR Government should also expeditiously review and rationalize the housing ladder so as to cater for the needs of different strata of society, which include taking into account the home ownership demands of the middle class and young families. Colleagues of BPA and I have suggested that the Government should adopt a number of measures: firstly, provide more incentives to encourage PRH households with the means to acquire their own homes, so as to increase the turnover of PRH units; secondly, introduce targeted subsidized home ownership measures and review home ownership schemes previously launched which were effective in helping people acquire their own homes, for example, re-launching the Home Starter Loan Scheme and the enhanced Sandwich Class Housing Scheme; and thirdly, offer mortgage loans at 90% of the property prices for first time home buyers earning a stable income who intend to purchase small housing units of less than 400 sq ft. Furthermore, the Government may pursue cooperation with developers in building small and inexpensive housing units, so as to provide appropriate rent-or-buy flats for eligible young families. It is expected that these proposals will not only help eligible people take the first step for home ownership, but also promote the harmonious development of society. With respect to transport planning, I have been urging the Administration to complement the future commissioning of the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link and the Hong Kong-Zhuhai-Macao Bridge by enhancing the cross-boundary feeder system, and implement seven new railway projects in an orderly manner in accordance with the Railway Development Strategy 2014. Now that the Government has announced to first proceed with the detailed planning work of the Northern Link and Kwu Tung Station, the Tuen Mun South Extension and the East Kowloon Line, and then commence expeditiously a feasibility study of Route 11, it has in fact readily accepted good advice. President, we are greatly worried that even if the Administration has formulated comprehensive plans and introduced the relevant projects in a gradual manner, it still needs to face unpredictable political challenges. In recent years, filibuster has become a new norm in the Legislative Council and the situation has worsened as pan-democratic Members has adopted various modes and means to filibuster at meetings of the Finance Committee ("FC") and the Public Works Subcommittee ("PWSC"). In the case of PWSC of this Legislative Session, the SAR Government proposes to submit 43 public works projects costing about

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$10 million for approval this year. Although the original schedule to conduct 17 meetings totalling 34 hours for deliberation is already pretty tight, Members still insisted on filibustering. As at 15 February 2017, a total of seven meetings have been conducted to consider public works projects, of which two were additional meetings. However, approval was only granted to the advance works for public housing developments at Chung Nga Road and Area 9, Tai Po, which cost $1.1 billion, and they are now pending the final approval of FC. PWSC is currently examining the block allocation proposals on Capital Works Reserve Fund for 2017-2018, involving a sum of about $12.4 billion. Since the examination started on 25 January, so far three meetings have been held and Members moved adjournment motions at each meeting. Given that the motions have yet to be put to vote after five hours' of discussion, there is serious slippage in deliberation. This has aroused the grave concern of the engineering and construction sectors. On 9 February, the Construction Industry Alliance, formed by professional groups, business organizations and trade associations from 16 sectors, held a press conference to criticize the reckless filibusters launched by some Members of the Legislative Council, which have seriously undermined the environment for the survival of the industry. Take Capital Works Reserve Fund block allocation as an example, it involves more than 9 000 minor works items, of which over 8 000 are ongoing projects. If the relevant funding cannot be approved as scheduled, some of the ongoing works may have to be suspended in mid-March, even projects relating to the maintenance of roads and bridges will be affected. The Government may breach the contracts and default on payment, resulting in a large number of small and medium builders having cash flow problems and may even cease operation, thereby affecting the livelihood of the workers. It should be noted that some Members insisted that the Government should withdraw some of the controversial projects. As a matter of fact, the Capital Works Reserve Fund was established in 1982 and the relevant resolution was endorsed by the former Legislative Council in the form of a subsidiary legislation. The SAR Government is still adopting such a practice and it has been working well. Capital Works Reserve Fund block allocations consolidate funding proposals for works projects and preliminary studies which involve smaller sum of money and do not require separate consideration by FC, and provide an upfront endowment to prepare for land acquisition. It will not be possible to examine thousands of projects separately.

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I also wish to draw Members' attention to the fact that the ceiling of expenditure is $30 million for the preliminary works and research projects under the Capital Works Reserve Fund block allocations, and even if approval is granted to the relevant proposal, the Government still needs to submit formal funding applications for the main works for separate consideration in the future. Objectively, the present $12.4 billion funding application was submitted according to the above principles and has not bundled with any item that does not comply with the conditions. President, there are about 450 000 practitioners in the construction industry, including 330 000 active registered workers, 80 000 professional and management personnel as well as 40 000 technical support and civilian staff, and together with their families, the livelihood of a million people is affected. Hence, members of the trade and I urge Members to give a top priority to people's livelihood and well-beings, and expeditiously clear the funding backlog of public works projects. Meanwhile, the SAR Government should also expeditiously review and compile a list of large, medium and small public works projects, and then set priorities based on their significance. For projects that are already on the agenda or more maturely developed, the Government should explore how to create favourable conditions in the light of the situation, so that when there is a downturn in the global market and local economy, the projects can be promptly implemented to stimulate the economy and safeguard employment, thereby preventing a gap in works projects and a loss of livelihood for members of the engineering industry. President, I so submit.

MR CHUNG KWOK-PAN (in Cantonese): President, regarding the measures on land supply and housing proposed in the Policy Address, particularly the short-, medium- and long-term measures, I consider them appropriate and the direction correct. All the proposals put forward in the Policy Address will help to increase the supply of land and housing. Thus, I do not think they are controversial. Moreover, no matter who will become the next Chief Executive, I believe the direction in this regard is correct. However, I think the Government has implemented a very wrong policy over the past few years, namely, the "double curbs" measures. The "curb" measures were first introduced in November 2010, followed by an "enhanced version" in 2012. Then, the Ad Valorem Stamp Duty was doubled in 2013 and

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further increased to 15% in 2016. Although the "curb" measures are increasingly harsh, property prices continue to rise. After several rounds of "curb" measures, the policy was already proven to be ineffective as property prices have increased by 50% since 2010. If the Government introduced the "curb" measures to regulate property prices and control the housing supply, how come the enhanced measure would result in higher property prices? This shows that the "curb" measures have not been effective. Strictly speaking, they have even distorted the market. President, the current "enhanced version" has actually frozen the second-hand property market. In fact, only three factors will affect property prices in Hong Kong. The first factor is surely the supply of public housing and subsidized housing provided by the Government. Second, the supply of residential flats provided by private developers. Third, the supply of flats in the second-hand market. As transactions in the second-hand market account for 80% of all property transactions, with the freezing of the second-hand market, property prices will not possibly fall. For those who own a flat of 600 sq ft to 700 sq ft with two bedrooms, if they wish to improve their living conditions by acquiring a flat of 1 000 sq ft for replacement, what problems will he encounter? I will give an example by doing a very simple calculation. Currently, a flat of 1 000 sq ft will cost at least $10 million, but banks only provide a mortgage of up to 40% of the property price. If a person wants to change flat, he will have to pay $6 million up front, plus 15% stamp duty under the "curb" measures, making a total of $7.5 million. One will certainly say that the 15% stamp duty can be reimbursed after the flat replacement, but one has to pay $7.5 million up front. Where will the money come from? Moreover, he can only afford to change flat if he can sell the flat which he is now living in. How will an average middle-class household have so much money to change flat? If people will not acquire a flat for replacement, then there will be a shortage of properties in the second-hand market, and the ladder for changing flats will even disappear as a result. A person may want to change his flat of 300 sq ft to a flat of 500 sq ft, 700 sq ft, 1 000 sq ft and 1 200 sq ft. However, even if he can afford to pay the mortgage instalments, he cannot afford to change flat. Moreover, there is another problem. Apart from the "curb" measures, the Hong Kong Monetary Authority ("HKMA") regulates the loan-to-value ratio on mortgage loans offered by banks. In the example I mentioned earlier, the person

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who wants to acquire a flat priced at $10 million can only obtain a mortgage loan of 40% of the property price, how can he afford? At present, banks only offers a mortgage loan of up to 60% of the price, how many people can have enough savings to pay for down payment? These two policies and "measures" have actually severed the links in the supply chain and reduced the supply in the market. There will be no problem for the developers producing first-hand property. Knowing very well that the introduction of "curb" measures will not push down property prices, they have included the "curb" tax in the property price and pass it onto the people. Business for property developers is booming and presently, many people buy first-hand property. However, with a loss of 80% of second-hand properties, how can the Government push down property prices? It is simply not impossible. Certainly, the short-, medium- and long-term measures implemented by the Government have some effects, but a slow remedy cannot meet an emergency. Thus, young people find that they cannot cope with the hike in property prices even with the assistance of their parents. Under the circumstances, there will be grievances and discontent in society. It is just that simple. On the other hand, given that the United States is about to raise interest rate, should the authorities reduce the harshness of the "curb" measures in due course? Reducing the harshness of the "curb" measures is a big problem. When the market expects the Government to introduce a downward adjustment of the taxes, implying lower transaction costs, property prices may rebound, creating another problem. Therefore, since the "curb" measures have already been proven to be ineffective, the Government should not keep enhancing the measures. Instead, banks should provide a higher loan-to-value ratio on mortgage loans to first-time home buyers, so that they can afford to buy their homes with a lower amount of down payment. At present, the Government facilitates the rich but not the general public to buy property. Hence, some people get richer and richer, while some other people can never get what they aspire to own. In this connection, the Government should review, inter alia, how to reduce the harshness of the "curb" measures. The immediate measure it can take is to relax the loan-to-value ratio on mortgage loans. I do not understand why HKMA requires banks to conduct a stressed debt-servicing ratio test on mortgage applicants. Apart from assessing the applicant's income and ability to make mortgage payments, banks also have to assess whether he can bear a mortgage

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interest rate hike of 3% per annum. President, no matter how Janet YELLEN put it, she said that interest rate would only increase by 0.25% two or three times this year, making a total of about 1%. How can HKMA include, in the stressed debt-servicing test, the requirement that the applicant can bear a mortgage interest rate hike of 3% per annum? That is totally unreasonable and out of proportion. Thus, if the Government relaxes the conditions for offering mortgage loans, some people can afford to pay down payments, and can take out mortgage loans and buy their own homes. I think that will be one of the easiest ways to solve the problem. Thank you, President.

I so submit.

MR CHEUNG KWOK-KWAN (in Cantonese): President, home ownership may not matter so much for a young person who is living with his family. But for a young couple, after they got married in a church and have children, the desire for having a cosy home has become their pressing need. For young families not living in self-owned properties, be they belong to the grass roots or the lower-middle class, they have to spend a large part of their monthly income on rental payment, as well as pay for other expenses such as tuition fees of their children. They can hardly make ends meet, let alone have any savings. President, I will talk about the grass-roots families first. While better-off grass-roots families will likely live in rented premises in old tenement buildings, most grass-roots families are living in cubicle apartments or even subdivided units in industrial buildings. We can often read such cases in the news. What is their living environment like? I think I need not say much about it. As Members may recall, in the last and current Chief Executive Election, some candidates had actually visited the subdivided units and tried lying on the bed inside. Then spoof photos of them lying in a coffin circulate widely on the Internet. Hence, it is crystal clear how deplorable the actual living condition of subdivided units is. To grass-roots families, waiting for public rental housing ("PRH") allocation is their only hope to get out of the plight. Every day, they endure the hardship of life with dogged will, hoping that the Housing Department ("HD") will arrange a vetting interview and then obtain a housing offer. But sadly, according to the latest statistics released by the Hong Kong Housing Authority, as at the end of December 2016, the average waiting time for general PRH

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applicants has silently gone up to 4.7 years, much longer than the 3 years' average waiting time for PRH allocation as always pledged by the Government. If we look back, as at the end of December 2015, the average waiting time was 3.7 years. Clearly, the situation is getting worse year after year. In his first Policy Address after being elected the Chief Executive, Mr LEUNG Chun-ying said that he hoped 75 000 PRH units could be built within his five-year term of office. We finally learn about the result in this year's Policy Address, that is, only 68 900 PRH units have been constructed eventually. There is a shortfall of some 6 000 units. Although the Policy Address does mention that in the five-year period from 2016-2017, 71 800 PRH units will be constructed, such a production volume still falls short of the demand of 200 000 PRH units for the coming 10 years as projected by the Long Term Housing Strategy. Apparently public housing supply has yet to meet the target. With as many as 280 000 applicants now on the PRH Waiting List, I am afraid that it is almost an impossible task to resolve the problem, not to mention that the number just keeps increasing day by day. President, under the circumstances, grass-roots families on the PRH Waiting List can only endure living in the deplorable environment for an even longer period of time while struggling to make ends meet. Given the harsh reality faced by these families, can the Government show empathy and implement effective stop-gap measures to support them? All along, we have been urging the Government to implement a rent subsidy scheme for private housing tenants who have been on the PRH Waiting List for more than three years, so as to relieve their burden of rent. But the Government refuses to take our suggestion on board under the excuse that rent subsidies will only prompt the owners to increase rent without really benefiting the grass-roots tenants. I would like to ask the Government whether there is any objective data to support its view. Has the Government made reference to any experience such that it can make such a definitive conclusion? How will the owner know for sure that the tenant has obtained rent subsidies from the Government? Is the Government under any obligation to inform the owner when paying rent subsidies to the tenant? Or will the Government directly transfer the money to the owner's bank account? Clearly, the Government's argument is nothing but a flimsy excuse. Speaking of lower-middle class families, those who are home owners of course feel happy for they need not pay rents anymore. Moreover, they may even accumulate considerable financial gains as a result of surging property

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prices for a long time in the past. Taking the opportunity, some families may change their flats for a bigger one, and some may even buy another property or two as family investment. But for most lower-middle class families, home ownership may have already become an unreachable dream. Actually many lower-middle class couples are professionals, and they basically have no problem making monthly mortgage payments because the amount is more or less the same as rents. But as a result of the Hong Kong Monetary Authority's move to tighten the maximum loan-to-value ratio, as well as the high property prices, they can hardly afford the down payment. As we all know, the middle-class people have to pay large amounts of taxes but they are not eligible for subsidized public housing. Given the crazy property prices as well as the heavy livelihood burden of lower-middle class families, such as education expenses for their children, their monthly savings can hardly catch up with the amount of down payment as well as the exorbitant stamp duties they need to fork out as first-time buyers. Given the onset of an interest rate upcycle and the uncertainties of the external economy, I of course understand the Government's reluctance in re-launching the Home Starter Loan Scheme to help first-time buyers for fear that their properties may become negative assets should the property market take a U-turn. But this scheme aside, can the Government seriously consider re-launching the Sandwich Class Housing Scheme, so as to help the lower-middle class realize their dream of home ownership? Can the Government also consider reducing the stamp duty for first-time buyers, as well as extending the number of years of home loan interest deduction from the current 15 years of assessment to 20 years of assessment? Regarding the proposals I stated above, including reducing the stamp duty for first-time buyers and extending the number of years of home loan interest deduction, the Government may say that such proposals cannot practically help members of the public in terms of home ownership because the amount involved is insignificant vis-a-vis the cost of buying a property. Though the practical effect of such proposals may indeed be limited, I think the Government should know that most lower-middle class families have never dreamt of relying on the Government. They just want to see is that Government does have them in its heart when formulating the relevant policies. If the Government is willing to

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accept these proposals, people in the lower-middle class at least feel that they are being valued and taken care of by the Government, even though there is little instant effect in terms of helping them acquire home ownership. President, this is where the root of people's grievances lies! I so submit.

MS TANYA CHAN (in Cantonese): President, as I said yesterday, I will spend some time to talk about country parks and the conservation policy covered by this session. To me, conservation can at least be divided into two areas, namely nature and cultural conservation as set out in the Policy Address. Nature conservation has a strong bearing on Hong Kong. However, in Hong Kong, conservation and development are very often mutually exclusive. Many colleagues have suggested that due consideration should be given to using the land on the periphery of country parks appropriately. President, I do not know if you can still recall the controversy over the proposal to develop green belts at the time when you were still a Member. As we all know, there are some enclaves in country parks. Some people may not understand this concept; I have also spent a lot of time figuring it out at that time. Many areas on the periphery of country parks have been designated as green belts, which play the role as a buffer. However, in his last Policy Address, former Chief Executive Donald TSANG called for identifying sites with creativity, including exploring the possibility of developing green belts. Many green belts on Hong Kong Island cover areas around reservoirs where catchwater channels are actually located. It is far from acceptable to develop green belts, not to mention the land on the periphery of country parks as currently suggested. At the beginning, the authorities may offer an incentive by pledging not to build commercial housing. However, some people have already raised the suggestion that if housing is to be built, why not consider building some commercial flats for public sale; it may be even better to build luxury flats because those flats, which will command a sea view coupled with a large rear garden set against a backdrop of mountains, will definitely fetch a high price to the satisfaction of everyone. I would really like to give Secretary for the Environment WONG Kam-sing a word of advice. If the Chief Executive asks him for a list of country parks for developing the peripheral areas thereof, will he please never do so. Such a request is tantamount to asking him to sell his children. Under the relevant legislation, it is incumbent on the Secretary to protect country parks. How on

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earth can the Chief Executive ask him for a list of his children to put up for sale? It is just like asking the Secretary to determine which one of his children should be sold first. If the sons cannot be sold, then the daughters will be sold first. This practice is totally illogical and unreasonable. In my view, it is already outrageous enough for the Government to develop green belts instead of brownfield sites, and now it goes one step further to request Secretary WONG Kam-sing for a list of country parks. The Chief Executive has even assigned these conservation-related matters to the environmental departments, which shows that he is utterly out of tune with the reality. In my view, the incumbent Chief Executive's status is indeed transcendent; beyond doubt, he will float away from his post soon, and that is why he does not care. However, the Secretary is responsible for protecting Hong Kong's environment. He should try his best to protect the country parks under his charge. In fact, while proposing to incorporate certain land in country parks, is it possible to consider developing some land in country parks at the same time? In my view, this question should be discussed by the community. Country parks account for 40% of Hong Kong's total land area, which sounds like a large proportion. However, we should also take our target population size into account. While the Chief Executive has indicated the need for land reclamation, do we really need to increase our population incessantly; will our infrastructure be overloaded? The direction of Hong Kong's population policy will determine how we develop our land and plan our social resources; it will also impact our financial position. As such, we cannot hastily consider developing country parks on the ground of insufficient land. That said, trees in country parks will never make complaints, sign a joint petition to voice opposition, nor filibuster. The Government often criticizes filibustering. I have always maintained that the Government absolutely has the power to rearrange items on the agenda, be they works projects or project funding. However, if the authorities insist on developing country parks, I will definitely engage in filibustering for as long as I can. In addition, I would also like to talk about cultural conservation. May I extend my greeting to Eric MA, Secretary for Development who has just assumed office. I bothered him recently regarding some conservation projects. In my view, no major problems have so far arisen in the policy of the Commissioner for Heritage on vitalizing conservation. The Chief Executive has seldom talked about cultural conservation in recent years. In general, in terms of legislation or

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policies, I think Hong Kong is lagging behind other countries in the world and even China in respect of conservation. Further reviews are thus necessary. To many non-governmental organizations, the biggest obstacle in their fight for conservation is very often posed by the Antiquities and Monuments Office. As this issue falls outside the purview of the Secretaries present, I will discuss it later. The Antiquities and Monuments Office can be regarded as an important culprit for destroying Hong Kong's monuments. I will discuss this later. I so submit.

Thank you, President.

MR FRANKIE YICK (in Cantonese): President, since Hong Kong is a small and densely-populated city, it is understandable that the transport policy of the Government is based on public transport, the backbone of which is railway. However, given the continuous expansion of the railway network, the market share of other modes of public transport is shrinking correspondingly, making operation increasingly difficult. Though the Government has conducted the Public Transport Strategy Study in response to the impact of railway expansion, with a view to defining more clearly the role and positioning of various modes of public transport, the study is not comprehensive after all, failing to grasp the overall situation of the transport sector. In fact, given the increasingly frequent cross-boundary exchanges between Hong Kong and the Mainland, and the inevitable increase in the cross-boundary flow of people and logistics following the commissioning of the Hong Kong-Zhuhai-Macao Bridge, the demand for cross-boundary and local transport will increase definitely. For this reason, I still hope that the Government will actively consider conducting the Fourth Comprehensive Transport Study, with the emphasis on the Mainland, particularly the development of the adjacent Pearl River Delta and further interaction between the Mainland and Hong Kong, so as to develop a transport blueprint for the future in a comprehensive manner, and promote the healthy and sustainable development of various modes of public transport. The Topical Study under the Public Transport Strategy Study covers "exploring ways to enhance personalized and point-to-point transport services". Let me reiterate, if the enhancement of personalized and point-to-point transport services means the issuance of an additional 600 licences which do not have to pay licence fee and operate under a franchise model for quality taxi service, I will resolutely raise objection. Nowadays people's discontent with taxi services mainly lies with service quality. For this reason, the priority of the Government

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is to enhance the overall quality of taxi services, rather than target a small number of customers with higher spending power and introduce an alternative taxi service in the market, which needs not pay licence fees but can charge higher fares. In addition, the increase of licenses for franchised taxis runs counter to the Government's policy of striving to address traffic congestion and roadside air pollution. May I once again remind the Government: as a taxi run some 450 km a day while an ordinary private car runs less than 40 km, one can well imagine that an additional 600 taxies equals an immediate increase of 6 750 cars on the road. This, coupled with the shortage of drivers currently faced by the taxi industry, will only aggravate the manpower shortage problem if the Government increases the licenses for franchised taxies. In order to meet market demand, the taxi industry has taken the initiative to continuously enhance taxi services, including introducing various new types of vehicles, enhancing comfort level in taxi compartment, adding charging facilities for mobile phones, providing free Internet services, and so on. In addition, in order to improve the service quality of drivers, the industry has formulated certain assessment mechanisms, and joined hands with the Employees Retraining Board to develop value-added courses for taxi drivers. Since the industry is striving to enhance its service quality, the Government should actively render support and expeditiously join hands with the taxi industry to finalize plans that aim at enhancing the overall service quality. In order to further highlight the role and positioning of taxis as a type of personalized and point-to-point transport services, I advise the Government to open up more prohibited zones for taxis to pick up and drop off passengers, particularly wheelchair users, and to increase the number of taxi stands. At the same time, the Government should also formulate policies to assist the industry in attracting new blood to enter the industry, so as to address the shortage of drivers. In fact, the business of law-abiding operators in the transport industry is being eroded by malpractices. A case in point is that the taxi industry is under attack internally and externally. On the one hand, a handful of black sheep in the industry overcharge taxi fares and display an "out of service" sign to select passengers. They are thus referred to as "black cabs". On the other hand, private cars without hire car permits have been illegally carrying passengers for hire or reward (commonly referred to as "illegal car hire service"). Apart from monitoring the operation of public transport, the Government, as the regulator, is also duty-bound to combat "black cab" and the malpractice of illegally carrying passengers for hire or reward, so as to safeguard the interests of lawful operators.

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Although the Police have often conducted covert operations to combat malpractices, the penalties meted out by the court lack deterrent effect. Particularly in the case of repeat offenders, the penalties fail to reflect the severity of their malpractices, fines in the amount of several thousand dollars merely constitute part of their operating costs, and the disqualification period is very short. For this reason, the Police should apply for reviewing the cases for which the penalties imposed were too light and demand heavier penalties, and the authorities should also consider reviewing the existing penalties. Apart from increasing the penalties, repeat offenders should have their licences revoked, and cars illegally carrying passengers for hire or reward without hire car permits should be "imprisoned". It is hoped that by increasing the costs arising from law-breaking behaviours, malpractices can be rooted out, thereby safeguarding an equitable and healthy operating environment. In order to resolve the problem of traffic congestion, the Government has proposed to increase the penalty for illegal parking in the light of the advice of the Transport Advisory Committee. However, I must stress that the current problem of illegal parking originates from a severe lack of parking and loading/unloading spaces. In proposing a substantial increase in penalty for illegal parking before addressing the problem of parking spaces, the Government is putting the cart before the horse. For years, the problem of insufficient parking spaces has plagued car owners, particularly owners of commercial vehicles. Instead of resolving the problem, the Government has been aggravating the problem. In the case of Tsim Sha Tsui, the number of parking spaces in the district had already dropped significantly due to the redevelopment of the former New World Centre, but the Government ignored this fact and proceeded to demolish the Middle Road Multi-storey Car Park, thus aggravating the problem of insufficient parking spaces in the district. Now that the Government has finalized the demolition of the Murray Road Car Park, to be followed by Rumsey Street Car Park and Star Ferry Car Park, there will be a severe shortage of parking spaces in the vicinity of the Central core business district. At the same time, the Government has resumed, one after another, short-term tenancy sites that have been used as temporary car parks, but has not offered other alternative sites, forcing car owners to take the risk of being ticketed to park their cars on the roadside or circulate on roads. Recently, the Government has indiscriminately issued a number of tickets in the name of combating illegal parking, sparing not even minibuses parked inside minibus stations during the small hours, which cause no disturbance to traffic.

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(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

As drivers earn on average several hundred dollars a day, if they receive a ticket, a significant portion of their income will be gone. If the fines for illegal parking are significantly increased by 50%, drivers may probably have no income at all after a day's work. In addition, an increase in fines for illegal parking will lead to an increase in parking fees, thus posing heavier burdens on transport operators and drivers. In fact, when the Government first discussed the proposal at meeting of the Panel on Transport, most of the Members present objected to the Government's act of increasing the fines for illegal parking before addressing the problem of parking spaces. In the light of the problem of insufficient parking spaces, particularly those for commercial vehicles, I requested the Government to conduct the Third Parking Demand Study in 2013. Some 10 years have passed since the Second Parking Demand Study was conducted in 2000. Given our economic development and the commencement of infrastructure projects, parking spaces for commercial vehicles (such as coaches, private minibuses for school children, goods vehicles and container trucks) have been in short supply. Hence, the Government should expeditiously conduct a new round of parking demand study, so as to plan for the provision of adequate commercial parking facilities to dovetail with social development. I am delighted to learn that the Government has ultimately decided to conduct the Third Parking Demand Study within the year, but before the completion of the study, the Government should not raise the fines for illegal parking in the name of resolving the problem of illegal parking. In order to resolve the parking problem of commercial vehicles, I understand that the Government will soon complete the study on constructing multi-storey commercial car parks. The Government can at the same time consider measures such as providing more temporary commercial car parks on the basis of "designated sites for designated uses", designating roadside parking spaces for commercial vehicles at night, and allowing minibuses to be parked inside minibus stations at night, so as to alleviate the shortage of parking spaces. In order to tackle the problem of traffic congestion, the Government is also conducting studies on an electronic road pricing scheme. Rather than being a panacea for tackling traffic congestion, the scheme will only drive up the operating costs of the transport and logistics industry. For this reason, the Government should first implement new projects on road network, including the

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Central-Wan Chai Bypass, improve the traffic flow among the three cross-harbour tunnels, and strengthen road management. An electronic road pricing scheme will only be implemented in Central if the condition of traffic congestion has not been improved. In addition, the Government should actively promote a rationalization of franchised bus routes, which will not only alleviate the pressure on road traffic, but also reduce operating costs through resource allocation and help lower fare adjustment pressure. In order to alleviate pressure from local residents, the Government should coordinate with other modes of public transport to make appropriate arrangements for bus routes affected by rationalization of bus services, such as handing over the operation of bus routes with low patronage to green minibuses, so as to minimize the inconvenience caused to members of the public due to route rationalization. While the number of vehicles keeps increasing, the automobile repair industry is tapering off due to the succession problem. As a very important part of the automobile industry, automobile repair has a bearing on and is indispensable to road safety and air quality. In order to attract more young people to join the industry, the Government should, apart from actively promoting the Voluntary Registration Scheme for Vehicle Mechanics and the Voluntary Registration Scheme for Vehicle Maintenance Workshops to enhance the professional standard of the automobile repair industry, actively conduct studies on and even allocate land lots for the construction of an automobile repair centre to promote the development of the automobile repair industry. On the one hand, this is conducive to the centralized disposal of waste water, vehicle emissions and waste oil, thus minimizing environmental pollution. On the other hand, the Government can formulate good planning to improve the work environment and the professional image of practitioners, thus attracting young people to join the industry. Regarding the construction of an automobile repair centre, I have already submitted proposals to the Development Bureau, the Environment Bureau and the Transport and Housing Bureau. While all the Bureaux recognize the importance of automobile repair, regrettably, so far none of them are willing to take the lead to take charge. I hope that the Government will face up to the predicament faced by the automobile repair industry, and expeditiously finalize the plan of constructing an automobile repair centre by designated departments. In order to effectively improve air quality on the roadside or in Hong Kong at large, the Government proposes to tighten the vehicle emissions standard. However, before further tightening of the standard, the Government must ensure

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that there are adequate types of vehicles and ancillary facilities in the market. It should not act rashly and ignore the actual market conditions, thus causing the transport industry to make additional financial commitments. At the same time, as the Ex-gratia Payment Scheme for Phasing Out Pre-Euro IV Diesel Commercial Vehicles has been implemented halfway through, and the scheme will end in 2019, the Government should consider extending the scheme to Euro IV diesel commercial vehicles, and encourage vehicle owners to advance the replacement of their vehicles by offering higher ex-gratia payment, so as to further improve roadside air quality. According to the Policy Address, the Government plans to improve the facilities at existing covered public transport interchanges and ferry piers, particularly piers in remote areas. I greatly welcome this plan, for the non-provision of toilets at some public transport interchanges has caused inconvenience to members of the public and drivers. Moreover, in some public transport interchanges, such as the minibus station in Langham Place, air circulation is poor and the place is like an oven in summer. Facilities at certain ferry piers are dilapidated. For example, the toilet at the Lei Yue Mun pier has been dilapidated for years, causing great inconvenience to passengers. I hope the Government will, apart from improving the facilities at existing piers, also pay attention to "three-nil piers", that is, piers having no water, no electricity and no shelter. Ferry operators at such piers have to set up the facilities each day. The Government should consider constructing some basic facilities at such piers. Fuel constitutes one of the major costs of the transport industry, be it road transport or marine transport. When oil companies adopt a pricing strategy of "more going up, less coming down" and "quick going up, slow going down", the transport industry will bear the brunt, having to pay higher operating costs. As the regulator, the Government is duty-bound to stop oil companies from collusive price-fixing and adopting the pricing strategy of "more going up, less coming down" and "quick going up, slow going down". As such, I hope that the Government will, apart from urging the Competition Commission to expeditiously complete the investigation into whether the oil companies have violated the Competition Ordinance, conduct studies on the effective regulation of the pricing strategy of oil companies, and consider introducing a pricing formula modelled on that for dedicated liquefied petroleum gas filling stations, so as to enhance the transparency of oil pricing for public scrutiny. Deputy President, I so submit.

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DR JUNIUS HO (in Cantonese): Deputy President, the Chief Executive has, as always, continued to make efforts to resolve the future housing supply problem of Hong Kong. I am very delighted to see his efforts made and will render support. In his Policy Address, he proposes long-, medium- and short-term land supply initiatives, including developing sites in country parks with low conservation value to cope with housing demand in Hong Kong, shedding light on the development of Lantau. Regarding this issue, what I want to share with Members is that instead of diverting our attention to the development of several areas, we should focus on developing one single area. Lantau covers an area of 140 sq km with most of the sites being designated as country parks. If we optimize the utilization of land and develop certain sites with low ecological value, this will not only be conducive to resolving the housing problem, but also provide the middle class and the young generation with room to move upward. Just think, how can the young generation afford to purchase luxury homes in the Mid-levels or above? They are disheartened. However, Discovery Bay in Lantau offers a very pleasant living environment for young couples to bear and rear children. The place, being safe and comfortable, makes people feel relaxed and joyful. For this reason, it is a very good idea to develop Lantau in the mode of Discovery Bay. Our living space can blend and complement with a green and lush environment. If we focus on developing Lantau, the problem of lacking 1 000-odd hectares of land for development as stated by the Government in the "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" can be resolved. In fact, Lantau covers an area of 140 sq km, that is, 14 000 hectares of land. If we stay appropriately proactive, conduct studies progressively and focus on the development of this place, we will secure a very good opportunity to address the housing problem and enhance the room for the middle class to move upward in the long run. The second point I would like to share with Members relates to climate change and energy as referred to by the Chief Executive in paragraphs 132 to 135 of the Policy Address. The Government indicates therein that it will gradually replace most of the electricity generated from coal-fired plants with cleaner energy by 2030, and it will seek to optimize the utilization of renewable energy, including solar power. It is stated in paragraph 135 that: "The Government has completed energy audits of over 200 government buildings, and will earmark at least $500 million to gradually achieve the targets of energy saving. We will

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actively encourage private building owners to make use of various tax concessions, loan schemes and funding schemes to procure energy saving installations." Shortly after the delivery of the Policy Address by the Chief Executive, I raised a question relating to 32 000 small houses in the New Territories. Owing to the scorching sun in summer, the second floor of these small houses is still very hot even at night as the heat cannot be dissipated. If we, in line with paragraph 135 of the Policy Address, actively encourage private building owners to make use of various tax concessions, loan schemes and funding schemes to procure energy saving installations, the rooftops of such small houses will be most suitable to install solar panels, through which renewable energy can be generated. While making optimal utilization of energy, we can also give due consideration to addressing the 8 000 to 12 000 cases of unauthorized building works among the existing 32 000 small houses. Most of such cases involve additional structures on the rooftops. We can provide residents or owners of small houses with a way out to improve their living environment while making optimal utilization of renewable energy. In that case, we will not only relieve people of their difficulties, but also resolve a perennial and thorny issue. Since the Government has already stated its stance in paragraph 135 of the Policy Address, I urge the Government to engage in further elaboration and exploration, so as to ultimately resolve the numerous livelihood problems of Hong Kong. I would like to render my support in this connection, and I extend my gratitude to the Chief Executive for his Policy Address.

MR WU CHI-WAI (in Cantonese): Deputy President, in relation to housing, LEUNG Chun-ying has insisted on proposing to develop land on the periphery of country parks and on Lantau in this Policy Address. As I have said many times in this Chamber, the Government has refused to invoke the Lands Resumption Ordinance to develop and deal with the brownfield sites in the New Territories on the one hand, and kept thinking of developing country park sites and green belt sites on the other. This approach has obviously made people think that the Government is favouring some people at the expense of the others.

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The Policy Address proposes to conduct a survey on the distribution and use of all brownfield sites in Hong Kong, but with regard to the present situation, the public think that the Government will succumb and bow down to groups with vested interests, and that it will procrastinate and adopt a perfunctory attitude with no real intention to review the problem of brownfield sites. Housing policies has all along been regarded by LEUNG Chun-ying as his forte. Let us review the promises he made upon assuming office. LEUNG Chun-ying stated in his election manifesto in 2012 that he would ensure that the average waiting period for family applicants for public rental housing ("PRH") units would be three years and the waiting period for the singleton applicants who were 35 or below would be shortened. However, according to the latest figures provided by the Hong Kong Housing Authority ("HKHA"), the average waiting period for family applicants is as long as 4.7 years. Regarding the supply of PRH units, HKHA has frankly admitted that the target of producing 280 000 PRH units set by the Long Term Housing Strategy would be hard to achieve. Apart from the supply of PRH units, many measures proposed in LEUNG Chun-ying's election manifesto, including the policy of "Hong Kong property for Hong Kong residents", have been reduced to jokes in the end. The average per-square-foot price of the third batch of flats at One Kai Tak has already risen to $18,545. Regarding the proposal to redevelop old public housing estates with outdated facilities but possessing redevelopment potentials, with the exception of Wah Fu Estate, there is no timetable for redevelopment of other aged housing estates. LEUNG Chun-ying has reneged on all his promises on housing policies. In the five years during his tenure, he has been shirking responsibilities for failing to find land and achieve the targets of housing production to environmental groups and the Legislative Council. As a professed expert in housing and lands, LEUNG Chun-ying should have understood the planning procedures as well as the problems of land development in Hong Kong before assuming office. Since he has not considered the restrictive factors when preparing his election manifesto, he will surely fail to deliver his promises in the end. At present, all Chief Executive candidates have proposed a number of major plans. I hope that they can learn from the experience of the current-term Government and propose feasible measures, and will not use all sorts of excuses to shirk responsibilities when faced with difficulties.

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It is a fact that Hong Kong is faced with the problem of housing. In this connection, one of the Chief Executive candidates has proposed the target of providing 60% of the total population of Hong Kong with subsidized housing. This is in line with the housing policy advocated by the Democratic Party all along. As we pointed out during our discussion with Secretary for Transport and Housing Prof Anthony CHEUNG earlier, since he agreed that meeting the public demand for affordable housing should be the basis of planning and the due responsibility of the Government, and given the current problem of soaring private property prices, we should squarely face the need of many people waiting for PRH allocation, and start planning on the basis of providing affordable housing. As I have repeatedly stressed in the Legislative Council, property prices have been rising so quickly in recent years that whatever measures the Government has introduced to intervene the market, property developers and the public have their own way to deal with such measures, and eventually the policies could not achieve their intended effects. Property is not only a product to meet housing needs, but also a very important investment tool. In the face of a continuous inflow of hot money into Hong Kong, the authorities have tried to introduce policies to avert the market situation, but these efforts are only a drop in the bucket. Thus, I always think that the Government should focus on dealing with the home acquisition and accommodation needs of Hong Kong people and formulate policies to provide affordable housing for the public by introducing various subsidized housing schemes, including PRH and subsidized Home Ownership Scheme ("HOS") units, or even reintroducing the Sandwich Class Housing Scheme. As such, members of the public can rely on and trust the Government to provide affordable housing for them, so that they will not be affected by investment or speculative activities in the market. As I have pointed out time and again in the past, the Government should extend the coverage of subsidized housing. The Government should, for example, provide subsidized housing for a four-member household with a total monthly income of less than $60,000 to increase its chance of home acquisition. Regarding future planning of housing production, I hope the Government can increase the proportion of subsidized housing. Apart from building PRH estates and increasing the production of HOS flats, I hope the Government can also consider introducing various subsidized housing schemes to rebuild the home acquisition ladder. In fact, since there are restrictions on the status of buyers of subsidized flats and, coupled with the Government's involvement, "no frills" flats can be built to actualize the effect of "Hong Kong property for Hong Kong residents" and priced at a level affordable by the general public.

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Some may say that the above mentioned goals are just wishful thinking, yet under the housing policy of Singapore as often mentioned by Hong Kong people, more than 80% of the Singaporeans live in public housing managed by the Housing and Development Board. According to the Long Term Housing Strategy, the target of housing production set by the Government includes 280 000 PRH units and 200 000 private housing units. The proportion of public to private housing units is about 6:4, but the proportion of sites for building public housing to those for building private housing is 5:5. If the proportion of sites for building public and private housing can be increased from 5:5 to 6:4, turning sites initially earmarked for low-density private housing development into sites for public housing development, the number of PRH units produced can be greatly increased from 280 000 to 336 000. Certainly, the exact number has yet to be calculated, but changing the proportion will surely increase the supply of PRH units. There is indeed a big gap in the supply of housing, particularly that of public housing. If the Government insists on not changing the proportion of sites allocated for different purposes, it will be totally ignoring the biggest problem of housing faced by the public and refusing to squarely face the people's aspiration of living and working in peace and contentment. Let us consider the following set of figures. The current median income of a four-member household is $38,000. For a household to pass the stress test of mortgage repayment not more than 40% of the household income, the maximum monthly mortgage repayment is $15,200. Calculating on the basis of a 25-year repayment period and the prime interest rate, such a household can, theoretically, afford to buy a flat priced at around $6 million, but the buyer has to pay a down payment of $2.4 million at the same time before home acquisition is made possible. If the buyer has to take out mortgage insurance, the mortgage repayment will increase to $20,000. Taking out mortgage insurance can reduce the amount of down payment, but since the mortgage repayment has increased to $20,000, it has already exceeded the maximum mortgage repayment amount under the affordability test. According to the figures provided by the Rating and Valuation Department, the average per-square-foot price of a flat of 400 sq ft to 700 sq ft is $15,000 on Hong Kong Island, $12,400 in Kowloon and $9,800 in the New Territories. If we adopt the usual practice of adding 30% to the price for new flats, one can only

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buy a flat of 300 to 400 sq ft with $6 million. Will such a flat be an ideal residence for us? LEUNG Chun-ying said that we should be able to live in a better living space, but is that true? Let us look at another set of figures. In the period from 2013 to 2018, about 72 800 PRH units will be produced. Compared with the target of producing 280 000 PRH units as stated in the Long Term Housing Strategy, that is, 28 000 PRH units per year, there is still a big shortfall. How will the Government make up this shortfall? If the Government does not directly deal with the arrangement of site allocation, but shirk its responsibilities by accusing the environmental groups and the District Councils for hindering development, it will be acting unfairly. Although the Government often says that it intends to put the property market back on the right track by adjusting the supply in the private sector and striving to lower private property prices to levels affordable by the public, I think such thinking is somewhat unrealistic. Does the Government intend to suppress property prices to a level that is affordable by a four-member household with a monthly income of $38,500? Can the Government imagine the strong impact of such a strategy to the property market? In my view, the most sensible and reasonable approach is to separate the private property market and the market of affordable housing provided by the Government. As an externally-oriented economy, there is always a huge inflow and outflow of hot money. If the Government cannot focus on providing affordable public housing for the people, I cannot imagine how the problem of housing supply can properly be addressed by relying on the supply in the private property market. The Government should carefully consider adjusting the current proportion of sites allocated for public and private housing development from 5:5 to 6:4. The Government should use this as a starting point to indicate to members of the public its sincerity to squarely face the problem by providing Hong Kong people with affordable housing. Otherwise, the housing problem will persist and people will still consider the Government favouring some people at the expense of others. Consequently disputes will never cease. I so submit.

Thank you, Deputy President.

MR MICHAEL TIEN (in Cantonese): Deputy President, the Government is represented by three Policy Secretaries in this debate session. I am glad to see Secretary for Transport and Housing Prof Anthony CHEUNG and Secretary for Development Eric MA attending the same meeting in Council today, because

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their respective bureau always works hand in glove. Following Secretary Paul CHAN's promotion as the Financial Secretary, his former post is taken up by Secretary Eric MA. I hope the two Secretaries can put their heads together to consider the points I am about to raise. Deputy President, whenever I visit Tung Chung, I am always bombarded by the local residents who invariably complain that they have been cheated by the Government. When they first moved to Tung Chung, they thought they could go to work easily, yet it turns out that they are worse off than those people living in Tsing Yi. It is absolutely not a case of "getting nearby employment". I have raised this point numerous times. If Tung Chung is to be developed into a liveable community―an objective desired by the Development Bureau―the Government must ensure that the local residents can get nearby employment. If this objective is to be achieved, the Government must ensure good intra-district connection. In the next 10 years, with the successive completion of various infrastructure projects, 140 000 new jobs will be created in Tung Chung by the three-runway system, the Hong Kong-Zhuhai-Macao Bridge, the artificial island as well as the AsiaWorld Expo. Meanwhile, the expansion of the Tung Chung new town will also increase its population by 140 000. Without a direct rail link to connect these four major employers, it simply does not work by just relying on the two existing franchised bus routes, namely S1 and S56. Deputy President, I have discussed the matter with some experts. They consider that notwithstanding the limited resources, there is still a quick and effective solution to the problem. As the Airport Express Line and the Tung Chung Line Railway share the same track across the Tsing Ma Bridge, train service is limited to an 8-minute headway at most, no matter how frequent the service is to be increased in future. Under the proposal, the 8-minute interval can be used to operate a shuttle rail service between a new Tung Chung East station, the Airport and the AsiaWorld Expo. As a matter of fact, the proposal is definitely feasible. According to the estimates made by the experts, constructing a new station as well as acquiring new rolling stock and the signaling system will cost about $2 billion to $3 billion. This amount, plus the cost in operating the system, may incur a loss every year. The reason is that this railway is meant to provide low-cost rail service to the residents in Tung Chung. Hence, some passengers bound for the airport may get off at Tung Chung and interchange onto the new rail line, thus creating a shortfall in revenue. But even with this

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operating cost factored in, the cost of the entire system will only be increased to $4-odd billion as calculated on the basis of an internal rate of return for 20 to 30 years, which is still much lower than spending some $20 billion to construct a new light rail system from scratch. Isn't that right? Moreover, if the proposal is put into implementation, the project can be completed in tandem with the Tung Chung East reclamation. I have tried to seek the Development Bureau's views on the proposal on a number of occasions. However, they pointed out that the matter might have to be discussed by the Transport and Housing Bureau. But when I raised the proposal to Secretary Prof Anthony CHEUNG, the Transport and Housing Bureau said that no new development has been made, and they could hardly put forward a concrete proposal for discussion. In fact, I had asked the two Secretaries a long time ago which Policy Bureau should be responsible for the matter. Secretary Prof Anthony CHEUNG, can you incorporate this proposal into the Tung Chung East reclamation project when it is presented to the Council for discussion by Secretary Eric MA? As a matter of fact, Secretary Prof Anthony CHEUNG, even without any new development, transport services in Tung Chung need to be improved urgently as the two existing franchised bus routes can hardly meet the need of local residents commuting to the Airport to work. Another long-standing concern of mine is related to the Light Rail ("LR") in New Territories West. Seemingly, it has nothing to do with Secretary Eric MA. But of course, he has everything to do with it. The Hung Shui Kiu New Development Area will provide home for more than 100 000 people in future. Given that the future population of the district will increase by 500 000 in total, the transport services in New Territories West will definitely be overloaded, with Hung Shui Kiu being one of the most hard-hit areas. Deputy President, you may not be familiar with New Territories West. I can take you for a walk in the area any time you are free. In areas such as Yuen Long South and Kam Tin South, it is just mission impossible to solely rely on LR to provide feeder service to the West Rail ("WR"). According to the Administration, a new WR station will be constructed in Hung Shui Kiu, and feeder service to the station will be provided by LR. But come to think of it, WR will reach full capacity soon, and the Administration should be starting to plan for a new railway. Considering that the existing LR is already fully loaded with passengers, if a new light rail system is built to feed new passengers onto

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WR, WR will definitely be overloaded. Secretary Prof Anthony CHEUNG, I am aware that the Administration will address the problems facing LR in the context of the Public Transport Strategy Study to be completed in June. As pointed out by me at the last meeting of the subcommittee, to resolve problems relating to LR, the Administration should devise a short- and medium-term proposal, as well as a long-term approach. First of all, actions to be taken in the short and medium terms involve the rationalization of LR routes. At present, three LR routes are plying between Yuen Long and Tuen Mun, with a daily patronage of over 20 000. In fact, many passengers have now switched to WR. If the three groups of LR vehicles ("LRVs") are consolidated into one, a large number of passengers will interchange at Siu Hong station, and 10-odd LRVs can be released. If these 10-odd LRVs are deployed to provide service during the morning peak, which is now operating close to full capacity, many single-set LRVs can run as coupled-set LRVs. Deputy President, frankly, I have been chided by the local residents repeatedly. Just imagine, during the morning peak, the whole LR platform is packed with people. Then a single-set LRV slowly arrives, and only about one third of the passengers can board the train. Actually some LR routes are served by coupled-set LRVs, and passengers of those routes served by single-set LRVs are naturally frustrated. What annoys them more is that on weekends when there are significantly fewer commuters, coupled-set LRVs are deployed to serve those routes. The local residents really have a hard time figuring out why single-set LRVs are deployed when service demand is at the greatest, while coupled-set LRVs are deployed to run on weekdays without obvious reasons. Clearly the answer is that given the great demand of all routes during the peak periods, there are not enough LRVs for deployment. But the acquisition of new LRVs may take seven or eight years for delivery. That is why I propose that LR routes should be rationalized to release some LRVs, so that more routes can be served by coupled-set LRVs. Secretary, there is another point I would like to make. As you did not attend the last meeting of the subcommittee when the matter was discussed, I would like to relay my point to you personally. In fact, LR is a system left behind by history. Built several decades ago, it has become outdated because it takes up a tremendous amount of road space. Moreover, as the existing LR routes operate along 11 junctions with busy traffic, there are often serious

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conflicts in the use of road space between LR and other vehicles, particularly franchised buses. Secretary Prof Anthony CHEUNG, one of the solutions you can explore with other Policy Bureaux is whether the sections of LR along these 11 junctions can be diverted to underground tunnels, so that the at-grade road space taken up by LR can be released to facilitate better traffic flow. Finally, I have a few words for Secretary Eric MA. In the long run, you should never count on LR to provide transport services for the new development area under the purview of your Policy Bureau, which will have a total population of 500 000. Instead, the Government should construct a new railway similar to the South Island Line. The new system which operates fully automatic three or four-compartment trains will have part of its alignment along light rail tracks and part via tunnels, so that those 500 000 people in the New Territories can be fed into WR without having to travel on LR. Of course, it would be another story should WR operate to capacity in future, and the Government decide to construct a fifth cross-harbour railway system to connect Lantau with the urban areas. Nonetheless it is clear that LR itself can never cope with the demand of new population in the district. If the Administration decides to implement the new railway I proposed, it can also help resolve another problem faced by LR. In fact, several major LR routes should no longer operate as an at-grade light rail system. I believe many Members know where the Yuen Long Main Road is. The traffic there is so busy that it is terrifying. The situation is the same along the major LR routes serving Tin Shui Wai South and Tin Shui Wai North. But if a new railway is constructed, some major LR routes serving these most hard-hit areas can also operate underground. In other words, the new system can serve the new development area, while replacing some of the existing LR routes. If the two systems can complement each other, hopefully, they may provide enough capacity to support the development of North West New Territories for another two to three decades. I hope the two Secretaries can spend some time to discuss my proposals, so that positive outcome can be achieved. Thank you.

DEPUTY PRESIDENT (in Cantonese): Does any other Member wish to speak? (No Member indicated a wish to speak)

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DEPUTY PRESIDENT (in Cantonese): If no Member wishes to speak, I will invite the three public officers to speak. On the basis of the 15-minute speaking time for each officer, they may speak for up to a total of 45 minutes.

SECRETARY FOR THE ENVIRONMENT (in Cantonese): Deputy President and Honourable Members, I thank Members for their views. I will now outline the key initiatives of the Environment Bureau's work in future and respond to the views expressed by Members in several aspects including climate change, nature conservation, waste management, air quality and water quality of Victoria Harbour as follows. Combating climate change The first-ever universal global deal to combat climate change, the Paris Agreement, came into force in November last year, and it also applies to Hong Kong. The Steering Committee on Climate Change ("SCCC"), chaired by the Chief Secretary for Administration and comprising all Policy Bureaux, has examined the experience outside Hong Kong, reviewed the work undertaken by all parties concerned and consulted the views of various stakeholders and the public. As announced in the Policy Address, the Chief Executive has accepted SCCC's recommendations and set a target to reduce our carbon intensity from the 2005 level by 65% to 70% by 2030, which is equivalent to an absolute reduction of 26% to 36%, and a reduction of per capita emission of 3.3 to 3.8 tonnes. Meanwhile, the Government released the Hong Kong's Climate Action Plan 2030+ ("Climate Action Plan") on 20 January, setting out in greater detail the key measures on mitigation, adaptation and resilience to combat climate change. As electricity generation accounts for almost 70% of our carbon emissions, to achieve the new target, we need to replace, in phases, the coal-fired generation units which are due to retire by cleaner energy sources by 2030. This approach will have significant tariff impact, and a consensus in society is required. A number of Honourable Members have expressed concern about the latest development of renewable energy ("RE") in Hong Kong. The matter is thoroughly discussed in a dedicated chapter of the Climate Action Plan. For instance, RE will be applied by the public sector in comparatively mature technologies on a wider and larger scale in future. Moreover, the Government will create the conditions, such as undertaking further and more specific

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consultancy studies to better promote the potential use of solar power generation in buildings, and generally speaking, to promote the greater use of relevant technologies in private buildings. Of course, the Government will take the lead, and a sum of $200 million has been earmarked for provision of RE installations at government buildings, venues and facilities. We are also discussing with the two power companies in the context of the new Scheme of Control Agreements ("SCAs") the introduction of new measures to further promote the development of distributed RE. Raising the energy performance of buildings is an important measure to mitigate the negative effect of climate change. The Government pledged in the 2015 Policy Address to reduce electricity consumption by 5% for government buildings in five years, using the electricity consumption in operating conditions of 2013-2014 as the baseline. To this end, we have already implemented a series of measures, including carrying out energy audits for major government buildings with comparatively high electricity consumption. So far, we have already completed energy audits for over 200 buildings and will complete energy audit of the remaining some 150 major government buildings later this year. To help various departments implement electricity saving projects identified in the energy audits, we have earmarked at least $500 million to gradually implement the relevant energy saving projects. As far as existing buildings are concerned, the private sector and the Government have established a partnership with major stakeholders in the built environment under the 4Ts framework, namely target, timeline, transparency and together, in order to share their existing and planned energy saving measures. The Government is also discussing with the power companies on ways to further promote energy saving in the context of the new SCAs. To raise public awareness of the importance of combating climate change, we will publicize the actions required to be taken by the Government as well as other stakeholders through different channels. The Government will also allocate resources to support non-profit-making organizations in carrying out public education activities and demonstration projects on climate change. All in all, under the framework of the Paris Agreement, all the Parties will stock-take their actions to combat climate change once every five years.

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Nature conservation On 21 December last year, the Government announced its policy to introduce a three-step plan to phase out local trade in ivory and impose heavier penalties on smuggling and illegal trade of endangered species. The first step is to ban the trade on elephant hunting trophies on the effective date of the legislative amendments, followed by a ban on import/export of pre-Convention (Convention on International Trade in Endangered Species of Wild Fauna and Flora) ivory three months afterwards, and finally a ban on domestic trade as well by end of 2021. We are preparing the amendment bill, which is expected to be submitted to the Legislative Council around the middle of this year. On the same day, the Government also announced the first city-level Biodiversity Strategy and Action Plan ("BSAP") for Hong Kong. BSAP outlines the strategy and actions to be taken in the next five years for conserving biodiversity as well as supporting sustainable development. The Government has already earmarked $150 million for the relevant initiatives under BSAP in the first three years. A number of Honourable Members have expressed concern about our country parks. Country parks are precious assets for their leisure, recreational, sports and conservation values. In the past few years, we have incorporated a number of enclaves, such as Sai Wan, into country parks, increasing the total area of designated country parks and special areas by 38 hectares or so. Looking forward, we will designate Robin's Nest, about 500 hectares, a new country park. The Government will also establish a Long Valley Nature Park with an area of about 37 hectares as part of the development of the Kwu Tung North and Fanling North New Development Areas. Country parks aside, the Government has been adopting a flexible approach in recent years to support and promote the conservation of rural areas through harnessing community efforts. Many Members have spoken positively about the example of Lai Chi Wo. With the support of local villagers, the Government is actively collaborating with a number of non-governmental organizations to take forward different initiatives with various funding sources to rejuvenate its ecological, cultural and architectural environment. To further promote the revitalization of remote rural areas, the Government will, for the purpose of setting up a conservation fund, establish a preparatory committee with

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members representing different stakeholders to study the ambit and modus operandi of such a fund, as well as the legislation and resources required, taking into account relevant local and overseas experience. In addition, we are actively considering the conservation of Sha Lo Tung through a non-in-situ land exchange for the private land with high ecological significance at Sha Lo Tung by offering the rehabilitated Shuen Wan Landfill in Tai Po, so as to put the conservation areas in Sha Lo Tung under the Government's active management. Many Members have expressed support for the proposal. As a follow-up, the relevant Policy Bureaux and departments will keep engaging the owners in negotiation. To support the efforts in sustainably developing and conserving Lantau, the Government will implement rural conservation pilot projects in areas such as Tai O, Shui Hau and Pui O, under which different Government and community resources will be deployed to take forward various rural conservation initiatives, including nature conservation and education, revitalization of the village environment, as well as promotion of ecological tourism. All in all, the aim is to promote integration between the rural and urban areas. Waste management With the Hong Kong: Blueprint for Sustainable Use of Resources 2013-2022 as the main thrust, we will continue to undertake various initiatives to promote the message of "Use Less, Waste Less". Based on the implementation framework recommended by the Council for Sustainable Development, we have been undertaking the necessary preparatory work for introducing municipal solid waste ("MSW") charging in active consultation with different stakeholders. We plan to introduce a bill into the Legislative Council in this session. Meanwhile, community involvement projects funded by the Environment and Conservation Fund have also commenced to prepare different sectors for the implementation of MSW charging. We have been making the necessary preparation to bring the producer responsibility schemes ("PRSs") on waste electrical and electronic equipment ("WEEE") and glass beverage containers into operation by phases in 2017 and 2018. In this regard, we would be introducing the subsidiary legislation to

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provide for the operational details, while the WEEE Treatment and Recycling Facility is scheduled for commissioning in the middle of this year. We would also start inviting tenders for the provision of collection and treatment services for the recycling of glass containers. In addition, we will commission a feasibility study to explore how to implement a PRS targeting suitable plastic containers, mainly those carrying beverages or personal care products. PRSs can help promote waste reduction and recycling to facilitate the implementation of quantity-based MSW charging. We also attach much importance to the handling of construction waste. The disposal charges will be increased with effect from 7 April 2017 to maintain the effectiveness in reducing waste. Meanwhile, we are drawing up the regulatory regime and preparing the legislation required for mandating the use of Global Positioning System on construction waste collection vehicles, so as to further combat illegal depositing of construction waste. In terms of food waste reduction, we will continue to develop Organic Waste Treatment Facilities ("OWTF") network in phases for recovery of energy and nutrients from food waste that cannot be avoided. Phase 1 of OWTF will be completed in the second half of this year. The Government has also commenced tendering for Phase 2 of OWTF situated at Sha Ling in the North District for commissioning in 2021. To encourage the commercial and industrial sectors to recycle and handle food waste properly, the Government will implement a pilot project to source separate and collect food waste from wet markets and cooked food centres managed by the Food and Environmental Hygiene Department, as well as wet markets and shopping malls managed by the Hong Kong Housing Authority, for delivery to the upcoming OWTF for treatment, with the ultimate aim of resource recirculation. In addition, we will provide tertiary institutions and primary/secondary schools with suitable support for on-site treatment of food waste, with a view to enhancing awareness of "food wise" culture among teachers and students. Air quality In terms of electricity generation by the power plants, the Government promulgated the latest Technical Memorandum (that is, the Sixth one) in November last year for setting the emission caps for 2021 onwards. When

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undertaking the upcoming review of the sixth Technical Memorandum in 2017, the Environmental Protection Department will take account of the new gas-fired generating units being constructed by the two power companies, so as to impose more stringent emission caps on power companies for 2022 onwards. As far as vehicle emissions are concerned, it is our standing policy to tighten the vehicle emission standards for newly registered vehicles in line with international developments when there is an adequate supply of compliant vehicles in Hong Kong. We have already consulted the Panel on Environmental Affairs of the Legislative Council as well as the relevant trades on our proposal to adopt Euro VI and the United States' California LEV III emission standards. The effecting legislative amendments will be introduced to the Legislative Council shortly. Regarding marine emissions, the Ministry of Transport issued an implementation plan for controlling marine emissions in three major regions including the Pearl River Delta ("PRD") Region in December 2015. A domestic marine emission control area ("DECA") will be established in PRD waters on 1 January 2019 such that all vessels, excluding military vessels, sport vessels and fishing boats, in DECA will be required to use low sulphur fuel (with sulphur content not exceeding 0.5%). We signed an agreement with the Mainland authorities last year, and a working group has been formed to collaborate on the implementation of the PRD DECA. We will continue with the review of the Air Quality Objectives. In this connection, we will consult the stakeholders' views about continuous improvement to air quality via a working group, and explore the further tightening of the objectives in a pragmatic manner. Water quality of Victoria Harbour With the full commissioning of Stage 2A of the Harbour Area Treatment Scheme in December 2015, the water quality of Victoria Harbour has shown further improvement last year. In terms of the key parameters of water quality, the levels of unionized ammonia nitrogen and E. coli bacteria have reduced by 15% and 70% respectively in the past year as compared with 2011 to 2015. We have also commenced a two-year consultancy study last year, which includes visual and odour patrol, field survey, water sampling and laboratory analysis to

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identify the sources of residual discharge into the Victoria Harbour. Targeted pollution control measures and engineering solutions will be developed to further improve the harbourfront environment. As a number of trunk sewers in Kowloon have been used for decades, we will rehabilitate these trunk sewers in 2017 which will help reduce and prevent pollution leakage. At the same time, we will construct dry weather flow interceptors at critical locations in Kowloon and Tsuen Wan to divert the residual polluted discharge to the foul sewerage for proper treatment. These projects will further help ameliorate the odour problems along these coastlines. Conclusion I call upon Honourable Members to continue supporting the work of the Environment Bureau, so that concerted efforts can be made to combat climate change as well as other environmental issues. Thank you, Deputy President.

SECRETARY FOR TRANSPORT AND HOUSING (in Cantonese): Deputy President, I thank 30-odd Honourable Members for their views and will give a consolidated response now. Soaring property prices, high rentals and housing difficulties have been plaguing our society and causing public grievances. In fact, some big cities overseas such as London and Sydney also face the great challenge of "affordable housing", but the situation in Hong Kong is even more acute. The problem of housing in Hong Kong is complex. We are plagued by a prolonged period of demand-supply imbalance, a strong internal demand, as well as external economic factors, including a worldwide environment of ultra-low interest rate and easy credit. To solve the problem at root, we must face the reality, increase housing supply, expedite housing production and further improve the housing ladder. When rentals of private property stand high, the role of public housing has become particularly important. While providing public rental housing ("PRH") is the way to resolve the housing problems of the grass roots, providing subsidized sale flats is the way to respond to the home ownership needs of the

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middle and lower classes. Certainly, as the Green Form Subsidised Home Ownership Pilot Scheme was well-received and has helped PRH tenants buy their own homes, we should consider whether it should be turned into a standing measure. However, if we refuse to admit that there is a shortage of housing supply, or keep delaying public housing construction, the problem of providing "affordable housing" will not be resolved. Nevertheless, we should not rashly decide to increase the ratio of public housing and ignore the complexity of the reality. Given the tight supply of housing, introducing measures such as rent control and redeveloping PRH estates on a large scale without careful consideration will not be conducive to increasing the supply; but may create adverse results instead. Miss Alice MAK said that the Government should regulate subdivided units. In fact, that was the measure put forward by the Long Term Housing Strategy Steering Committee in the public consultation exercise in 2013, but it was not supported by society back then. Concerning this issue, I gave a detailed explanation in the motion debate of the Legislative Council held on 7 December last year and I shall not repeat now. After extensive studies and public consultation, the current-term Government published the Long Term Housing Strategy in December 2014 and adopted the supply-led strategy. Under this strategy, the Government updates the long-term housing demand projection annually according to objective figures, presets a rolling 10-year housing supply target and seeks sites for housing development according to the target. Meanwhile, it has maintained the public/private split of 60:40 for the supply of new housing units. The key to achieving the target of producing a total of 460 000 housing units in the next 10 years lies in the timely identification of a large amount of land required. However, in relation to public housing, even if all the sites identified so far can be made available for housing development as scheduled, only 236 000 units can be produced, representing an obvious shortfall when compared with the supply target of 280 000 units. The relevant Government departments will surely continue to make efforts in identifying sites, but the support of all sectors of the community and their willingness to make compromises in terms of land use are needed. I think the entire community has to focus on discussing how we can practically increase the supply of available sites and reasonably allocate our land resources. With land and social consensus, anything is possible; without land and social consensus, everything is difficult.

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At present, it takes about three and a half years to build a 40 storey PRH block, which is similar to the time required in a private housing development project. Nevertheless, most of the approved sites available to the Hong Kong Housing Authority are not "spade-ready" sites, and so land development, rezoning and preparatory work are required. In carrying out various tasks including district consultations, technical studies, statutory planning procedures, resumption and clearance, provision and reprovision of facilities, site formation and provision of infrastructure, and so on, we often face challenges and even resistance. It takes a longer time to deal with different demands and sometimes even legal challenges are involved. If a public housing project involves works to be funded by the Government, e.g. road improvement works, we have to seek funding approval by the Legislative Council and the time required will vary. If the above mentioned process is dragged on and on due to various factors, some housing projects will definitely fall behind schedule. The demand for public housing has been on the rise in recent years. Since the current-term Government assumed office in the mid-2012, the number of PRH applicants has increased by 45%. As the speed of increasing housing supply cannot catch up with the growth in demand, the average waiting time has become longer and longer and the situation has worsened to an alarming state. In the face of the serious demand-supply imbalance, the Government has strictly implemented the supply-led strategy in recent years, but it takes time to achieve the full effects. Moreover, there is still the risk of a property bubble. Thus, the Government has to maintain various demand-side management measures to curb speculation and external demand, control investment-led demand, give priority to meeting the home ownership needs of Hong Kong permanent residents and stabilize the property market. I understand Mr Abraham SHEK's view that no government can overpower the big market forces and a government can only make the proper moves in light of the situation. Nevertheless, no government can ignore market distortions caused by various internal and external factors. In reality, that is our position in governance. Deputy President, in respect of transport, the policy of the Government is primarily based on public transport development with railways as the backbone. This policy also aims to reduce the reliance on private cars and make good use of road resources to reduce congestion; drive the development of green transport; as well as promote walking and a bicycle-friendly environment.

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The World Economic Forum has, for the seventh year, ranked Hong Kong first in terms of infrastructure in the global competitiveness ratings. The Government will continue to actively invest in constructing major transport infrastructure. The Kwun Tong Line Extension and the South Island Line (East) of MTR commenced service last year. We are now pressing fully ahead with the Shatin to Central Link and expecting the Tai Wai to Hung Hom section to advance the commencement of service to mid-2019, while maintaining the target of commencing the service of the Hung Hom to Admiralty section in 2021. By then, the railway network will cover more than 70% of all populated areas in Hong Kong. Some people have expressed their concern that the railway service will monopolize the public transport market. On the other hand, others from various districts have demanded the Government to build more railway lines and extend the service to the areas where they live. The views are in fact somewhat conflicting. The Government has invited the MTR Corporation Limited at various times to submit proposals on the four railway projects of the Northern Link and Kwu Tung Station, Tuen Mun South Extension, East Kowloon Line and Tung Chung West Extension and Tung Chung East Station, so as to gradually take forward the proposals in the Railway Development Strategy 2014. The projects of the Central-Wan Chai Bypass and the Tuen Mun-Chek Lap Kok Link are progressing at full speed despite certain challenges in works and works schedule. Works of the Tseung Kwan O-Lam Tin Tunnel commenced at the end of last year and the project is expected to be completed in 2021. Later on, we will seek funding approval from the Legislative Council for the major project of the Central Kowloon Route, with a view to commencing works this year in the hope that the service can commence in 2025. To cater for the long-term development and population growth of North West New Territories, the Government will endeavour to increase the capacity of the West Rail Line and Light Rail in the short term, as well as commence a feasibility study on Route 11, which will connect North West New Territories and the urban areas and provide a third strategic access to Lantau and the airport. In addition, we will take forward strategic studies on railways and major roads beyond 2030 to tie in with the strategic study of "Hong Kong 2030+", including exploring the needs of major transport infrastructure (including railways) in the areas of Lantau, North West New Territories, North New Territories, and so on. However, I have to point out that the planning and implementation of transport

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infrastructure projects are not in any way easier than those of housing projects. In particular, there are often disputes at the district level on cost effectiveness, alignment, location of stations, environmental impact, resumption and clearance of land, and so on. Regarding cross-boundary transport infrastructure, the expected completion dates of works of the Mainland and Hong Kong sections of the Hong Kong-Zhuhai-Macao Bridge Main Bridge ("HZMB") are December this year and by the end of this year respectively. According to the recent assessment of the Joint Works Committee of the Three Governments of Guangdong, Hong Kong and Macao, the three sides will strive to complete the entire HZMB project by end 2017 for early simultaneous commissioning. The works of the Hong Kong section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link ("XRL") are progressing steadily. We are taking forward operational preparations to meet the target of commencing service in the third quarter of next year. At present, we are still striving to discuss with the relevant Mainland authorities the legal arrangements of the co-location of boundary control facilities at the XRL West Kowloon Terminus and will revert to the Legislative Council and society when we have the final results. Regarding public transport, since the end of 2014, we have been conducting the Public Transport Strategy Study which examines the role and positioning of public transport services other than railway with a view to enhancing the existing strategic arrangements of our public transport services. In the past two years, we have conducted eight specified Topical Studies1 and have completed the priority study on public light bus service and recommended increasing the maximum seating capacity of public light buses. After listening to the views of various sectors, we are drawing up proposals to further enhance personalized and point-to-point transport services (including taxi services). Meanwhile, the Transport Department has relaxed the assessment criteria for issuing a hire car permit where appropriate. It is expected that the entire Public Transport Strategy Study will be completed in the middle of this year.

1

These studies include the service level of franchised bus, school bus service, seating capacity of public light buses, supply of taxis, taxi fuel surcharge, statutory cap on the number of public light buses, review of ferry service, and accessible public transport services for people with disabilities.

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Apart from making efforts to improve the standard of public transport services, we will improve the waiting environment for passengers of public vehicles and ferries, encourage the provision of real-time arrival information, improve the facilities at public transport interchanges and ferry piers and continue to promote barrier-free transport. It is expected that franchised bus operators will replace all buses to low-floor buses later this year, except for a very small number of buses serving routes in Lantau due to constraints of the terrain. Meanwhile, we are also planning to introduce new low-floor light buses for trials on three hospital routes2 in the second half of this year. Deputy President, road traffic congestion is getting worse. The Government is taking forward progressively a series of measures recommended by the Transport Advisory Committee earlier, including commencing a parking space policy review to accord priority to meeting the parking needs of commercial vehicles, exploring measures to control vehicle growth and carrying out an in-depth feasibility study on an Electronic Road Pricing Pilot Scheme in Central and its adjacent areas to draw up specific implementation proposals this year. At the same time, we will conduct a study on the overall strategy for the rationalization of traffic distribution among the three road harbour crossings to formulate toll adjustment options for discussion in the Panel on Transport of Legislative Council in the next legislative year. We will also step up our efforts in combatting illegal parking. Under the public transport based policy, the Government will continue to implement projects in various districts under the Universal Accessibility Programme and encourage the people to walk more or use bicycles where appropriate to connect them to public transport facilities, so as to promote a green mode of transport. To achieve this aim, we have commenced the "Walk in HK" programme to create a comfortable walking environment. At the same time, we will continue to promote a "bicycle-friendly" environment in new towns and new development areas and study how to assist organizations in operating community bicycle services on a non-profit making basis. Deputy President, transport and transportation involve many stakeholders, including various industries, and there are different demands in the districts. Thus, the Government will strike a balance in the overall interest of the public in 2

The three proposed routes for trial include the green minibus routes via Queen Mary Hospital, Prince of Wales Hospital and St Teresa's Hospital.

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making decisions and handling matters. Certainly, we will not be complacent and will keep abreast of the times and the latest developments in innovative technology. I so submit.

SECRETARY FOR DEVELOPMENT (in Cantonese): Deputy President, Honourable Members, I would like to thank Honourable Members for their speeches in the session on land, housing, transportation, environment and conservation. I am going to explain and give a response in respect of the policies and measures on land planning and development. Increasing Land Supply Land is key to Hong Kong's sustainability in terms of social and economic development and people's livelihood. The current Government is committed to facilitating steady and continued land supply, not only for providing people with a place to live and work, but also for the development of Hong Kong's commerce, industry, innovation and technology and various emerging sectors, as well as for creating conditions for better town planning. Land supply involves long-term and sustainable efforts and the Government's multi-pronged land supply strategy is bearing fruit. In the short to medium term, various land supply measures can provide more than 380 000 residential units. For the medium to long term, new development areas ("NDAs"), extended new towns and potential railway property development projects now under planning can provide more than 220 000 residential units. Generally speaking, various short-, medium- and long-term land supply projects can provide more than 600 000 residential units. We have also identified about 25 potential housing sites; subject to timely amendments to the relevant statutory plans and completion of the necessary procedures, most of these sites can be earmarked for housing development in the five financial years from 2019-2020 to 2023-2024, producing more than 60 000 units, of which more than 80% will be public housing. However, to achieve these housing objectives, we still have to face many challenges; most important of all, we must have the understanding and cooperation of the public and stakeholders in order to move towards this common goal.

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Private Housing Land Supply In 2016-2017, the Government has sold and will sell a total of 22 residential sites for producing about 14 700 units. As of January 2017, land put up for sale by the Government in the five financial years from 2012-2013 to 2016-2017 has the capacity to produce about 51 100 units, more than double of that the five previous financial years. Taking into account other sources of supply, the overall private housing land supply in 2016-2017 is estimated to be capable of producing over 19 000 units, exceeding the annual target for the third consecutive year. The Government will pay close attention to the market situation and continue to supply more private housing land to the market so that the property market will develop steadily. Selling Industrial and Commercial Sites Mr YIU Si-wing expressed concern about the supply of commercial/business sites, especially hotel sites. In 2016-2017, the Government has sold and will sell a total of nine industrial and commercial sites, providing a total of about 555 000 sq m of floor area. Since the Government's resumption of land sales in 2010-2011, the sale of industrial and commercial sites by the Government this year provide the largest amount of floor area. From 2012-2013 to 2016-2017, the Government has sold three hotel sites, providing about 1 920 rooms. Mr YIU has paid special attention to the availability of hotels in the Kai Tak Development Area. When the Government re-examines the land use of the former runway, we suggest that a site near the cruise terminal/tourist hub should be rezoned from residential uses to commercial uses (including hotels) to achieve synergy, while the sites farther away from the cruise terminal/tourist hub should be rezoned for residential uses, in response to the public's urgent housing needs. Even so, after land restructuring, three commercial sites with hotel elements will still be located at the end of the former runway to support the development of the tourism hub. In addition, there will also be hotel developments in the tourist hub, "Comprehensive Development Area (1)" of the Kai Tak City Centre and Kai Tak Multi-purpose Sports Complex.

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Medium to Long Term Land Supply For the medium to long term, we are determined to implement as soon as possible a number of large-scale projects, including NDAs and new town extensions, with focus on Kwu Tung North and Fanling North, Tung Chung, Hung Shui Kiu and Yuen Long South. Various NDAs and new town extension projects have been progressing well. For example, for the Kwu Tung North and Fanling North NDAs, funding has been obtained from the Legislative Council for the detailed design of advance works. The project will provide 60 000 units and the first population intake is expected in 2023. I thank Mr LAU Kwok-fan for his concern about the project. We have formulated a new compensation and rehousing package for the affected persons including squatter residents. As regards the residential care homes for the elderly at the Dills Corner Garden, reprovisioning has started. The Labour and Welfare Bureau as well as the Development Bureau are following up on the specific arrangements. Tung Chung reclamation is also an important source of land supply. Being the first new town expansion project after 1990s, it will provide 49 400 units. We will later apply to the Legislative Council for funding approval with a view to commencing the works next year, and the first population intake is expected in 2023. Making optimal use of brownfield sites is also a key direction under the Government's multi-pronged land supply strategy. Dr YIU Chung-yim and Mr HUI Chi-fung expressed concern that the use of the existing brownfield sites has not been optimized. We would like to say that major development projects including the Hung Shui Kiu NDA, Yuen Long South and the Kwu Tung North/Fanling North NDAs will provide a total of 940 hectares of land for development, of which, 340 hectares of brownfield sites will be released. We hope Members who support the development of brownfield sites would support these projects and the relevant funding applications. I would also like to point out that many industrial operations are now conducted on brownfield sites. If we only talk about the development of brownfield sites and evade the need of these industries for land, the operations of these industries will eventually extend or move to other areas. In this connection, we will explore how to provide suitable operating spaces for these

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brownfield operations through comprehensive policies and long-term land planning, including exploring the possibility of integrating brownfield operations into multi-storey buildings. The Planning Department will also conduct comprehensive surveys on the distribution and use of brownfield sites in the New Territories, so as to assist the Government in formulating appropriate brownfield policies and strategies. The Government will also continue to take enforcement action against illegal use of rural sites, including brownfield sites. Reclamations outside the Victoria Harbour We would also like to thank Prof Joseph LEE, Mr CHAN Kin-por, Mr SHIU Ka-fai and other Honourable Members for their support for reclamations outside the Victoria Harbour. Reclamation is still an important means to increase land supply. Apart from Tung Chung reclamation, we will seek funding for launching a planning and engineering study on reclamation in Sunny Bay. We are also planning to launch expeditiously planning and engineering studies on reclamations in Ma Liu Shui and Lung Kwu Tan, so as to provide land for advanced technology and knowledge-based industries, as well as for residential and other uses. Long-term planning strategy Regarding the long-term planning strategy, we have formulated specific proposals in the light of the "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" ("Hong Kong 2030+") and launched a six-month public engagement in October 2016. We have proposed a conceptual spatial framework for the long-term development of Hong Kong, with the focus on two strategic growth areas, namely the East Lantau Metropolis and New Territories North. "Hong Kong 2030+" estimates that Hong Kong still lacks at least 1 200 hectares of land in the long run. The development of the two strategic growth areas will not only meet the demand but also enhance the overall development capacity of Hong Kong. This will provide us with flexibility and buffer to respond to ageing population and buildings; enhance liveability and improve living space; capitalize on the future economic opportunities and challenges; promote wise, environmentally friendly and resilient urban development strategies, as well as mitigate the current imbalance of the distribution of home and job locations.

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At the same time, we must strengthen Hong Kong's overall development capacity and enhance the capacity of the environment, in order to work out practicable planning and development strategies for the sustainable development of Hong Kong in the future. We also thank Mr Jeffrey LAM and Mr SHIU Ka-fai for touching upon the development of country parks as mentioned in the Policy Address. As pointed out by the Chief Executive in the Policy Address this year, in the face of the continuous shortage of developable sites and public housing supply in Hong Kong, we must consider Hong Kong's long-term sustainable land use strategy. Apart from making strenuous efforts to conserve the rural areas and countryside, we should consider using a small proportion of land on the periphery of country parks with relatively low ecological and public enjoyment value for purposes other than real estate development such as public housing. The current Government does not have any specific plans for using any part of the land in country parks and special areas for other purposes. The land development strategy that "Hong Kong 2030+" advocates does not involve rezoning country parks. The Policy Address raises this issue in the hope that the community can think about the general direction of land use in Hong Kong in the future. Managing Public Works Projects Costs In the face of the challenge of high construction costs, the Development Bureau set up a dedicated office for managing project costs last year. The office has so far examined about 60 works projects at a gross value of about $170 billion and achieved project cost savings of about $13 billion. In addition, under the collaboration of the stakeholders and the impact of economic conditions, the Construction Tender Price Indices have gradually stabilized despite the rising trend over the past few years. In the coming year, we will strengthen cost control such as enhancing the procurement procedures for public works projects, raising the project management level of government professionals, and introducing other measures to increase productivity and reduce manpower requirements, so as to achieve cost reductions. For instance, we will adopt the guiding principle of "design for buildability" and employ building information modelling technology in major government projects. We also support the setting up of an innovation and technology application centre by the Construction Industry Council to introduce innovative technologies into the construction industry to enhance productivity.

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Manpower Development for the Construction Industry As regards manpower development for the construction industry, as Mr POON Siu-ping has commented, we have been committed to maintaining a stable, sustainable and healthy development of the construction industry, so that construction workers will have sustainable development opportunities and they will not be "overworked at one time and no work at another". Only in this way will young people be attracted to join the industry to replace ageing workers. However, we also have to face different challenges, such as the incessant extension of the consultation period and prolonged filibustering in the Legislative Council. As a result, there are increasing difficulties in the planning and development process; the construction period becomes shorter and shorter and there are unpredictable fluctuations in the project quantity. Mr Abraham SHEK and Mr Jeffrey LAM are also concerned about manpower shortage in the construction industry. Indeed, the Construction Industry Council has predicted that the industry will still be in shortage of skilled workers in the next few years. We will continue to work with the Construction Industry Council to actively implement multi-pronged measures to recruit more new entrants and train more skilled workers. Safety of Drinking Water Lastly, I would like to respond to Dr Helena WONG's views on the safety of drinking water. In connection with the incident of excess lead found in drinking water in public housing estates and other premises which have aroused grave concerns among the general public, the Government will continue to make an all-out effort to follow up on various proposals made by the Commission of Inquiry into Excess Lead Found in Drinking Water, so as to restore public confidence in drinking water quality. The measures to be taken include studying relevant overseas experience in order to draw up local drinking water standards and sampling protocol applicable to Hong Kong; further improving the Water Safety Plans of the Water Supplies Department and developing a template for the Water Safety Plans of buildings, as well as consulting the international expert panel appointed by the Development Bureau on various follow-up matters. The Government has completed a review of the Waterworks Ordinance and the Waterworks Regulations and is prepared to submit some amendments, including defining the duties of licensed plumber and plumbing workers; updating the standards of inside service materials; and strengthening regulation of the plumbing materials and fittings of the inside service.

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Conclusion In the face of severe land shortage, we cannot afford to stay put, slow down or even suspend the land supply measures that are now in progress. All the short-, medium- and long-term measures mentioned above should continue to proceed proactively and followed up; otherwise, problems such as land shortage, high property prices, long waiting time for public housing allocation and soaring office and industrial floor area rents will persist and worsen. Providing sufficient land to meet the needs of the community is still a great challenge of the Government and the community as a whole. In the course of land supply, the community must make a choice and the support and understanding of the stakeholders concerned are also very important. The Government will continue to strike a balance and, on the premise of being fair and reasonable, try its best to respond to appeals and maintain close communication with all sectors to foster consensus and work with concerted efforts to solve the problem of land shortage. I implore Honourable Members to support the Policy Address this year. I so submit. Thank you, Deputy President.

DEPUTY PRESIDENT (in Cantonese): The second debate session ends.

DEPUTY PRESIDENT (in Cantonese): We now proceed to the third debate session. The debate themes are "Poverty Alleviation, Welfare and Medical Services, Elderly Care, Public Health and Population Policy". This session covers the following eight policy areas: Poverty Alleviation; Retirement Protection, Welfare Services, Support for Ethnic Minorities and the Disadvantages, Elderly Care, Health Services, Food Safety and Environmental Hygiene and Population Policy. Members who wish to speak in this session will please press the "Request to speak" button.

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MR STEVEN HO (in Cantonese): Deputy President, on behalf of the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB"), I would like to speak on the policies related to food safety, environmental hygiene, as well as agriculture and fisheries, the industry which I represent. I will talk about the agriculture and fisheries industry first. Chief Executive LEUNG Chun-ying and the current Government have changed the wrong direction of placing emphasis on regulation of the agriculture and fisheries industry as adopted by the British Hong Kong Government and the first two to three terms of the SAR Government. In the past four years, a number of policies have been introduced to support the development of the industry, including the Sustainable Fisheries Development Fund, the Sustainable Agricultural Development Fund and the New Agriculture Policy. I definitely recognize the efforts made by the Chief Executive and Secretary Dr KO, as well as all other officials who support the new agriculture and fisheries policies. In fact, the Government should not be complacent for introducing a few concessionary policies in the past. It is now an important time for industry upgrading and transformation. The current policies clearly fail to achieve short-term effect, and before the introduction of such policies, the industry has already been riddled with many serious problems, yet these policies have failed to address the problems squarely. For this reason, many opposition Members have said that the current Government is only a caretaker government. I do not agree and I also hope that the current Government will continue to be proactive and guide the next Government to continue implementing the desirable policies, so as to jointly promote the healthy development of the industry.

(THE PRESIDENT resumed the Chair)

In this debate session, I will talk about agriculture and fisheries policies, followed by food safety and environmental hygiene. Before responding to the Policy Address, let me reiterate, this Policy Address does not offer many new ideas in relation to the agriculture and fisheries industry, and it mainly revisits previous policies. For example, the Government will conduct a study on Agriculture Priority Areas this year, but what will be the next move? I hope that Secretary Dr KO or the relevant government

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departments will disclose details to members of the public in the near future. Some people say that this is a caretaker government as its term of office will expire in a few months' time. However, what can be done in the short run? First, laying a foundation for the future; second, adopting short-term administrative measures despite the short-term effective. I hope the Government will listen to my following views and I believe it can get things done. Firstly, the Government should remove barriers on leisure fishing and farming. The first step is to provide assistance to fishermen and farmers in the production of secondary products. It is most important to increase their sources of income. If fishermen and farmers simply engage in the primary industry, they will lead a very difficult life in the current social environment. Some friends from the industry told me that they consider the Government's current regulatory policy too complicated. For example, if someone collects entrance fees to admit other people to visit the farm, he will be regarded as using the farm for commercial purpose. Another example is that if someone offers apples or strawberry juice to other people, he also needs to apply for a license because this is retail sales. Therefore, the existing policy cannot tie in with the development of the agriculture industry. Since there are no supporting policies to increase farmers' sources of income, an extreme saying is that farmers can only have a monotonous or primitive way of living. In other places such as Japan, the Mainland or Taiwan, there are corresponding measures for leisure farming, known as the "industry management approach". The authorities allow farmers to use a certain proportion of agricultural land for production or provision of catering services. They can also provide time-limited sightseeing services and sell their agricultural products, and even engage in secondary industries. For example, they may convert their agricultural products into other products, such as wine, for consumption by the community. In another case, can someone who raises bees use honey to produce honey cakes? In this connection, the Government should conduct studies and consultations in the short run to see if assistance can be provided. Secondly, the Government often talks about high value-added products or innovative technology. In the past few years, we encouraged many farmers to grow organic vegetables or water culture vegetables in units of factory buildings.

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Mr CHAN Hak-kan also visited the factory buildings a few years ago. In fact, factory buildings are subject to the regulation of the Deed of Mutual Covenant ("DMC") and they have difficulties in taking out insurance. Can the Government consider exempting the regulation under DMC? A friend of mine once practiced fish farming―not vegetable farming in a factory building. As the DMC of the building stipulates that industries involving organizms cannot be carried out, he was forced to close down his business. Another friend is carrying out aquaponic farming activities; strictly speaking, these activities cannot be carried out in a factory building, but he takes advantage of the grey area and carries out fish farming at the same time. Thus, I hope that the Government will conduct an inter-departmental study with the Development Bureau in the future to see how exemption can be provided. To put it in a more negative way, members of the industry can barely survive; the Government should formulate medium to long-term policies for them. I would also like to talk about the protection of farmers. In the second debate session, I told the new Secretary for Development that the former Secretary for Development Paul CHAN mentioned that many farmers were forced to relocate because of development in the New Territories, and he hoped that the Policy Bureau led by Secretary Dr KO could help in this policy area. While he was shifting the responsibility to Secretary Dr KO, Secretary Dr KO considered that he did not have sufficient power as the powers relating to land were in the hands of the Secretary for Development. I suggest setting up an inter-departmental working group to deal with the problems relating to compensation and resettlement for fishermen and farmers arising from development, and review some outdated legislation. I hope that the Government will attach great importance to this matter. The shortest land lease is only two months and some more ferocious land owners made it clear that they would work for the Government lest the Government should encounter difficulties in land resumption. Some even deliberately destroy agricultural land and retain the land for development later. I understand that the housing problem is important but if other problems are not resolved, they will become serious stumbling blocks affecting the development of housing and land by the Government. Therefore, I would like to join hands with the Government to move ahead and seek a solution. I do not want to see the Government driving away all farmers, and when funding is available for land resumption, only land owners will have the right to

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rehabilitation as all other farmers have left. Yet, land owners know nothing about farming and this is not an effective policy for the industry. I hope the SAR Government will address the issue. Regarding protection, numerous fish died in late 2015; sorry that I could not hold my tears then. Nowadays, many fishermen told me that they dared not carry out fish farming again after massive fish deaths in Yim Tin Tsai at that time. But the SAR Government was still rather mean in this connection. I wrote to the then Financial Secretary Mr TSANG―as he was prepared to run for the Chief Executive, I should not say too much―asking him to waive the relevant licence fee in the near future, that is, in the next Budget. In fact, the exemption of licence fee does not offer much help to fishermen to resume business but at least, the affected fish farmers would feel the concern and understanding of the Government about their plight. I hope the authorities will waive the relevant licence fee for two years, as a token of its good will outside the scope of policy. Yet, the authorities replied that we should discuss with the Food and Health Bureau. The power is in the hands of the Financial Secretary, but he passed the buck because he did not want to take up responsibility. So, I hope the current Government will rectify the mistakes made or actions not taken in the past. I have just mentioned the issue of protection; after the massive fish deaths incident, fishermen and farmers have not been able to take out insurance. We rarely hear about insurance for the agriculture industry. Mr CHAN Kin-por said that taking out insurance is difficult because no one is willing to do business incurring losses. The governments of other places such as the Mainland, Japan and Taiwan have formulated insurance protection policies. After the occurrence of natural disasters, how will the Government assist fishermen or farmers in resuming business? The Government does not necessarily have to provide financial assistance, instead it can provide fry, manpower, machinery etc., to help fishermen or famers resume business and alleviate their burden. This is the first point. The second point is that, at the time of the disaster, the Government's contingency mechanism performed badly. A fisherman lost millions of fish, the water surface of the fish rafts was covered with fish carcasses, yet no one cleared them up. The fish carcasses stunk two to three days later. I was present at the scene and the stench from fish carcasses floating on the water surface of the fish rafts was really unbearable. I believe you cannot imagine how bad the situation was. The smell was even worse than living in a refuse depot. The situation

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was beyond words. I really wanted to vomit but I had to hold back, for if I vomited in front of the fishermen, it was a great disrespect. They had to face the predicament every day but a Member wanted to vomit. For this reason, I had to hold back. Today, I must voice my view that the Bureau should improve the contingency mechanism and set up a natural disaster protection mechanism for the agriculture and fisheries industry, such as helping the affected people resume business and provide them with financial support. We are not talking about a $6,000 emergency relief, which is under the purview of the former Secretary Matthew CHEUNG. I just hope that the agriculture and fisheries industry will be well protected and that the Government will address the matter squarely. Concerning the third point, I understand that the Government has done a lot of work, but there are still inadequacies in respect of raising public awareness or conducting publicity. When Chief Executive LEUNG Chun-ying assumed office, he advocated that the Government should be "appropriately proactive". However, the website of the Agriculture, Fisheries and Conservation Department ("AFCD") over the past few years contains the following sentence: "Follows the general policy framework of free market. Except where social considerations are overriding, the allocation of resources in the economy is left to market forces with minimal government intervention." The expression "minimal government intervention" really hurts. I do not understand what is meant by "social considerations are overriding", but I have personal experience of "minimal government intervention". After the fish death incident, there was really minimal government intervention as social considerations were overriding. Social considerations were not overriding when residents were forced to relocate because of land development or housing construction. Can Secretary Dr KO define what is meant by "social considerations are overriding", or even ask AFCD to revise the wording that the Government's policies will really be proactive or appropriately proactive? In that case, fishermen, farmers and the public should have greater confidence. The above incidents concerning to the agriculture and fisheries industry are unpleasant. Let me change my mood and talk about food safety and environmental hygiene. Chinese people attach great importance to the Chinese New Year and each year they try their best to prepare a sumptuous family reunion

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dinner. But this year, what I heard from most people about the dinner was not what good food they ate, but the rising food cost. Many housewives told me that they lived in the urban area where there was no public market; their concern was not what good food they had, but how expensive the food was. Mr LEUNG Che-cheung should share the same feeling because many kaifongs often ask him questions about bazaars and public markets. Earlier, the Chief Executive proposed in the Policy Address that the Government will build sizable public markets in New Development Areas ("NDAs") and has initially identified suitable sites in the Tung Chung New Town Extension Area and Hung Shui Kiu NDA, that is, the areas which Mr LEUNG Che-cheung represents, and the Government will continue to identify suitable sites in other NDAs. We welcome the Government's commitment to building new markets and improving the existing market facilities and we also hope that the Government can make the following commitments. First, at present, some areas such as Tin Shui Wai, Tseung Kwan O and Ma On Shan do not have public markets and the residents are forced to pay more for groceries. The Government has all along refused to build new markets on various pretexts, such as failing to identify land and prices at public markets may not necessarily be lower. For the public, public market is a basic facility. At the time when the Government outsourced the Housing Department shopping centres to the Link, it did not say that the prices of commodities would be lower, but now the reality is that people's livelihood is affected and we must address this issue. Why do we request for building markets? It is because with competition, the residents will have other alternatives. Regardless of whether the prices will be lower, the residents can at least choose to buy better quality products at the same prices. Therefore, I hope the Government will rise up to challenges and proactively identify sites in the districts for building new markets. I hope the Government will continue to work with DAB or other Members; I believe if we will sit down and discuss, we will certainly find a solution. Second, the Government hopes that the new markets will be able to "radiate" services to other areas and it will provide suitable support in the future. We suggest that the Government should arrange free shuttle to bring residents living in areas without markets to the new markets for shopping, and more concessions should be offered to attract the residents. Of course, these are only short-term measures, eventually we hope that the Government will build new markets. But what can we do during the interim period? We have to arrange shuttle services for the public. There are underground car parks in many

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markets in Tai Po; people living in the rural areas can park their cars there, do grocery shopping at the market and then drive home. These are pretty good services but if too many people drive to the Tai Po Hui Market for grocery shopping, the traffic outside the market will be very congested. The root of the problem is the shortage of parking spaces. The issue of parking spaces cannot be disregarded in planning the new markets by the Government. Mr CHAN Han-pan mentioned in the last debate session the serious parking problem in Hong Kong. In order to control the number of vehicles, the Government did not provide parking spaces and moreover, it intends to increase the fixed penalty for parking offences. This measure is only a temporary solution and is not practicable. To a certain extent, vehicles can be regarded as one of the tools to promote the economy of Hong Kong. Suppression will only intensify people's grievances, which will not contribute to economic development. As far as food safety is concerned, markets can meet the daily needs of the public and their habits. Third, in recent years, the market stall operators have to face rising operating costs and with competition from supermarkets and large chain stores, their operation has become increasing difficult. We hope that the Government will allocate more resources to comprehensively improve the operating environment of markets and speed up the improvement works. For instance, the Government should refurbish the walls and improve the drainage and ventilation systems of markets. In fact, toilets in markets should also be refurbished. The Government should also study the lowering of the threshold of tenants' support to retrofit air-conditioning. Although the threshold has been lowered from 85% to 80%, the Government should explain to us why the threshold was initial set at 85%. At that time, the Government's move was not supported by data, I remember the officials concerned once told me that no matter how a line was drawn, there would be oppositions, but there must be a reason for drawing the threshold. Is 85% reasonable? The Government should not think that lowering the threshold by 5% is a great favour as people or operators really do not understand the rationale behind. The Government has to give explanations and provide the public with systematic data or reasons so that people will consider the measure reasonable. I personally think that an 80% threshold is too high. When it comes to cleaning services, there have been constant complaints that though community hygiene services are not getting worse, they have not been improved. Despite the allocation of huge amounts of money by the

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Government, mosquito and rodent problems have often occurred. The Government launched the Territory-wide Cleansing Campaign a few years ago and introduced measures to improve the community hygiene. But after the Campaign, the hygiene conditions of the areas were as adverse as before. This inevitably gave the public an impression that the Government was just putting on a show. The Government just purchased two additional street-cleaning vehicles and ended the Campaign. What exactly should the Government do? We have advised the Government that it should start from the basics. Although the Government does not admit, the outsourced contracts are often awarded to the lowest bidder. According to the Government, the lowest bidder is not selected in many cases, but in fact the second or third lowest bidder is awarded the contract. This practice is just like trimming the toes to fit the shoes; as outsourced contractors will reduce manpower and expenses to win the bid, their services can hardly be competitive and enhanced. The Legislative Council passed a motion last week, requesting the Government to carefully study and examine some proposals put forward by Members, which include introducing a "quality-orientated" tendering mechanism, breaking the vicious cycle of lowest bid wins and low quality services. Contractors can retain talent by increasing wages, which will improve the livelihood of frontline workers and comprehensively improve the quality of service. In addition, the Secretary for Food and Health meets with representatives of various District Councils ("DCs") once every six months to discuss district hygiene issues. As the hygiene conditions of the community differ from day to day, if questions are raised at a meeting held once every six months, and directions are set after repeated discussions which may take about six months, the work at the district level will be delayed time and again. For this reason, I hope the Government will set up a fund, on a DC-led basis, to improve environmental hygiene in the community. DCs can thus take the initiative to use the relevant funding subject to restrictions. The funding will be used to improve the local environment, especially environmental hygiene. In this way, the problems of environmental hygiene can be resolved or alleviated quickly. As "no livelihood issue is too trivial", if we delay three years or so in addressing the daily problems encountered by the public, grievances will accumulate. Chief Executive LEUNG Chun-ying has, after assuming office, introduced polices relating to the agriculture and fisheries industry, which have

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been commended by members of the industry. Today, we think some of the policies introduced are sincere while some other policies have not provided substantial concessions. Society has changed drastically; a discussion of five to six years is required before the introduction of new policies, including cleaning services. The agriculture and fisheries industry has to respond quickly to rapid social changes. The Government should give the public an impression that it is proactive and really serves the public, and it will also implement appropriately proactive policies. I so submit, President.

MR LEUNG YIU-CHUNG (in Cantonese): Soon after the current-term Government assumed office, the Commission on Poverty was established and the official "poverty line" was announced. Since then, LEUNG Chun-ying often describes these two measures as his achievements in poverty alleviation. I think he is just blowing his own trumpet. In fact, LEUNG Chun-ying also claims in this year's Policy Address that he has done a lot of work in this respect. Nevertheless, let me tell the SAR Government, establishing the Commission on Poverty and setting the poverty line have not helped the poor in any direct way. What matters most is that although a designated consultative body has been established to collect data and a poverty line has been drawn with a so-called definition, if the Government does not use these two measures to formulate effective and concrete policies, the problem of poverty will not be resolved. LEUNG Chun-ying also mentioned that with policy intervention since 2013, the poor population stood below 1 million for the third consecutive year, indicating the effectiveness of poverty alleviation efforts of the current-term Government. But, is this the true picture? In the three years since 2013, despite policy intervention, the poverty rate remained at about 14% without making any real difference. Besides, the poverty rate even increased in 2015. Although the Government established the Commission on Poverty and drawn the poverty line with the purpose of relieving poverty, not the slightest progress has been made in poverty alleviation. The Government only makes window-dressing efforts to deceive those who do not know the truth; its work on poverty alleviation is actually not that effective. The current poverty line cannot accurately reflect the situation of poverty; it even has no reference value. Why do I say so? The reason is that the poverty line only takes into account the income but not the expenditure, thus, it

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cannot truly reflect the actual living conditions of the poor. However, the LEUNG Chun-ying Administration loves to play with figures and often uses figures to confuse and deceive the public. Therefore, the SAR Government should definitely not be complacent about its work; instead, it should carefully review the areas where more efforts can be made. In particular, it should consider whether the definition of the poverty line can be revised. More importantly, as I have said, the Government should review, on the basis of data, whether it has done enough in implementing the poverty alleviation policy and whether there is a need for revisions or changes. Unfortunately, in the Policy Address this year, no improvement is made in areas such as poverty alleviation, welfare and elderly care; worse still, the measures have retrogressed. The most ridiculous initiative is to raise the eligible age for elderly Comprehensive Social Security Assistance ("CSSA") from 60 to 65, forcing the poor elderly to continue to work and cannot retire. This will, in effect, reduce the support offered to the grass roots. May I ask the Government: If these elderly people want to find a job, how many employers are willing to employ a person aged over 60? If they fail to seek employment and cannot apply for elderly CSSA, and the living expenses subsidy for the elderly has also been reduced, is that fair to them? Is that a bit cruel? I believe the Government has all along considered that by raising the eligible age for elderly CSSA, more people can join the working population, but I think the initiative will set a very bad precedent. The reason is that the eligible age for many important social benefits is set at 60, e.g. public rental housing ("PRH") priority schemes for elderly persons, long-term care services for the elderly, as well as concessionary fares for joining activities and using facilities of the Leisure and Cultural Services Department, etc. If the eligible age for elderly CSSA is raised from 60 to 64 and above, I am very worried that the same change may gradually be made in other policy areas, making the lives of these people more difficult, and in particular, the disabled and those with chronic illnesses will suffer even greater hardship. While the eligible age for elderly CSSA has been raised, the proposal of implementing universal retirement protection has vanished into thin air. Moreover, the abolition of the so-called "bad son statement" only applies to elderly persons living on their own. Although this arrangement may slightly improve the situation of the elderly, it is actually deceptive. I really do not understand why LEUNG Chun-ying still adopts his usual tactics in his last Policy Address to deceive the people. What good will it do?

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Many people say that this Policy Address causes dissensions or fails to make good the promises made, but in my view, it is an address that abuses the elderly. The current-term Government often brags about its achievements in poverty alleviation and elderly care, but frankly speaking, I fail to see any achievement and moreover, I fail to see that the Government has the sincerity to solve the problems. Surprisingly, the Government has offered no help at all to those who are most in need of support, such as the "N have-nots". Worse still, the one-off subsidy for these people provided by the Community Care Fund has been scrapped. How can they make their ends meet? These people have to pay high rent and living expenses and their water and electricity charges are even higher than those of the general public. How dare the Government, without offering any help to these people, remark that it has done a lot of work in poverty alleviation. I really do not expect the Government to have the nerve to make such a remark. President, when the Government has made no mention about the one-off subsidy, how will it talk about any long-term expenditure and policies? In fact, for years, the Government has only adopted a piecemeal approach in alleviating poverty. This kind of one-off relief cannot help the poor. If the Government really wants to resolve the problem, especially the problem of structural poverty, it should adopt a multi-pronged approach, including reforming many systems. In particular, the Government should seriously consider introducing tax reform. It should no longer maintain the present simple tax regime which only benefits big entrepreneurs, consortia and people with vested interests. I propose using the tax system to achieve a fair distribution of wealth in society. Under my proposed negative income tax regime, the Government will first set a minimum wage level that enables people to meet their basic necessities. People with a wage below this level not only do not have to pay tax, but will obtain a subsidy from the Government funded from the tax revenue, so that they can maintain a basic living standard. In this way, we can really return wealth to the people and allow them to maintain a reasonable living standard. I hope that Government will give due consideration. Apart from introducing the above mentioned tax, the Government can also simplify the existing social welfare policies and framework to avoid duplication. This will help reduce administrative expenditures and save costs. I think introducing tax reform is very important. Certainly, apart from introducing a negative tax as I proposed just now, the Government should increase the tax payable by the rich to help the poor solve their livelihood

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problems. Broadening the tax base, levying a wealth tax and a tax on large sums of dividends, etc. are very important measures which I hope the Government can consider again. However, much to our regret, it seems that the Government has turned a deaf ear to us all these years. As the new term of government will assume office soon, a number of Chief Executive candidates said that they intended to do something in this area. I really hope that they will do so, that they will seriously review the existing tax system and take a step forward so that the wealth of society can be fairly and effectively distributed. President, I so submit.

PROF JOSEPH LEE (in Cantonese): President, first of all I would like to talk about public health care. It is a well-known fact that the waiting time for public health care services (be it specialist outpatient or general outpatient service) is very long, and extra beds have to be added to wards in public hospitals. Originally, there may be 36 beds in a ward, but very often the number of beds is increased to 50 or 60. Besides, patients are very lucky if get 15 minutes' consultation from a doctor, but they may have to wait two to three hours to collect medicine. In the face of all these problems, the Chief Executive proposes in his Policy Address to provide an additional $2 billion to the Hospital Authority ("HA") in recurrent expenditure to increase the number of public hospital beds and operating theatre sessions, enhance the provision of emergency surgical services, and increase the quotas for endoscopy examination, which I think is a big problem. The Government did not provide this funding to HA last year and HA had to take $2 billion out of its own pocket to provide the above services. This year, despite an increase in the provision, actually no additional funding has been provided as HA is already providing such services. In other words, the Government does not give HA any new money in this respect. However, when the Government announced the additional provision of $2 billion to HA for providing more services, members of the public will surely be very happy. But in fact, the funding has not been increased and the services have to be maintained at the present level. Under such circumstances, I can simply say that the Government is "ripping HA off". HA does not get any new funding but has to maintain such services. Besides, since the public think that HA has more funding, they have higher expectation for its services. Consequently, all the pressure is exerted on the frontline medical staff. I find

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such tactics of the Government absolutely undesirable. It keeps reminding the public to have higher expectation as more funding is now available, but the services are after all provided by the same group of frontline staff. When members of the public have higher expectations but the waiting time for public health care services has not been shortened, they will vent their grievances on the frontline staff. The frontline nursing staff, doctors, etc. have no channel to voice their grievances and can only keep working. I think the Government should consider whether it is appropriate to keep enhancing people's expectation but does not actually increase the funding or just provides a small increment, thereby adding to the burden of the public health care institutions. The Secretary always talks about the dual-track health care system. What about the private health care institutions? The Secretary would of course say that a policy has been put in place to regulate private health care institutions. However, regarding the Voluntary Health Insurance Scheme ("VHIS") mentioned by the Secretary just now, the following three functions have been cancelled, that is, first, regulate private clinics and hospitals; second, regulate the insurance; and third, divert those who have the financial means to use private instead of public health care services. However, if VHIS abolishes all the aforementioned functions, how can it expected purpose of triaging patients be achieved? As the authorities keep raising the public expectation, I dare not think about the future public health care services. Will the dual track system still be implemented? I have no idea. Therefore, the Secretary must think twice about this issue. Next I would like to talk about the problem concerning talent. We are all aware of the importance of talent to both the public and private health care institutions and retaining talent is just as important. However, what is happening now is that with rising public expectations of the public health care institutions, the increased resources have not been used appropriately, and coupled with the ever-expanding services which are not supported by a corresponding increase in manpower, the frontline staff's grievances are piling up, leading to a wastage of talent. While some go into private practice, some join the private sector, and some even quit their job and become a housewife. The experience of these medical staff is thus lost. May I ask the Secretary how he is going to resolve this problem? The Secretary may tell us not to worry, as the Policy Address states that manpower problem will be addressed squarely and a committee will be set up to review the situation. But if I remember correctly, a

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similar proposal was put forward in 2012, it is now 2017 and five years has passed. I hope that the Secretary will truly set up such a committee during his tenure. After setting up the committee, one may ask the Secretary if the report produced by the committee can solve the current problem of manpower shortage. For example, in a public health care institution, one nurse has to attend 11 or 12 patients. As I already pointed out over 10 years ago, according to international standard, the ratio was 1:6. When HA cannot achieve this standard, it has to admit its failure and should not use a report to fool the public and frontline staff by giving them a false hope. That is the first point. Concerning the second point, HA is unable to resolve the problem of shortage of nurses. What about pharmacists? I have heard recently that a patient very often has to wait three to four hours to get the medicine. How should the problem be resolved? Pharmacists play an important role in the public health care system. Besides dispensing medicine, they have other responsibilities, including drug management to ensure safety, and also advising patients on issues relating to medicine. They play a very important role. Certain hospitals had once launched a Clinical Pharmacist Programme and the response was highly positive. Pharmacists went to the ward to teach patients how to take medication correctly; they also advised the patients what contraindications they had to pay attention to when taking the drugs for treating diabetes, heart diseases, and so on, as well as what they should do after being discharged. All these involved the expertise of pharmacists. It is a shame that HA does not recruit more pharmacists, or it does not spend money on hiring pharmacists. God knows where HA has spent the money on. As a result, the services rendered by pharmacists in public hospitals have come to a standstill and cannot tie in with the development. Secretary, please address this issue squarely. Apart from pharmacists and nurses, I also think of other allied health professionals. A few days ago I attended a general meeting of physiotherapists. According to them, a physiotherapist only has less than 15 minutes to treat each patient in a ward. In a shift each day, they may have to attend between 10 and 20 patients. A physiotherapist in private practice responded that they spent 30 to 45 minutes attending one patient on average. Can you imagine how big the difference is? I am not saying that physiotherapists in the public sector are not good. They work very hard and have done a very good job, but they can only

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provide patients with focused treatments. An ideal physiotherapy has positive impact on the patients' recovery, thus shortening their time spent in hospital. Will HA allocate more resources to hire more physiotherapists, as well as occupational therapists? Secretary, I hope that you will look squarely at the problem about human resources in these areas because there are big problems. Concerning human resources, as pointed out by some members of the medical profession, the Secretary once indicated that the Public-Private Partnership Programme has worked well. At present, some patients who suffer from diabetes or heart disease, etc. and are now under the care of the public sector may seek consultation in the private sector. Under the concept of "money follows the patient", HA can subsidize these patients by paying part of the consultation fees of a private doctor. I think this a very good idea and I welcome it. The problem is that traditionally, after patients consult a private doctor, the doctor will prescribe and then dispense the medicine to the patients. Secretary, I have asked you on many occasions if you would consider the separation of prescribing from dispensing of drugs, so that pharmacists can play a part in the system. For example, after consulting a private doctor, I can take the prescription to a drug store in the community and have the pharmacist there dispense the medicine. This way, pharmacists can play their role of clinical pharmacists and they can play it well. However, under the present mode of the separation of the prescription from the dispensation of drugs, pharmacists in the community cannot give full play to this role. I hope that through the extension or expansion of the Public-Private Partnership Programme, community pharmacists can play a more important role in the system of separation of prescription and dispensing of drugs so that patients can benefit more, and patients of chronic diseases have particularly great needs in this respect. Speaking of pharmacist, there are views that it is undesirable that the Pharmacy and Poisons Ordinance (Cap. 138) regulates both the drugs and the people. They think that the Ordinance should be amended, such that drugs and people are regulated by two different ordinances. According to the pharmacist profession, as the drugs and pharmacists' services are constantly changing, it is hard to regulate both under the old Ordinance and they hope that the Secretary or his successor will consider this problem and address it. In respect of the manpower issue, I must commend the Secretary for proposing to regulate by administration means some medical professions that have not yet come under statutory regulation. When I worked with the Secretary in the past two or three years, I find that members of these professions do a very

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fine job and I am confident that they can be regulated through administrative means. However, they are worried if there are sufficient resources. Of course, we are all concerned about such practical problems, such as funding, practices, as well as how regulation should be carried out. I hope that the Secretary will hold onto his view and continue to allocate resources to conduct regulation by administrative means, so as to regulate these medical professionals more effectively. Next I would like to talk about disease prevention. We do not wish to get sick, and hope that everyone will remain healthy. While we will all get old, it does not necessarily mean the engine will break down, just that it will move slower. If there are ways to reduce the deterioration rate of the body, won't it be better? Today I read a piece of entertainment news about a certain actress who has a degenerative knee problem after years of wearing high heel shoes, and she has to rely on a wheelchair for going up and down the stairs at home. This is obviously an ageing problem. Not every elderly person having degenerative knees can rely on a wheelchair to move around. If people can have early prevention or there is more promotion on healthy living … Secretary, please give the Department of Health ("DH") more funding because it is in a very disadvantaged position. There are 7 million people in Hong Kong and I believe over 85% of them are healthy, without any serious illness. DH is short on resources but it has to take care of the health of millions of people. How can it manage? This time the Secretary has generously launched a number of programmes, including the Government Vaccination Programme, the Vaccination Subsidy Scheme and the Pilot Study on Newborn Screening for Inborn Errors of Metabolism, etc. All these programmes are very good, but Secretary Dr KO or Chief Secretary―I am glad to see Chief Secretary present―it takes money and resources to implement these programmes. I hope DH can deploy more staff to promote these programmes to more effectively improve public health and prevent diseases. DH plays a very important role in both primary and secondary care services. In our view, primary care is not related to patients seeking consultation; secondary care is not related to patients seeking consultation of specialty doctors, and tertiary care is not related to hospitalization. For us, primary care is mainly about health promotion and diseases prevention. DH has been performing a good role in this area, but owing to the lack of resources, frontline staff are overworked and tired out. I hope that the Secretary can look squarely at this problem.

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After DH and primary care, I would like to talk about some unhappy incidents that happened in recent days involving mental patients. Whether it is the incidents that happened in mental hospitals earlier or the recent arson case in an MTR carriage, they all reflect that Hong Kong's mental health policy is seriously lagging behind. Hong Kong has followed the practice in the international community since 2000 to let mental patients with relatively stable conditions rehabilitate in the community. This is no doubt a very good policy and all professionals approve it. However, we have overlooked one point, that is, it takes a lot of resources to support this policy. First, after this change, most mental hospitals rearranged their wards to save resources. As a result, we now have mixed wards, which we did not have in the past. In the past, minor mental patients were separated from adult mental patients but now they may stay in the same ward. In the past, mental patients who were drug abusers and general mental patients received treatments separately, but now they are treated together. After the restructuring of the mental hospital, department and medical ward, it is common to have different types of patients staying together for treatment, resulting in many problems. Frontline medical staff find it difficult to render personalized treatments or care to individual patients. The Government should review this situation. While it is important to allow mental patients with stable conditions to return to the community to complete their rehabilitation there, please do not cut the resources allocated to mental hospitals. If mental hospitals have operation difficulties, many after effects will gradually emerge. The medical sector is highly concerned about the effects that have been gradually emerging during the past 10 years. We must take note of this situation about mental hospitals. Secondly, I wish to point out that rehabilitation in the community is an excellent idea. The incumbent Chief Secretary for Administration, who is the former Secretary for Labour and Welfare, and the Secretary for Food and Health are both present. They should understand that patients rehabilitating in the community need to be monitored, which requires manpower. After mental patients with stable conditions have returned to the community, if their conditions change, they need follow-up. For serious cases, they will be visited by community psychiatric nurses, and for patients whose conditions are less serious, they will be followed up by case managers. These case managers may be physical therapists or professionals from other disciplines. The problem is, after mental patients with less serious conditions have returned to the community, if

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their conditions worsen, owing to the restriction of authority, case managers cannot prescribe drugs or give other treatments to these patients, they must refer the patients to community psychiatric nurses for follow up. But at present one community psychiatric nurse has to take care of 60 or even 90 patients and this will add to their already heavy workload. As such, how can the community rehabilitation programme be implemented properly? The Government must think twice about this problem. We welcome the Secretary's proposal to launch the Student Mental Health Support Scheme on a pilot basis in the 2016-2017 school year, with multi-disciplinary professional teams comprising psychiatric nurses, educational psychologists, school social workers, and staff members of the schools providing support for students with mental health needs using the school as a platform. We welcome this proposal. However, Secretary, manpower is needed to carry out the work. Will the policy address propose any solution to the problem of manpower shortfall? Let us wait and see. I hope the Secretary will address the issue squarely. There are endless issues relating to health care that we can talk about, but I have less than 10 minutes left. The last point I would like to make is somewhat the same old tune. We talked about rare diseases in the last term. Whenever I mention rare diseases, the Secretary will stare at me. Of course, different people have different ideas of rare diseases and hence I hope that the Secretary will treat this issue seriously. Although few people suffer from such diseases, as it is difficult to give a definition of rare diseases, the Government has not formulated policy to provide resources to help the patients. Honestly, no one wants to have rare diseases. I have, for some reasons, paid much attention to the entertainment news. Not too long ago, an actress died of a rare disease called autoimmune disease caused by the dysfunction of the immunity system. How could we help her? Of course, I fully understand that our resources are limited. However, if the authorities can, under the leadership of the SAR Government or Secretary Dr KO or Chief Secretary, address this issue squarely, give a definition of rare diseases and then introduce various policies to help patients suffering from rare diseases, they can then receive proper care. I do not expect the authorities to allocate all public funds in this area, but to strike a balance, I still hope that the Secretary will look at this issue squarely, and provide support for the patients suffering from such diseases and their families.

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Finally, in the few minutes left, I wish to discuss the problem about the elderly. I am not an expert on issues about the elderly. I merely wish to talk about their health care problem. I must thank the Secretary for lowering the eligible age for the Elderly Health Care Vouchers ("EHCVs") to 65, thereby benefiting many people, which is a virtuous policy and we all welcome it. The authorities will also subsidize the elderly's reception of the 13-valent pneumococcal conjugate vaccine, in the hope of lowering their susceptibility to pneumonia. We surely welcome these measures. Many elderly people are relatively healthy. To me, whether a person is healthy or not is relative. Many elderly people look health. They can move around without difficulty but they may still be suffering from chronic diseases. If they wish to have a physical check-up at an Elderly Health Centre under DH, very often they may have to wait two or three years, or at least one or two years. Waiting such a long time is not good for elderly people. One may say that they can have a physical check-up in the private sector as they have EHCVs but EHCVs cannot be used for this purpose. I hope that the Secretary will consider allocating resources to support the services provided by HA's Elderly Health Centres, allowing the elderly who can move around at ease to receive physical check-up regularly, so as to remind them to pay more attention to their health. Having talked about many seemingly good policies, I must also criticize other policies that have not been improved in whatever way. I am referring to the elderly's dental and audiological services. I am not the only Member to bring up this issue; other Members have also done so. When elderly people have tooth problems, they would go to the Accident and Emergency Department or a government dental clinic to have their teeth extracted. But what happen after their teeth are extracted? No one cares. This is a common issue among many elderly people. Secretary and Chief Secretary may say that this is not the case as last year some assistance was provided through the Community Care Fund. We do welcome such assistance but we must not forget that the number of elderly people in Hong Kong continues to rise. You and I are approaching 60, or some people here have already reached the age of 60. When people reach this age, they begin to have dental problems. Secretary, it is true that during the British-Hong Kong rule, the Government did not attach much importance to dental services but it has been almost 20 years after the reunification now, will the Government consider changing the policy and provide dental service to not only the children but the elderly as well? So people like us who are approaching

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60 can also enjoy the dental service. When we have dental problem, we do not need to go to some clinics in Shenzhen, as advertised by a certain star on television, to have dental implant. If the elderly have healthy teeth, they can avoid problems such as indigestion and when they can intake nutrients better, they will be healthier. I will stop now as other Members have also talked about this issue. Another issue I wish to discuss is audiological services. Few Members have brought this up over the years. I believe I am the first Member to discuss the hearing problems of the elderly. According to the World Health Organization, about one third of people aged over 65 in the world have impaired hearing. The two elderly persons at my home have excellent hearing but it is another matter when their hearing is impaired at the right moment. However, if they really have hearing impairment, what can be done? According to a survey conducted by the Government in 2013, about 120 000 people aged over 65 in Hong Kong had impaired hearing. The survey conducted by the Hong Kong Society for the Deaf in May 2015 also found that about 40% of people over the age of 60 were suffering from medium to serious hearing impairment, even though the survey sample was not big, just about 200 to 300 people. As regards this issue, the Government says that the ear, nose and throat specialty clinics under HA do provide audiological specialists treatment. It is true that there are ear, nose and throat specialty clinics in Hong Kong but one has to wait one or two years before they can see the doctor and another one or two years after being diagnosed to meet the audiologist who will fit the hearing aids for them. Secretary and Chief Secretary, I wonder if you know, perhaps I can take you for a visit to see the hearing aids, which are very advanced nowadays. They are as small as a peanut and can be fitted into the ear. If you do not wish to hear Joseph LEE's voice, you can tune it out and receive the voice of the President only because the hearing aid receives sounds according to the wave frequencies, which is very accurate. What is the advantage of that? The hearing aids in the past picked up all the sounds in the surrounding. They could pick up unwanted sounds, such as vehicle noise, mahjong noise, but they could not hear songs; all sounds were blended together. But today, hearing aids are very advanced. They need to be adjusted by a professional audiologist according to the audiological conditions of the elderly. After wearing them, the elderly can hear clearly. Just like the scheme on cataract operation launched by the Government some years ago, patients could see clearly after the operation.

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"To see clearly, hear clearly and chew well" are the basic health conditions that elderly people should be able to enjoy today. Only then can they enjoy their twilight years healthily. Secretary, if the Government's estimation is correct, that is, one young person will have to provide for four elderly people in the future, if many of these elderly people have problems in seeing, hearing and eating, I believe the SAR Government can hardly cope with the situation. I hope that the Government will deal with this issue seriously and endeavour to train up talent in this area. It should allocate more resources to the public health care services to conduct hearing tests for more elderly people and provide them with appropriate hearing aids so that they can hear clearly. I hope that Secretary or Chief Secretary will formulate policies in this respect. Lastly, in the remaining less than three minutes, I would like to talk about life's last stage, death. Everyone will experience death sooner or later. In fact, the two Secretaries (including the former Secretary for Labour and Welfare, that is, the incumbent Chief Secretary for Administration) have mentioned the concept of ageing in place in the past, and the focus is to die at home. I believe many elderly people who do not suffer from cancer or other serious and acute illness would prefer to stay comfortably at home, being surrounded by their family, till the end of their life. Of course, the Secretary may say that the current Palliative Virtual Ward Programme is quite good, which I agree. But all elderly people wish to "die well". To die at home is the wish of every elderly person. It will be wonderful if one can spend the last days of his life with his family. The problem is, however, it requires resources, not lip service, to achieve that. Actually, to enable the elderly to die at home, arrangement has to be made for nurses or practitioners of other specialties to visit them on a regular basis to ease their suffering, monitor their conditions and decide whether they need to be hospitalized. If they do not need to be hospitalized, they still need the support of medical staff and money during their stay at home before they pass away. The present law requires that if an elderly person has not consulted a doctor 14 days before he died, a Coroner's Court must be convened and an autopsy is performed if necessary. If something happens to an elderly person at home, to avoid an autopsy, he must be visited by a doctor from a public hospital or a general practitioner. I know it is difficult to amend the law. But if the Government allocates more resources to provide palliative care, hospice care or some relief to ease the pain of an elderly person who stays at home, so as to avoid frequent in and out of

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hospital, the elderly will still benefit. Chief Secretary mentioned residential care home for the elderly ("RCHE"). Many elderly people do not like to be in and out of RCHE or hospital. Hence, if the Government can allocate some resources to provide relevant training to RCHE staff so that the elderly residents can also spend their last days comfortably, it would also be a good act. Of course, this can only be achieved through amendments to the law, so that elderly people can age at home and die at home, and every elderly person can "die well". I so submit.

Thank you, President.

MR MICHAEL TIEN (in Cantonese): I do admire Dr Joseph LEE as he can speak very quickly and always hits the nail on the head. It is a pity that in the absence of such caliber, I can only talk less and speak slower. I am quite interested in the hearing aid which he mentioned just now as it can filter Members' voices that I do not want to hear. I will talk to him later. President, first of all, I would like to declare that I am a member of the Commission on Poverty. Given that this is the last Policy Address of the current-term Government and there are only five months left in Chief Executive C Y LEUNG's current term of office, I did not expect him to put forward earthshaking proposals. Five years ago, he made many grandiose plans and promises, it is now time for him to honour these promises. However, the reality is, while a number of projects have been kicked off, he has never considered how to complete them. And yet, this is not difficult to understand if Members think carefully. When the Policy Address was delivered in January, he should not have known that he would not seek re-election due to family reasons. He might still think that he could flex his muscles in the next five years. Therefore, many proposals in this Policy Address are actually part of his political platform. It so happened that all of a sudden, the Policy Address has become his final year project. It therefore makes perfect sense for the Policy Address to appear as it is now. Notwithstanding that, it is weird to have the sentence "all commitments in my election manifesto have already been implemented" being included in this final year project for no reason. This is indeed baffling. As pointed out by Secretary Prof Anthony CHEUNG, the target of public housing supply set five

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years ago was not pragmatic and slightly exaggerated. Then, why is there another exaggerated target today? Coincidentally, not long ago, the President of the United States Barrack OBAMA had apologized to the nation for not being able to honour all the pledges in his manifesto. I am so honoured that our Chief Executive has done better than OBAMA as all commitments in his election manifesto have basically been implemented. I wish that our next Chief Executive will be more rational than the new President of the United States Donald TRUMP. Next, I would like to discuss in detail the so-called implemented commitments and the discussion will mainly focus on poverty alleviation, which I think is of paramount importance. I stayed late for work one night and when my secretary called to ask what I would like to eat, I felt so emotional that I uttered the words "beef ribs 3 ". Why did I say that? The retirement protection proposal, which has been brewing for many years, finally came into light, and this is a good thing because it is better than none. However, Chief Secretary, I don't know why the proposal gives me an impression that it is tasteless and yet too wasteful to be thrown away. The Policy Address proposes to enhance the Old Age Living Allowance ("OALA") by adding a higher tier of assistance between CSSA and OALA, so that elderly singletons aged over 60 with assets not exceeding $144,000 will receive a higher monthly allowance of $3,435. It is estimated that this will benefit 360 000 elderly persons, which accounts for about 30% of the elderly population. President, I have all along supported retirement protection proposals under the "those with financial needs" principle as we can pool our resources to help those in need. I used to think this is a justice approach, but can the delineation and rate of allowance set by the Government really help those in need? Although I pursue justice, it seems that it is a piece of chicken rib that will do injustice to me. Therefore, I advise the Government to seriously consider how this proposal can be refined. President, it is the present trend to change stand as many Chief Executive hopefuls are constantly updating their election platforms. Therefore, Chief Secretary, it is not shameful to take heed of good advice. Imagine that some elderly persons have, not long after retirement, reduced their assets to below 3

The word "rib" usually refers to "chicken rib", meaning something that has little to be tasted but bad to be wasted.

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$144,000, so when they apply for the higher OALA once they turn 65, the entire burden will then be shouldered by the Government. The present Old Age Allowance, commonly known as "fruit grant", is only provided to elderly persons aged 70, and this monthly allowance of $1,300 is provided without the need to undergo any means test. If all elderly persons start to receive this allowance once they turn 65, this will certainly defer the application for the higher OALA at $3,435 per month to a later date as the rate of depletion of assets will slow down. If they start receiving the monthly allowance of $1,300 at the age of 65, the time for applying the higher OALA will be slightly deferred. Therefore, this is in some ways tantamount to transferring money from the left pocket to the right. If elderly persons start receiving "fruit grant" earlier, the time for applying the higher OALA will be slightly deferred. In the long run, the expenditure is more or less the same, so I think it is worthy of serious consideration by Members. What serious consequences will lowering the age limit for "fruit grant" from 70 to 65 bring about? As you may be aware, I am "data master" and my advice is not nonsense or claptrap. As pointed out by the Census and Statistics Department, the current population of elderly persons aged 65 to 69 is 390 000. If we assume that 30% will apply for "fruit grant", it means that there will be about 120 000 applicants who aged between 65 and 69. How do we get the 30%? At present, the total number of "fruit grant" recipients who aged over 70 accounts for only 30%, and the additional expenditure is $1.9 billion per year. This sum of money is negligible to the present Government as it is spending tens of millions of dollars to set up an office that will be used for only a few months. Hence, it is certainly worth the money as $1.9 billion can bring benefits to so many people. However, Chief Secretary, I have yet to take into account the money saved from the deferred application for the higher OALA. The merit of this proposal is its "universal" sense, which may help to achieve political balance because insofar as supporters of universal retirement protection are concerned, lowering the age limit to 65 is the same as "universal". Honestly speaking, the differences between the universal retirement protection proposal and "fruit grant" lie in the eligibility age 65 and 70 as well as the amount $1,300 and more than $3,000. If the age limit is lowered to 65, it would in a way respond to the aspirations of many people and thus help to reduce resistance. Of course, there is still one principle issue. Many people in the district often asked me: Mr TIEN, what is the definition of elderly persons in Hong Kong? Some people said elderly persons are those aged 65, but some said it

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should be 70. And yet, it seems that the age limit for Elderly Dental Assistance is 75. There are a couple of age limits and this is very confusing. Nonetheless, given that elderly persons who turn 65 will start enjoying most benefits, so I think it is time to simplify the requirement and standardize the age limit. This would make this final year project profoundly beneficial. The fact is, this is not something unattainable. The Government may give it a try as the proposal is really worthy of serious consideration. Furthermore, I would like to discuss the figure "3435", and that is, how do we come up with the higher OALA of $3,435. Let me start with CSSA payment for singletons, which is currently $2,420. Honestly, I wonder if the President, Chief Secretary or Secretary has any idea of what we can buy with $2,420 in Hong Kong nowadays. I am not trying to be pedantic, but it so happened that two weeks ago, I visited the street-sleepers in Sham Shui Po with a number of Members. These street-sleepers do not have to pay rents, and there is no need for them to pay electricity or water bill. Thus, the only expenditure is meals and sundries. One of them told us that he spent on average about $2,900 a month. I asked if there was something wrong with his calculation as the CSSA payment for a singleton is only about $2,400, but he told me that he has to spend $2,900. So, I requested to look at his expenditure record. Since he lives in Sham Shui Po and is not going elsewhere, there is no transportation cost. For meals, he purchases at the Hong Kong Style Chinese BBQ Tea Restaurant, which is cheaper, and leads a pretty unhealthy life. He has three meals a day, paying $15 for breakfast with a drink, which is pretty reasonable, and meal boxes costing $24 each for lunch and dinner, which is by no means excessive either. Moreover, water has to be consumed on a daily basis and we cannot expect them to drink tap water every day. Even though they are not drinking tea or coffee, the minimum charge is $15. Thus, the three meals per day add up to a total of about $78, and multiplying it by 30 days will give a monthly expenditure of $2,340. What I am saying is the actual living expenditure. I had once lived a life like this for two days, but that was the standard of living of six years ago. Furthermore, there is a monthly spending of $40 on toilet paper as well as daily necessities such as shampoo and toothpaste, and all these add up to a total of $350 per month. Including the spending on basic commodities like towels, toothbrushes, clothes and footwear as

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well as bedding, the annual expenditure is $1,200, that is, about $100 per month. The sum of expenses is about $2,900. Just now, I did my calculation basing on the CSSA payment received by a singleton, and it shows that the financial support is insufficient with a shortfall of a few hundred dollars. And yet, this problem can be solved very easily. There is no need for the Government to adjust the rate of CSSA payment as it was substantially reduced by 11% in 1999, whereas civil service pay was also cut by 6%. However, while the 6% reduction in civil service pay was subsequently recovered, the 11% reduction in CSSA payment has yet to be recovered. In other words, the CSSA payment is one year behind. If the Government recovers the 11% reduction in CSSA payment, that is, adding 11% to $2,420, then the relevant CSSA payment will increase to $2,700. Since this $2,700 does not differ greatly from the $2,900 that we heard of on that day, I will reluctantly accept it. After listening to the above views, Members should think about why I would use CSSA payment as an example to highlight the problem of the $3,435 higher OALA proposed by the Government. If we believe that even a street-sleeper who is not required to pay any rent, electricity or water bill cannot live on without having $2,900 per month, with his savings kept intact because the Government would like him to keep his $140,000-odd assets for future retirement use, so there will only be a few hundred dollars left in his pocket. If he is so lucky to be allocated a public rental housing ("PRH") unit, then after adding the $1,000 rent, his monthly spending will increase from $2,900 to $3,900. If it is so unlucky that he has to live in a "coffin-sized" unit, the latest market price of which is $1,700, then his total spending will become $4,700. In other words, if the Government really hopes that the higher OALA can help them, the rate of the allowance should fall between $3,900 and $4,700 in money-of-the-day prices, but not $3,435. Secretary, I really hope that you will write down the figures that I have just mentioned and passed them to your colleagues for verification, to see if what I have said is merely empty talk. If the Government finally agrees that these figures can truly reflect the current situation and decides to introduce a retirement proposal under the principle of "those with financial needs" instead of a universal retirement protection scheme, it will have my support. If the Government also

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lowers the eligibility age for "fruit grant" to 65 and increases the rate of allowance from $3,435 to $4,000, I think the entire package will be more comprehensive and is no longer a tasteless chicken rib that is too wasteful to be thrown away, just as I have described. Instead, it will become a delicious chicken leg that can fill the stomach. Is it not very nice? Lastly, I would like to ask Secretary Dr KO Wing-man some questions. I will only talk about markets as I am not familiar with the other policy areas under his portfolio. With regard to markets, the Secretary should also aware that there are 300 000 people living in Yuen Long and Tin Shui Wai respectively. While Yuen Long has a couple of aged markets, there is none in Tin Shui Wai. The residents there have no choice but to buy from The Link REIT markets, and they have already been ruthlessly ripped off. Nowadays, The Link REIT markets have become markets for the middle class but not the grass roots. Tin Shui Wai residents would rather travel to Yuen Long, but this is not something that the capacity of light rail can cope with. So, if more people are taking the light rail to buy from the Yuen Long markets, it would be impossible for the light rail to cope with no matter how many train cars will be increased. According to the Government, there will be a new market in Hung Shui Kiu. However, given that it has a population of 200 000, has the Government planned to build a mega market to meet the needs of 500 000 people? What kind of transportation will Tin Shui Wai residents use to travel to Hung Shui Kiu in the future? They are not left with much choice except for light rail and public light bus, but will there be sufficient capacity? Has the Government provided sufficient ancillary facilities? Members should think carefully, how many stalls should there be for a market to meet the needs of 500 000 people? How should the entrances and exits be arranged? What kind of ancillary facilities should be provided? This is a very scary task. Concerning the recent discussions on future developments, including Tung Chung North, the Government often stresses that local residents should "get nearby employment", then why not "buy nearby food"? Why do people have to travel to another district to buy food? I hope that government officials, especially the Chief Secretary, would think carefully, Hong Kong's overall planning is currently plagued with problems as many people are doing some unnecessary commuting across districts. If such commuting can be minimized, it does not only help save money, but can also

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alleviate the pressure on the transport systems. Therefore, I strongly oppose the establishment of the so-called mega market, as it will attract many people to travel there. The Government thinks that this is efficient, but this is not efficient in certain respects. In fact, it should provide opportunities for employment and buying food in all districts, as such I will continue to pursue until Tin Shui Wai has at least one market. There should be one to serve the residents of Hung Shui Kiu as well, and only in so doing can we cater for different needs. The Government advised that it has yet to identify land for this purpose, and I can do nothing about this either. In the past, plenty of land had been designated for other purposes. In response to our efforts to identify a piece of land for the Government, it said that the relevant lot had been earmarked for the expansion of Tin Shui Wai Hospital. Of course, we dare not compete with the hospital for land, am I right, Secretary? But is there any other land available for consideration? I really think the Government must ponder over this. President, that is all I have to say.

MS CLAUDIA MO: President, allow me to concentrate on ethnic minority issues. It is very hard to reconcile Hong Kong's self-image as Asia's World City with the way we treat most Asians. It is very hard again to see how Hong Kong can play a leading role in "Belt and Road" when it takes so little notice of its Asian neighbours. Of course, in theory, Hong Kong is supposed to be in the best position to provide some links between inward-looking Mainland China and the Asian countries with China actually aiming to establish closer ties. "Belt and Road" actually includes countries like the Philippines, Indonesia, India, Bangladesh, etc. But when we look at how we treat people of the ethnicity or nationality of those countries, it is hard to see how we play this role. Look at how we treat brown-skinned Hongkongers who were born here, maybe even their fathers and mothers or their grandfathers and grandmothers were born here too. Quite a few of them could be very fluent in Chinese and have a good command of English and have practical skills. But they very often cannot get jobs that actually commensurate with their qualifications.

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Of course, one excuse people keep saying is that they have little or no knowledge of written Chinese. But more often than not, this is just an excuse for not liking the colour of their skin or perhaps their religion. As for making serious efforts to teach written Chinese to our minority students, that record is abysmal. It is just sad and it is almost like apartheid. As for the debts that Hongkongers owes to all those minorities in the past, they seem to be all forgotten. The Sikh policemen were the Indian merchants from Mumbai and Bengal, and the Jews from Iraq, not to forget the Armenians, the Parsees, they were all major players in the trade that made Hong Kong international. Now we see Hong Kong is losing out. Since 1997, it is obvious, we have been so obsessed with being Chinese and being part of China that we forgot other Asian countries are growing too. See how predominately Chinese, Singapore has taken advantage of India's opening up, not just on the trade but also on other issues, in particular the IT sector, and Singapore has also stepped up immigration from India. How about that? And what do we do? We make it more difficult for Indians and others to get visas. If we want to get ahead now, please, we have to start by treating our darker-skinned Asian neighbours as equals. That must start with our own residents. They are Hongkongers too. And allow me to get into specifics. Many people keep saying, "Well, it is the language barrier". Is it true? The education authority does have some "framework" teaching our minority students Chinese, but not as a second language. Why? Because the education officials say, "those kids must be treated as just like one of our own, all of our own." So, they are learning Chinese just like any of our Chinese kids. Can you imagine our ethnic Chinese students in Hong Kong learning English as a native tongue? Just what the hack are you talking about? Right? It is a Catch-22 situation and it is a no-win situation. As a result, when our minority young kids are learning Chinese in Form 2, they are learning Primary 2 Chinese. So, what is the point of learning? What integration are we talking about?

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And only the other day, the Subcommittee on Rights of Ethnic Minorities received a public deputation at its meeting. A Pakistani speaker, who speaks in impeccable Cantonese, said that he went to the Labour Department for job interviews. And as far as the Labour Department and potential employers are concerned, everything was fine up until they realized that he was actually Pakistani, and immediately, "no hire" ("唔請"). When we talk about importation of labour, you people always say, "We have labour shortage, so we need to import labour." Yet, within our ethnic minority community, the unemployment rate is up to 23% when compared to about 3% to 4% for the entire Hong Kong population. Something has gone wrong, completely wrong, between those two figures. At that particular meeting, we did pass a motion which I proposed and that is "Can the Labour Department set up a special subsection to look after minority job seeking needs?" The officials present would not even―they refused actually―promise to consider the content of that motion. And that motion, of course, is not legally binding. Of course I know, but the officials would not even consider that. So, what are we going to talk about in future meetings? Housing and medical problems on the part of ethnic minorities? Just because they are ethnic minorities? It is ludicrous. Can the new Chief Secretary for Administrative―who came from the Labour and Welfare Bureau―pay special attention to that? This is just not fair. What is the point of us talking about the plight of certain communities, minorities and the underprivileged at this Council, and yet the officials simply refuse to acknowledge, not to say endorse, what is being passed in this Council? This is just not right. This is so wrong, don't you agree? Never mind, some people would say, "Oh, we need to use more minority languages in our notices." Never mind the fact that there is hardly any Urdu or other minority languages in government notices, there are not even enough English signages in government services. Ever since 1997, we have been preaching "Chineseness" in this city. We are so Chinese, if you are a true Hongkonger, you have to be a descendant of the great Chinese race or else you are not quite a Hongkonger. Once again, is that fair? Please, can we end all racial biases in Hong Kong? Include, not exclude. Thank you.

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MR LEUNG CHE-CHEUNG (in Cantonese): President, as far as the two areas of retirement protection and population policy are concerned, this year's Policy Address outlines some plans to resolve several long-standing controversial issues in the community. It also proposes a number of measures to benefit the general public, such as progressively abolishing the "offsetting" of severance payments and long service payments with Mandatory Provident Fund ("MPF") contributions, improving the MPF Default Investment Strategy, abolishing the so-called "bad son statement" arrangement, and so on. All these measures are worthy of public support. Yet the Policy Address also proposes that the eligible age for elderly Comprehensive Social Security Assistance ("CSSA") be raised from 60 to 65. Some elders told me that they are extremely worried by such a decision because at present, the retirement age of most companies is still 60. Raising the eligible age for elderly CSSA to 65 will definitely undermine their retirement protection, one way or another. Or in the words of Mr LEUNG Yiu-chung, these elders may be forced to work again. Even with the retirement protection offered by MPF, they may use up the accrued benefits in several years' time. In that case, they have no alternative but re-enter the labour market. If they cannot find a job, they would be forced to apply for CSSA for reason of unemployment. As a result of the proposal, the elders are weighed down with worry because the Government seems to be unconcerned about protecting their retirement life. That is why I consider this policy a serious blunder. President, I will now outline the views of the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") on retirement protection and the Elderly Services Programme. The public have been striving for the implementation of universal retirement protection for a long time. In this year's Policy Address, the Government proposes to enhance the Old Age Living Allowance ("OALA") by relaxing the asset limits for the existing allowance, as well as adding a higher tier of assistance with a higher monthly allowance (hereinafter referred to as "higher OALA"). It is expected that around 500 000 elderly persons will benefit from the two measures. As we all know, if no criteria is set for the higher OALA and everyone is eligible for the allowance, it would be more or less an ideal form of retirement protection. I am sure most people will be happy to see this scheme put into implementation. But the problem with such a scheme is that additional expenditure in the range of $2,400 billion would be incurred in the next 50 years,

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which is about 10 times the expenditure of $250 billion arising from the present proposal. It is fair to say that the Government's current fiscal position is robust enough to implement a non-means-tested universal retirement protection scheme. But with a rapidly ageing population and hence a shrinking labour force in future, a financial crisis may be looming for Hong Kong in the long run as the amount of retirement payments will only keep rising, while the expenditure on other welfare services is easy to increase but difficult to reduce. This is the most worrying issue. As society has yet to reach a consensus on the matter, the Government now proposes the higher OALA as a stopgap. To a certain extent, we consider that the proposal can provide immediate assistance to those elders with financial difficulties and help relieve their livelihood burden. Otherwise, with the endless arguments in society, the elders may have to wait indefinitely before they can enjoy such retirement protection. But having said that, given the Government's proposal to implement the higher OALA which is a means-tested allowance, it should also respond to society's call for further increasing the asset limits. Without the latter, the new policy will turn out to be neither fish nor fowl, failing to win the support of society. Thus, DAB strongly urges the Government to increase the asset limits for the existing OALA as well as the higher OALA to $800,000 and $300,000 respectively, so that indigent elderly persons and those who belong to the sandwich class can benefit. Meanwhile, as a token of appreciation for the elderly's hard work for and contributions to Hong Kong, the eligible age for the non-means-tested "fruit grant" should be lowered to 65, so that they can better enjoy their retirement life. Recently, I noticed that all the Chief Executive candidates have not attached much importance to elderly policy in their election platforms. I must stress again that by implementing the higher OALA, it does not mean the Government has completed its task; instead, this is only the first step. President, in the face of an ageing population, the authorities should not only provide financial support for the elderly, but also formulate a holistic elderly policy. As a matter of priority, the Government should conduct a comprehensive review on the community elderly care support, residential care services planning, as well as nursing manpower planning. Moreover, the Government should earmark the necessary resources, so that Hong Kong can

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make early preparation to cope with the ageing population through better planning. Before going into details of our recommendations on community elderly care support services, I would like to share a case that I came across recently. A kaifong told me that last Tuesday (that is, 7 February), his eightyish grandfather, suffering from a cold and fever, and having no appetite for food, had a fall at home while changing clothes as his degenerative legs were weak. Luckily the old man did not sustain any injury, but he could not stand up on his own and his wife was not strong enough to help him up. An ambulance was thus called, and the old man was taken to the Prince of Wales Hospital at around 5:00 pm. As he was not suffering from any acute or serious illness, he was made to wait before seeing a doctor. But the wait turned out to be a nine-hour ordeal as it was only until 2:00 am in the morning that a doctor came to check on him. Although the old man was not suffering from any major illness, the doctor admitted him to the hospital for a thorough body check because he normally did not seek treatment or do check-ups at that hospital. The old man was then made to wait again. He waited for some 13 hours from 2:00 am in the morning to 3:00 pm the next day before he was assigned to a hospital bed. In other words, the whole process took 22 long hours, or close to one day, from the moment he was taken to the hospital by an ambulance until he was finally admitted to the ward. I cite this case not because I want to criticize the Hospital Authority, but because the situation illustrates perfectly the problems I am going to talk about. In fact, cases like this are not uncommon. As the kaifong also told me, when he was waiting with his grandfather in the hospital, he noticed that even the corridors were jam-packed with patients, and 8 out of 10 are elders. Eventually his grandfather stayed in the hospital for one and a half day to undergo thorough body checks. He was then discharged from hospital, all well and fit, as results of the tests confirmed that he did not have any complications or infections. I spoke at length about this case because I want to bring out one fact: Hong Kong's public health care system has been stretched to a breaking point. Lest we forget, this case happened on a weekday. The situation will definitely be much worse when the influenza peak season sets in later. Members may still recall the news concerning a notice "Ward Is Full" being posted outside the accident and emergency department of the Queen Elizabeth Hospital in March

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last year. The average waiting time then was as long as 15 hours. I reckon the situation this year may be even worse. How can we let elders in their seventies or eighties go through the same ordeal of waiting for days whenever they seek medical treatment? An ageing population creates increasing demand on health care services. That is why the Government should, as a matter of priority, review expeditiously the public health care system, so that long-term planning for the provision of health care services can be made to dovetail with Hong Kong's needs for future development. Of course, elders never have a liking for hospital stay, and ageing in place is a much preferred option for them. While the Government keeps stressing the policy of ageing in place as the core, little progress has been made over the past 10 years or so as the necessary complementary services are still lacking. Last week, I released DAB's Elderly Services Programme Plan. We hold that with the widespread embrace of the Internet and mobile applications, the Government should vigorously develop smart-home systems geared towards elders who age in place, so that they can always stay in touch and keep connected with the outside world through network technologies, either when they are at home or in the community. For example, the Government can subsidize elderly singletons or elderly couples living on their own to install smart-home network systems so that their activities at home can be detected through sensors. Should any incidents occur, such as if they feel dizzy or have a fall, the system will immediately notify their family members or the relevant organizations through cloud technology. As a matter of fact, such systems have become increasingly popular in other countries. With the inclusion of functions such as interactive reminder, their family members can also stay informed about their daily schedules through smart phones, for the purpose of reminding them to take medication or attend activity courses, and so on. At the same time, the Administration should set up integrated elderly services centres in districts or housing estates with a specific amount of population. Health care personnel will be stationed at the centres to provide dedicated services to the elders, including regular body checks and general care services. With the help of the Electronic Health Record Sharing System ("eHRSS"), the integrated centres will also provide long-distance health care maintenance services, so that the elders can get simple medical checks in a fast and easy manner. Through the remote system, elders with mild symptoms can

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also get an initial consultation from network doctors in the first instance, which helps to prevent their situation from getting worse as a result of delayed treatment. Going back to the case I just cited. Though the old man was admitted to hospital, he was not suffering from any serious illness. Because of fever, he lost appetite and his legs became weak. Suppose there is an integrated elderly services centre I just mentioned in his neighbourhood, he would be able to receive treatment and medication through the remote diagnostics system. If he has already registered with eHRSS, his health records would be kept in the central registry, obviating the need for the doctor to perform major tests on him because of uncertainties about his health condition, and the old man would not have to wait 13 hours for admission to ward or stay in the hospital for another one and a half day for the test results. All these would incur a waste of our precious health care resources. It is evident from the above case that in the ageing society of Hong Kong, more and more elderly singletons and elderly couples are living on their own. According to the statistics of the Census and Statistics Department in 2013, the number of elderly singletons living alone in 2001 was 840 000; by 2010, the number has increased to 1.19 million, representing a net increase of over 40%. For elderly couples living on their own, their net increase over the same period is even as high as 61%. For the elderly to age in place, the Government must hence ensure that at least somebody will be available to call an ambulance for them should they run into any accident at home. According to the findings of a telephone survey released by DAB recently, more than 30% of elderly persons have fallen, slipped or suddenly fainted while at home, indicating the seriousness of potential home accidents which we might have overlooked. The situation is worrying indeed. To ensure that the elderly can obtain immediate assistance should they have home accidents, we propose that funds should be made available by the authorities to subsidize indigent elderly persons to install emergency alarm systems. In the long run, as I just said, the Government should develop smart-home community systems for the elderly to age in place, so that elderly singletons and elderly couples living alone can stay closely connected with the outside world. Meanwhile, taking into account the actual physical conditions of the elderly, the Government should promote the concept of elderly-friendly home

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design, such as the provision of a wider doorway for wheelchair access, the installation of automatic lighting systems, and more importantly, motorized lifting clothes racks, electronic bidets, bed grab rails and bathroom handles, and so on. Moreover, social enterprises should be encouraged to provide services for the installation, repair and maintenance of these fixtures. Apart from staying at home, the elders would need to go out. They cannot stay at home all the time and become hidden elderly. According to the findings of our survey, nearly 30% of the respondents are forced to go out less often due to the adverse conditions of roads around their residence. Furthermore, nearly 50% of the elders often prefer to take a longer route because of the above problem. In our opinion, the authorities should expeditiously improve the living environment in the community and increase the provision of barrier-free facilities, especially for old housing estates built on the hillside, so that elderly residents no longer have to struggle with stairs or steep roads every day. In recent years, DAB has been proposing the establishment of a $5 billion fund for hillside improvement projects, so that resources can be earmarked for the dedicated purpose of expediting the provision of escalator links and elevator systems to alleviate the difficulties met by the elders when going out. Last month, the Government announced its plan to jointly develop the Innovation and Technology Park at the Lok Ma Chau Loop with Shenzhen. One of the areas of research and development ("R&D") must be the technologies to promote the "silver hair" market. For instance, the functions of smartphones have gone way beyond making and receiving calls. Nowadays, mobile phones are just like mini computers, their popularity has gone beyond our imagination. We propose that a key R&D area of the Innovation and Technology Park is the development of a tailor-made smartphone for the elderly. Apart from maintaining records on the elder's physical conditions and reminding them when to take medication or attend medical appointments, the smartphone must also keep track of government subsidies or services, such as the balance of health care vouchers, the number of outstanding home care services visits, the amount of OALA, and so on. With such a multi-function smartphone, the elders can better manage their personal life, while making it easier for their families to take care of them. We believe that this will help turning an ageing Hong Kong into an elderly-friendly city, and better still, a smart elderly-friendly city. President, I make various suggestions on elderly services today precisely because the ageing of Hong Kong's population has been gaining momentum. There are currently over 1.1 million elderly persons in Hong Kong, meaning that

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about one in six persons is an elderly person. By 2064, the number will surge to 2.58 million. In my view, the situation is indeed worrying. That is why I hope the authorities will follow up my proposals as soon as possible. I still have some time left, so I will say a few words about the provision of markets. Secretary Dr KO Wing-man, I am aware that much effort has been made by your Policy Bureau on this matter, especially the establishment of Tin Sau Bazaar in Tin Shui Wai. From the experience of Tin Sau Bazaar, it is evident that a market can only operate successfully if it has sufficient space and the support of people in the community. More importantly, market mechanism should be introduced to encourage competition. The Government is now considering establishing bazaars in different areas (including housing estates). A recent example is the bazaar established in Sham Shui Po, which I heard was quite a success with good business made by many stall operators. I hope the Government will conduct a comprehensive study in the future so that with the support of District Councils and people in the community, more bazaars can be established in all 18 districts, including housing estates, so as to boast the economic activities of low-income earners in the community. Nonetheless, I have concerns in two areas. Firstly, the operation of bazaars will likely create problems relating to noise nuisance, cleanliness, public order, and so on. This is a matter which local kaifongs are gravely concerned about. Secondly, there is the concern about safety, especially the operation of cooked food bazaars. Hence I hope the Secretary can examine these issues and formulate the necessary rules or guidelines for compliance by stall operators. On the basis of these rules and guidelines, people in the community can also conduct further consultation and render support. With these remarks, I conclude my speech.

Thank you, President.

MR POON SIU-PING (in Cantonese): President, in the last Policy Address of the Chief Executive during his tenure, the progress of work in respect of the welfare policy is unsatisfactory. The Government has responded poorly to the community's strong request for implementing universal retirement protection and abolishing the Mandatory Provident Fund ("MPF") offsetting mechanism. I am thus very disappointed.

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The Chief Executive stressed in the Policy Address that, in 20 years, one third of Hong Kong's population will be aged 65 or above, and that the community needs to be well prepared for retirement protection. Unfortunately, the Chief Executive has only emphasized the four pillars in the Policy Address but refused to make commitments with regard to universal retirement protection. The Policy Address proposes to improve the Old Age Living Allowance ("OALA") by adding a higher tier of assistance and relaxing the asset limits for the existing allowance. Another measure is to abolish the so-called "bad son statement". I welcome the Government's approach. However, these measures are implemented under a means-tested framework. If the Government intends to conduct a meaningful means test, and at the same time, provide retirement protection, the inevitable result is that members of the public are encouraged not to have savings, which is contradictory to one of the pillars of retirement protection, that is, encouraging voluntary savings. While I maintain that universal retirement protection is an irreplaceable arrangement, I will not oppose the Government's improvement measures because of my support for universal retirement protection. At this stage, I hope the Chief Executive will relax the means test so that more elderly persons will be benefited. The retired elderly have contributed their lifetime for the prosperity of Hong Kong today, thus Hong Kong, being so rich, has the rightful duty to allow these people to enjoy life in their twilight years and continue to live with dignity. It is indeed very sad if the Government is indifferent and turns a blind eye. Elderly services are closely related to retirement protection. In this connection, the Policy Address mentions that the Pilot Scheme on Residential Care Service Voucher for the Elderly will be implemented. An eligible elderly person can receive service vouchers at a face value of $12,416 per month, but this still lags high behind the community's demand. While financial support is important, another social concern is the quality of private residential care homes for the elderly. The question of how the quality of these private homes can be enhanced is another challenge brought about by an ageing population in Hong Kong. "Ageing in place" should be an ideal arrangement. However, as the living spaces of Hong Kong families are getting smaller and smaller while the working hours of employees are getting longer and longer, the mere addition of tens to hundreds of elderly and rehabilitation service places simply cannot actualize

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"ageing in place" as always emphasized by the Government. Our society needs supporting measures on health care, housing, employee rights and infrastructure to solve the problem of an ageing population. President, abolishing the MPF offsetting mechanism is related to employees' interests as well as their retirement protection. The Chief Executive has finally proposed a direction in the Policy Address on abolishing the MPF offsetting mechanism, but many issues are still pending discussion. Regarding the Government's current proposal on abolishing the MPF offsetting mechanism, I would describe that the Government is offering sweet soup and bitter tea at the same time. While abolishing the MPF offsetting mechanism, the severance payment and the long service payment to be received by employees will be adjusted downwards from the existing two thirds of one month's wage to half a month's wage. This proposal runs counter to the proposal advocated by the labour sector. I sincerely hope that the next Chief Executive will revise the present proposal because in abolishing the MPF offsetting mechanism, employees' interests have retrogressed. In addition, whether it is reasonable to use public money to subsidize employers within the 10-year transition period is still open to question. As a change of government is approaching, I hope there will still be room for improvement concerning the MPF offsetting mechanism. Recently, the MTR arson incident has again aroused the community's concern about ex-mentally ill persons. The Policy Address and the Policy Agenda mention very little about ex-mentally ill persons. It is stated in the Policy Address that the Government will set up a standing advisory committee to review and follow up the development of mental health services. In the Policy Agenda, it is only mentioned that the Government will promote the public's concern about mental rehabilitation and take forward the implementation of Joyful@HK, a three-year campaign, but no substantive measures have been proposed to improve mental health services. I hope those injured in the MTR arson incident will recover soon. This unfortunate incident actually has a positive meaning, indicating that the Government should review the mental rehabilitation policy and rectify the deficiencies. Concerning the Voluntary Health Insurance Scheme, without the high-risk pool, its original intent is lost. The Scheme only encourages the public to take out health insurance products by providing tax deduction. In other words, public funds are used to provide insurance companies with concessions in disguise,

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allowing insurance companies to make the greatest profits. A health insurance scheme which has been promoted for almost 10 years eventually makes insurance companies the biggest beneficiary. I feel very sad. The Policy Address talks much about Chinese medicine. The Government has decided to finance the construction of a Chinese medicine hospital to give the public another choice, which is highly significant to the development of Chinese medicine in Hong Kong. However, how to promote the balanced development and exchanges of Chinese and Western medicine, as well as how to break sectarian bias and interests remain the great challenges to the Government in promoting the development of Chinese medicine. I so submit, President.

DR KWOK KA-KI (in Cantonese): President, I would like to focus on health care first. The Secretary for Food and Health is sitting opposite me. He has high popularity ratings, even higher than those of the two Secretaries of Departments who have "jumped ship". To our regret, Secretary Dr KO has not used his popularity to truly formulate a long-term health care policy of Hong Kong and provide sufficient funding to it. Let me explain. On the face of it, the Hospital Authority ("HA") and the Department of Health have received a total funding of over $50 billion. According to the Government's statistics, the funding has increased by over 60%, but in reality, the funding has decreased. Under the last Donald TSANG Government, the goal was that the expenditure on health care should take up 17% of the total public expenditure, but last year the funding for health care was just 16.5%, meaning that the Government has defaulted on its undertakings. The Government earmarked a sum of $200 billion to increase hospital beds in the next 10 years. However, during the recent influenza surge, it was obvious that hospital beds were still in short supply. Take the medicine ward which has the highest occupancy rate as an example. The occupancy rate of the medicine ward in the United Christian Hospital reached 128%, while the overall occupancy rate over the territory was 109%. It seems that the authorities are at their wit's end. Besides, the newly commissioned North Lantau Hospital and Tin Shui Wai Hospital are also in dire conditions and they are not even qualified to be named as hospitals. For example, in Tin Shui Wai Hospital, there are no beds, and it does not provide round the clock accident and emergency service and day surgery

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service. It does not even have equipment such as endoscope. Even though the Tin Shui Wai Hospital provides blood taking service, it can at most be called an enhanced specialist outpatient clinic. I do not blame Secretary Dr KO Wing-man but it is outrageous that the Government uses such tactics to window dress its performance. A number of tragedies have happened recently, including the most frightening arson case at the MTR Admiralty Station; the tragedy of a man jumped from height after killing his wife yesterday, as well as a number of suicides committed by school children. All these reflect that many people have mental health problems. However, both the last and the incumbent Governments claimed that they were still reviewing the policy and services relating to mental health. The term of the incumbent Government will come to an end soon. The funding allocated to the provision of mental health services only represents 0.25% of our Gross Domestic Product, which is just one quarter of that in Australia and the United Kingdom. At present, over 220 000 people are receiving psychiatric services. Among them, over 40 000 people suffer from severe mental illness. However, the general direction of the government policy is to minimize hospitalization and encourage patients to receive community treatment. The intent is good but the problem is that no assistance is available at the community level. There are no residential institutions; community service and social workers are insufficient; and 10 Integrated Community Centre for Mental Wellness do not even have permanent premises, hence services can only be provided in fast food shops of Café de Coral or McDonald's. With such kind of services, are the authorities unfair to the victims of the tragedies, the parents of students who committed suicide and tens of thousands of patients who are now suffering? Although the Government has put forth certain desirable proposals such as lowering the eligibility age for the Elderly Health Care Vouchers to 65, the problems faced by the elderly cannot be resolved. Many grass-roots elderly persons have few teeth left but they cannot do anything about it. With an annual subsidy of $2,000 from the Government alone, there is no way they can have their teeth fixed. The Government only asks them to apply to the Community Care Fund for help. More ridiculously, the life expectancy of males in Hong Kong is 81 years. To put it bluntly, to be eligible for the subsidy, one must live long; otherwise they cannot enjoy the benefit. The Government's present approach just cannot resolve any problem. As regards the Elderly Health Centres and health centres for women in various districts, the services offered are just not

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good enough. Originally, I thought that by reviewing the operation of HA and eliminating the practice of "sectarianism", the situation could be improved, but in fact, this direction was wrong. It is inappropriate to allocate large amount of resources to HA; more emphasis should be placed on disease prevention. Thus the Government's work in this respect also fails to meet the target. Very unfortunately, although the Government has handed out two "sweeteners", one of which is related to the Elderly Health Care Vouchers, the reality is that the situation has retrogressed each year in respect of the funding amount, the waiting time for outpatient service, or the overall primary care services or hospital services. We cannot lay all the blame on Secretary Dr KO as he may not serve a second term. The root of the problem is the overall direction of the government policy. At present, the two Chief Executive candidates, namely "Moustache TSANG" and Carrie LAM have kept contradicting their own remarks made in the past. Both of them have the unshirkable responsibilities as they have been protected under the overall policy and they are also the ones who approved the funding. We will not let them off the hook; neither do we accept their performance. As the Chief Secretary and the Secretary are now present, I would like to talk about the unfulfilled promises on universal retirement protection. The biggest problem is not the unfulfilled promise. The current proposed scheme is nothing new. When Prof Nelson CHOW published his study report, the Democratic Alliance for the Betterment and Progress of Hong Kong, New People's Party, etc. proposed a three-tier package, under which a monthly allowance of $3,400 will be provided with the assets limit set at $150,000. The amounts proposed at that time were the same as those proposed in the current scheme. By 2041, the expenditure to be borne by the Government will be $50 billion each year, representing 2.28% of GDP. This is in fact taking full advantage of the people. In view of that, the Civic Party and the Alliance for Universal Pension proposed a tripartite contributory scheme since universal retirement protection can only succeed with the commitment of all parties concerned. A scheme that relies wholly on government contribution is no different from asking the Government to throw money into a bottomless pit which is absolutely senseless. A universal retirement scheme can only be viable with the contribution of all parties concerned. Why is the Government so short-sighted and insists on taking the hard way but not the easy way? Why does it lack the foresight and only consider the situation by 2064? By adopting window-dressing tactics, it is actually taking

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poison. The Government is now feeding the people with sugar-coated poison when it asks everyone to bear the cost of universal retirement protection, as in the case of abolishing the MPF offsetting arrangement to subsidize the business sector and big consortia, which is totally against the principle of justice. The Chief Executive candidates are bragging about their abilities, I wonder if they are capable of making changes for the better. However, the proposed three-tier scheme, under which all costs are borne by the Government for the provision of the so-called enhanced Old Age Living Allowance, is doomed to failure as it will never resolve the problem of long-term retirement protection in Hong Kong. I so submit.

Thank you, President.

MR WU CHI-WAI (in Cantonese): President, I would like to speak on several issues including the vetting and approval of One-way Permit ("OWP") applications, as well as the community health care system and the prevention of diseases. All along, the Democratic Party has been demanding that Hong Kong should take back the power of vetting and approving OWP applications. In fact, LEUNG Chun-ying also mentioned in his election manifesto in 2012 that the Government should reserve "the authority to screen and approve newcomers to our shores". But whenever the Government responded to the call for taking back the power of vetting and approving OWP applications, it invariably pointed out that in accordance with Article 22(4) of the Basic Law as interpreted by the Standing Committee of the National People's Congress in 1999, the vetting and approval of OWPs fall within the remit of the Mainland authorities. However, at present, the Immigration Department ("ImmD") has a gate-keeping role to play in the vetting and approval of OWPs. The Secretary has also stressed time and again that the SAR Government facilitates at case level the processing of applications, including issuing the Certificates of Entitlement and rendering assistance to the Mainland authorities in authenticating the particulars of Hong Kong residents, and so on. As things stand, ImmD has already been vested with certain powers of vetting. For specific programmes such as the Admission Scheme for Mainland Talents and Professionals, the SAR Government has full autonomy to vet and approve the applications. By the same token, can the Government consider

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establishing a family reunion admission scheme, such that most applications lodged by Mainland residents to settle in Hong Kong for family reunion can be processed by the Government as a specific programme, hence creating a way out in the vetting and approval of OWP applications? If Hong Kong can take back certain power to vet and approve OWP applications, this will certainly be greatly conducive to formulating our population policy. As previously stated by the Government, ImmD has established a data collection mechanism at the Lo Wu control point to collect data on the demographic and social characteristics of OWP holders when they enter Hong Kong. However, if such data can only be collected after the new arrivals entered Hong Kong, how can this facilitate the long-term planning of the Government? Thus, by transferring the power of vetting and approving specific groups of OWP applications to Hong Kong, the authorities can make timely observation of the social characteristics of applicants while they are waiting for application approval. This is the only way to truly help Hong Kong make long-term planning properly. Taking back some powers of vetting and approval not only helps the Government formulate its long-term population policy, but also clears up Hong Kong people's doubts about possible abuse of the vetting and approval powers. Hence, it is justified, reasonable and necessary to enhance the powers of Hong Kong at the so-called "case level" to formal powers of vetting and approval through establishing a specific admission scheme for family union. Now I would like to say something about disease prevention. One of the key issues relating to population policy is the utilization of health care resources. In this regard, the Democratic Party has all along stressed that prevention is better than cure. Hence, we propose that a seed fund should be established to promote primary health care services. I have also suggested to the Government on different occasions that free dental check-up can be provided to the elderly through public-private partnership, so that the elders' well-being and social life will not be affected due to eating problems arising from dental problems. In recent years, a number of disease prevention programmes have been launched by the Hospital Authority ("HA"), for example, the Colorectal Cancer Screening Pilot Programme. It is a very good start. But the Democratic Party

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hopes that the next-term Government can step up efforts in this regard by increasing the expenditure on primary health care, especially the preventive and curative measures. Finally, in respect of our community hospital system, the Government and HA often stress that with an increasing number of graduates, the shortage of health care manpower will improve substantially starting from 2018. I hope the next-term Government can expeditiously formulate a plan to attract talent, so that the public health care system will be sufficiently staffed to reduce the existing manpower pressures on the accident and emergency ("A&E") departments as well as major hospitals. The Government should also strengthen the role of community hospitals. By giving full play to the gate-keeping role of community hospitals, service demand of major hospitals can be reduced. Take for example Our Lady of Maryknoll Hospital ("OLMH") in Wong Tai Sin. We have repeatedly demanded that the manpower of OLMH should be increased where circumstances permit, so that 24-hour A&E service can be provided to nearby residents. If patients can receive treatment at OLMH even in the small hours, the burden of A&E departments in other hospitals will definitely be relieved. I so submit.

Thank you, President.

MR ALVIN YEUNG (in Cantonese): President, in his last Policy Address, LEUNG Chun-ying claims that poverty alleviation, elderly care and support for the disadvantaged are the focus of his governance, but in reality, the poor who need support, the elderly who need care and the disadvantaged who need assistance have to undergo a means test to prove that they have nothing before they can benefit from government policies. Are such measures worth boasting about? In this year's Policy Address, the Chief Executive brags that the poor population in 2015 stood at 970 000, i.e. below 1 million, for the third consecutive year and remains at a low level of 14.3%. But is it a fact? The statistics provided by the Oxfam Hong Kong ("Oxfam") for the past five years differ greatly different from that of the Government. This situation is worth pondering about.

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According to Oxfam, in 2015 the number of poor households reached 460 000, an increase of 6% over that of 2011, and the poor population stood at 1.15 million. The poverty rate of all households in Hong Kong rose from 18.5% in 2011 to 18.7% in 2015. It was further pointed out in the report that the wealth discrepancy continued to grow in the light of the conditions of the poor from 2011 to 2015. In 2015, the monthly household income of the richest was 29 times of that of the poorest. According to the statistics published by the magazine Forbes, in August 2016, the collective wealth held by the 50 richest people in Hong Kong amounted to $1.89 trillion. In June 2016, the total disposable fiscal reserve of Hong Kong was $1.38 trillion. In other words, the wealth of the 50 richest people in Hong Kong was 1.37 times that of Hong Kong's total fiscal reserves, and the collective wealth of the 18 richest people already equalled the total disposable fiscal reserve of the Hong Kong Government. What message do these figures convey? President, these are not cold figures but they tell the people of Hong Kong that the wealth gap is extremely serious. Against this background, the so-called achievements in poverty alleviation bragged about by the Government are even more absurd. What has the Government done in the past few years? First, it set up the poverty line, stipulating that households living below the line were eligible for government assistance. But then it proposed to incorporate public housing benefits as one of the income items of the households, in the hope of reducing the size of the population living below the poverty line. The Government eventually backed down owing to the great controversy aroused. Nevertheless, we fail to see what practical measures have been implemented after the poverty line is set that can truly help those living below the line. Second, the Government introduced the Low Income Working Family Allowance to provide assistance to the children of poor families to ease inter-generational poverty. However, owing to the cumbersome application procedure, few applications have been approved since the Allowance was introduced in May last year. The staff of social services organizations also complain about the difficulties in making declarations. I believe Chief Secretary Matthew CHEUNG, who is now present in the Chamber, has heard about this problem. According to the statistics provided by the Labour and Welfare Bureau, of the 27 000 applications received in Phase I, only 3 880 applications were approved in two months, and the average amount of allowance granted was $14,000. It is doubtful whether this small sum of money can help lift a poor family out of poverty.

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Third, the Government introduced the Old Age Living Allowance ("OALA"), a "pocket-it-first" universal pension scheme. It is highly doubtful if OALA can resolve the problem of elderly poverty. President, elderly poverty is a structural problem. As no retirement plan has been formulated for members of the public, the elderly, especially the grass-roots working elderly, have to face the problem of poverty, and this has become a thorny crisis faced by the Government in the 21st century. The Government on the one hand questions if the retirement protection scheme put forward by the public is financially viable, but on the other hand, it cannot resolve the problem of financial sources in respect of a two-tier means-tested pension scheme financed solely by the Government. Moreover, after spending one year studying the retirement protection issue, Prof Nelson CHOW put forward a pension scheme to be financed by tripartite contribution from employers, employees, instead of being solely financed by the Government. The proposal also changed the long-standing view that pension was a right rather than a welfare benefit. Regrettably, the Administration thinks that a two-tier OALA proposal can resolve the long-standing disputes and that various bodies in society which have been striving for retirement protection for 20 years will accept such a proposal. President, we support a non-means tested universal retirement protection scheme to show our respect for the elderly who have contributed so much to society in the past, and more importantly, to allow them to live their twilight years in dignity. The scheme puts forward by various parties in society calls for a shared commitment to undertake the huge financial burden, instead of relying on the Government to undertake sole financial commitment. Only in this way can the scheme be implemented effectively and sustainably in the long run. To our regret, in this year's Policy Address, we fail to see that the Government is willing to face up to this problem and has responded positively to the demand of various parties in society. Hence, the Civic Party simply cannot accept the saying that the Government's poverty alleviation policy is appropriate and effective. Moreover, President, as the grass roots and non-skilled workers have lost their competitive edges due to economic transformation, the Government should create more opportunities for them to find a way out by developing the community economy. For example, we advocate the operation of small businesses in the form of cooperatives, so that they will not be affected by high

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rents and have to cease operation. If this policy is well implemented, the grass roots can secure employment and be self-reliant, which is a more effective way to alleviate poverty. However, the Government fails to elaborate on this issue in the Policy Address. We notice that in the past few years, the Government has tried to meet the needs of the "N have-nots" through the Community Care Fund. In this way, the Government could address the problem but did not have to bear a long-term responsibility. Is the Government committed to solving the poverty problem of the "N have-nots" in the long run? Most regrettably, every year before the delivery of the policy address or the budget, these people have to petition and voice their aspiration incessantly before they can receive small favours from the Government. This is not a situation which we are happy to see. In respect of elderly care, I originally hoped that the Policy Address would say more. President, concerning this issue, in the long run we hope that the elderly can spend their twilight years in comfort. Two factors are concerned: one is to receive institutional care and the other is to age in place. We hope that elderly care service can transcend the above two aspects, including advanced stage care, hospice care as well as palliative treatment. These major items should be considered in the context of a comprehensive strategy with the services provided in a one-stop manner. Apart from taking care of the elderly's basic needs in their daily lives, we hope that such services will also allow them to spend their final days with dignity. President, to encourage the elderly to age in place, resentment will be aroused if the Government merely chants empty slogans or provides care service vouchers. The recent scheme to provide care service vouchers for discharged elderly patients through the Community Care Fund has been met with strong criticisms, and now the Government plans to introduce the Pilot Scheme on Community Care Service Voucher for the Elderly financed by the Lotteries Fund. This Scheme will only arouse great resentment among the elderly who wish to age in the community, because they will never receive the vouchers owing to their low priority for service. For this reason, the Civic Party proposes increasing the places of community care services and day care centres for the elderly, such services will enable the elderly to feel at ease to spend their twilight years in the community that they are familiar with.

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Apart from that, we also think that the Government should build more subvented residential care homes, as well as care and attention homes for the elderly. As the Government has not built such homes or increased the institution places for a long time, elderly persons who need to receive institutional care are forced to remain in the community. Each year more than 1 000 elderly persons died while waiting for a place in these institutions. As such, it is a matter of great urgency to build more elderly homes and train more medical and nursing personnel. This is a debt that the Governments of the last few terms have owed the people. President, before I end my speech, I have to highlight one point, places in care and attention homes for the elderly and for people with disabilities are very important as these two groups of people are the most underprivileged in society. As regards the policies on elderly care and rehabilitation, the Civic Party opines that a welfare plan on a five-year basis must be formulated, under which issues relating to land, manpower and finance will be considered in detail and in a one-stop and holistic manner. Only then can the problems be solved effectively and systematically in the long run. I so submit in this debate session.

MS YUNG HOI-YAN (in Cantonese): President, as population ageing persists in Hong Kong, some elderly people have to rely on social security for their retirement needs. For this reason, I welcome the proposal in the Policy Address to lower the eligibility age for the Elderly Health Care Vouchers from 70 to 65, so that about 400 000 more elderly persons will receive $2,000 a year to pay for primary care services from the private sector. The Chief Executive has mentioned in paragraph 186 of his Policy Address: "In 20 years, one-third of Hong Kong's population will be aged 65 or above. Moreover, with longer life expectancies, Hong Kong people's retirement life can be as long as 20 to 30 years. As such, the community needs to be well prepared for retirement protection." I strongly support this view. There is an urgent need for the community to make good preparation for retirement protection. The Government has an unshirkable responsibility in particular. As reflected from overseas experience, a universal retirement system, under which various parties make contributions on a pay-as-you-go basis, are often not

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financially sustainable. Hence, I suggest that the Government set up a three-tier maintenance allowance for the elderly to provide appropriate cash assistance to the elderly with financial needs. Asset limits and the level of subsidies should be determined pending further discussion and study in the community. On elderly care, I endorse the direction of improving community care services set out in the Policy Address. While the "money-following-the-user" approach has been considered undesirable by some Members, I believe that it will facilitate the development of community care services in the private sector. I hope that the Government will expeditiously identify more quality operators in the private sector with the relevant experience to take part in the pilot scheme, with a view to providing the elderly with quality services at reasonable costs. Meanwhile, I hope that the Government will improve and raise the quality of private operators so that the elderly and their family members can rest assured when using their services. In addition, with regard to dental care, I hope that the Government will promote the awareness of dental health on various fronts, and at the same time provide young people and middle-class people with relevant services. I also hope that the Government will actively consider lowering the eligibility age for the Elderly Dental Assistance Programme ("the Programme") for the sake of the elderly in need, with a view to improving their health as early as possible. While the Community Care Fund has extended the Programme last October to cover Old Age Living Allowance recipients aged 75 or above, many people still consider it necessary to further lower the eligibility age. If elderly people in need of dental care can have access to services at an earlier age, they can lead a happier and more joyful life; they can consume more healthy and nutritious food, and they can be more confident and healthy, thereby significantly reducing future demand for medical services. I hope the Government will seriously consider this view. President, the Chief Executive has proposed to abolish the Mandatory Provident Fund ("MPF") offsetting mechanism toward the end of his term, which will consequently place more responsibilities on employers in respect of their employees' retirement protection. The Government will, meanwhile, only provide small and medium enterprises ("SMEs") with subsidies for a specified period. In my opinion, the Government should prudently assess the implications of this proposal on 320 000 SMEs in Hong Kong; clarify the role of severance

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payments, long service payments and MPF; and offer enterprises more support on MPF matters. I call on the Government to replace the current MPF with a Central Provident Fund in a gradual and orderly manner, and entrust the administration of the Fund to a central administrator. This will not only lower management fees but increase investment returns as well. I hope the Government will seriously consider this suggestion. President, I so submit.

MR SHIU KA-CHUN (in Cantonese): President, when can Hong Kong have a welfare policy that gives the aged rest and treats the young tenderly? LEUNG Chun-ying, seeing that he will depart soon, hopes to make some accomplishments speedily, so as to win more applause when he leaves office. This is understandable, but if he does something rashly to win applause, the practical problems obviously cannot be resolved. The welfare policy of the SAR Government, including housing and land planning, the Old Age Living Allowance ("OALA") as well as universal retirement protection, cannot really respond to people's livelihood needs. What is the Government doing? LEUNG Chun-ying has different sound bites, such as "together", "no livelihood issue is too trivial" and "tops the Government's agenda". But when the Government often uses the pretext of land shortage and intends to develop country park sites contrary to our wish, or when the Government turns the entitled rights of the elderly to receive living allowance into a form of welfare benefits and subject them to means tests, I wonder whom the Government is serving when it claims that the measure to increase land supply is to meet the housing needs of the public, or the introduction of a number of subsidies is to meet the needs of the elderly. The Government claims that land development serves to meet the housing needs of local residents, especially the younger generation. However, in an age when wealth is extremely concentrated in a few hands, and when there is an influx of hot money, surging property prices and depreciating Hong Kong dollars, whose housing needs can be met with the construction of additional flats other than public housing? Are we addressing the desire of speculators/investors or the housing aspiration of the homeless?

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When we talk about respect for the elderly, poverty alleviation, "fruit grant" and living allowance we claim that all these measures can meet the needs of the elderly. To determine if the elderly are in need of help, the Government has to assess if their assets have exceeded $186,000. Obviously, the elderly in need ask for the abolition of assets tests. Who made these rules? Certainly, it is the Chief Executive, whom we do not need, made the rules. Confucius said, "in regard to the aged, to give them rest; in regard to friends, to show them sincerity; in regard to the young, to treat them tenderly." 4 The premise of giving the aged rest and treating young people tenderly is to understand their real needs, including material and spiritual needs. We understand that systematic studies should be conducted to fully grasp the relevant information. Oddly, it seems that the Government has not conducted any systematic study on the needs of the elderly or the poor in their daily lives, or the housing needs of Hong Kong people, especially the younger generation; at least, it has not made public the results of the relevant studies. Without a full understanding of the livelihood needs of the elderly and the youth, the Government has hastily introduced baffling policies. Whose problems can these policies solve? Are they targeting the hardships of people or the political troubles of those in power? How difficult is it to understand the livelihood needs of the elderly and the youth in Hong Kong? Through careful observation and rational analysis, we can probably have some insight. To fully grasp the situation, systematic analyses and investigations are needed. To really give the aged rest and treat the young tenderly, the Government cannot just make sloppy efforts and introduce livelihood policies for winning applause or for political considerations. Its efforts should be based on understanding and analyses of the genuine needs of the elderly and the youth. If increasing land supply can really resolve the housing problems of Hong Kong people, especially the accommodation problem of young people, I think not many people will raise objections. The problem is that, apart from a few additional sites for public housing construction, I guess other sites have nothing to do with the housing needs of young people. Hence, a very special phenomenon has arisen: while the indigenous residents of the New Territories are

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willing to develop land for sale, the non-indigenous residents want to defend their homes. For the former, land is just a commodity for investment/speculation; for the latter, land is where their home is. As regards the Government's declaration that the housing problems of Hong Kong people can only be resolved by increasing land supply, it is obviously too sweeping. The real solution to the housing problems of Hong Kong people is to increase housing supply for self-occupation purpose, and reducing or stop using housing supply for investment/speculative purpose. What actually are the needs of the elderly in Hong Kong? In the face of the declining quality of public health care, the rising costs of private health care, an ageing population, incessant inflation, an ineffective MPF system and limited old age allowance, I am afraid the elderly are most in need of a sustainable universal retirement protection system, so as to ensure that they can spend their twilight years in a dignified way. The elderly do not need a small amount of means-tested living allowance which has a labelling effect and will exert heavy mental burden on them. What actually are the needs of the youth in Hong Kong? At a time laden with uncertainties and the prospect is gloomy with fewer chances of upward social mobility, higher risks in life and work, perhaps young people are most in need of a stable foothold on which they can rebuild trust and hope for the future. Specifically, the Government should ease their worries about accommodation, rather than just make sweeping statement about increasing land supply. The Government claims that it will continue enhancing various social security policies, including Comprehensive Social Security Assistance ("CSSA"). The enhancement of CSSA may include measures such as OALA which has changed from showing respect for the elderly to poverty alleviation. The means-tested OALA not only fails to respond to the appeal of enabling the elderly to lead a dignified life, but has even enforced the negative labelling effect of CSSA. As a result, elderly persons being labelled "poor" have to make great efforts to meet the requirements of the means tests and, as in the case of CSSA recipients, they have to bear the bad name of underreporting their assets to obtain government subsidy fraudulently. Will this improve the lives of the elderly or create more trouble for them? Will this meet the needs of the poor or create a "winner takes all" concept or a selfish desire to avoid paying additional tax?

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To order to give the aged rest and treat the young tenderly, the Government should no longer have the mentality that it is doing a job and perform perfunctorily, or keep implementing some irrelevant measures which are ineffective to address or resolve real livelihood needs. The Government fails to understand where the problems lie. Worse still, it introduces short-sighted policies merely for the purpose of reporting duty, adding more troubles to the community. I would like to tell the Secretary, if he wants to do real work, he should address the needs of the elderly, the middle-aged, the youth and children. If the elderly need protection in their twilight years and a dignified way of living, I am afraid that a sustainable universal retirement protection should be accorded the top priority. If young people or the future generations want stable support and a future with hope, the right direction is to change the present land supply which is tilted towards investment/speculation and construct more flats to meet the housing needs of Hong Kong people. To this end, a Government that really does real work for Hong Kong should no longer waste time, energy and resources to introduce or enhance some measures that are irrelevant to the needs of the people in their daily lives. Instead, it should work with concerted efforts to explore how to develop a sustainable universal retirement protection system so that the elderly can lead a dignified life, as well as how the existing or future housing resources can be changed from being investment/speculation commodities to self-occupation flats. The specific measures include establishing a sustainable universal retirement protection system by creating resources and making use of existing resources, which include the huge fiscal reserves of the Government, the resources presently used in other areas that have been mismatched or not being put into effective use. Furthermore, the Government should use most of the additional sites for public housing construction, introduce value-added tax and re-instate rent control, etc. These policies which discourage real estate investment/speculation can release the second-hand housing units now hoarded in the hands of investors/speculators, so that the next generation with lower incomes can buy their own homes. All these are not irrelevant enhancement measures, and I am afraid that only a government that rises to challenges will have the opportunity to give the aged rest, show friends sincerity and treat the young tenderly. Every time I speak, I will always present some pictures. Today, I am holding a picture of an elderly person who is more than 80 years of age. He is still working as an outsourced cleaner and he just finished work around 4:00 pm

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today. He now receives the minimum wage of $32.5 per hour but he does not receive payment for meal breaks. There is no place for him to change clothes and he has no time for meals. He will suffer greater hardship when he is sick. He is an elderly person in our society; can we really give the aged rest; show friends sincerity and treat the young tenderly? I so submit, President.

MR HO KAI-MING (in Cantonese): President, in the third session of the debate, I wish to express my views on retirement protection and the hawker policy. First of all, I will talk about my views on retirement protection. The Chief Secretary for Administration is present. As the former Secretary for Labour and Welfare, he should be very clear about our views. In this year's Policy Address, the Chief Executive talks at length about the retirement life of Hong Kong people. A total of 15 paragraphs are devoted to this topic, which make up 7% of the entire Policy Address. After reading these paragraphs, I can sense the Chief Executive's commitment to improving the living conditions of the elderly and his efforts cannot be denied. Yet, he is incapable of drawing up any feasible retirement protection schemes to deal with some inherent structural problems and address the need for long-term planning. This is the last year of his tenure, and the Chief Executive has failed to break through the long-standing restrictions despite great efforts made. As regards the proposals on retirement protection as stated in this year's Policy Address, I feel bittersweet because in the foreseeable future, there are still difficulties in resolving the poverty problem faced by the elderly in Hong Kong. President, 30% of the people in Hong Kong will have a miserable life when they retire. According to the statistics provided by the Commission on Poverty, there were 310 000 elderly persons in poverty in 2015, with one in three living below the poverty line. It is unacceptable that elderly persons in Hong Kong, a developed economy and a cosmopolitan city in Asia, have to eke out a living by scavenging cardboards and aluminium cans, eating leftover food, and not being able to see treatment when they are ill. As a matter of fact, among the five retirement protection pillars advocated by the World Bank, the grass-roots elderly in Hong Kong can only rely on one or two pillars, which can hardly support their retirement life. For example, the

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Government has never established the first pillar of public-funded pension. As for the second pillar, the Mandatory Provident Fund ("MPF") is constantly eroded by the offsetting mechanism and high management fees. As regards the third pillar of personal savings, the grass roots hardly have any saving. The fourth pillar is family support, nowadays, parents are lucky if they need not help their children pay the down payment in home acquisition, let alone being taken care of by their children. Among the five pillars, four may be useless to the grass-root elderly. Many people in Hong Kong are very worried about their miserable conditions in their twilight years. President, in this Policy Address, the Chief Executive makes effort to improve the zero pillar and the second pillar (MPF) of retirement protection. We welcome the proposal to add a higher tier of assistance to the Old Age Living Allowance ("OALA") to subsidize the elderly's living expenses. However, we think that the Government should be more generous. At least it should further relax the upper asset limit for OALA and cancel the means test in the long run. Only then can the entire strata of the elderly be benefited. Under the present means test system, elderly persons are forced to think of ways to transfer their money to their children and to avoid their stocks, bought with their private savings, being tested. While the current measures put forward by the Government are not the best, at least it has made a start and the elderly will benefit. Hence, we render our support and give due recognition. We have waited five years for the reform of MPF, the second pillar, and finally we see a ray of hope that the problem can be resolved. At a time when the current Government's tenure will end in a few months, it puts forward a proposal for the benefit of wage earners from the perspective of the people's livelihood. I hope the Chief Secretary for Administration and the Chief Executive will submit the relevant bill to the Legislative Council before their term of office ends, so as to proceed immediately with the process of legislative amendment. They should not merely hold discussion without making decisions, and leave the task to be undertaken by the next Chief Executive. The MPF offsetting mechanism affects everyone in Hong Kong and the labour sector has a very clear stance: The offsetting mechanism must be abolished to safeguard the labour's interests. President, the Policy Address proposes an higher OALA and the abolition of the offsetting arrangement, which I think will benefit the elderly and also the public in general. We thus have a feeling of sweetness. However, the Policy

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Address makes no mention of any integrated retirement protection measures; neither does it propose any more comprehensive and longer-term retirement protection schemes for the elderly, which is no different from extending the elderly poverty problem to the peak period of population ageing. When seeing the short-sightedness of the Government and thinking of the hardships suffered by our previous generation and carried through to the next generation, my heart aches. That is why I feel bittersweet about the policy on retirement protection in this year's Policy Address. Next I would like to talk about the policies on markets and hawkers. I have been struggling whether I should talk about these issues in this debate session because in my eyes, hawking is a small business, a kind of street economy which is outside the mainstream economy. Hence, the issue should not be discussed from the perspective of environmental hygiene. However, since the hawker policy falls within the purview of the Food and Health Bureau, I can only express my views to Secretary Dr KO. The Government has not built any public market after 2009. What is the consequence? The consequence is the monopolization of the Link Real Asset Investment Trust ("Link REIT"), a big monster. Over the years, Link REIT has continuously renovated its shopping arcades for value added purpose, and then sold them to maximize the profits, so that it can be accountable to the shareholders. On the face of it, the renovation is to enhance the quality of service, but the objective effect is that rents continue to rise, driving out all small businesses. In the end, only big chain stores which can afford the high rents remain. Recently, the noodle stall in the mushroom-shaped food kiosk in Kwong Fuk Estate, Tai Po and the so-called "caring congee stall" in the mushroom-shaped food kiosk in Oi Man Estate have been requested by Link REIT to pay exorbitant renovation costs. As these two stalls cannot fight against such unreasonable demands, they are forced to cease operation and become the latest victims under Link REIT's coercion. The disappearance of small businesses not only results in shopping arcades, arcades losing their community characteristics, but the public are also deprived of the alternative to buy low-priced goods. Other than shopping arcades, markets also have the same fate. Once again Link REIT has adopted the practices of incessant renovation and rent increase, as well as contracted out the management of the markets. The

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contractor dominates everything in the market: while it is responsible for market management, it also owns stalls selling pork or vegetables. The market is no different from a supermarket and it is thus impossible to bring down the prices of goods through increased competition.

(THE PRESIDENT'S DEPUTY, MR DENNIS KWOK, took the Chair)

The Federation of Trade Unions conducted a study on the planning of new towns in 2011. It was found that there were no markets under the Food and Environmental Hygiene Department in Tin Shui Wai, Tung Chung, Ma On Shan and Tseung Kwan O. We urge the Government to resume the construction of markets in order to bring in competition to counter the monopoly of Link REIT. After these many years, the Government finally responds to our demand and proposes in this year's Policy Address to identify suitable sites in the Tung Chung New Town Extension Area and Hung Shui Kiu New Development Area to build public markets. We welcome this initiative. But the proposal only covers new development areas and no remedy will be made for the existing new towns. We have raised this question with the Food and Health Bureau but the response was that it was very difficult to identify sites for markets in those areas. I hope Secretary Dr KO will not back off when facing difficulties but go ahead to implement the confirmed policy objective of building public markets. In the days to come, we will continue to follow up, so as to ensure that the residents in those districts can break away from the monopoly of Link REIT. While the hegemony of Link REIT housing estates, real estate hegemony affects other aspects other than housing estates. Our city is losing its characteristics. If you walk along the streets, you can see identical shopping arcades and identical chain stores. Honestly, no matter which shopping arcade you visit, be it in Tsuen Wan, Tseung Kwan O, Ma On Shan or even Mong Kok, they are almost identical. To put it nicer, the differences in living standards of various districts have been narrowed; to put it bluntly, our city has lost its characteristics and features. The room for survival of small businesses is stifled and the living space of the grass roots continues to shrink. The previous generation could work hard to provide for their families by peddling on the street. Some started with pushing

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handcarts to peddle small commodities on the street, and then moved into shops later on. There are plenty of such examples. I also have this kind of experience myself. When I was in the secondary school, I helped my mother push a handcart carrying lunch boxes to sell in construction sites. It was how I subsidized the expenses of my family during the summer holidays. It was also the way of living of many ordinary folks in the olden days. What about today? Small businesses in general cannot afford the shop rentals. For a shop selling wonton noodles or congee, how many bowls of noodles or congee it has to sell so as to earn enough money to pay the rent? And besides the rent, there are other expenses when operating a business. So, who can afford to run a business? Not only young people do not have the chance to start up a business, but even some time-honoured shops are unable to withstand the pressure of sky-high rents and have to close down in the end. In the past, people could move upward in society through hawking but today this ladder no longer exists. The Government stopped issuing new hawker licences since the 1970s and implemented the Voluntary Surrender Scheme later on, the number of hawkers has thus been decreasing. The general public and academics have all along requested the Government to re-issue hawker licences. Although the Government reviewed the hawker policy in 2008-2009 and thanks for the great efforts made by Mr WONG Kwok-hing, a former Legislative Council Member, the Government finally re-issued a dozen or so hawker licences for ice-cream vendors but it still refused to re-issue hawker licences. For years we have advocated the development of a diversified economy in Hong Kong, ranging from the indigenous economy to the street economy; Mr WONG Kwok-hing and Miss CHAN Yuen-han have also consistently put forward various suggestions. Finally the Food Trucks Scheme was introduced by the Government, but the food trucks introduced are different to what we have in mind. The food trucks we proposed are not meant to be a tourist attraction item. We put forward that idea in the hope that the authorities would give up their management mindset and consider issuing various kinds of new licences to re-establish the room for survival for local small businesses, and promote a street economy. The specialty hamburger sold by one gourmet truck may be very delicious, but I prefer a $7 skewer of fish balls because it carries a stronger local characteristic. Even though the authorities have accepted our proposals selectively, that is still a step forward and a good start. We hope that this pilot scheme can inspire the Government to adopt a new mindset and remove some

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barriers, so that it will stop thinking about management whenever the term "hawker" is mentioned. At the same time, we also hope that the Government will seriously consider the feasibility of re-issuing hawker licences. Diversity is an important element that encourages balanced and sustainable development in society. Other than the support from welfare measures, ordinary folks also need a platform and space for them to earn a living. Today, Hong Kong is poor in the sense that it only has the financial industry, and its wealth is held by a handful of people. We hope that the Government has the determination and stamina to find a broader and brighter way out for Hong Kong. Thank you.

MR CHAN CHI-CHUEN (in Cantonese): During the election campaign, LEUNG Chun-ying claimed that he always carried a pen, a notebook and a folded stool with him when visiting various districts to listen to public views. He cheated the public in saying that universal retirement protection was worth pursuing and would be implemented. However, in his last Policy Address, he completely denies universal retirement protections and reneges on all his promises. He only adds a higher tier of assistance, giving elderly persons aged 65 or above a higher monthly allowance of $3,435 if their assets do not exceed $144,000 and raises the asset limit of the existing Old Age Living Allowance ("OALA") to $329,000. Chief Secretary Mathew CHEUNG should recall, when he in his capacity as the Secretary for Labour and Welfare, submitted the relevant plan to the Finance Committee of the Legislative Council for funding application five years ago, even the Democratic Alliance for the Betterment and Progress of Hong Kong said that the asset limit was too low and suggested raising it to $800,000. I remember the Liberal Party suggested raising it to $1 million and the Federation of Trade Unions ("FTU") objected to means tests. However, todays FTU accepts this proposal, saying that it is better than nothing. If all Members are like those of FTU, things can be done easily. Five years have passed, and the asset limit is only slightly raised to $329,000. How miserable! What perplexes me more is that the Policy Address suddenly proposes to raise the eligible age for elderly Comprehensive Social Security Assistance from 60 to 65. This is done under the grand pretext of aligning with the direction of

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the population policy to extend the retirement age. But can this group of retirees aged between 60 and 64 still be able to find a job? Can they return to the labour market? If they cannot find work again but are not covered by the social security safety net, what should they do? They have to resort to using their savings, or savings under the Mandatory Provident Fund, if they have such an account. This mind-boggling policy is met with unanimous opposition from both the democratic and pro-establishment camp. I wonder if the Government wants to leave some leeway, such that when the next Chief Executive assumes office, he can pay heed to public views and do them a favour by adjusting the eligible age back to 60. I wonder if this is the case, but I hope the situation will not turn out as I now predict. The Government has all along ignored public views and refused to implement universal retirement protection, hence subjecting elderly people to various kinds of means tests even in their old age. The Government has failed the elderly. Moreover, the so-called higher OALA is totally different from the original concept of universal retirement protection. Many elderly people have led a life of toil. In their twilight years, they have no income but have to pay large amounts of money for health care and long-term care. Even so, they are still required to undergo means tests. I think the Government is really heartless. Moreover, I would like to especially talk about the SAR Government's population policy. Deputy President, when discussing the policies on housing, social welfare, health care or education, we cannot leave out the population policy, which is very important. Without a population policy, we do not know how to determine, for example, the number of housing units to be built or the scope of health care and welfare services required. The population policy affects the living of every person. In most places, the population policy accords priority to the interests of local people. But in Hong Kong, I still fail to see any population policy formulated by the Government. If you insist that there is a population policy, I have to say that it is a policy to purge talent, to put the interests of foreigners or Mainlanders first, or to drive out Hong Kong people. Carrie LAM, a "good fighter" in many people's eyes, is now running for the Chief Executive election. The Steering Committee on Population Policy led by her has been in operation for two years, but what has been done? Nothing. In this year's Policy Address, only one paragraph, paragraph 203, is related to the

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population policy. It puts forward two proposals, including the injection of money into the Continuing Education Fund, which is totally unrelated to the population policy, and the drawing up of a talent list. After much ado, the population policy has now become a labour policy, or even a policy on labour importation, making way for the Government to import foreign workers. In the year before last, the Government already talked about attracting capable persons who could not be found in Hong Kong by drawing up a talent list. Some localists consider that this is an act of talent purging and population replacement. There is only one sentence in this year's Policy Address, stating that a talent list will be drawn up. I believe this has aroused many people's great concern. I am afraid that after the list has been drawn up, big enterprises of various trades and industries will import foreign labour or professionals on a large scale to compete with Hong Kong people for jobs. By that time, professionals of Hong Kong can hardly pay for their daily meals, let alone buy a home, get married and raise a family. Today, many Members representing the business sector request for the relaxation of the labour importation policy, citing Singapore as an example where foreign workers take up 38% of the labour force. I believe the policy will be relaxed sooner or later, and hence the political parties representing trade unions must be on guard. Why? I have to refer to Carrie LAM's shameful election pamphlet again. In the pamphlet, there is an article titled "unwilling to reconcile and give up". In the article, she queried why Hong Kong's average growth rate in the past decade was only 3% to 3.4% while Singapore's was 6%. Some think that Hong Kong cannot be compared to Singapore because Singapore can reclaim land and import foreign labour. Fancy they ask such a question to compare with Singapore. But are the national situation and public sentiments in Singapore the same as those in Hong Kong? In order to maintain the status of Chinese population taking up over 70% of the total population, Singapore welcomes Chinese people, including students, workers and professionals from the Mainland to work there and then naturalized. This has always been the national policy of Singapore. Will Hong Kong implement such a policy? Sorry, under the coterie election system, all parties, including the industrial and commercial sectors which advocate labour importation, the communist-Hong Kong political groups holding a few hundred votes, or even the pro-China camps with trade union background which apparently oppose the importation of foreign labour, will bow to the Communist Party of China when it waves the baton. Hence, to ask the Government to formulate a population policy that is Hong Kong people-oriented is no different to milking a bull.

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The People Power has advocated for years that the Government should take back the power to vet and approve One-way Permit applications. However, the Government has made no mention of it whatsoever. Whether the Mainland authorities would accede to such a request is another story but the Government should at least have the guts to make a request. Does any one of the Chief Executive candidates have the guts to request for the return of this power? Without a population policy, all policies regarding housing production, tax increase or universal retirement protection will be stalled as we are unable to make accurate calculations, and we are uncertain whether the bubble will eventually burst. Therefore, everything should start from a population policy. I so submit.

MR LEUNG KWOK-HUNG (in Cantonese): Speaking of population policy, just now I heard Mr CHAN Chi-chuen talk about the Government's proposal to change the eligible age for elderly Comprehensive Social Security Assistance ("CSSA"). This is certainly a population policy. This is a policy of "silencing people by killing them", isn't it? On the one hand, the Government vows to improve the elderly's livelihood, but on the other, it is going to delay the granting of CSSA to them for five years. What is the point of doing that? Chief Secretary, you were in charge of this policy area when you were the Secretary for Labour and Welfare. You know that elderly people are the largest group of CSSA recipients, and the Government is precisely targeting its "efforts" at this largest group of CSSA recipients―the Government's favourite phrase is "making efforts", and now it is even "making heavy-handed efforts" as if it were trying to "kill people". Let me ask you: What kind of people account for the largest share of CSSA? Elderly people. And many elderly people are suffering from illnesses. In the past, when it came to unemployed CSSA recipients, some government officials used to pompously say that "CSSA would nurture lazybones". But then, honestly, the highest proportion of CSSA unemployment cases in recent years was only eleven-point-something per cent. The policy currently proposed by the Government is very interesting in that it is designed to "silence people by killing them". Deputy President, I have on several occasions brought "policy addresses" to LEUNG Chun-ying―I am referring to reports in Sing Pao Daily News. Sing Pao Daily News has been carrying its "policy addresses" for two or three months.

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Members, have you read them? People working in the Central Government Offices have been reading this newspaper in toilets every day to check out the political fortunes of LEUNG Chun-ying. Things are really bad. Even Carrie LAM did not know until LEUNG Chun-ying was about to "resign" that he would not run for re-election. Chief Secretary, you and I have been dealing with each other on the front of poverty alleviation for five years. LEUNG Chun-ying once said―I am not framing him―that the Government should set aside a sum of money for setting up a retirement fund. Where is the money? In which government account has the money been set aside? Not only is this sum of money nowhere to be found, but the whereabouts of the $50 billion fund that the Government announced to set up at the time of my filibustering are also unknown. The Government merely paid lip service to that. Chief Secretary, please tell us later the whereabouts of the $50 billion. What has it been used for? Or has it vanished into thin air? The current controversy stems from the fact that when LEUNG Chun-ying ran for Chief Executive, he remarked that the Government should set aside a sum of money for tackling retirement-related issues. Although he denied … At a previous meeting, Dr LAU Siu-lai played an audio recording in the Chamber and this ruffled the feathers of the President, who then ordered her to leave the Chamber. The original utterances in the audio recording included the phrase "it is worth doing; it should be done". Anyone who speaks Cantonese understands that saying "it is worth doing; it should be done" implies that it is to be done. At the time in question, LEUNG Chun-ying was running for Chief Executive, and when he said "it is worth doing; it should be done", he was implying that it would be done by him rather than by anyone else. But he lied. In his manifesto, he played with words and did not dare to tell the truth. Nonetheless, he made such remarks on various occasions. Only a whited sepulchre would do so. The Government always says that a lot of money has been spent on social welfare. Is this supported by statistics? According to the statistics available to me, in the 2014-2015 Budget, social welfare accounted for 2.6% of Hong Kong's gross domestic product ("GDP"). I do not know whether this is true, so I would like the Chief Secretary to confirm this in his reply later. Now, let us take a look at social spending as a percentage of GDP. What is social spending? It refers to the aggregate expenditure on the three areas of social welfare, health care and housing. The statistics of the Organization for Economic Co-operation and Development ("OECD") show that Hong Kong's social spending as a percentage

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of GDP is 7.5%, compared to the United Kingdom's 21.7%, OECD's average of 21.6%, the United States' 19.2%, South Korea's 10.4%, Italy's 28.6%, Ireland's 21%, Greece's 24%, Germany's 25.8%, France's 31.9%, Canada's 17.0%, and Australia's 19.0%. In other words, all the aforesaid countries have outperformed Hong Kong in this regard, with Hong Kong ranking last. The average figure for OECD countries is 21.6%, whereas the figure for Hong Kong is 7.5%. Their social spending is two times more than ours, or three times as much as ours. Fancy the Government saying that it has done a lot of work! As the "pie" made for this by the Government in the Budget is so small and accounts for so little of our GDP, what is the point of cutting a large slice from this "small pie"? A tiny slice cut from the "big pie" of any of our counterparts would be larger than ours. Is that right, Chief Secretary? The elderly and the poor make up a large part of our population, and Hong Kong's Gini Coefficient, which reflects our wealth gap, is even the highest in the world. Mr Alvin YEUNG has made a very good point earlier by saying that the value of the assets owned by the top 10-odd tycoons in Hong Kong already equals the value of our Government's assets―to wit, their wealth can rival that of a nation. Chief Secretary, you always say that the Government is short of money and this has rendered its policies unsustainable, but why are those filthy rich people bringing so much money into their graves? Can they give out some of their money? The Government should be highly proactive. What is the role of the Government? When the market is unable to solve problems, or when the community is unable to solve problems, the Government should think of ways to solve them. Suppose the Government were to introduce universal retirement protection; if the Government did not ask or did not want the rich to pick up the tab, but was minded to bear the cost all on its own without raising taxes, this certainly could not be done. Some members of the community who cannot be bothered to argue with the Government have put forward a tripartite contribution proposal, which has also been explored by Prof Nelson CHOW. These members of the community suggest that by transferring some monies from the existing Mandatory Provident Fund ("MPF") schemes, levying an extra 1.9% tax on enterprises making a profit exceeding $10 million, and providing some government funding, the authorities should implement a sustainable universal retirement protection scheme to enable every elderly person to receive about $3,300 per month. This is a clear figure which the Government has never refuted, and yet it has kept saying that this is not an option. Has the Government stated whether the so-called "four-tier" refined

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system under its current proposal is sustainable? It seems that the Government has not considered the sustainability of the initiative; all it has considered is whether there is any objection from the business sector. It goes without saying that Hong Kong's tax revenue is low. For instance, LI Ka-shing pays less tax than his secretary does. Why? Because LI Ka-shing does not receive salaries; he receives dividends. He has told his company to pay him dividends because dividends are not subject to tax. If the Government can collect taxes on dividends, which are currently non-taxable, the revenue should be enough to enable the Government to implement a sustainable universal retirement protection scheme. Why does the Government not do so? I remember―and I find it most laughable―that in the 1990s of the last century, the Democratic Alliance for the Betterment and Progress of Hong Kong and the Hong Kong Federation of Trade Unions said that it would take an overly long time for a tripartite contribution system to be implemented; at the time, the British Hong Kong Government put forward a tripartite contribution proposal, but they criticized the proposal for causing incessant wrangling, and suggested that the authorities should simply offer an allowance of $2,130 across the aboard to succour the elderly. In those days, $2,130 should be worth at least $3,500 (if not $4,000) today in terms of purchasing power. Back then, even though the foreign currency reserves and surplus of the British Hong Kong Government were not as enormous as what we have now, a group of people still recommended providing an allowance of $2,130. Today, however, the same group of people claims that a handout of $3,500 per person would lead to the death of Hong Kong. This is hypocritical rhetoric. Deputy President, the problems surrounding universal retirement protection or elderly retirement protection evidently reflect the sheer ugliness of the existing small-circle electoral system. First of all, there are 1.1 million elderly people in Hong Kong accounting for almost one seventh of the local population, but are they represented on the Election Committee? As far as I can see, they have no representative on the Election Committee. That said, half of the members of the Election Committee are old people, because normally only people of mature years are able to become rich and achieve a certain status in functional constituencies. But those are "the privileged old", buddy. Some people always talk about "grey power", saying that many elderly people who have reached the retirement age are fit to work for five more years, and that Hong Kong needs them, but do they have

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any representatives in functional constituencies? No. On the contrary, the agriculture and fisheries sector has 60 representatives on the Election Committee, buddy. This is ugly. Who cares about the elderly's aspirations? At present, Hong Kong is being governed by three Secretaries … no, two Secretaries of Departments plus the Chief Executive as an iron triangle, to the exclusion of Rimsky YUEN, who is only concerned about disqualifying us. But that involves personal grudges, so I had better not talk about that. Carrie LAM was in charge of poverty alleviation, but she made a mess of it. She said that there was no reason to require the young to support the elderly. She had the cheek to say that. Does she support her mother? Of course she does. Does she want his sons to support her? Of course she does. This is only natural, whether from the perspective of an individual or from that of the community as a whole. Should there be a universal retirement protection scheme in the future, contributions made by persons from all age groups would benefit elderly people, even if these elderly people are not their parents. This is why we need to learn the Confucian teachings on "the Grand Union" and "Small Tranquillity". Yet the Government has failed to encourage this, and has contrarily stirred up hatred between different social groups. The Government has argued that the elderly's problem of having no money is their own problem, and even asked the public these questions: "If we are to invent a system that requires you to pick up the tab for supporting the elderly, do you consider this unfair to you? If it entails tax increases, is it unfair to you?" Is this not causing rifts between different social groups? I am referring to different age groups. To put it more accurately, rifts are being created not only between different age groups, but also between the rich and the poor in society. The problems facing most of the elderly who are suffering in society right now are attributable to poverty instead of old age, buddy. Does the Government think that asking the rich or the super-rich to give out some money to take care of those who have lived a life of toil (in particular housewives) for the sake of Hong Kong is … Now, ladies in the Chamber, if there were no mothers in this world, would there be children? Although housewives are outside the labour market, they are responsible for managing housework and attending to the daily needs of all members of their families. As they are unable to join the labour market, they are unable to benefit from the retirement protection pillar of MPF. When you see that most elderly people scavenging cardboard in the streets day after day are old women, you will understand my point. The problem of elderly poverty is serious; the problem of elderly poverty for women is even more serious. This is

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not because women are lazy, but because of the sacrifices made by women to bring up the next generation so as to provide a sustainable labour force for society. Can they rely on the retirement protection pillars in the end? They do not even have the pillar of MPF. How is it possible for them to have personal savings? Should they "embezzle" housekeeping money? Can they possibly "embezzle" housekeeping money when they are in poverty? Even the cleverest housewife cannot cook a meal without rice. Do you think they can pocket a couple of bucks every time they shop for food? They have no personal savings. I cannot help but ask this question: Is the Government heartless? It is even more outrageous that a female Secretary of Department does not understand this logic. And there is this person named John TSANG. He is so very famous. I asked him to set up a universal retirement protection fund, but he unexpectedly established the Future Fund. What is the Future Fund? Does Mr SHIU know? According to John TSANG, low productivity and low tax revenue caused by an ageing population and a diminishing workforce in society have led to the problem of unsustainable infrastructure development. He was really something in that he managed to associate the elderly with infrastructure development. It did not occur to him that the elderly's livelihood might be unsustainable; instead, he was concerned that infrastructure development might be unsustainable. So the first thing he did was secure a sum of money for establishing the Future Fund. In order to tackle a decline in GDP arising from population ageing in future, which would in turn result in a decline in the Government's tax revenue, he set aside such money in preparation for the carrying out of "white elephant" projects. I call them "white elephant" projects while the Government call them infrastructure projects. Our current infrastructure projects have experienced cost overruns year after year, right? How come the Government is having more and more money, but the public is getting poorer and poorer? Simply put, this is because of the infrastructure projects that the Government has carried out over the years. Let me read this out: Since 2009―this has nothing to do with "Junior TSANG" but is related to "Senior TSANG", or "TSANG 1.0"―Donald TSANG's 10 major infrastructure projects had commenced one after another leading to a substantial increase in infrastructure spending, which had almost doubled from $24 billion in 2008 to $47.3 billion, and thereafter continued to rise; the time of "C Y the Wolf" saw another peak period of cost overruns for "white elephant" projects, with the cost overruns of six infrastructure projects alone amounting to … Members, make a guess; I am talking about cost overruns, not the original cost estimates … with the

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cost overruns of six infrastructure projects alone amounting to $120.1 billion. The first thing he did was secure some money, in case there were further cost overruns. How much money did he secure? He had the Land Fund in the palm of his hand … You do not have to look at me like that, for I am talking about John TSANG, not Carrie LAM. After securing the money, what was he going to do? He was going to inject land sale proceeds and part of the surplus into the Future Fund on an annual basis, and he launched the "0-1-1" envelope savings programme (which Secretary Dr KO Wing-man knows very well) requiring each Policy Bureau to further reduce its expenditure by 1%. Members, do you know that John TSANG received a Western education? Still, he knows about HAN Xin, an ancient Chinese general. Do you know what HAN Xin said about the number of troops he could command? Emperor Gaozu of Han once asked HAN Xin, "How many troops should I give you?" HAN Xin replied, "The more, the better." HAN Xin held that the more troops he could command in a battle, the better his command would be. John TSANG, too, said "the more, the better" on one occasion; his Chinese is so good. What he meant was that he was prepared to carry out "white elephant" projects with a large sum of money, and the more money, the better. If he kept "throwing money into the sea" like this―or, in today's popular parlance, "shooting it at the sea"―if he kept "shooting money at the sea" like this, how could infrastructure projects be carried out? In that case, even Secretary Dr KO Wing-man's health care reforms would be out of the question. Secretary Dr KO, Prof Joseph LEE has earlier mentioned how you deceived the Hospital Authority ("HA"). You had asked HA to use its own money to provide certain services, and then you proposed to reimburse it this year for the $2 billion that it had paid out of its own pocket. In other words, HA will not receive any additional funding, but it has already provided such services for one year and is required to continue doing so in future. Despite the serious inadequacy of our existing health care services, the authorities had the effrontery to use such a deceptive ploy and launch the "0-1-1" envelope savings programme. This was what the then Financial Secretary did. What was on his mind? Only the infrastructure, not the elderly. I have rebuked LEUNG Chun-ying on numerous occasions. As Mr SHIU also knows, Sing Pao Daily News has been carrying its "policy addresses" for a couple of months. They are very detailed and impressive. I met with LEUNG Chun-ying twice, and when I brought this newspaper to the meetings, several G4 officers shoved me. Why? Because this newspaper has embarrassed him by

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publishing articles about his shortcomings, buddy. Has Dr CHIANG Lai-wan read those articles in Sing Pao Daily News? She should read them when she has time. Things have come to such a pass now. What we face is not a scarcity of resources, but an uneven distribution of resources. What is governance? The purpose of governance is to seek the greatest good for the greatest number. But this is not LEUNG Chun-ying's goal. His goal is to seek the greatest good for the smallest number. Do you really think that LEUNG Chun-ying does not have to hold himself accountable to those with votes in the small-circle election? Just take a look at his wavering policies, and you will know the answer. If he went for Plan A, supporters of Plan B would say to him, "What is wrong with you, 'Brother Nine'? How should the 'pie' be divided if you do this?" This is exactly why his policies have been wavering over the past four years of his term. As regards his two subordinates, they had been "worrying about their next meal while guarding strategic points". As soon as they saw "Brother Nine" get into trouble, they both put the boot in by quitting their jobs and saying words to the effect that "'LEUNG Chun-ying 1.0' is really bad", "I, John TSANG, am not 'LEUNG Chun-ying 2.0'", "I, Carrie LAM, am not 'LEUNG Chun-ying 2.0'", and so on. Parting company when disaster strikes is a terrible act. LEUNG Chun-ying had been their boss. How could they speak ill of their former boss just because they wanted to be the next boss? Just look at poverty alleviation and elderly care. One of the two persons mentioned above―I am talking about Carrie LAM―refused to approve universal retirement protection as a policy, and stated sternly in a righteous tone that civil servants must not act in that way. It sounded as if she was saying: "I do not support my mother, so you should not support your mother either" or "I support my mother, but you should not support your mother." As for the other person, he kept a tight grip on the purse strings. What should be done? I believe that LEUNG Chun-ying is very angry right now, because these two persons were in cahoots with him, but they are now denying it. Is this not nasty, Dr CHIANG? Dr CHIANG is actually smiling in her heart, thinking that this is indeed the case. So, in my view, none of them is in the wrong. It is a systemic problem, because the purpose of the current system is not to seek the greatest good for the greatest number, but to seek the greatest good for the smallest number, or to seek as much pain as possible for the greatest number. Is this not attributable to the small-circle electoral model, which is thoroughly diabolical? Anyway, I have to reserve eight minutes for speaking in another session. Every time these issues

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are brought up, I feel compelled to get things off my chest. I have never heard that "the Trinity of the Father, the Son and the Holy Spirit" enshrined in the Bible can be suddenly changed. Can the Holy Spirit be separated from the Son and the Father? Are those who think so suffering from some kind of illness? Deputy President, I will pause here and reserve seven minutes for speaking on the Policy Address again in another session.

DR LAU SIU-LAI (in Cantonese): Members, in this session, I am going to talk about housing and social welfare policies. Generally speaking, everyone longs for a life that matches the themes of two pictures of happiness: one depicts the sweetness of young people getting married, and the other depicts the happiness of old people enjoying themselves with their grandchildren. However, under the existing awful policies on housing and social welfare, the general public find that happiness is actually very far from them. Speaking of marriage, over the past few days around Valentine's Day, an interview has gone viral on the Internet, thanks to the interviewee saying that a precondition for a young Hong Kong woman to accept a man's courtship these days is that the man must at least own a property; in other words, a man should never date a woman unless he is a property owner. Such materialism is really jaw-dropping. Since when have interpersonal relationships and even love in our society been wholly based on material possessions? As long as we are attentive enough, we will find that our society has been lacking labour protection over the past 10 to 20 years. There has been hardly any increase in employees' wages, but property prices have risen exponentially. Hong Kong has been rated as the world's least affordable city in terms of property prices for six consecutive years. Young couples can only sigh when facing the housing issue, often quarrelling over when they can achieve home ownership and settle down in their own dwellings. What will happen if people are unable to acquire their own homes? Due to spiralling rents in the absence of rent control, as well as the exceedingly harsh eligibility criteria for public rental housing ("PRH"), which is in seriously short supply, people are left with no choice but to pay exorbitant rents for flats in the private market, and they may even end up living in subdivided units. Even the international community is shocked by our housing conditions, which are marked

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by ever-decreasing living space and ever-increasing rents. Seeing that rents for rooms and flats are rocketing, and tenants of subdivided units are overcharged for utilities such as water and electricity while having to live with countless bedbugs, how can people of this generation not adopt a realistic and materialistic mentality and not consider the housing problem when they think about getting married? The elderly are even more miserable in reality, which is in stark contrast to the so-called picture of happiness that depicts them living in peace and enjoying themselves with their grandchildren in their twilight years. Suppose a married couple have been earning meagre wages by enduring the world's longest working hours, and after they have led an industrious and frugal life for decades, all their children have grown up; what will become of this couple in their old age? They will live in misery. As their MPF has accumulated to a certain level, say, a few hundred thousand dollars, they are not entitled to universal retirement protection, not to mention other social security benefits. Whenever they fall ill, they have to pay for medical treatment out of their own pockets. Yet every time they seek assistance from the Government, they get the same response that they are subject to a co-payment and a means test. Their hard-earned "funeral savings" will be drained to nothing in the end. When all their savings are gone, they may think that they can apply to the Government for Comprehensive Social Security Assistance ("CSSA") to at least obtain some protection. However, as CSSA is granted on the basis of household income, if their children have a decent income but are unwilling to support them, they are unlikely to be granted CSSA. They will not stand a chance of getting CSSA unless their children agree to complete the so-called "bad son statement" to declare their refusal to support them, or unless they live apart from their children as mentioned in this latest Policy Address. For the elderly in Hong Kong, the scene of three generations living happily together, with grandparents enjoying themselves with grandchildren, is just an unattainable dream. What is more pathetic is that when elderly people become unable to look after themselves in their declining years, the Government, as it transpires, will not take any responsibility. It has made no concrete commitment whatsoever in this regard. All along, it has been the Government's policy to shift the responsibility for elderly care onto the private market. Through the introduction of the Pilot Scheme on Residential Care Service Voucher for the Elderly, the Pilot Scheme on

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Community Care Service Voucher for the Elderly, and so on, the Government has treated elderly people as rubbish and pushed them towards substandard private residential care homes. The concept of ageing in place is still empty talk so far. Currently, more than ten thousand elderly people have to wait 10 months before they can be provided with community care services. In fact, it would only cost the Government $1.2 billion to clear the waiting list in one go, but the Government is still unwilling to commit itself to that. By contrast, one "white elephant" infrastructure project would readily cost over ten billion dollars or even a hundred billion dollars. Happiness can be very simple; for a married couple, it can be as simple as the husband and wife being of the same mind and leading a comfortable life in their twilight years. This simple vision is, however, a dream beyond the reach of Hong Kong people. Only if the authorities develop brownfield sites and construct more PRH can tenants of subdivided units achieve home ownership as soon as possible and live with dignity; only if the authorities reinstate the public-housing-led market approach can our younger generation feel at ease to get married and acquire their own dwellings; only if the authorities put in place a genuine non-means-tested universal retirement protection scheme can the elderly live with peace of mind every day; only if members of the community embrace the concept of ageing in place can our elderly people lead a carefree and comfortable life in their twilight years; only if our Government is willing to make commitments can Hong Kong become a city of happiness. Nonetheless, over the past five years of LEUNG Chun-ying's administration, and in this latest Policy Address, he has not tackled these issues head-on. So how can we thank him? Thank you.

MR SHIU KA-FAI (in Cantonese): First of all, I would like to talk about welfare. After the Policy Address was delivered, I told a television reporter in an interview that I gave the Policy Address 90 marks on welfare. (Certainly, that was not my personal view as I have consulted my supervisor) The reason is that the Government has done a good job in implementing the Government Public Transport Fare Concession Scheme for the Elderly at $2 per trip. Now, apart from the Old Age Living Allowance ("OALA"), a higher tier of assistance will also be available and 74% of the elderly will benefit from the allowances. We strongly endorse and support the measures.

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However, shouldn't all members of the public receive the benefits? Secretary, both you and the Government claimed that the general policy direction was not to provide everyone with benefits. The Government has to focus on helping those in need. I am a new Member of the Legislative Council. When the subject of the "N have-nots" was discussed at a Panel meeting, the Home Affairs Bureau proposed to cancel the subsidy for the "N have-nots" provided by the Community Care Fund this year. I was very surprised that the pan-democrats supported the proposal; instead, Members of the business sector recommended helping the "N have-nots". Currently, there are 60 000-plus "N have-nots" and it is evident that this group of people needs help. It is not true that the business sector does not want to help the needy. Instead, we pay a lot of tax in the hope that the Government will use its resources to help those in need. However, please bear in mind that our target is to help those with genuine need, and we will not support the Government to hand out cash indiscriminately. Next, I would like to talk about elderly care. Certainly, helping the elderly involves more than simply handing out cash to them. Their current medical care, future elderly care and after-death arrangements are worthy of our attention. I believe the Government should strive to deal with all these issues, particularly elderly care. Earlier, many Members asked whether places in the private residential care homes for the elderly will be sufficient to meet the growing elderly population. I am aware that there is a shortage of land in Hong Kong, but will the Government formulate any long-term plans to provide elderly care places for the elderly? I think this is an area which the SAR Government and the Secretary should seriously consider. Noting that Secretary Dr KO is present, I would also like to tell him my views on medical and health care. Yesterday, a Member said that I kept praising the Government. There are indeed a number of government departments which I commended for their good performances. Nevertheless, I have the following comments for the Food and Health Bureau. I have a high respect for doctors, and I also have a high respect for Secretary Dr KO for I know that he is very committed in serving Hong Kong. Besides, both Under Secretary Prof CHAN and Rebecca CHAN often call me at 11:00 pm or midnight because many of my suggestions are related to the Food and Health Bureau. I strongly support the

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very important cause of protecting the health of Hong Kong people. However, how can we balance this objective with safeguarding the room for survival of the business sector? I think that is very important as well. My friends often ask me for my written speech, I normally do not have a script, I just make impromptu speeches. However, I will read from my script this time. Four years ago, Chief Executive LEUNG Chun-ying said in his election manifesto, "We will conduct reviews on regulations and administrative procedures that are not conducive to a favorable business environment for the SME's and small merchants, including the simplification of licensing procedures; improving customs efficiencies, and smoother administrative procedures. A business impact assessment should be performed before the establishment of new regulations." Secretary, that means cutting the red tape. Why do I have to specifically raise this point? Recently, the authorities held meetings on the proposal of regulating medical devices. At the first meeting, 1 000 people attended and 2 000 attended the second meeting. According to the proposed regulation on medical devices, more than 90% of devices currently used in beauty parlours will fall under the scope of regulation. The beauticians are very worried. The beauty business is booming at the moment, but if the proposal is passed, I can tell you that more than half of the present 5 000 to 6 000 beauty parlours will have to close down because the authorities require beauty procedures to be performed by or under the presence of a doctor. Secretary Dr KO, I certainly know that it will be best if the beauty procedures are performed by doctors, but will this incur higher or lower costs? I think this is not a difficult question to answer. Second, will a sufficient number of doctors be available to perform the procedures? The answer is obvious to all. Third, and most important of all, the devices concerned are simply not designed to be used by doctors, but by beauticians. If we are talking about a medical device such as a lithotripter, no beautician will have the courage to use it. But why do the authorities require a doctor to perform a beauty procedure? That is why the proposal is unfair. Secretary, I am telling you that you will ruin the entire beauty sector in Hong Kong. That is why so many people have come forward to protest.

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Let me tell you, the last time the business sector came forward to protest was to oppose the levy of goods and services tax. About 2 000 to 3 000 people took part in the protest organized by the Liberal Party. When 2 000 people from the business sector took to the streets, it is no laughing matter. Protecting the health of Hong Kong people is surely important, but why can't the authorities let beauticians operate beauty devices? Secretary, there are many cases in the world where people become qualified beauticians after they have completed the relevant studies. Why do the authorities require the procedures to be performed by doctors? Some beauticians told me that they have obtained certificates such as CIBTAC and ITEC which are internationally recognized; why are they not recognized by the authorities? Under Secretary Prof CHAN told me last time that the Government relied on international standards. I think that she was referring to the standards of IMDRF for regulating medical devices. She told me it would be alright to include beauty devices into the scope of regulation first and then give detailed consideration later. If we start regulating some products before considering how people can use them, it would seem … let me give an example. I have a kitchen knife and the Government tells me that the knife will be regulated as a weapon and kept in a weapons depot. Does it mean that in future, a chef has to obtain a licence before he can take the knife out from the depot? Secretary, will you do something like that for the same reason? Secretary, do you know that a man and a woman representative cried at the scene when 10 to 20 beautician associations met with the authorities? I do not know if Under Secretary Prof CHAN has told you about this incident. Why did they cry? They are not robbers and they only want to make a living. I think the Government should strike a balance between protecting the health of the people and allowing the room for survival of the sector. I hope that the Secretary will seriously consider the matter after this meeting. Under Secretary Prof CHAN is not present in this Chamber. She thinks I often criticize doctors unfairly. I certainly will not do so. I like doctors very much. I will consult doctors when I am sick, won't I? But, the problem is, there is not enough doctors to perform all the beauty procedures. Thus, I hope the Secretary will pay special attention to this point. Second, I would like to talk about the issue of cigarettes. Certainly, it will be best if there are no smokers in the world. But, are people entitled to freedom? The authorities now propose to increase the coverage of the health

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warning picture from 50% of the surface of the cigarette packet to 85%. They also said that the pictures have not been changed for many years and should be replaced, and so on. Secretary, I believe it is certainly great if nobody smokes, but is this possible? I believe all Hong Kong people are entitled to freedom and some have chosen to smoke. Do we have to take away their right to choose? At a number of hearings with the deputations, the cigar importers told the authorities that holograms produced by the manufacturers are printed on the packet. If the coverage of the health warning picture is to increase from 50% to 85%, the hologram will be fully covered by the picture and genuine cigars will become fake ones. Thus, this regulation is entirely impracticable. If the Government thinks that the pictures have not been changed for a long time, it can by all means change them by adding a few new ones to the original 12. I do not think there will be a problem. I know that the Government wants to remind the people that smoking is hazardous to health. Frankly speaking, if you ask any child, he or she will tell you that smoking is not good. That is general knowledge. Will the child tell you that smoking makes him grow tall and strong? That is not possible because everyone knows that smoking is not good. The Government says that it has to comply with international standards and the standards of the World Health Organization. I agree, but Secretary, the Government should make it possible for manufacturers to comply with the requirement, and the requirement is impracticable. How can the manufacturers produce the new packets in six months? That is infeasible. Does the Government have to require the health warning picture to cover 85% of the packet? Among the countries or places with the lowest smoking rates as provided by the Government, Hong Kong tops the list with a smoking rate of just slightly above 10%, while the rates of other countries range from 20% to 30%. Does the Secretary want our smoking rate to drop to below 10%? Countries with a smoking rate lower than Hong Kong include Ethiopia, the people in which may not even have enough to eat; they certainly will not smoke. Of course, I must reiterate that it would be best not to smoke. But, Hong Kong is already doing a very good job, and so is the Secretary; should he allow the business some room for survival? All the policies introduced by the Secretary always have a support rate of 9:1. Frankly speaking, Secretary Dr KO enjoys the highest popularity rating among the Directors of Bureaux. Who does not know Secretary Dr KO Wing-man? Everyone likes him. Whenever he visits the districts, people take photos with him. I have witness this situation.

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That is because the policies he has implemented are well-received. However, when Paul CHAN visited the districts as the Secretary for Development back then, tomatoes were hurled at him. He was doing his job too, but he was responsible for some difficult tasks. Secretary Dr KO Wing-man's work makes him stand on high moral grounds, but since Chief Executive LEUNG Chun-ying has drafted his manifesto, every Policy Bureau will have to follow, is that right? In other words, the work must be done because LEUNG Chun-ying is still the Chief Executive, am I right? Deputy President, what should we do? Take formula milk as another example. Don't worry, I have left enough time for expressing my views on this subject. This last minute is reserved for this subject. The Government has formulated a code of practice proposing to ban advertisements of formula milk for infants and young children under 36 months. Everyone knows that breastfeeding is the best, but some mothers have to work, buddy! How can they breast-feed their babies at work? Do they have to take their babies with them to work? That is impossible. Thus, mothers have to buy formula milk, isn't that right, Secretary? The Secretary may say that the proposal was made in accordance with international standards and so advertisements of formula milk for infants and young children under 36 months should be banned. Which countries have applied these standards? Let me tell members of the public, such countries include Ghana, Guinea-Bissau, Nigeria, Lebanon, Brazil and the Philippines; do we have to follow the practice of these countries? New Zealand, the European Union and Singapore, on the other hand, have not applied these standards and they only ban advertisements of formula milk for infants and young children under one year old. Why do we have to follow the practice of countries like Nigeria? Secretary, the business sector is dying, please save us, will you? Please strike a balance between the two objectives mentioned. We respect you; please give the business sector and the beauty sector in particular, a chance to survive. I know that many members of that sector have approached you for help. Please consider their situation, will you? Thank you, President. (After the Deputy President has called upon Dr Helena WONG to speak, Dr CHIANG Lai-wan indicated her wish to speak)

DEPUTY PRESIDENT (in Cantonese): Dr CHIANG Lai-wan, what is your point?

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DR CHIANG LAI-WAN (in Cantonese): Deputy President, can you please turn up the thermostat of the air-conditioning system in the Chamber? It seems the temperature here is only 19°C now.

DEPUTY PRESIDENT (in Cantonese): Dr CHIANG Lai-wan, I will ask the staff of the Secretariat to follow up.

DR CHIANG LAI-WAN (in Cantonese): Thank you.

DR HELENA WONG (in Cantonese): Deputy President, for this session, I would like to talk about issues related to public hospitals, mental health and testing of Chinese medicines. Recently, I often go to the hospital to visit a family member. According to my general observation, firstly, hospital wards are congested, and beds are only separated by a small space. Secondly, the health care staff are all extremely busy. I recall that after the SARS outbreak 10-odd years ago, the Government's SARS Expert Committee Report raised criticisms about hospital wards being overcrowded and facilities outdated, while beds were generally placed close together. The report compiled by the Hospital Authority ("HA") also noted that congestions of wards could increase the risks of cross infections. More than 10 years have passed. But my observation is that the situation of congested hospital wards has not been improved. Even though a standard has already been set by the authorities for hospital beds to be separated by 3 ft in between, Secretary Dr KO Wing-man has also admitted in a recent Council meeting that the standard could hardly be achieved, and the space between hospital beds was less than 3 ft. What an understatement! According to my observation at the Princess Margaret Hospital, the actual distance between two beds is slightly more than 1 ft or 2 ft at most. Although bed curtains are available, they are hardly drawn. It is clear that the congestion of hospital wards has hardly improved over the past 10-odd years. I hope the situation can be improved in future. But I really have no idea what can be done to improve the situation of the existing hospitals. Can the standard be achieved only with the redevelopment of these hospitals? Or is the

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standard of having at least 3 ft between hospital beds only applicable for new hospitals? I hope Secretary Dr KO Wing-man can tell the public clearly what can be done apart from waiting indefinitely. Surely we are pleased to note that $200 billion has been earmarked by the Government for the hospital development plan in the coming 10 years. When meeting with HA representatives earlier on, we were told that plans were in the pipeline for the construction of Kai Tak Hospital, and upon its completion, all the existing health care services of Queen Elizabeth Hospital ("QEH") would be relocated to Kai Tak. Moreover, plans were being made in relation to other hospitals. But they also mentioned that the $200 billion earmarked was only intended for hardware provision. So far, nothing has been said about the future operating expenditure of hospitals, including the remuneration of doctors and nurses, and so on. The money earmarked was only meant to cover the construction costs of hospital projects. We hope the Secretary will tell us clearly what we can expect in future. For instance, whether the hospital environment will be improved with the provision of new hospitals? Will hospital beds be spaced out adequately? Whether preventive and control measures of infectious diseases will be enhanced? At present, additional beds are generally provided in all public hospitals, such as Queen Mary Hospital or QEH. If additional beds are placed in wards, the wards will become very congested; and if additional beds are placed in the corridor or outside the ward, the place will be like a refugee camp. We have no idea when the situation will actually be improved. I hope Secretary Dr KO Wing-man can, on behalf of the Government, tell us how long the public must wait. Well, upon the completion of new hospitals, how about the shortage of doctors? What is the relevant manpower planning for health care personnel? At present, public hospitals need to add additional beds to cope with the increasing number of patients. But has the supply of health care personnel be increased correspondingly? Will the number of doctors and nurses working in the ward remain unchanged no matter how many beds or patients have been increased? We are genuinely concerned about these questions because they boil down to whether adequate support has been provided to our health care personnel.

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I hope that the new hospitals will not only make improvement in respect of the space between hospital beds and the provision of health care personnel, but also allow the authorities to provide more facilities for hospice care services. At present, if the family members of a dying patient want to stay with him till the end, they cannot do so because there is not enough space for them to stand around the patient's bed. The situation is most inhumane. Can consideration be given by the Government to arranging dying patients to stay in hospice wards, so that their family members can be at their side till the end? This is in fact just a basic request, nothing over-the-top. Can it be dealt with by the authorities within the health care system? This is an area in which I have expectations for the Government. Now I would like to talk about mental illness and mental care services. Concerning the arson case that happened in the MTR last week, the suspect arrested has a history of mental illness. Naturally, members of the public are concerned about the number of mental patients who are living in the same community or travelling on the same public transport system with them. Have these people received proper treatment and attended follow-up consultations regularly? Are they given adequate support in the community? All these are questions that we are concerned about. Of course, we are not saying that the problem will be resolved if all mental patients are staying in hospitals. Some mental patients who have recovered from their illnesses can re-integrate into society after being discharged from hospitals. We should not put any labels on mental patients. But the crux is what kind of support services they can get in the community. This is the question we are most concerned about. Subsequent to the incident, the Hong Kong College of Psychiatrists pointed out recently that according to a survey conducted from 2010 to 2013, at least 2.5% of Hong Kong's population, that is, close to 200 000 people had serious mental illness. For these patients, relapses can be substantially reduced by maintenance treatment with medication. In most cases, relapses can be detected early and treated effectively before it becomes severe. In this regard, sufficient community care is essential to facilitating early detection of relapse. Hence, the crux is whether sufficient case managers are available to follow up on ex-mentally ill persons who have left institutional care and re-entered society. In this connection, the Administration should conduct a comprehensive review on the treatment and community support services for mental patients and then initiate a reform. Nonetheless, given the Government's meagre provision of

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related health care manpower and case managers, as well as psychiatric hospital beds, we cannot help but worry that the problem of mental patients might become a time bomb in society that will explode at any time. In Hong Kong, there are only two psychiatrists per every 100 000 population, and such a provision is a far cry from the ratio of 14 psychiatrists per 100 000 population in other places such as the United States or Australia. In respect of supporting manpower, as at March last year, there were a total of 327 case managers in Hong Kong, and they were required to handle 15 400 cases each year. In other words, their average caseload was 47 per annum. Members should note that the cases they handled are patients with severe mental illness. That is why they must spend considerable time to handle each case. Sometimes case managers may not even have time to visit individual patients on a monthly basis to follow up their progress, say, to ascertain whether they have taken medication on time or attended follow-up consultation as scheduled.

(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

While the case management model originates from Australia, Hong Kong's annual expenditure on mental health services, including hospitalization, education, publicity, and so on, only amounts to one fourth of that of Australia. Over the years, have we seriously neglected the mental patients as well as their families? Have we done enough for them? As the Government advocates the re-integration of ex-mentally ill persons into society, the number of psychiatric hospital beds has been decreasing. While the Democratic Party agrees that additional resources should be made available to help ex-mentally ill persons re-integrate into society, the Government must, as a prerequisite, provide sufficient resources and supporting services in the community. Otherwise, with the inadequate provision of hospital beds, as well as the lack of health care personnel to follow up cases of ex-mentally ill persons, serious consequences may arise easily. I hope the Government can take follow-up actions accordingly because we absolutely do not want to see any recurrence of the MTR arson case or any member of the public getting injured as a result. On the issue of Chinese medicine, much has been said in this year's Policy Address about promoting the development of Chinese medicine service in Hong Kong. This is an initiative we support. But there is another matter I am more

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concerned about. Generally speaking, a Chinese medicine practitioner will, after consultation, prescribe Chinese medicines to his patient. At present, food items are regulated by the Food Safety Ordinance as well as other relevant legislation. What about Chinese medicines? My concern is whether there is proper regulation on Chinese medicines. Is there any loophole in the existing laws? Has a sound testing mechanism been established to ensure safety? Perhaps Secretary Dr KO Wing-man is also aware that earlier on, the Democratic Party commissioned a laboratory to test different Chinese medicines. Honestly, we are extremely frightened by the results because the content of pesticides in one sample has exceeded the prescribed limit, while traces of banned pesticides have been found in another. According to the test results, dozens of different pesticides have been found in one Chinese medicine, while traces of a pesticide totally unheard of in Hong Kong have been found in another Chinese medicine. Shouldn't we be frightened? We take Chinese medicines for their curative benefits. We absolutely do not want to ingest heavy metals, pesticides or toxic substances such as sulphur dioxide when we take Chinese medicines. So, is there any loophole in the existing Chinese Medicine Ordinance? Has a clear limit been set for pesticides? Has the law put sulphur dioxide and heavy metals under regulation? Has any testing mechanism been established? Is the gatekeeping of the said mechanism performed by the Mainland or Hong Kong authorities? Is it possible for any person to buy Chinese medicines in the Mainland and then resell them to shops and clinics in Hong Kong? Do the authorities have any requirement that Chinese medicines can only be sold after their safety is certified by a specific testing mechanism? In my opinion, there is seemingly a no-man's-land, and I hope Secretary Dr KO Wing-man will follow up the matter thoroughly. Apart from the regulation of Chinese medicines, the Department of Health ("DH") is also responsible for safeguarding people's health. Recently, the potential health hazards caused by third generation ("3G") artificial turf soccer pitches has become a matter of grave public concern. Some parents complained that after the schools switched to 3G artificial turf soccer pitches, symptoms such as swollen lymph nodes or multiple rashes on the body started appearing on their children. I have personally inspected the artificial turf soccer pitches managed by the Leisure and Cultural Services Department and found that they contain excess levels of heavy metals, as well as the carcinogenic polycyclic aromatic hydrocarbons ("PAHs"). For PAHs, the level of exceedance is even higher than 37 times. When the schools approached DH for advice, they were told that even

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the department did not know what the relevant standards should be and hence, no advice could be provided to the schools. Isn't this most ridiculous! While we have reasons to believe that the students' health may be affected adversely, nothing has been done by DH to follow up the case! Deputy President, though I still have a few minutes left of my speaking time, my speech for this session will end here. Regarding the problems I just mentioned, the responsible government department has not performed its duties properly. I consider that apart from follow-up actions on Secretary Dr KO Wing-man's part, the new Chief Secretary for Administration should also pay special attention to the matter. How can the responsible department act indifferently as if it has no role to play? What has gone wrong with our Government?

DR CHIANG LAI-WAN (in Cantonese): Deputy President, regarding the Policy Address of Chief Executive LEUNG Chun-ying, while we do not agree to everything set out therein, undeniably he has put his heart and soul into it. I believe that he would have done better and more if the opposition camp had not opposed everything proposed by him. For example, we proposed the establishment of the Innovation and Technology Bureau five years ago, but after all the delays, the Policy Bureau was only established last year, and the proposal on the development of an Innovation and Technology Park in the Lok Ma Chau Loop was introduced thereafter. If the Bureau was established five years earlier, I believe many innovation, technology and industrial projects of Hong Kong would have already been implemented today. Can one imagine the construction of the first building to be completed seven and half years later? As indicated by Prof Tony F CHAN, President of The Hong Kong University of Science and Technology, the Innovation and Technology Park will bring promising prospects for the future development of Hong Kong's innovation industry and the re-industrialization of Hong Kong. Moreover, according to him, the cooperation of Hong Kong and Shenzhen is tantamount to one plus one equals more than two, not just two; the force will be invincible, and even surpass that of the Silicon Valley of the United States. Is Prof Tony F CHAN being exaggerated in his remarks? Certainly not. Recently, when I attended gatherings or cocktail receptions held by foreign consular officers, many of them asked me about the plan on the Innovation and

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Technology Park in the Lok Ma Chau Loop. I hope that the Government will expedite the implementation of this plan and it should not miss the golden opportunity. As the saying goes, "never mind the trivialities when doing important things"; the Government must capitalize on the opportunities. The debate theme of this session is poverty alleviation, welfare and medical services, elderly care, and so on. As Members all know, only when we have achieved sound economic development and GDP growth can we have resources to conduct poverty-alleviation work and increase welfare benefits. Deputy President, you may expect that I will next talk about "baby fund". I am unhappy with the Policy Address because not a word has been said on "baby fund". The Policy Address also has not proposed many measures to help young people. Many years ago, I advised the Government to establish a "baby fund", the purpose of which is to bring some hope to the next generation. I have made reference to the existing Child Development Fund, which has been successfully implemented by Chief Secretary Matthew CHEUNG when he was a Director of Bureau. I just enhance the Child Development Fund and rename it "baby fund". If such a fund is established, each person will start saving since birth and when he reaches 18, he can accumulate a considerable sum of money. Since the Government only injects capital into the fund when surpluses are recorded, it does not have to undertake permanent commitment. As in the case of Singapore, when children have grown up, they can withdraw their money under the fund for home purchase or down payment. The combined sum of money of a couple will certainly be enough for them to make a down payment. Nowadays, one has to wait five years for allocation of a public housing unit, and during this period, young people may no longer be eligible for public housing. As they see no hope in home ownership, they blame the Government and society for treating them unfairly. Recently, several young people committed suicide. One of them clearly indicated that he had no hope for the future. Well, if he knew that there was a sum of money under the "baby fund" that he could use, he might be reluctant to commit suicide. If every person is entitled to a sum of money under the "baby fund" after birth, they can make use of the money to plan for the future when they grow up. As such, their parents' anxieties can be alleviated for they need not worry about the future life of their children or how they can help their children acquire home ownership. I believe that the fund will even encourage people to give birth, which can help the Government formulate a long-term population policy, and even increase our

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retirement reserves. If a person can purchase a flat using his income, he can then combine the money under the "baby fund" with his Mandatory Provident Fund benefits, and upon his retirement, a large sum of money will be accumulated. I would also like to talk about the issue on the elderly as contained in the Policy Address. First, the Government will enhance the Old Age Living Allowance ("OALA") by raising the asset limits and providing a higher monthly allowance of $3,445 to every eligible elderly person, an increase of some $1,000. In fact, many elderly people are delighted, while some others are not. According to some elderly Comprehensive Social Security Assistance ("CSSA") recipients, the Government now exempts the submission of "bad son statement" if they live alone. In fact, many children want to support their parents, only that they have no money. For elderly people who live alone, their children need not submit a "bad son statement", but such a statement is still needed if the elderly people live with their children. Such a practice is by no means in line with the family-friendly policy. We hope that more young people will live with their parents. Some young people uphold filial piety and live with their parents, but after all one more family member implies one more pair of chopsticks, that is, more expenses. Should we give regard to such young people who support their parents and exempt them from submitting a "bad son statement"? What puzzles me is that the eligible age for OALA and elderly health care vouchers are both set at 65. Since the eligible age for elderly CSSA will be raised to 65, should the Government likewise consider lowering the eligible age for the non-means-tested "fruit grant" to 65? Well, the Financial Secretary will certainly say that we must make optimal utilization of resources, but I hope that the Government will roll out more initiatives to benefit more elderly people when there are huge fiscal reserves. Why should the Government be reluctant to do so? Deputy President, I so submit.

DR PIERRE CHAN (in Cantonese): Deputy President, in mid-January, Chief Executive LEUNG Chun-ying released the last policy address in his term of office, which serves as a summary for his policy implementation over the past four years or so. Legislative Council Members from various professions and I

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have held a press conference to comment on whether the Chief Executive has, during his governance over the past four years or so, implemented his health care manifesto. We also voiced our views on the section on health care as contained in the Policy Address. The Chief Executive claims that he has basically implemented his health care manifesto and fulfilled his election pledges. I have made a special effort to review his manifesto released five years ago. While I agree to some part of his remarks, I disagree to other part. Members of the public and doctors are greatly disappointed at the section on health care as contained in the manifesto and the Policy Address. The score I gave to the Policy Address on that day was 28 out of a highest score of 100. On the basis of the Chief Executive's manifesto released five years ago, I have reviewed his work over the past four years or so, and I gave a score of 1 to 5 marks to each item reviewed. The total score was 28. Despite a low score for the Chief Executive, praise should be given where praise is deserved. I would like to first praise him for his work in certain areas. Since his assumption of office, the Chief Executive has performed well in several tasks. First, he has basically resolved the problem of doubly non-permanent resident babies taking up services in public and private hospitals of Hong Kong. Second, in 2014, he raised the amount of elderly health care vouchers to $2,000 each year, higher than the $1,000 pledged by him in his manifesto. In addition, he has completed the Report of the Steering Committee on Review of Hospital Authority ("HA") in his term of office, but regrettably no reviews have been conducted on the positioning and working hour system of HA. He has allocated a site to The Chinese University of Hong Kong for the construction of a hospital, and he attaches great importance to the development of Chinese medicine. I hope that Members will understand that the Chief Executive's performance in respect of health care has to some extent contributed to his credit and popularity. Apart from the areas in which he is given credit, he has reneged on most of his pledges concerning health care. For example, the Chief Executive says in his election manifesto that "in order to cope with the challenges posed by an ageing population, we will maintain progressive increase in funding for public medical services." Paragraph 231 of the Policy Address this year also touches on the health care system, but over the past two years, despite huge fiscal reserves and over $1 trillion in government coffers, the amount of funding not only failed to keep up with inflation, but had in fact decreased. In 2015, the recurrent expenditure of HA was reduced by $250 million. While the Government has not

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provided additional resources, it requested HA to increase 230 hospital beds, increase operating theatre and endoscopy examination sessions, as well as increase the quota for outpatient clinics by some 40 000. Under the circumstances of inadequate manpower and limited resources, frontline health care personnel have been asked to work faster, work more and work longer over the years. I will continue to strive for the steady growth of the recurrent expenditure on public health care. I propose the adoption of a population-based mode of funding allocations, under which the allocation of additional funding should be considered in tandem with factors such as population ageing, preventive medicine and advanced medical research. Although this year's Policy Address proposes an additional funding of $2 billion for HA, the amount can hardly keep up with inflation in the context of the overall funding of some $50 billion. For this reason, I am eager to know how much the recurrent expenditure on public health care has increased in this year's Budget, and see if I can put up a banner saying that I have successfully strived for funding. I agree to the Secretary's remarks that in recent years, HA has not received additional funding for health care, and reserves have been used. However, I hope to draw Members' attention to the sources of HA's reserves. HA is not a profit-making body, when newly-recruited staff members have yet to report duty to fill vacancies, the salary expenses so saved will be transferred to the reserve fund. For this reason, I hope Members will realize that the reserve fund is not a panacea. The increase in service can certainly respond to public aspirations and needs. Under the circumstances of population ageing as we often refer to, demand for health care services will only be on the rise. The Chief Executive says in point 13 of his election manifesto that "frontline medical and health care personnel have been suffering from the problem of long, and at times, unreasonably long, working hours for a considerable length of time. We acknowledge the existence of this problem and will find a way to deal with the situation." However, the situation has remained unchanged in recent years, and frontline personnel still suffer from fatigue at work. In recent years or during the tenure of the current Government, no great changes have been made to the deployment of health care personnel and their work arrangements; in fact, no changes have been made since my graduation some 20 years ago. During the surge of influenza, there will be greater chances of medical incidents if the health conditions of frontline health care personnel are undermined physically and psychologically due to fatigue at work. The logic is simple enough.

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As HA is the immediate employer of most doctors in public hospitals, it should put in place a reasonable staffing establishment, so that doctors can take up less unnecessary administrative work, attend less unnecessary meetings, and spend more time on consultation and treatment of patients. This afternoon, after performing several colonoscopy examinations in the hospital, I immediately rushed back to the Council to give my speech, lest I would be unable to speak before this session ends. Evidently, doctors highly treasure the time spent on diagnosis and treatment of patients. In particular, during the influenza surge, the aforesaid measures are conducive to alleviating the pressure on frontline staff. Our concern is the uneven deployment rather than the inadequacy of health care personnel. Hence, the Government is duty-bound to urge HA to reasonably deploy manpower and resources. There is a saying that health care personnel's fatigue is closely related to manpower shortage, I would like to tell Members, the Government has only told a half-truth. The Government or certain organizations often quote the doctor to population ratio to prove the shortage of doctors. I would like to point out that it may not be appropriate for the Government to take the lead in comparing Hong Kong as a country with other countries. As Hong Kong is a densely-populated city, it is vastly different from other countries. People may find it more convenient to wait for outpatient clinic services and receive treatment by doctors in Hong Kong than in foreign countries. As the saying goes, "there must be a doctor in the vicinity". It is not difficult to arrange several doctors stationing in one estate to take care of thousands of residents in a few blocks of buildings. However, in some vast countries, such as our Motherland, the United States and Australia, the residents of some rural towns may not be able to find a doctor within one or two hours' drive, so a doctor is unable to take care of several thousands of residents. For this reason, the doctor to population ratios in foreign countries may be higher. For example, a classmate of mine, who is a family physician in the United Kingdom, is responsible for handling several dozen to one hundred cases. This is very different from the situation in Hong Kong. Hence, a more appropriate approach is to compare Hong Kong with some advanced cities, and I am still making a lot of effort in handling this task. I hope that the Government will not take the lead to compare Hong Kong as a country with other countries. In fact, Hong Kong has some 14 000 registered doctors, and the number of public and private doctors is not small, only that less than 6 000 public doctors have to cope with a heavy workload of providing 90% of the specialist and inpatient services of Hong Kong. Moreover, I would like to

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reiterate that our concern is the uneven deployment rather than the inadequacy of doctors, and we have ourselves to blame for the uneven deployment of those 6 000 doctors. The manifesto of the Chief Executive proposes the study on the enactment of legislation on standard working hours, but no definite date has been set on implementing standard working hours in Hong Kong. Except for self-employed doctors who operate their own clinics, most doctors, like wage earners, suffer from the lack of standard working hour protection. According to available data, the average weekly working hours in Hong Kong are 50.11 hours, which is ranked first in the world. Doctors in public health care institutions in Hong Kong often work overtime, frontline doctors need to be on call four times each month on average, and they work more than 60 hours each week on average. For doctors who work in less popular departments or whose academic disciplines are little known, their working hours can even be as long as 80 hours. The lower their rank, the longer hours they have to work. The shortage of manpower is only a slogan; the allocation of limited resources for public health care services is the real cause. We will continue to strive for the allocation of more health care resources even though such resources cannot be increased indefinitely. Strictly speaking, since Hong Kong's health care system mainly counts on public services, if our doctor to population ratio is to be on a par with that of the neighbouring developed regions, health care personnel and resources of HA must be increased significantly. Given that the prevailing annual recurrent funding is $50 billion, I believe it is not feasible to increase the funding substantially by some $10 billion or $20 billion to $60 billion or $70 billion. A huge amount of public spending is certainly involved. Subject to the principle of keeping expenditure within the limits of revenues under the Basic Law, it will be very difficult for the Government to increase health care expenditure significantly unless it introduces a tax increase, which is usually fraught with controversies. This is the predicament faced by the public health care sector. Nevertheless, in the past few years, against the backdrop of a booming economy, huge fiscal surplus recorded each year and abundant reserves, the Government could have increased its commitments to public health care, but it had reduced public expenditure instead. I hope this situation will not recur frequently in the future. Given its sound financial position in recent years, the Government has been very generous in the allocation of one-off lump sum grant. The money can be used for the development of hardware. While Members may regard many

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large-scale infrastructure projects as "white elephant" projects, I endorse such projects to a certain extent. In paragraph 235 of this year's Policy Address, it is stated that a sum of $200 billion was earmarked last year for a 10-year public/private hospital development plan. While the Government's allocation of money for hardware development is appreciated, it has not taken into consideration the manpower and resources required for operation, and thus applied to the Legislative Council for funding allocation or set aside recurrent funding. The other Policy Bureaux have adopted different approaches in this regard. I have noted at the Panel on Welfare Services that the Labour and Welfare Bureau would set aside the funding required for manpower deployment in respect of the development plan of centres for the elderly. Failing to set aside recurrent funding is a very irresponsible approach. At a meeting of the Panel on Health Services held earlier, I put a question to the authorities on the manpower arrangement for Tin Shui Wai Hospital. In reply, the authorities said that apart from recruiting new employees, manpower and resources will also be redeployed from other hospital clusters. In that case, will the manpower and resources of other hospital clusters not be affected? Certainly, the manpower and resources of different clusters do vary, that is why I often say that our concern is the uneven deployment rather than the inadequacy of public health care personnel. The authorities must seriously review and rectify this situation. Hopefully I will be able to offer help. All in all, with the commissioning of new hospitals and new services, the inadequacy of public health care personnel and resources will be aggravated. The medical sector raised our expectations for the next Chief Executive late last year. At a Legislative Council meeting, I raised our demand to formulate a mechanism for adjusting the fixed monthly allowance of HA2 staff, so as to retain experienced doctors. Why do doctors have such a demand? Over the years, the Government has been publicizing the shortage of local doctors and the need to admit doctors with limited registration. In the Introduction of the Legislative Council Brief on the Medical Registration (Amendment) Bill 2016, it is clearly stated that one objective of the Bill is to facilitate the admission of non-locally trained doctors, in particular specialists, to practice in Hong Kong. Some doctors voiced their grievances to me. While the admission of non-local doctors is not a problem, local doctors should not be smeared. I maintain that the Government can well adopt this practice, but it should not piggyback on this issue. I have heard at various meetings that the Government intended to attract non-locally trained doctors, that is, children of Hong Kong residents aged

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40 years or so, to come and practice in Hong Kong. I refuted immediately that my peers and I, being experienced locally-trained specialists and aged 40 years or so, have not been retained by the Government in whatever way. In fact, the Government wants to kick us out. I have personally experienced the ups and downs in the public health care sector. I went through a time when Hong Kong was affected by the financial turmoil and the economy had a downturn, doctors did not have their contracts renewed and lost their jobs. I went through a time when doctors were unable to attend training sessions. I went through a time when the authorities implemented the Voluntary Early Retirement Scheme, leading to the departure of some health care personnel, and I had to handle the work of those retirees. In the subsequent SARS period, I even entered the SARS ward. I went through a time when the Government admitted the shortage of doctors and gave us a pay rise. I have experienced so much. We had worked very hard and we are still working very hard each year, but why does the Government go so far as to kick us out after our services are no longer needed? We, a group of experienced specialists aged 40 or so, belong to the category of doctor the Government intends to admit from other places. In fact, the Government should seek to retain us. Many of my fellow schoolmates have left the public sector to join the private sector for reason that their wounded hearts have not been healed. Let us first take a look at the logic of HA concerning the recruitment of doctors. In reply to my question, the Government indicated that the number of doctors to be recruited by HA is not based on service demand, but the amount of government funding. Under the principle of keeping expenditure within the limits of revenues, the amount of government funding is determined on the basis of the revenues received during the same period. Factors such as the number of patients, waiting time and population ageing will not be considered. In 1997, some 100 medical graduates were not offered jobs by HA following the completion of their internship. Today, though there is a shortage of physiotherapists, occupational therapists and pharmacists, HA has yet to recruit sufficient personnel. As such, the Government's claim that inadequate manpower warrants the admission of non-local doctors is hardly convincing. Years back, HA had only some 3 500 doctors and the wastage rate was 2%, but due to insufficient government funding, HA refused to recruit more doctors on the ground of overstaffing, with a view to reducing expenses. After the occurrence of certain incidents, the Government urgently allocated funding to HA

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to recruit doctors on a short-term contract basis. As I said just now, I graduated in 2000, and for medical graduates of my generation, graduation basically meant unemployment. As in the case of today, at that time, hospital wards were congested, the waiting time for consultation was long and patients slept on beds placed in the corridor. To tie in with the general trend of expenditure reduction by the Government, HA revised its terms of employment by reducing salaries, allowances and fringe benefits. In 2003, it offered attractive conditions under the Voluntary Early Retirement Scheme in exchange for the voluntary retirement of highly-paid doctors and nurses. All these measures were not due to staff redundancy; the purpose was to save money. Eventually, the Government increased the salaries of doctors in line with salary rise in the civil service. As for newly-recruited doctors, their wages and benefits are much lower, yet their pressure at work is ever increasing. That is why so many experienced public doctors resigned to go into private practice. As such, my colleagues demand the formulation of a mechanism to adjust the fixed monthly allowance for HA2 staff. In fact, the amount of allowance I now receive is the same as that when I first entered the profession 16 years ago. We are not asking requesting the adjustment of the salary mechanism; we just hope that more attractive conditions will be offered to retain talent in the system. As we often talk about manpower shortage, we must make effort to retain experienced doctors, so that the quality of public health care can be maintained. As I have said just now, the present practice of the Government is not to retain talent. For example, during the annual surge of influenza in Hong Kong, when public health care institutions are overburdened, the Government can attract private doctors to work in public hospitals on a part-time basis. The hourly wage of part-time doctors is only 70% of that of full-time doctors, which is hardly attractive. For this reason, regarding the Government's proposal to admit more doctors with limited registration to address the so-called doctor shortage situation, my comment is that the salary mechanism for such doctors is the same as that for local doctors, and they do not, like foreign domestic helpers, receive lower salary to improve health care services in Hong Kong. Non-local doctors, whether they are under formal registration or with limited registration, enjoy the same remuneration package. Therefore, the admission of non-local doctors will not help saving the medical expenditure. Let me reiterate, our problem is the uneven deployment rather than the inadequacy of public health care personnel.

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At this juncture, I must again mention the highly controversial Medical Registration (Amendment) Bill 2016. As far as the Bill is concerned, let me reiterate, I do not agree to the Government's approach of placing patients and doctors on opposing sides, and making use of public opinion to force doctors to yield. On the face of it, the Government proposes to improve the complaint investigation and disciplinary inquiry mechanism of the Medical Council of Hong Kong ("MCHK")―a proposal which I agree and support―but in reality, it intends to break the existing balance in MCHK where half of its members are appointed by the Government and the other half are elected by doctors, with the hope of tightening its grip on MCHK through the addition of appointed members. This, I believe, will destroy the system. Obviously, the real intent of the Bill is to implement policies favoured by the Government and facilitate the admission of non-locally trained doctors to practice in Hong Kong. If one thinks that local doctors uphold protectionism simply because the medical sector is concerned about facilitating the admission of non-locally trained doctors to practice in Hong Kong, the misunderstanding is really very big. Among some 14 000 doctors formally registered in Hong Kong, 20% to 30% of them or several thousand doctors, are non-locally trained. They pass the Licensing Examination to be registered and work in Hong Kong, and they work closely with local doctors to provide services. For this reason, local doctors have never discriminated against outsiders, and many non-locally trained doctors are actually Hong Kong residents. As regards the term "to facilitate" as mentioned by the Government, are we going to admit a large number of doctors with limited registration who need not sit for the examination, or are we going to revise the contents of the Licensing Examination, thus lowering the requirements on non-locally trained doctors to accommodate them? I think both practices will affect local health care quality, and the ultimate victims will be Hong Kong people seeking to receive medical treatment. The remark "to facilitate the admission of non-locally trained doctors to practice in Hong Kong" reminds me of what happened in 2014. At that time, the Steering Committee on Population Policy chaired by the then Chief Secretary for Administration, Mrs Carrie LAM, released a report following the conclusion of a public consultation exercise. In the report, a question was raised: should an open attitude be adopted to allow Hong Kong people who have received medical training in the United Kingdom, Australia or Canada to return to practice in Hong Kong, so as to address the predicament concerning inadequate public doctors? As she is now a hot Chief Executive candidate, will she, with her persistently

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tough approach which resembles that of the incumbent Chief Executive, change the policy on the Licensing Examination by reforming MCHK after she is elected as the Chief Executive? Let me stress once again, local doctors are by no means xenophobic, and many doctors in Hong Kong are actually foreign nationals. Regardless of whether they are Hong Kong residents or non-Hong Kong residents, whether they are locally trained or non-locally trained, they all have to take the same Licensing Examination in a fair, just and open manner. Local medical graduates have not received preferential treatment. When they attend the Clinical Examination, they can only answer in English; whereas for non-local doctors, they can choose to answer in English, Cantonese or Putonghua. Local medical graduates are actually placed in a less advantageous position. As such, the saying that Hong Kong people trained overseas are not welcome to return to practice in Hong Kong is not true. As for doctors with limited registration, one of the proposals in the Medical Registration (Amendment) Bill 2016 is related to the extension of the term of registration and renewal of doctors with limited registration from one year to three years. The Chief Executive also refers to this proposal when he talks about the reform of MCHK in paragraph 234 of the Policy Address this year. The Bill obviously intends to attract non-local doctors to come to Hong Kong, and the Secretary also says that he hopes 50 doctors with limited registration will be admitted in the short term. I would like to point out that I do not oppose the admission of doctors with limited registration, but at present, prospective doctors with limited registration are first assessed by HA and tertiary institutions before being vetted and approved by members of MCHK. The applicants are not required to sit for any examination or attend an interview. All we can get is a résumé. Should disagreements arise among members, a decision as to whether the registration should be approved is made through a secret ballot. In the past, there were few cases in which the registration was not approved. For this reason, the saying concerning xenophobia is not tenable. MCHK does not base on the performance of doctors with limited registration to decide whether their registration should be renewed every year. In other words, limited registration is subject to backdoor deals, under which, some people can practice in Hong Kong without having to take any examination or undergo internship. We need to maintain the system of limited registration for the historical reason that Hong Kong is unable to train certain specific specialists and we need to admit such talented professionals in this way. However, I hope the Secretary will not forcefully widen this "back door" during

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his term of office and increase manpower regardless of the quality, for this runs counter to public interests. In addition, the term of registration of locally trained doctors is one year, and we need to apply for renewal every year. We are really perplexed as to why the Government proposes to set the term of limited registration of non-locally trained doctors at three years. In order to ascertain the views of members of the public and doctors regarding the admission of doctors with limited registration, last year I started to conduct opinion poll surveys among members of the public, doctors and members of the Election Committee from the medical sector respectively. Among members of the public, doctors and members of the Election Committee from the medical sector surveyed, 78%, 82% and 85% of them were explicitly opposed to the admission of additional doctors with limited registration who need not sit for the examination. As told by a local doctor who has worked with doctors with limited registration, a few doctors with limited registration speak no Cantonese and have difficulty in communicating with patients. Another problem is that it will be difficult to hold the relevant persons accountable in the event of medical incidents. In addition, some local medical graduates are concerned that if the conditions for such doctors to come to work in Hong Kong are relaxed, the opportunities for medical graduates to work and receive professional training in hospitals will certainly be affected given that there are no extra health care resources. This runs counter to the objective of nurturing local health care professionals. I would like to reiterate that we do not uphold protectionism, as reflected by the examples I enumerated just now. We even accord preferential treatment to non-local doctors. I am not opposed to the reform of MCHK; reform should be made. I only oppose the Government's practice of increasing appointed members for reasons of expediency, making them the majority and destroying the system. We insist that half of the members of MCHK be elected by doctors and the other half be appointed by the Government. In the event of any increase in the number of lay and professional members appointed by the Government, there should be a corresponding increase in the number of members elected by doctors. We have set such a principle and bottom line, with the aim of enabling MCHK to safeguard professional autonomy and protect the rights and interests of the public. In this way, we will be able to maintain health care quality in Hong Kong on the one hand, and, on the other hand, protect doctors against intervention from external parties―I mean the Government and consortia with vested commercial

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interest―so that doctors will commit themselves wholeheartedly to the well-being of patients and take the treatment of patients as their own responsibility. Due to the restraints of funding allocations, manpower and resources for public health care cannot be increased significantly. In this connection, has the Government not proposed the Voluntary Health Insurance Scheme, so as to encourage more people to take out insurance and use private hospital services, thus reducing the burden on public health care? However, after consulting the insurance sector, the Government publicly announced the suspension of the implementation of the two requirements of "guaranteed acceptance" and "establishment of the high risk pool". As such, the scheme will lose its appeal to high-risk patients who are most needy. In this regard, patient groups have come forward and sided with doctors to voice their views on this issue. Doctors and patients are a bit disappointed, as the Government has been self-contradictory regarding the Voluntary Health Insurance Scheme, ignoring the rights and interests of patients, and merely catering to the interests of consortia. All in all, I think that credit should be given to the Chief Executive for his work in certain areas of health care, but in many other areas, he has failed to fulfil his electoral pledges. He has totally disregarded the problem of inadequate resources and manpower for public health care, and has continued to push through the controversial Medical Registration (Amendment) Bill in an attempt to interfere with the professional autonomy of the medical sector by increasing the number of members appointed by the Government. Moreover, he has, in disregard of the opposition from the public and the sector, continued to stress the need to admit additional doctors with limited registration who need not sit for the examination, and extend the term of their registration from one year to three years. In fact, the most pressing task concerning public health care is the allocation of more resources to retain talent and the comprehensive enhancement of manpower deployment, so as to maintain the quality of public health care services. Finally I would like to point out that the problems with public health care are: first, limited resources; second, uneven deployment rather than inadequate manpower. Deputy President, I so submit.

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DR FERNANDO CHEUNG (in Cantonese): Deputy President, Chief Secretary for Administration Matthew CHEUNG is present today. He had served as Secretary for Labour and Welfare for many years. When it comes to social welfare and labour policies, we have been dealing with Mr Matthew CHEUNG for many years. Looking back, although we have made the "pie" bigger and our economy has been improving, some problems have persisted for many years. The Secretary for Labour and Welfare and the Secretary for Food and Health are both present today. I hope to take this opportunity to express my views on some issues of the greatest concern to me.

(THE PRESIDENT resumed the Chair)

Mr Matthew CHEUNG used to say: "The current Government has allocated a lot of resources to welfare"; "We have increased hundreds of millions in funding" and "We have raised the percentage of funding". It seems that a lot of work has been done. Undoubtedly, the LEUNG Chun-ying Administration is more inclined to allocate resources to livelihood projects compared with the previous two administrations. However, the level is still far from adequate. The biggest problem is whether the funding is "targeted", as Mr Matthew CHEUNG often puts it. By this, I mean whether the funding can be effectively used to help those genuinely in need. According to government statistics for 2016, the poverty rate has increased rather than decreased. Prior to policy intervention, the number of poor people stood at 1.34 million, or 19.7% of the population, representing an increase of 0.1% from the previous year. While the increase was slight, a poverty rate of nearly 20% is nothing to be proud of. After policy intervention, the poverty rate has only dropped to 14.3%. What is most deplorable is that the poverty rates of the elderly and persons with disabilities ("PWDs") remain at 30% after policy intervention, a level which is absolutely not something which we, living in an international metropolis and a well-developed economy, should be proud of. Poverty rates remained more or less unchanged in the past few years. Despite the resources we have actually put in, what matters most is whether they are effective. Mr LEUNG Chun-ying introduced the Old Age Living Allowance shortly after assuming office, but what we have been asking for is universal retirement protection. It is right and proper to support the poor in order to

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ensure that the elderly can sustain their living with a sense of security in their twilight years. Retirement protection can provide this sense of security. As people cannot engage in production upon retirement, they have no income. It is natural for them to be worried. If the Government can offer all elderly members of the community basic protection by allocating them sufficient resources regardless of their ability and work experience, they will not need to worry about their livelihood upon retirement. The crux of universal retirement protection lies in the protection of the basic living. Germany and the United Kingdom implemented a universal retirement protection system about a century ago; so did the United States some 70 years ago. I would like to quote the words of Mr LAM Woon-kwong: "Any country which has started implementing universal retirement protection will flourish." The nationals of these countries know that their community will be responsible for their well-being. As long as they have contributed their lifetime to the community, regardless of the position and ability, they will be given protection once they have reached a certain age. It is as simple as that. The community will be united under this system. Members of the community will take pride in and have a sense of belonging to their community. As the Government is committed to anyone who has made contributions to the community, the elderly need not worry in their twilight years. Suppose an elderly person holds $1 million when he retires. For how many years can he live on this amount of money? For example, if he spends $10,000 a month, then he needs $120,000 a year. How many years can his saving last? What is most deplorable is that he may get ill. Currently some drugs on the Drug Formulary have to be purchased by patients at their own expenses. In addition, public health care services have been retrogressing. If that elderly person seeks alternative way of treatment, such an amount will not be sufficient. His sense of security will be completely lost. It is not true that our community cannot afford the expenditure in this regard. When will the authorities finally turn retirement protection from a welfare benefit into a right? This represents a conceptual progress in the civilization process of a society. However, our Government would rather die than make progress. Our fiscal reserve has increased from the previous $600 billion to the current $900-odd billion. Our total reserves amount to over $3,000 billion. However, the Government has refused to utilize our enormous reserves on the ground of "a lack of means".

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The government-commissioned study conducted by Prof Nelson CHOW had been dismissed as not feasible by the authorities despite its projections through 2041. Of the six options for implementing universal retirement protection system, the "tripartite contribution" option is the clearest and most financially sustainable. However, the authorities refused to implement it by employing some tricks. Carrie LAM even said, "Prof Nelson CHOW is not very familiar with government policy." What is going on with her? How dare she make such a narrow-minded remark. The study was conducted by a long-time supporter of the Government well-versed in the relevant subject. He came up with the figures after careful calculation, only to be rejected by the Government. The authorities had declined to carry out the most sustainable option and insisted on assets tests instead. Subsequently, it even intolerantly kicked Prof CHOW out and dismissed his report as out-dated and miscalculated. It claimed that the period of projection should be extended to 2064 because the projection up to 2041 was not forward-looking enough. However, even when 2064 is used as the basis for calculation, based on the same formula, the result will be no different. The authorities further said that public opinions should be taken into account besides the study. In this way, the Government would become even less justified as public opinions gathered by a consultant showed that 90% of the public were actually in favour of universal retirement protection. The Government then argued that the questionnaires might not be valid because they were submitted by the consultant itself and were designed mainly in a fill-in-the-blank format. So what can be taken as valid after all? The authorities, which remain rigid and fossilized, have failed to understand the importance of giving the elderly a sense of security. The authorities certainly do not need to understand; as public officials are not elected, they admittedly need not be held accountable to the public. No one can challenge them; they hold the real power in this Chamber. As the minority, we can do nothing other than enumerating the justifications. If the authorities stubbornly cling to their views, we can do no more than reprimand them. If there is no way to reprimand them, some Members would resort to hurling objects. To elderly persons who have a little saving, it is an insult that the authorities have insisted on imposing assets tests on them. In our civilized society, the officials, just like dinosaurs, have completely lost touch with society. It does not matter even if no universal tax rebate is granted; however, the Policy Address has feigned compassion by proposing to abolish the "bad son statement". Meanwhile, the eligible age for elderly Comprehensive Social Security Assistance ("CSSA") would be raised from 60 to 65. We have been

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striving for abolishing the "bad son statement" for many years. The thrust of our suggestion is not only to waive the submission of the declaration commonly known as "bad son statement", but also to use the personal income and assets of the elderly instead of their household income for CSSA applications. The authorities, however, have refused to do so. They always hold the view that notwithstanding the great need of the impoverished elderly and PWDs who have no income, their problems have firstly be resolved by their family members who are duty-bound to do so. It is not until elderly persons or PWDs live away from their family that the Government will handle their cases with flexibility. This policy has broken families apart. Even if family members of elderly persons or PWDs are willing to provide care, the authorities will not offer them assistance if their income is not low enough to meet the stringent requirements under CSSA. The fact is very clear. According to government statistics, under the current welfare system, the poverty rates of the elderly and PWDs remain at 30%. This figure is not fabricated by me; instead, it is the result of government policy. With just one benevolent move, the authorities can help a lot of people in need, as well as reduce a lot of family disputes and the sense of guilt of elderly persons and PWDs. Under the existing system, elderly persons and PWDs consider themselves the liability and burden of their family members who, by making sacrifices to take care of them, will lose part of their working time and income. Their families would thus be plunged into poverty. However, as their family members adamantly refuse to apply for CSSA, they need to bite the bullet and therefore come under even greater pressure. It is the policy of the authorities to hold family members accountable, which is tantamount to punishing the families concerned. Some elderly persons and PWDs are being punished as well because their families have neither the ability nor the commitment to take up the responsibility. Just take a look at the welfare systems around the world. All advanced countries would not assess applications on the basis of household income. Those in need of help are members of the community. Regardless of their ability or past experience, the authorities have to address their current needs. Similarly, the authorities would not provide health care services and education based on the criteria of background and academic qualification. While poor people are in need of help, those with health care needs are also in need of help, and retirees should be given a sense of security. It is unlikely that the authorities cannot figure out this simple rationale. The authorities simply remain stuck in a rut and cling to the old system. Perhaps the authorities consider it necessary to handle on a case-by-case basis. Exemption may only be granted to those who

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keep on imploring until the authorities are convinced that their situation is miserable enough. What we are striving for is not an exemption from the authorities, but a civilized system under which the public can place their trust and the disadvantaged can be supported, as well as a system which is compatible with the qualities required of an international city in the 21st century, rather than a cut-throat capitalist system set in the dinosaur era or in a primary forest. What is most abhorrent in the Policy Address is the suggestion to raise the eligible age for elderly CSSA from 60 to 65. Under the CSSA system, all applicants aged 60 or below are regarded as the able-bodied. To be eligible for CSSA, they not only have to prove that their income is low and they have no assets, but they have also made an effort to find a job, and they are required to take part in the Support for Self-reliance Scheme. The authorities would make arrangement for them, but sometimes they cannot cope with the work. The authorities would then require the applicants to work, pro forma, for three days a week as a street cleaner to sweep the leaves or clean up the rubbish, etc. I really do not know how Matthew CHEUNG would come up with such an idea. The Government has indicated its intention to unleash the labour force of workers aged between 60 and 65. However, how many elderly persons can be successfully employed in the job market nowadays? The elderly persons aged between 60 and 65 can only be employed as cleaners. The streets outside the Legislative Council Complex are often cleaned by elderly workers aged over 60 or even 65. I have learned that contractors prefer to employ elderly persons aged 65 or above because no MPF contribution is required on the part of employers, who can thus save hundreds of dollars each month. No one is more calculating than these employers. In this way, wages have been driven down by competition. Workers are paid minimum wages. Workers aged between 60 and 65 can only continue to take up this kind of jobs. While the authorities intend to unleash their labour force, many elderly persons are not physically capable to take up manual jobs. However, they cannot produce a medical certificate proving that they are unfit for work. What actually can they do then? I really do not understand the mentality of the Government in handling livelihood issues. The problem of poverty has not improved almost 20 years after the reunification. The disparity between the rich and the poor has been widening despite growing government reserves. At a time when Hong Kong was most prosperous and our reserves have reached a peak, John TSANG introduced the "0-1-1" programme to cut government spending for the next three

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years: no cut for the first year―the year before last, an overall cut of 1% for the second year, and a further 1% cut for the third year. What was going on with him? Was he out of his mind? The recurrent expenditure of many government departments has been decreased rather than increased, resulting in many unreasonable actions taken by the Government. The Government has also skimped on many important services and cancelled some pilot programmes. It is really impossible to reach an agreement with this Government in any discussions on livelihood issues. A few tragedies recently took place in Hong Kong; in fact tragedies have never stopped. Yesterday, a man in his fifties killed his wife and then jumped to his death. I am very shocked by this tragedy. The man's wife reportedly suffered from dementia, which reminds me of a French film called Amour three years ago. The film is similarly about an old couple. The husband took great pains to take care of his wife, a dementia patient. However, he could not hold on in the end and killed his wife with his own hands. He was very much in love with his wife; all he wanted was to end the suffering. I do not know if the recent tragedy is similar to the case in the movie. In the tragedy, the couple was both under 60 years old, and under the existing system, they were neither eligible for elderly care nor disability services. None of the disability services in the community, including day centres, sheltered workshops and district support centres, would suit their needs. On the other hand, they are also not eligible for elderly services, namely day-care centres, enhanced home services, residential care homes for the elderly ("RCHEs") and residential care homes for PWDs ("RCHDs"), etc. The concept of "long-term care" was put forward long time ago. As its name suggests, long-term care is targeted at persons with long-term care needs regardless of their age. The entire long-term care system should be designed based on needs rather than age, so as not to deviate from the original intent. While the United States started to provide this type of service 30-odd years ago, Hong Kong has yet to do so thus far. We do not even have the concept of "long-term care" in place; instead, elderly and disability services have been placed under respective categories to be handled by different departments. Unfortunately, dementia patients are eligible for neither elderly care nor disability services. When being assessed, they do not show obvious symptoms as in the case of the patients with problems related to limbs, eyes, ears, mouth or nose. Even patients with organ or chronic diseases can be diagnosed more

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easily. On the other hand, as we all know, dementia patients have been neglected. There are only private day centres at present. The Government is still unwilling to set up public day centres no matter how hard we have strived. The centres concerned can only operate on a self-financing basis. It is the usual practice of the authorities to leave the problems to the persons involved. There are now over 10 day centres operated by NGOs or charitable organizations on the market. However, they charge about $400 per day. With transportation fees added, the total daily expenditure will be $500. For attendance five days a week, the monthly cost can be over $10,000. This is just the expenses for day care alone. How can ordinary people afford it? Those who cannot afford will have to sort it out themselves. If they cannot do so, I do not really know what they can do. While ageing in place and integration into the community have often been emphasized in community services, they are in fact slogans only. The resources allocated to RCHEs far exceed those to community care services. According to a report released four to five years ago, the ratio between the two is 6:1. In other words, for every $6 spent on RCHEs, only $1 is spent on community care services. Can this really help the elderly age in place? The elderly are attended to at day centres during the day and return home at night. The authorities may provide home care services based on their needs as a support to their family and carers. In fact, this is not something difficult to achieve. Despite our repeated suggestions, what the Government has done is still far from adequate. While waiting indefinitely for public RCHE places, the elderly have no choice but to get a place in private RCHEs. Meanwhile, the authorities and private RCHEs are surprisingly complementing each other. According to the Policy Address, an additional $200 million will be allocated to the Integrated Discharge Support Programme for Elderly Patients, which has been in place for many years, in order to avoid the elderly's premature admission into RCHEs. The authorities have provided two options for the elderly: first, Community Care Service Voucher for the Elderly; and second, admission into an EA1 RCHE for six months. To avoid the elderly's premature admission into public RCHEs, the authorities have gone so far as to arrange places in private RCHEs for the elderly. The Government is logically contradictory. This initiative alone has cost $200 million. The Pilot Scheme on Residential Care Service Voucher for the Elderly, which costs as much as $800 million, was launched in March. I visited two EA1 RCHEs last Sunday; the conditions there were far from desirable. I believe that

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the public officials present would never wish to spend their twilight years in these RCHEs. I have a slight cognitive disability with directions. Fortunately, the security system in the RCHEs can prevent the residents from getting lost. I inspected the RCHEs by walking a 5-minute lap around them. It turned out as if I had entered a no-man's land. They are supposed to be EA1 RCHEs. EA1 RCHEs are intensive care homes which require the presence of duty nurses. The manning ratio is 1:40 for day shift and 1:60 for night shift. No nurse is required at night; anyone can be on duty. Can you imagine how one worker can attend to 60 frail elderly residents at night? It would be difficult to deal with any accidents that may occur. The situation in RCHDs is even more outrageous. I took this photograph a few weeks ago. An incident has occurred in this RCHD. During my inspection there, I found that even mattresses were not available and the hygiene conditions were extremely poor. The authorities and the Social Welfare Department are also aware of the situation. However, there are currently 60 to 70 private RCHDs of this type, nearly 80% of which have been operating under a certificate of exemption. Although a law was passed in 2008 requiring these RCHDs to apply for a license, most of them have so far continued to be exempted from getting a licence, including subvented RCHDs. These RCHDs are of poor quality. Blankets apparently have not been washed for years, and many cigarette burns were found on the floor. If I were forced to be admitted to such RCHDs, I would conceivably come down with some illnesses and my body would fail to function normally for sure. For anyone who lives there for some time, their body will conceivably fail to function normally. The residents have nothing to do all day except staring into space. They are either standing or sitting, and have no other activities except watching television. I invite everyone present in the Chamber to take a tour of these residential care homes together with me to get an understanding of the living environment there. The elderly is the most disadvantaged group in the community who are least able to speak up for themselves. However, the authorities have thrown them to the private sector. The Government claims that private RCHEs can take care of them and has even allocated hundreds of million dollars in subsidy to private RCHEs. Profit-oriented RCHEs aim to maximize their profits. The Government, however, has allocated resources to the private sector and even considered it appropriate to do so, thinking that the quality of private RCHEs will be enhanced with more resource allocation.

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The blunders of the Government's livelihood policy are too numerous to name. The statutory threshold for operating residential care homes is so low that it cannot be lowered further. The authorities, however, have refused to amend the law and make new planning. When we relayed our view to the authorities that services fall far short of demands, Mr Matthew CHEUNG simply responded by saying that "we have to proceed step by step". When I returned to the Council in 2012, I wrote two letters to Mr Matthew CHEUNG. In one letter, I asked him to re-launch RPP (i.e. Rehabilitation Programme Plan) and review the overall planning for services for PWDs, but no follow-up action had been taken. In the other letter, I urged the authorities to review the Design Manual under the Buildings Ordinance in order to optimize the legal requirements for barrier-free facilities, with no follow-up action taken as well. The authorities have refused to improve the system or amend the legislation; and it was not until now that it has started the planning reluctantly. The Government said: "We are working on elderly care. We hope to complete our work by June this year. We can only start our work on disability services after this." I do not quite understand. I wonder if there are only a few people working in the Government. Do they have to get one task done before proceeding to work on another? Such tasks should be carried out concurrently. The Government does not understand the idea about long-term care at all. Twelve days before leaving office, Mr Donald TSANG said to the public on his conscience that he used to believe that when the "pie" had been made bigger with economic development, all sectors of the community would share the fruits through the trickle-down effect. However, he admitted that there was a difference between theory and reality. Today, the Government has remained stuck in a rut and clung to the principle of "small government, big market". It would rather rely on funding alone by proposing the so-called "money-following-the-user" approach (The buzzer sounded) … which is not feasible at all.

PRESIDENT (in Cantonese): Mr CHEUNG, please stop speaking.

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MR LUK CHUNG-HUNG (in Cantonese): President, in this session, I would like to focus my discussion on welfare and retirement protection. First of all, I would like to grade the work of the current Government on welfare and retirement protection from two perspectives. From the perspective of poverty alleviation, the Government can get a better score. We learn from the district that many elderly persons or low-income families have expressed appreciation of the work done by the current-term Government. Apart from increasing welfare expenditure by about 50%, it has also introduced the Low-income Working Family Allowance, the higher Old Age Living Allowance ("OALA") and the $2 transport fare concession scheme. Furthermore, it has implemented the dual-track Work Incentive Transport Subsidy Scheme, whereby the threshold is gradually relaxed by accepting both individual and household applications. In respect of the Comprehensive Social Security Assistance ("CSSA"), the requirement of the so-called "bad son statement" was scrapped. Judging from the angle of rights, the mentality of the Government still remains on the level of poverty alleviation and thus it only provides assistance to people in need. For those who have worked conscientiously for many years, made contributions to Hong Kong and saved a sum of money through thrift and financial management, the Government has been reluctant to offer them retirement protection by introducing either the universal retirement protection proposal or the integrated retirement protection plan put forward by the Hong Kong Federation of Trade Unions ("FTU"), which is a retirement protection option under the "regardless of rich or poor" principle. While the Chief Executive claimed that he has already implemented the commitments in his election manifesto in this regard, I think he has only implemented some of them. The Policy Address has dedicated a total of 15 paragraphs, from paragraphs 185 to 199, to retirement protection and one of them mentions the introduction of an enhanced mechanism of OALA. By adding a higher tier of assistance, elderly persons will receive a monthly allowance of $3,435, that is, an additional $870 per month. We certainly welcome this kind of plan to provide more allowance to elderly persons as every dollar counts, but we noticed one thing when we carried out publicity in the district, and that is, elderly persons found the application procedures very complicated. At present, there are a number of social security allowances, including the traditional Old Age Allowance (commonly known as "fruit grant"), which is non means-tested; OALA with more lenient test; the higher OALA with more stringent criteria, and the Elderly CSSA

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which covers various expenses. When we carry out frontline district work, social workers responsible for elderly services have to spend a long time explaining certain policies to the elderly. Even if the Government considers that a non-means-tested allowance scheme cannot be implemented, why does it not streamline the existing systems? For example, is it possible to merge the higher OALA with the ordinary OALA and standardize the rate of allowance, so that all elderly persons will receive $3,435? According to the data available, the number of OALA recipients is about 450 000, of which around 80% are eligible to apply for the higher OALA. In that case, why doesn't the Government standardize the criteria of the two schemes and relax the asset limit for elderly couples to about $490,000? This sounds very simple and easy to understand. Not only will this minimize division among elderly persons, but will also help save their trouble in doing computations, which is a torture to them. I hope that the Chief Secretary, our former Secretary, will consider my views. In our opinion, there is still plenty of room for discussions and refinements. Of course, while we welcome the proposals, we do not think the higher OALA is a solution to the problem relating to retirement protection. As we all know, the World Bank advocates five pillars for retirement protection, but there are only four pillars in Hong Kong with the absence of the first pillar, which is a publicly-managed retirement protection option that will benefit all Hong Kong residents when they reach the retirement age. The higher OALA will only strengthen social security but not social rights. We consider that there are still a lot of deficiencies. President, some people are of the opinion that in order to fight for a non-means-tested universal retirement protection system, the higher OALA should not be accepted. I do not think we should go that far, for it may also create unnecessary disputes. In our opinion, any proposal that can offer an extra dollar of welfare benefit to elderly persons and improve their living is worthy of our support. The fact that FTU accepts the higher OALA does not mean it has given up the proposed integrated retirement protection system, which is a sustainable universal retirement protection option funded by employees, employers and the Government and is beneficial to all. I think I must reiterate this point.

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When it comes to retirement protection, one of the pillars is Mandatory Provident Fund ("MPF"). This is a pillar riddled with flaws and may collapse at any time. Over the past 10 years or so, MPF has failed to yield good investment return and the fee is high; worst of all, under the offsetting mechanism, more than $30 billion of the employees' accrued benefits has been offset. The business sector has all along put forward a confusing argument that the functions of long service payments and severance payments overlap with MPF in some ways. We all know very clearly that MPF is for retirement purpose and can only be withdrawn at the age of 65. On the other hand, severance payments are "emergency money" given to employees being made redundant to cater for their temporary needs when their company ceases to operate, whereas long service payments do not only serve the function of "emergency money", but also deter unreasonable dismissal of employees by employers. Therefore, the three of them actually serve different functions and should not be offset. The labour sector reiterates the need to abolish the offsetting arrangement, because it is unreasonable and offsets the accrued benefits of employees. The offsetting arrangement is common in trades which employ grass-roots workers, particularly outsourced jobs or jobs under short-term contracts. The Government's outsourced services and the catering industry are the hardest hit. The Chief Executive has marginally honoured his election pledge as he finally proposed to abolish the offsetting arrangement in this year's Policy Address when his term of office is nearly coming to an end. To secure the business sector's support of the proposal, the Government decided that the proposal will not have retrospective effect. Also, there will be a 10-year grace period during which the Government will share the additional expenses incurred by the employers arising from the abolition of the offsetting arrangement. Nonetheless, the Government has also proposed to adjust the computation method of severance and long service payments, such that the amount of severance and long service payments payable will be reduced from two thirds of one month's wages times the years of service to half a month's wages. As the labour sector worries that this might undermine their benefits, we need to conduct thorough discussions with the labor sector again. Hence, we hope that the Government will make an all-out effort to put forward a proposal that will retain the present computation method for severance or long service payment at two thirds of the monthly wage times the years of service. One of the Chief Executive hopefuls has repeatedly stressed the need to make good use of the surplus, and highlighted the need of a tax cut proposal for small and medium enterprises ("SMEs"). In my opinion, while initiating a tax

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cut for SMEs, more should be done for the labour sector. In order to make good use of the surplus, the Government should introduce retirement protection. Given that the tax regime in Hong Kong is very narrow, the Government should consider introducing a progressive tax system while initiating a tax cut for SMEs, so that the additional tax payments received from enterprises earning a yearly profit of $100 million, $1 billion or $10 billion will provide a stable income source for welfare expenditures. In this connection, I hope that the Government, either the current Government or the next Government, will listen to people's views. Thank you, President.

MS ALICE MAK (in Cantonese): President, my colleague has prepared a seven-page script on health care issues for me in this debate session, but after listening to Dr Pierre CHAN's speech, I decided to give up the seven-page script. Instead, I have jotted down some points just now in response to his speech. Towards the end of his speech, Dr Pierre CHAN said that the reform of the Medical Council of Hong Kong ("MCHK") seeks to facilitate the admission of non-locally trained doctors to practise in Hong Kong, disregarding whether they are up to standard or not. As a professional doctor, he should have examined the contents of the revised provisions, but he alleged that the legislative amendment was made to facilitate substandard non-locally trained doctors to practise in Hong Kong, which is very irresponsible. Just now, Dr Pierre CHAN said that the Medical Registration (Amendment) Bill 2016 has set doctors against patients. I also agree that doctors and patients should not oppose each other, and given that they are sailing in the same boat, it is natural for patients to express particular concern on the professional standard of doctors. Patients and patient groups support the reform of MCHK. Contrary to what Dr Pierre CHAN has said, the objective of the reform is not to facilitate the admission of non-locally trained doctors to practise in Hong Kong, disregarding their standard. We hope that through the reform of MCHK, justice will be done to patients and their families as early as possible. As a matter of fact, the early completion of medical cases can also relieve the longstanding torment suffered by the doctor being complained.

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The reform of MCHK is beneficial to patients, their families and doctors, why did Dr CHAN distort the facts by saying that the Government intended to admit substandard non-locally trained doctors to practise in Hong Kong? He should be honest with himself and admit that this is not the purpose of the reform of MCHK. He should therefore give an account to the public of his remark. I had a meeting with my colleagues this morning. We have a practice of reviewing the various complaints received on a regular basis. Of the complaints received since 2012, 87 were medical incidents and, among them, 43 involved injuries and deaths. We have referred 17 cases to MCHK, and only two decisions have been made so far. In both cases, MCHK concluded that no further investigation was required. As for the remaining 10-odd cases, the patients and their families are still waiting and have no idea when justice can be done. According to the statistics of MCHK, there is currently a backlog of nearly 1 000 cases and it takes more than 50 months for a decision to be made for each case. However, according to the court judgment handed down on the procedures of disciplinary inquiries of MCHK earlier on, it may take as long as 72 months. It is unreasonable to keep local patients and their families waiting for years. Why did some doctors delay the reform for some reasons? As patients, will we sacrifice the medical services received by us for the sake of the Government? Will we help the Government admit those substandard non locally-trained doctors, as referred to by Dr CHAN, to practise in Hong Kong and treat patient's lives carelessly? We just want to seek justice as soon as possible. Dr Pierre CHAN, how can you live up to the expectation of patients and their families who are still waiting to get justice done? Their wounds are still bleeding. I do want to stay cool and calmly discuss the reform of MCHK with Members. I am willing to hold my anger and discuss with doctors, so as to draw up a reform proposal for MCHK. Any attempt to delay the reform is not doing good to the patients and their families. However, I do share some of the viewpoints of Dr Pierre CHAN. In his speech, he talked about the morale of the doctors in the Hospital Authority ("HA"), especially those of his and my age. In fact, in the past few years, I have contacted different public organizations in my capacity as a Member of the Legislative Council. Among various public organizations, the staff morale of HA is considered the lowest. Doctors grumble and complain to their superiors;

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nurses have complains; supporting staff, who are also members of our trade unions, grumble and complain day after day. The staff are dissatisfied with the practices of the management. Recently, a series of incidents have occurred, including the incident involving a pregnant woman at the Department of Obstetrics and Gynaecology of Queen Elizabeth Hospital, as well as a spate of incidents in which psychiatric patients were sexually assaulted. After the occurrence of these serious incidents, no senior management of HA has offered an explanation to the public. Instead, doctors and frontline officers were assigned to face the public. How can frontline doctors be happy? Whenever an incident has happened, the senior management would wash their hands of and ask their subordinates to clean up the mess. Worse still, after explaining to the public, the senior management would say, "The existing practice is not good enough. Doctors have to fill in more forms and answer more questions during consultation." A doctor friend of mine told me that after each incident, he has to fill in more forms during consultation. Each day, doctors spend most of their time inputting data into the computer. They can only afford to take a glance at the patient during consultation, as there are indeed too many forms and information to fill in. As Members may be aware, HA has set a time limit for consulting each patient. Doctors are required to give an explanation if the consultation time exceeds the specified time limit. The consultation time is limited, but doctors have to input a lot of data. Even if a doctor really wants to explain to the patients their medical conditions in detail, he has to cut the long story short. After hours of waiting, patients can only have a few minutes for consultation, naturally they are unhappy as the doctor simply cannot take his eyes off the computer. Doctors cannot perform their duties property, and patients often complain about them, hence they failed to please either side. Notwithstanding that, the management of HA has not made an all-out effort to resolve the problem. Furthermore, there is the issue of overtime work. Frankly speaking, given the low morale at the moment, doctors, nurses and frontline supporting staff are money-conscious as they do not have a good relationship with the management. And yet, their remuneration is far from satisfactory. I once highlighted in the relevant panel that according to frontline doctors, the computation method of overtime allowance has resulted in a reduction of their salaries. This is why not

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many staff are willing to work overtime. Given that not many doctors work on public holidays, patients have to endure a longer wait, thus resentment in society and grievances among patients have intensified. As a matter of fact, HA is not short of money and its sound financial position can well support a respectable remuneration package to frontline staff. The Policy Address proposes to provide an additional $2 billion to HA. I am pretty concerned if the $2 billion can actually improve the remuneration of frontline health care staff and relieve their pressure, so that they will smile more to the patients. How actually will this sum of money be spent? Notwithstanding that, I have to commend the Policy Address for lowering the age limit of the Elderly Health Care Voucher ("EHCV") from 70 to 65, which has responded to the aspirations of the Hong Kong Federation of Trade Unions ("FTU") and many organizations. I consider the proposal highly desirable and hope that the Government will expeditiously review the applicability and amount of EHCV. During the Chinese New Year holiday, an old lady and I held a press conference on the Accident and Emergency ("A&E") services. A reporter asked about the ways to reduce the workload of A&E services. I replied that the amount of EHCV should be increased so as to enable elderly persons seek consultation in private clinics. I had not rehearsed with the old lady beforehand, but she clapped immediately and said I understood them so well. My reply was, I knew them well because we were of similar age. Raising the amount of EHCV can actually bring benefits to our elders. On the other hand, the proposed arrangement to enable Old Age Living Allowance recipients to enjoy public health care services for free is also worth encouraging and support. And yet, I am worried if $2 billion is sufficient and how the senior management staff, who are earning more than the Chief Executive, are going to spend the additional provisions. How frightening this is. Furthermore, I must point out that the Policy Address is silent on the development of primary care. FTU has been fighting for this, but how come primary care development has been unsatisfactory over the years? After taking over the outpatient clinics from the Department of Health ("DH") in 2003, HA has to cater for primary care as well. Honestly, it is difficult to quantify the achievement of primary care. Efforts made in the provision of more operating theatres and sophisticated equipment can be seen from the relevant photographs. The provision of primary care is a tough and tedious task and there is no way we can take pictures of the work done to prevent diseases at the primary level. Therefore, such work has been neglected and ignored for many years. Even for

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the simple target of setting up community health center in 18 districts, it has yet to be achieved and there are long queues in the Elderly Health Centers of various districts. I hope that the Government will examine the long-term development of primary health care to see if we should continue to leave it in the hands of HA. If HA cannot figure out how the provision should be used, it would be better for the Government to resume the control of primary care. We should resume the pre-2003 practice and place primary care services under the management of DH. Today, I am going to use up the remaining speaking time. I must respond to the speech made by Mr Abraham SHEK on population policy yesterday. Just now, a number of Members have touched on population policy and some from the business sector have used population policy as an excuse for importation of foreign workers. Many of them used Singapore as an example to prove that massive importation of foreign workers has facilitated the development of Singapore. I would like to point out that the case of Hong Kong and Singapore is completely different. Foreign workers in Singapore are cheap labour, but this is not so in Hong Kong. In Hong Kong, there is an effective Supplementary Labour Scheme. We should continue to use this scheme instead of introducing more cheap labour through the importation of foreign workers to press down the wages of local workers. There are so many things that we can learn from Singapore, but are we going to follow its footsteps? For example, buildings in the vicinity of former Prime Minister LEE Kuan-yew's residence must be lower than his residence, and the restriction was removed only after he passed away. Hong Kong is not going to model on this. Worse still, foreign workers have significant impact on the community of Singapore. As I had mentioned in this Chamber before, due to social security concern, the sale of wine is prohibited after 9:00 pm in the Geylang District where most foreign workers live. Also, there had been strikes of bus workers. Can Hong Kong tolerate the social unrests caused by foreign workers? Please do not turn population policy into an excuse for the importation of foreign workers. Hong Kong should formulate a comprehensive population policy to nurture local talent and workers, but not to import foreign workers in the hope of pressing down the wages of local workers. President, while hoping that Members can conduct discussion in a calm manner, I also very much hope that some people, especially the professionals, will not bury their conscience but do more for the well-being of patients and their families. Thank you.

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MR KWONG CHUN-YU (in Cantonese): If you ask me for my views on poverty alleviation, welfare, health care services, elderly care, public health and population policy, I may speak for the entire afternoon or even longer. I will try to condense my views and provide a snapshot review of my experience as a Member of Legislative Council over the past few months. I noticed that certain arrangements have given rise to some unjust and unfortunate cases, which have prompted my team to speak out for the disadvantaged groups. Also, we would like to give some advice on issues that have not been touched on in the Policy Address. What impresses my team most is certainly the "Bridge of Rehabilitation Company" incident. A former superintendent of a residential care home ("RCH") for persons with disabilities was suspected of indecently assaulting a female resident with intellectual disability, and since the female resident was unable to testify in court due to post-traumatic stress disorder, the video recording intended to be presented as evidence in court was therefore inadmissible. President, the matter had already been lost in history, but that former superintendent, seeing that no prosecution could be instituted against him, claimed legal costs from the Department of Justice. During his claim, a small article in the press reported the incident. I remember clearly that it was a Saturday, after reading this small article on the unfortunate incident, we all felt very sad. What came to our mind was: Judging from the angle of policy and the Legislative Council, should we continue to allow such injustice to persist? This is why we subsequently launched the "Silent Cry" ("無聲吶喊") signature campaign. I would like to take this opportunity to thank over 100 000 members of the public who had taken part in the "Silent Cry" signature campaign to heighten people's concern about persons with disabilities, persons with intellectual disabilities and services of RCHs. We do not want to see any more persons with intellectual disabilities being sexually assaulted or the continuous operation of RCHs for persons with disabilities under such poor conditions. A few days after the "Silent Cry" signature campaign was launched, the department concerned reacted by cancelling the licence of the Bridge of Rehabilitation Company. Meanwhile, the relevant bureau has also undertaken to conduct a review of the Residential Care Homes (Persons with Disabilities) Ordinance. I look forward to this opportunity for reform.

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Chief Secretary Matthew CHEUNG, who is present at the meeting today, is the important person who joined us in following up on the "Bridge of Rehabilitation Company" incident earlier on. I sincerely hope that he still remembers his undertaking. He made a promise to people who have expressed concern about this incident that within three years, there would be no more RCHs operating under certificate of exemption. To put it simply, it means that the goal of licensing will be achieved. Please bear in mind that this is not just a window-dressing attempt, we sincerely hope that the Government will shoulder this responsibility. Honourable Members, at present, there are too many persons with disabilities and persons with intellectual disabilities who cannot make their voices heard. I am a social worker graduated the year before last, and my first internship was a six-month experience at a RCH for person with disabilities. As I am so lucky to be standing in this Chamber, I think I am obliged to put forward some changes to our policies. Therefore, I sincerely urge the Chief Secretary to carry out reforms in the future as the recurrence of the "Bridge of Rehabilitation Company" incident is the last thing that we wish to see.

(THE PRESIDENT'S DEPUTY, MS STARRY LEE, took the Chair)

The "Bridge of Rehabilitation Company" incident is not confined to RCHs for persons with disabilities, but also occurs in RCHs for the elderly ("RCHEs"). We have heard news about elderly residents being ill-treated from time to time. Earlier on, a RCHE home in Tai Po was found washing the elderly residents in open space. Worse still, the indoor environment was terrible. The failure of elderly persons to make their voices heard or air their grievances has captured the hearts of many members of the public. By introducing the residential care service voucher ("RCSV"), the Government seeks to pass the services of RCHs to the private sector. However, voices from society and community groups have clearly indicated their opposition, saying that such services should not be passed to the private sector. In order to provide good elderly services, we must head towards the right direction. At present, more than 40 000 people are waiting for places of public RCHs. The approach of the Government is to offer an alternative queue, which is shorter (that is, the provision of 3 000 RCSVs). However, this queue does not

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serve meals, it only serves milk. If people feel hungry, they might as well join this queue for some milk first. This alternative queue will not only shorten the original one with more than 40 000 people, but will also help ameliorate the situation. But is this a wrong direction? Members should bear in mind that heading towards a wrong direction is tantamount to "taking the wrong vehicle", which will render us unable to reach the destination. I once asked the Government at a panel meeting if it had made any projection of the number of elderly persons who would pass away while waiting for RCH places during the implementation of the three-year pilot scheme on RCSV. Embarrassed by this question, the Government replied that no relevant data was available. In the past three years, more than 5 000 elderly persons passed away every year, mind you, the number is denoted in thousands. Simply put, they did not live long enough to get RCH places. While it is difficult for them to get a place in public RCHs, there is a lack of supervision over private RCHs. This is how terrible the present situation is. These people are disadvantaged. Earlier on, the Government abolished the subsidy for the "N have-nots", but these people are not covered in most policies. They live in subdivided units or cubicle apartments, and their voices are too weak to be heard. In view of this, I made an effort to visit various districts and listen to their views. They said, "Mr KWONG, we have been exploited. Even our landlords tried to reap profits from our water, electricity and gas charges." The fact is, while the power companies charge the landlords a tariff of $0.1 per unit, the landlords charge the tenants a tariff of $1.2 per unit. But who knows? No one knows because their voices are too weak. They are disadvantaged. At a time when these people are living in a poor environment and there is no way they can improve their living condition in the short run as public housing allocation is not within the foreseeable future, what is being discussed at the Legislative Council? The Legislative Council was discussing the proposed pay rise of senior government officials. The senior officials claimed that a monthly salary of $290,000 was insufficient and should be increased to catch up with inflation. They therefore requested a pay rise. On the other hand, they also told us that the rates of Comprehensive Social Security Assistance and Disability Allowance would increase by 2.8%, whereas the transport supplement provided for recipients of Disability Allowance would increase by $5 per month, just a mere $5. They are disadvantaged.

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Deputy President, in the past six months, I have helped two couples whose children died of encephalitis. It turned out that these two requests for assistance on medical cases have great impacts on me. I helped them lodge complaints and redress a wrong. I remember vividly the scene when the couples entered my office after the completion of the cases. Though subject to undue pressure, the mother keep asking whether improvements could be made after her son was admitted to hospital so as to save his life. She was not trying to find out who should take the blame; she merely wanted to prevent other children from leaving this world in the same way. She was crying in pain while she was speaking, which was normal. And, when I tried to comfort her, she expressed her gratitude for meeting my team, because before she met our team, she absolutely had no idea how she could clearly express her views on how the health care system could be improved and what loopholes were present. You can imagine the huge pressure borne by her in the course of following up on a medical incident. At that moment, I was thinking what has gone wrong with our health care policy. I really do not know. Among "health care, food, housing and transport", health care takes precedence as it is a matter of life and death. I remember very clearly that in mid-2016, the case of Billy came into light. By then, we realized that some hospitals do not arrange quick testing on influenza at nighttime. To put it simply, the timing of hospital admission has to be taken into account. If a person is admitted to the hospital at nighttime, the quick testing can only be arranged on the following day. We merely hope that the unfortunate experiences of the past will bring about improvements for the future. The parents of the two deceased children have thought alike in saying that they hoped their children's misfortune would not happen to others. Nonetheless, in the course of it, I received a request for assistance from the frontline staff of the paediatric ward in Tuen Mun Hospital, highlighting that the occupancy rate of the ward was as high as 170%. Can Members imagine the spaces between beds, the scene in the corridor, as well as how tiring the work of frontline staff would be in a ward having an occupancy rate of 170%? These people are disadvantaged and the issues highlighted are precisely what need to be improved and reformed. Of the various issues that have been discussed in this Chamber, I feel obliged to make the voices of the deaf-mute persons heard. We once had a debate here about making sign language as an official language. There is, however, an underlying spirit, and that is, we should achieve social inclusion by

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breaking the wall between persons with disabilities and us, so that the former will not be left unattended behind the wall due to their innate inadequacies or abilities. Sign language is one way to enable them to better express themselves and receive information. This is an ongoing reform, but I hope that I can speak for them on certain occasions, just like the discussion of the present motion. We do not want slogan; we want policy support. Let me call this a policy for the disadvantaged. The disadvantaged is a group of people who cannot make their voices heard and are earnestly waiting for some top-down policies to improve their living and situation. We need to make their voices heard here and put forward reforms. In addition, there is also another group of people who have failed to make their voices heard, but it is a pity that there is no way I can classify them. Similarly, they are disadvantaged and cannot make their voices heard. They are animals, the rights of which are of my gravest concern. There may not be any government official responsible for responding to this issue, but I hope that the Chief Secretary will relay this message for me. According to GANDHI, "The greatness of a nation and its moral progress can be judged by the way its animals are treated." Hong Kong needs to have "animal police" and animal protection law, and messages such as animal protection should be incorporated into children's textbooks. We should start with the children, so that they will not have any misunderstanding of the superiority or inferiority of animals. This is particularly important for the passionate Hong Kong people, and it is this passion in which we take pride. Despite the fact that animals cannot speak human languages, cannot vote and cannot attend public hearings, we are most willing to speak for them as they are the disadvantaged. Deputy President, just now, I have spoken for various disadvantaged groups. I notice that our city has experienced years of trauma in the past period of time, it is now time to start again. Now is the time to work for the living of the simplest ones, the disadvantaged who cannot make their voices heard and the most vulnerable ones who cannot express their aspirations. Of the various proposals put forward earlier on, I am most eager to see the Chief Secretary honouring his promise about the Residential Care Homes (Persons with Disabilities) Ordinance and carry out some substantive reforms to help this largest group of disadvantaged people. Deputy President, I so submit.

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MR JEREMY TAM (in Cantonese): Deputy President, since LEUNG Chun-ying assumed office, the Government has all along stressed that Hong Kong will have to face the problem of population ageing in the future. Hence, the Steering Committee on Population Policy, chaired by Carrie LAM, was established. After a long wait, the report on population policy was finally published in 2015, containing analysis of population and recommendations for the future. Unfortunately, the Government has only taken note of the superficial issues and adopted a piecemeal approach without providing any detailed visions and planning on population for the next 30 years. Nevertheless, the Government has made two correct points in its analysis. First, Hong Kong will face a serious problem of population ageing. According to the Government's projection, the working population will reach a peak of 3 650 000 in 2018 before falling continuously. By 2064, there will only be a working population of 3 110 000. Second, we shall rely on One-way Permit ("OWP") holders as the major source for supplementing our population. In fact, these two points are mentioned in both the report on population policy and the "Hong Kong 2030+: Towards a Planning Vision and Strategy Transcending 2030" published last year. According to the Government, in order to become a city which can accommodate a population of 9 million, we must reclaim land and use sites of country parks for development. It is surprising to learn that we cannot depend on the natural growth of our population to become a city with 9 million people, but must rely on OWP holders to support this city. On the basis of the information provided in the two reports, the number of births in Hong Kong will drop to about 50 000 per year by 2030, and the general trend afterwards will be a continuous plunge. By 2064, the number of births will only be about 40 000 per year, which is even smaller than the maximum number of 54 750 OWP per year. However, the Government has not mentioned one point, namely, whether the approach of continuing to allow the birth rate to fall and rely heavily on foreigners, particularly OWP holders, to supplement our working population can facilitate continuous economic growth of Hong Kong. Here, I am talking about continuous economic growth and not just an increase or a supplement of our population. The current-term Government has not, during its entire term of office, analysed whether foreigners can supplement our working population in terms of their demographic nature. Hong Kong is a knowledge-based economy, a large

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number of our working population works as professionals or associate professionals and they have supported the economy of Hong Kong all along. According to the figures provided by the Census and Statistics Department in 2013, among the working population of 3 700 000, about 920 000 were professionals or associate professionals, accounting for one-fourth of the total, and 70% of them had attained tertiary education level. However, if we refer to the findings of the population census conducted in 2011, we would notice that only 16% of the new immigrants had attained tertiary education level and 22.3% of them spoke English. These two percentages on standard of English and education level were on average about half of those of Hong Kong people. I must make it clear that the Civic Party does not object to family reunion of OWP holders and we do not discriminate against new immigrants. Nevertheless, relying on new immigrants as the major source of supplementing our population may not be the right cure to solve problems such as population ageing and shortage of professionals in Hong Kong. Perhaps we need to work harder to identify sources other than new immigrants to supplement our population or even to return to the basics and consider how to encourage local couples to give birth. In fact, various measures are needed to encourage birth. For example, providing paternity leave for male employees mentioned in LEUNG Chun-ying's election manifesto. The duration of paternity leave eventually provided is only three days, which lags far behind the demand for seven days by society. Another example is the standard working hours, a promise made by LEUNG Chun-ying. This promise is again broken in the end and legislation on standard working hours has not been enacted in his term of office. As a result, many employees are still working until very late at night and cannot spend enough time with their children. When employees do not know what time they finish work every day and do not even have the chance to accompany their children as they grow up, will they desire to have children? Regarding the promise of providing free kindergarten education, free education is only provided in half-day, but not whole-day kindergartens. In respect of child care, the Government has proposed to increase the number of child care centres. This direction is surely correct, but the resources allocated are very inadequate. Places provided by whole-day child care centres for children aged 0 to 2 are so inadequate that 100 people have to fight for one place.

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Besides, the costs are not cheap as a monthly charge of nearly $5,000 is involved. Rearing a child is a big concern to dual-income parents as the cost is high and there is no guarantee that they can get a place in a child care centre. Furthermore, as the children grow up, can the purpose of education be achieved under the education system of Hong Kong? Or, is the system oppressing the children in the name of education, turning schools into factories, considering examination performance as the goal, regarding results as the purpose, damaging the childhood of students and dampening their interests in learning? If so, why give birth? Moreover, Hong Kong people are getting married later in life now. Has the Government put in place corresponding measures? For example, educating and encouraging people to preserve their sperms and ova. Has the Government considered educating people about artificial insemination? Or, will it consider subsidizing families which need the services? In the past, a few public hospitals offered these services, but the number of places was small, the waiting time was very long and the cost was expensive. If one received artificial insemination in a private hospital, it would cost almost $100,000 for each treatment. All in all, the reasons for a low fertility rate in Hong Kong are complex. They may include high property prices, not having enough time because of a heavy workload, worries about the future and worries about political instability. Nevertheless, the root cause of a low fertility rate among the middle class or newly married couples is a lack of confidence in the future of Hong Kong. I think the Government should work towards reducing the number of working hours, reducing the costs of housing, narrowing the wealth gap, increasing the number of days of paternity leave and maternity leave, reducing the pressure of studies and providing tax concessions to encourage birth or considering giving direct child care subsidies as in the case of overseas countries. The Government can only solve the problems arising from population ageing at root by introducing these measures. Otherwise, the birth rate in Hong Kong will remain low and the problems will only continue. Finally, Deputy President, I think our population policy should not merely be a policy to solve the problem of population ageing. Instead, it should put forward a vision in the future population structure of Hong Kong and cultivate a sense of belonging of the entire population of Hong Kong.

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If we want Hong Kong people to give birth without worries, the first thing the Government should do is to encourage birth instead of accepting fate and drawing up a talent list to attract talent in a more effective manner, as mentioned in the Policy Address this year. Hong Kong needs talent, but why is importing talent always the first thing that comes to the Government's mind? Why can't we put forward a vision in our education system and encourage birth, so that the positions can be filled by people born in Hong Kong? Isn't that the way to make our planning? If the Government can nurture self-confidence in Hong Kong people and let them see hope in the future, they will not be worried about people coming from abroad and external matters. If the next-term Government really want the society of Hong Kong to be stable and recuperate, it should seriously make long-term planning in its population policy, instead of making short-sighted population planning like LEUNG Chun-ying and Carrie LAM as if they are just doing a task. I so submit.

MR WILSON OR (in Cantonese): Deputy President, Kowloon East is the district with the highest elderly population ratio and the people there are particularly concerned about elderly care and retirement protection. First of all, I must point out that in formulating the policy on elderly care, the Chief Executive has taken a proactive approach in this Policy Address. He has clearly stated the Government's stance on retirement protection, proposed a higher level of assistance for the elderly, relaxed the asset limits for the Old Age Living Allowance ("OALA"), lowered the eligibility age for the Elderly Health Care Vouchers to 65, introduced the Fujian Scheme to provide monthly Old Age Allowance and unprecedentedly abolished the submission of the "bad son statement" which has long been criticized. These measures are generally welcomed by the public. The requirement to submit a "declaration of not providing support to parents", commonly called the "bad son statement", is the biggest problem for elderly applicants of the Comprehensive Social Security Assistance ("CSSA"). Since CSSA applications are considered on a household basis under the existing system, if an elderly applicant has an adult son, even if he lives independently, the son has to sign the "bad son statement" before the applicant can receive

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CSSA. The Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") has all along commented that the approach is inhumane, but it has taken a long time before the current-term Government finally responded to our request to abolish the arrangement. As I understand it, an elderly person is one who has reached the age of 65 and is eligible to get a Senior Citizen Card, and so the eligibility age for all kinds of elderly benefits should be set at 65. The DAB team has repeatedly asked the Government to lower the eligibility age for the Elderly Health Care Vouchers to 65 and in particular, the DAB team of Kowloon East even submitted 10 300-plus signatures in support of the request to Secretary Dr KO Wing-man in June 2016. We are very pleased that the current-term Government has listened to public opinion and lowered the eligibility age for the Elderly Health Care Vouchers to 65. Meanwhile, we have also asked the Government to provide non-means tested "fruit grant" to elderly persons aged 65 and above. We have submitted more than 4 000 signatures in support of the request to the Government. Regrettably, the Government has not accepted this proposal of DAB. DAB has all along supported the proposal to expeditiously introduce universal retirement protection and has requested the provision of more protection to the needy elderly persons. However, before the goal of implementing universal retirement protection is realized, elderly persons can only rely on "fruit grant" and OALA for their living. Currently, there is the new initiative to offer a higher level of assistance to the elderly. An eligible elderly person can apply for OALA as well as the higher OALA at the age of 65. But, Deputy President, he can only apply for "fruit grant" when he reaches 70. If the Government can revise its policy to allow persons aged 65 or above to receive non-means tested "fruit grant", all elderly persons will receive a certain level of allowance, which is actually a step toward universal retirement protection. This measure will be very similar to the three-tier retirement protection scheme proposed by DAB. Certainly, under the three-tier retirement protection scheme, the level of allowance requested is higher and the asset limits will be further relaxed. Nevertheless, I believe if the Government is willing to make the first step, other measures can be implemented progressively with the ultimate goal of enabling the elderly to lead a genuine worry-free retirement life. Deputy President, what I mean is that they do not have to worry about their living. Next, I would like to talk about the problem of markets. Improving the environment of markets has been the common demand of residents and commercial tenants. In respect of markets, particularly those managed by the

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Food and Environmental Hygiene Department ("FEHD"), the Government's main concern is the proposal to install air-conditioning facilities in public markets. In the past, DAB had voiced its views in the Legislative Council and at the district level, urging the Government to install air-conditioning facilities in public markets. The proposal will provide a comfortable shopping environment for the residents and keep the food fresh, thereby increasing the patronage of the markets and promoting the business of the commercial tenants. A number of markets in Kowloon East are greatly in need of installing air-conditioning facilities, but works have not commenced after a long time. On 1 July 2015, the Government lowered the threshold of tenants' support for the installation of air-conditioning facilities in public markets from 85% to 80%. The Cooked Food Centre at Shui Wo Street Market in Kwun Tong obtained a sufficient rate of support even before the threshold was lowered. The Cooked Food Centre at Ngau Chi Wan Market and the Cooked Food Centre at Ngau Tau Kok Market obtained the support of the majority of tenants in the survey conducted by the Market Management Consultative Committee after the threshold was lowered. Nevertheless, no progress has been made so far. As regards Shui Wo Street Market, no specific implementation proposal on installing air-conditioning facilities has been set. According to the Government's explanation, negotiations on the technical problem of electricity supply, closing time of the market and options of works have dragged on. As for Ngau Chi Wan Market and Ngau Tau Kok Market, the relevant works have yet to commence. In a few months' time, summer will arrive. While the commercial tenants will be worrying about their business, the residents will have to bear with the hot and stuffy environment of the market. The problem of installing air-conditioning facilities reflects the bureaucracy of the government departments. Deputy President, on the face of it, there is a division of work, but in reality, each department adopts different policies and shirks responsibilities. Government departments should serve the people, but FEHD, the Architectural Services Department, the Environmental Protection Department and the Electrical and Mechanical Services Department, etc. have set barriers to hinder the installation of air-conditioning facilities. The vetting and approval procedures have dragged on and on. Each department only works according to its own rules without communicating, cooperating and coordinating with the other departments at all. We hope that the government departments can change their mindset and actively deal with the problems, so as to shorten the time for installing air-conditioning facilities and properly perform their role as public servants.

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Deputy President, speaking of procrastination, I believe both the Government and the Legislative Council have to reflect on themselves. All items submitted to the Legislative Council for deliberation have been procrastinated time and again, slowing down the process. At present, development in various aspects in Hong Kong is progressing at turtle speed and the Legislative Council has become a stumbling block to the development of our society. Moreover, since the opposition party criticizes everything, it is not surprising that each government department works according to its own rules, trying to "avoid making mistakes instead of gaining credit". We hope that Members can change their mindset and be reasonable again; stop being destructive and do something constructive so that Hong Kong can move forward, and people of different strata in society will see that the Government or the Executive Authorities and the Legislature have a good relationship. Deputy President, these are my remarks in this debate session. I hope that the Policy Bureau will respond actively to the above mentioned situations. Thank you, Deputy President. I so submit.

DR JUNIUS HO (in Cantonese): Deputy President, I am glad that poverty alleviation and support for the disadvantaged are the policy priorities of the current Government. In 2016-2017, the Government has increased its recurrent expenditure on social welfare by 55%, to $66.2 billion, which is a considerable amount. The Old Age Living Allowance ("OALA"), fully implemented since 2013, is now benefiting 440 000 elderly persons and is particularly effective in supporting the elderly and the disadvantaged. I wish to discuss OALA in particular. The Government has proposed in the Policy Address to add a higher tier of assistance for OALA, but with an assets test. At present, elderly singletons with assets not exceeding $144,000 can receive $3,435. I want to tell the Chief Secretary, since the Government intends to be generous, it may as well take it to a higher level. As I understand it, after the higher tier has been added, OALA will cover 85% of elderly persons of eligible age. In other words, the remaining 15% is not covered. Thus, I asked at the last meeting how much more the Government would have to spend if the higher OALA was extended to cover all elderly persons. I am still waiting for the amount, but according to the existing scheme, the Government will have to spend $7 billion a year.

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As such, increasing the coverage by 15% will not cost much more. I hope the assets test for the higher OALA can be abolished. In other words, this variant form of "fruit grant" can benefit all elderly persons who have reached the age of 70. What are the merits of this proposal? Apart from reducing administrative costs, members of the public will not think that the Government is mean to the elderly. It can also avoid the situation in which an elderly person with assets exceeding $144,000 cannot receive $3,435. This will prevent elderly persons from deliberately transferring their assets to others by some undesirable means so as to keep their assets below the cap of $144,000. A benevolent act of the Government may cause harm to the elderly. In other words, to get a trivial favour, the elderly may suffer a great loss. Initially, an elderly person may have $500,000 or $1 million, but owing to human nature, he transfers his assets to his son in advance so as to receive $3,435. Regarding the so-called "bad son statement" that we are now talking about, sometimes the children sign the statement because they really cannot afford to support their parents. This is one situation. Yet, we are also aware that there are many depraved children. If someone has $1 million and he wants to receive an allowance of $3,435, he may transfer his assets to his children or grandchildren. Consequently he becomes broke. With no money and no one to take care of him, can he live on a meagre allowance of $3,435 provided by the Government? Is that putting the cart before the horse? Will an act of love turn out to be an act of harm? Therefore, I very much hope that the Government can be even more generous in granting the higher OALA and does not mind spending a little more. Of course, the Hong Kong Government has to keep its expenditure within limits and manage its finance prudently. Nevertheless, since there are so many disputes in our society, we want to treat the elderly well. But where will the money come from? If we choose to act generously, we have to decide where the money will come from. Increasing tax is an option. Do we have enough money? How much money is needed for the benefit? The authorities should do a better estimate and provide us with information, so that we can study together and examine how the calculations are made. If we need to increase tax, members of the public should not complain. Thus, in my view, abolishing the assets test will actually be conducive to creating a harmonious atmosphere in the whole society. As I mentioned earlier, this measure will reduce administrative costs, save a lot of paper work and do away the need to conduct random checks. Furthermore, elderly persons will not transfer their assets for wanting to receive $3,435 or worse still, provide false information. If an elderly person provides false information out of the temptation to receive $3,435, he may be imprisoned

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for obtaining Comprehensive Social Security Assistance and the higher OALA by deception. The outcome will be undesirable. Therefore, in terms of poverty alleviation and elderly care, if the assets test for the higher OALA can be abolished, I think it will be good for providing retirement protection. Next, I will talk about how to operate our retirement protection system more flexibly. At present, employees have to make Mandatory Provident Fund ("MPF") contributions. However, many blue collars and white collars have no idea of how they can well utilize their MPF savings. Certainly, the MPF schemes are more transparent now, the management fees and commissions have been reduced, but the amount that employees can eventually get from his MPF account is still a small sum. In particular, employees can only get the money when they reach 65. A smart employee may have accumulated $1 million-plus in his MPF account, but even so, will the amount be sufficient to support his living, taking inflation into account? If he is unfortunately diagnosed with terminal cancer and has to buy target therapy drugs for treatment, even with $1 million-plus, he may still be unable to make ends meet. If employees, who have been making MPF contributions, can use part of their MPF balance to take out insurance for extra protection when they reach 40, will that be a good idea? I understand that the Government is encouraging people to take out voluntary medical insurance, which is a good way to reduce the social costs of protecting public health and treat critical illnesses of individuals. If one has to make contributions to MPF, which can only be withdrawn at 65, and spends an additional $10,000-plus a year to take out his own medical insurance, he will really feel the pinch. However, if he can take out some money, say $10,000 or $15,000 per year, from his MPF account which may only consist of a few ten thousand dollars, to pay the premium of his medical insurance with coverage of $10 million or $15 million, he can save for the rainy days and make a better use of his money. If people can take out medical insurance with coverage of $10 million-plus with the money in their MPF account, the protection will be better than filling their pockets with gold because they will really have money to cater for their urgent needs. I put forward two proposals to the Chief Secretary today. First, for the higher OALA, which I will simply call the variant "fruit grant", no income or assets test should be conducted. If any person who reaches the age of 70 can receive the allowance, it will be a benevolent measure. Please give due consideration to this proposal. Second, people should be allowed to use their

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MPF balance flexibly. They should not only be allowed to use their MPF balance to buy bonds or shares, but should also be allowed to use the money to take out insurance to protect their health, so that in case they have health problem in the future, they will be better protected insurance-wise. Deputy President, I so submit.

Thank you.

DEPUTY PRESIDENT (in Cantonese): Does any other Member wish to speak? (No Member indicated a wish to speak)

DEPUTY PRESIDENT (in Cantonese): If no Member wishes to speak, I will invite the three public officers to speak. On the basis of the 15-minute speaking time for each officer, they may speak for up to a total of 45 minutes.

CHIEF SECRETARY FOR ADMINISTRATION (in Cantonese): Deputy President, I am very grateful to the 27 Members who have just spoken. I will give a concrete response focusing on three topics, namely poverty alleviation, population policy and retirement protection. This is the last Policy Address of the Chief Executive in the current-term Government, but it is in no way a caretaking policy address as the entire team of accountability officials and the civil service have not slowed down amid the change of term of government. On the contrary, this is a pragmatic and proactive policy address. Be it poverty alleviation, elderly welfare, health care services, retirement protection, and even education and environmental protection, this Policy Address has put forward a lot of new initiatives. This reflects the Government's emphasis and commitment to improving the well-being of members of the public. With regard to poverty alleviation, we will invite the Community Care Fund to consider launching six new assistance programmes. Furthermore, we will enhance the support for children with special needs, persons with disabilities and ex-mentally ill persons, and apply for funding injection into the Community Investment and Inclusion Fund through the Lotteries Fund to promote community participation. To promote social inclusion and provide assistance to ethnic

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minorities, we will continue to monitor the Chinese Language Curriculum Second Language Learning Framework which was implemented more than two years ago, so as to examine its effectiveness on the learning of Chinese by non-Chinese speaking ("NCS") primary and secondary students. And, starting from the next school year, additional resources will be provided for eligible kindergartens admitting eight or more NCS students to facilitate their learning of Chinese. On the other hand, the Government is very concerned about the employment situation of ethnic minorities. To further strengthen our support for them, especially the South Asians, the Labour Department will engage staff proficient in ethnic minority languages this year to provide employment services for ethnic minority job seekers at selected job centres on a pilot basis. This year's Policy Address has put forward a series of forward-looking and strategic policy recommendations on retirement protection. This is the first time since reunification that the SAR Government has conducted public consultation on and fully explored this important subject. After taking into account public views received and ensuring the sustainability of our financial commitment, this Policy Address has put forward a package of practical proposals to comprehensively respond to the views of the public and stakeholders, which also shows the great attention and strong determination of the Government to make comprehensive improvements to retirement protection. I would like to emphasize the word "comprehensive". After all, "comprehensive" retirement protection should not be confined to financial support. Elderly persons have different retirement needs, especially some have to live on social security, some may need certain living supplement whereas some are self-sufficient. Therefore, in the course of exploring the way forward for retirement protection, we have stressed time and again that while focusing on the controversial cash allowances, we should also look closer into how targeted services and measures can be provided to cater for the actual needs of the elderly persons. The current retirement protection system in Hong Kong comprises four pillars that are complementary to one another. We consider that the multi-pillar system should continue, and at the same time, we should enhance the effectiveness of each pillar while maintaining the sustainability and financial viability of the system. On the pillar of social security, the Policy Address proposes to add a higher tier of assistance under the existing Old Age Living

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Allowance ("OALA") by providing a higher monthly allowance of $3,435 for single elderly singletons with assets not exceeding $144,000 or elderly couples with assets not more than $218,000. At the same time, we will relax the asset limits for the existing OALA from $225,000 to $329,000 for elderly singletons and to $499,000 for elderly couples. The higher OALA is expected to benefit a total of about 580 000 elderly persons in the first year, with coverage increasing significantly by 10 percentage points to 47% of the overall elderly population. For elderly persons with more financial needs, while maintaining the requirement that applicants under the Comprehensive Social Security Assistance ("CSSA") Scheme must apply on a household basis, we have decided to abolish the arrangement for the relatives concerned to make a declaration on whether they provide the elderly persons who apply for CSSA on their own with financial support (the so-called "bad son statement"). Only the elderly applicants will be required to submit information. The new arrangement was implemented on 1 February. With regard to the public services pillar, medical expenditure has all along been the gravest concern of elderly persons. To alleviate the health care burden of the elders and their families, the Government proposes to lower the eligibility age for the Elderly Health Care Vouchers from 70 to 65, so that about 400 000 more elderly persons will receive $2,000 a year to purchase private primary care services. We also propose to provide the fee waiver for public hospital and clinic services for elders aged 75 or above who are eligible for the higher OALA, and this will benefit 140 000 elderly persons. Concerning the pillar of Mandatory Provident Fund ("MPF") which involves 2.8 million employees and self-employed persons in Hong Kong, the Government will adopt a two-pronged approach: proposes to progressively abolish the offsetting of severance payments or long service payments with MPF contributions on the one hand, and on the other hand fully supports the efforts of the MPF Schemes Authority to put in place an eMPF, a centralized electronic platform, to facilitate the automation and standardization of the MPF scheme administration, thereby further reducing the administrative costs of the MPF scheme. Although the MPF offsetting arrangement is a thorny issue, the Government has not evaded. After careful consideration and striking a balance between the interests of employers and employees, we have come up with some

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specific recommendations. As a basis for further discussion with stakeholders, our proposal contains three key elements. First, the abolition will have no retrospective effect, that is, employers' accrued benefits from MPF contributions before the implementation date of the proposal will be "grandfathered". Second, the amount of severance and long service payments payable for an employment period from the implementation date will be adjusted downwards from the existing entitlement of two-thirds of one month's wages to half a month's wages as compensation for each year of service. Thirdly, the Government will share part of the expenses on severance or long service payment of employers in the 10 years after the date of implementation. According to the Government's proposal, all the three parties have contributions. While the expenditure of employers will increase, the waiver arrangements and government subsidies will reduce their burden, and in the long run, the 10-year subsidy period may serve as a buffer to provide sufficient time for employers to adapt to the policy changes and introduce corresponding measures during the transition. Although the percentage of severance payment and long service payment will be slightly lowered after the date of implementation, the employees' MPF will be fully protected. Furthermore, the Government will make financial commitment and help the employers adapt to the changes during the transition, subject to the principle that any payment from the public purse should be finite in quantum and duration. Many elderly persons indicated that they have accumulated some assets, but they dare not use them. The Government will study the feasibility of a public annuity scheme to help elderly persons annuitize their lump-sum assets into a steady stream of monthly retirement income. We will also consider issuing larger volumes of Silver Bond, which is popular amongst elderly persons, and setting the term longer. Meanwhile, we will also encourage the financial sector to develop more retirement-related investment products. Last but not least, we will step up the promotion of old age mortgages. In the coming 10 years, the above mentioned retirement protection package will involve an additional average recurrent government expenditure of over $9 billion per year, a one-off expenditure of $6 billion as well as maximum tax forgone of $18 billion. The entire package aims to strengthen the various pillars so as to give play to comprehensive protection.

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I would like to point out that the Chief Executive and the current-term Government have never promised to implement the so-called universal retirement protection, and we do not agree that the provision of a standard amount for elderly persons across the board regardless of whether they are rich or poor is a proper way to deal with the issue of retirement protection. This approach will thin out resources and render elderly persons in need unable to receive adequate support as the majority of additional resources (about 80%) will flow to elders who are not in need. Not only is this a mismatch of resources, it also fails to address the problem of elderly poverty. On the contrary, OALA is the most effective recurrent cash policy for tackling elderly poverty. What is more, OALA is simple in design and more relaxed in terms of income and asset requirements than CSSA, particularly the arrangement of allowing applications to be made on an individual or couple basis. This is the most popular cash allowance among elderly persons and is currently benefiting more than 440 000 elders. Therefore, this time, we have chosen OALA as the platform for enhancing the social security pillar and provide additional targeted support for elderly persons. Some Members suggested increasing OALA to a standard rate of $3,435 and substantially relax the asset limit, and some proposed lowering the eligibility age of OALA to 65. I would like to point out that based on the Government's proposal of adding a higher tier of allowance and relaxing the asset limits under OALA, it is estimated that this involves an additional government recurrent expenditure of about $7.6 billion in each of the next 10 years, which accounts for 56% of the $13.5 billion estimated expenditure of OALA for 2016-2017. The above proposal will make the entire package of proposals more expensive and thus the expenditure on other areas (such as elderly health care) will be reduced accordingly. We have to strike a careful balance. As for the abolition of the offsetting arrangement, the amount of severance payment and long service payment will be adjusted downward from two thirds of one month's wages to half a month's wages. Our major consideration is that certain functions of severance and long service payments do overlap with those of the MPF System. Despite an adjustment of the ratio, I wish to emphasize that under the proposed arrangement, the accrued benefits of employees from the employers' 5% contribution as required by the Mandatory Provident Fund Schemes Ordinance will all be saved for retirement. At the same time, employees will also receive severance or long service payment to meet the need for cash after being made redundant. Thus, under the proposed arrangement, the amount of money to be received by an employee will significantly increase.

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Just now, a Member from the business sector claimed that the Government has failed to honour its undertaking made previously, and the abolition of the offsetting arrangement will increase the financial burden of employers. When the Government agreed to incorporate the offsetting arrangement into the MPF System in 1995, it had highlighted during the debate of the former Legislative Council that, in the long run, there was a need to examine the relationship between severance and long service payments and MPF. We understand that even though the ratio of severance and long service payments will be reduced to half a month's wage, the financial burden to be borne by employers may be heavier in the absence of the offsetting arrangement. Therefore, the Government will put in place a "grandfathering" arrangement and provide a time-limited subsidy, so as to reduce the immediate effect on employers (especially small and medium enterprises) and allow them to have adequate transition and buffer to make responses. With these two measures, we believe the majority of industries will be able to cope with the impact brought about by the new measures. The Government's proposal seeks to strike a balance between improving employees' rights and employers' affordability. We are willing to discuss and analyse the feasibility of the Government's proposals and recommendations made by the industrial and commercial sector, with a view to exploring the way forward altogether and reaching a consensus. We will set aside sufficient funding in the draft budget of the relevant financial years to implement the entire package of proposals. After securing funding approval from the Legislative Council, we will expeditiously implement the proposals on higher OALA and health care services. We are explaining to the major stakeholders about the proposed abolition of the offsetting arrangement and collecting their feedbacks, and we aim to submit the final policy direction to the Executive Council by late June this year. Deputy President, manpower is the most valuable resource in Hong Kong. The Government has strived to nurture local talent, encourage continuing education and upgrading of skills on the one hand, and on the other hand, actively attract overseas talent to develop in Hong Kong so as to augment the pool of talent and provide the necessary professional knowledge and skills for economic development. We propose to inject an additional $1.5 billion into the Continuing Education Fund so that it will continue to have the resources to provide financial assistance for people to pursue continuing education in the future.

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The Government will also continue to refine the various training and employment measures to release local labor force, with a view to making the best use of people. We are actively promoting the consultancy studies on the feasibility of drawing up a talent list to attract, in a more effective and focused manner, high-quality talent favourable to Hong Kong's economic development and reinforce our development as a high value-added and diversified economy. The study is expected to be completed within this year. Population policy is a long-term and ongoing commitment. The Chief Executive has announced in his 2015 Policy Address a series of population policy measures, which are being actively followed up by various Policy Bureaux. We project that the labor force will start to decline in 2018, and one of the major strategies to deal with the shrinking labor force is an extension of the retirement age. As the largest employer in Hong Kong, the Government has taken the lead to extend, from June 2015 onwards, the retirement age of newly recruits for the civilian grades from 60 to 65. We have also amended a regulation to relax the age limit of Category B Security Personnel Permit (commonly known as "Category B Permit") from 65 to 70 from December 2015 onwards. So far, more than 11 000 people aged between 60 and 69 have applied for or renewed their permits, and these permit holders can work up to the age of 70. Not only can this provide more employment opportunities for elderly persons who are physically fit, but can also prolong the working life of members of the public and release the potential labor force in Hong Kong to tie in with the population policy, as well as help alleviate the shortage of manpower in various sectors. We have also implemented since May 2015 a list of measures to facilitate outside talent, professionals and entrepreneurs to come and stay in Hong Kong, thereby building up human capital in response to the population challenges of an ageing population and declining workforce. In particular, the Immigration Department received a total of 417 applications under the pilot scheme to encourage return of the second generation of Hong Kong residents by the end of 2016 since its implementation, with 235 of them approved. The response has been positive so far. We will continue to strengthen our publicity and promotion of the program. In order to furnish job seekers who possess degree qualifications with employment-related information and a job search channel, and to enable Hong Kong students who are educated in overseas tertiary institutes, the second generation of Hong Kong emigrants who are interested in working in Hong Kong

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and professionals from overseas with higher academic qualifications to grasp updated information about Hong Kong's employment market, the Labour Department has launched the Higher Education Employment Information e-Platform in December last year, with a view to strengthening employment support for these people. With these remarks, Deputy President, I implore Members to support this year's Policy Address. Thank you.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): Deputy President, I would like to thank all the Members who have spoken for their valuable views. Poverty alleviation, elderly care, support for the disadvantaged and care for the young are the policy priorities of the current-term Government. I will give concrete responses with regard to welfare, particularly on the aspects of elderly care, support for the disadvantaged and care for the young. In line with the policy strategies of the Chief Executive, the Labour and Welfare Bureau has been making an all-out effort to actively promote policies conducive to people's livelihood. In fact, this year's Policy Address has set out 24 new initiatives in the area of welfare, representing an increase, rather than a decrease, from last year. The Government's estimated recurrent expenditure on social welfare for this year is $66.2 billion, an increase of 55% compared with four years ago. Under the current term of office, we have introduced a number of measures for the benefit of the public, including the Old Age Living Allowance ("OALA"), Low-income Working Family Allowance, the pilot scheme on On-site Pre-school Rehabilitation Services and the extension of the $2 public transport fare concession scheme to green minibuses, etc. As this year's Policy Address has continued to introduce various new measures, the Government will further strengthen its commitment to poverty alleviation, elderly care, support for the disadvantaged and care for the young. We will continue to optimize the comprehensive, strategic, systematic and targeted use of resources so as to strengthen social welfare services.

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To enable the elderly to lead a comfortable life in their twilight years, it is essential to strengthen the support for elderly care, which also serves as an important pillar for providing the elderly with comprehensive retirement protection. "Ageing in place as the core, institutional care as back-up" is our policy vision. In line with this policy direction, the Chief Executive commissioned the Elderly Commission to formulate the Elderly Services Programme Plan ("the Programme Plan") in his 2014 Policy Address as a long-term planning for the development of elderly care services. The Elderly Commission is expected to complete the Programme Plan in the second quarter of this year and it will submit a report to the Government. Pending the completion of the Programme Plan, we have missed no opportunity to strengthen elderly care services, including the provision of transitional care and necessary support for elderly persons discharged from public hospitals after treatment, so as to relieve them of the need for premature admittance to residential care homes; and the provision of home care and support services for elderly persons with mild impairment. We will also inject $300 million into the Community Investment and Inclusion Fund to build more community support networks, such as providing support for elderly singletons and families of elderly doubletons through cross-sector collaboration with the participation of doctors. The number of vouchers under the Pilot Scheme on Community Care Service Voucher for the Elderly was increased to 3 000 in October last year. As this pilot scheme has met the needs of service users, it has been very well received, with the number of applications received soon exceeding the quota. In view of this, the Government will provide an additional 2 000 vouchers to support ageing in place for elderly persons with moderate or severe impairment. Regarding institutional care, the Government will provide about 9 100 more residential care homes for the elderly ("RCHEs") places and about 2 800 day-care places for the elderly in the next 5 to 10 years through its 25 development projects and the Special Scheme on Privately Owned Sites for Welfare Uses. In addition, starting from the first quarter of this year, the Government will implement the Pilot Scheme on Residential Care Service Voucher for the Elderly by adopting a "money-following-the-user" approach,

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with a view to offering elderly persons an additional option and providing an incentive for RCHEs to improve their services. Under the pilot scheme, a total of 3 000 service vouchers will be issued in phases from 2017 to 2019. To meet the needs of elderly persons with different health conditions, we have strengthened our support, such as increasing the funding for the Infirmary Care Supplement and the Dementia Supplement; as well as implementing a pilot scheme to provide specialized care services for elderly persons with special needs, such as those from ethnic minority groups and elderly with disabilities at residential care homes. For the convenience of elderly persons who choose to reside in the Mainland, we will extend the Pilot Residential Care Services Scheme in Guangdong ("the Guangdong Scheme") for three years to provide elderly persons waiting for care-and-attention places with an option to live in the two RCHEs run by Hong Kong non-governmental organizations located in Shenzhen and Zhaoqing respectively. Regarding cash allowances, under the current Guangdong Scheme, the Government will provide monthly Old Age Allowance for eligible elderly persons who choose to reside in Guangdong. We will once again exempt, on a one-off basis for a one-year period, applicants from the requirement of having resided in Hong Kong continuously for at least one year immediately before the date of application; and we will extend this scheme to Fujian. On promoting active ageing for the elderly, the $2 public transport fare concession scheme has all along been well received, which helps build a caring and inclusive society by encouraging the elderly and persons with disabilities to actively participate in community activities. Under this scheme, the average daily number of passenger trips on Mass Transit Railway, franchised buses, ferries and green minibuses has reached 1.13 million. Some Members have expressed concern about the arrangement to raise the eligible age for elderly Comprehensive Social Security Assistance ("CSSA") from 60 to 65. With longer life expectancy in Hong Kong, it has been generally accepted by the community today that the elderly is defined as people "aged 65 or above". For example, this definition applies to Senior Citizen Card, $2 public transport fare concessions, Old Age Living Allowance and Elderly Health Care Voucher, etc. In view of the improved life expectancy of the population and the policy of encouraging the young-olds to join the workforce, the Government has proposed to raise the eligibility age for elderly CSSA from 60 to 65. I would

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like to stress that elderly persons aged between 60 and 64 who are receiving CSSA before the new policy takes effect will not be affected. The CSSA payments of disabled persons or persons in ill health will not be affected by the new policy as well. According to the Census and Statistics Department statistics for the third quarter of 2016, about 220 000 workers in the labour force were aged between 60 and 64. Among them, the number of unemployed workers and the unemployment rate were 4 100 and 1.9% respectively. This shows that many employers are willing to employ persons aged between 60 and 64. The Government will continue its multi-pronged approach to strengthen the employment support and training for middle-aged persons, encourage employers to hire these people through the Employment Programme for the Middle-aged and promotional activities, and set up a mature persons-friendly working environment. The total recurrent expenditure on support services for PWDs have increased from $16.6 billion for the year 2007-2008 to $30.1 billion this year, representing an increase of as high as 81%. As this year's Policy Address has continued to introduce a number of measures in support of persons with disabilities, the Government has further increased the resources allocated to this area. This fully demonstrates that the Government has been upholding the rehabilitation policy of encouraging persons with disabilities to release their potential and give full play to their abilities.

(THE PRESIDENT resumed the Chair)

To provide support for children with special needs, the Government has rolled out a two-year Pilot Scheme on On-site Pre-school Rehabilitation Services to provide early rehabilitation services for about 2 900 children with special needs from over 480 kindergartens or kindergartens-cum-child care centres. The Government has earmarked an annual recurrent expenditure of $460 million to regularize this scheme and provide about 7 000 places in phases with the aim of reducing the waiting time for the services to almost zero. As the Government understands the importance of community support services to ex-mentally ill persons, the resources deployed has increased from $65 million before 2010 to $286 million this year. The Government will further increase the number of social workers and supporting staff at integrated community centres for mental wellness and enhance outreaching services.

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We will also increase the day care places of District Support Centres for persons with disabilities to enhance the support for elderly persons with disabilities living in the community. To facilitate the employment of persons with disabilities, the Government will inject an additional funding of $100 million for the Enhancing Employment of People with Disabilities through Small Enterprises Project, under which the maximum grant for each business will be increased from $2 million to $3 million, with the aim of encouraging non-governmental organizations to set up more social enterprises to directly create more job opportunities for persons with disabilities. As for the hardware, the Government will provide an additional 14 400 places of rehabilitation services in the next 5 to 10 years through 36 development projects and the Special Scheme on Privately Owned Sites for Welfare Uses. Regarding long-term planning, after the Elderly Commission completes the formulation of the Elderly Services Programme Plan, the Government will start formulating a new Hong Kong Rehabilitation Programme Plan by drawing on the relevant experience. Some Members have just expressed concern over the quality of RCHEs and residential care homes for persons with disabilities ("RCHDs"). The Government shares this concern. The Social Welfare Department ("SWD") is planning to set up a Licensing and Regulation Branch and deploy additional manpower to introduce 16 enhancement measures in six major areas with a view to improving the quality of residential care homes: first: strengthen inspection and monitoring, including targeted monitoring of poorly disciplined residential care homes; second: set up a dedicated team to handle and follow up on complaints against residential care homes; third, review the legislation and Codes of Practice in relation to RCHEs and RCHDs; fourth, enhance the quality and skills of home operators and staff and step up training; fifth, step up law enforcement and increase the transparency of information, including SWD's Elderly Information Website we just launched on 13 February which offers service information on over 700 RCHEs in the territory; and joint effort with the community to monitor residential care homes through Service Quality Groups; and sixth, similar to the concern expressed by Mr KWONG Chun-yu just now, we strive to ensure that all RCHDs will meet the licensing requirements within the coming three years so as to fully replace certificates of exemption.

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As for care for the young, we have engaged a consultant to conduct a comprehensive review of child care services, and we have offered additional resources for units of child care services and pre-school rehabilitation services in order to relieve the recruitment and staff wastage problems of child care services. We will also increase various foster care allowances and provide 240 additional foster care places in order to enhance our residential child care services. President, the current-term Government has attached great importance to the well-being of the public. Since assuming office, we have deployed enormous resources to livelihood and welfare. The breadth, width and depth of the coverage of our policy initiatives clearly show that we are determined and well-prepared to improve the people's lives and to provide the appropriate and necessary support to the disadvantaged group who cannot help themselves. We thank Members for supporting and providing valuable views on our work. We also hope that Members and various sectors of the community will make concerted efforts and work together for the well-being of the people. With these remarks, President, I implore Members to support this year's Policy Address.

SECRETARY FOR FOOD AND HEALTH (in Cantonese): President, I thank Members for their views expressed at relevant Panels earlier and in today's debate on the subjects of municipal services, food safety and health care in the Policy Address, to which I will give a concise response. First of all, in respect of public markets, the Government has stated very clearly that it will build sizable public markets in new development areas ("NDAs"). It has initially identified suitable sites in the Tung Chung New Town Extension Area and Hung Shui Kiu NDA. We expect that the two new public markets located in strategic spots will not only serve the Tung Chung New Town Extension and Hung Shui Kiu NDA, but will be extended to cover the Tung Chung area and Tin Shui Wai district as a whole. We will consult the relevant District Councils and the Legislative Council at appropriate times according to the development schedule of the two NDAs. At the same time, we will adopt an open attitude and continue to identify suitable sites for new public markets in other NDAs.

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Moreover, we will continue to enhance the hardware of existing public markets, including reprovisioning, reconfiguration and upgrading of facilities, etc. Since July 2015, the Government lowered the threshold of tenants' support for the retrofitting of air-conditioning systems in public markets from 85% to 80%. At present we have obtained an overwhelming support from tenants of a total of 10 public markets or cooked food centres for the retrofitting of air-conditioning facilities. The relevant feasibility studies will commence progressively. I must stress that the studies are necessary because in many existing markets, especially those built decades ago, the building structure has not taken into account the future retrofitting of air conditioning, therefore technically it would be very difficult to retrofit such facilities today in those markets. Concerning the cleanliness of the city, we have put in place a biannual meeting mechanism with the relevant Committees on Environmental Hygiene under the District Councils with an aim to discussing and adjusting environmental hygiene strategy in a timely manner. At the last meeting held in September last year, various parties supported the pilot scheme proposed by the Food and Environmental Hygiene Department after consulting the relevant District Councils to install Internet Protocol cameras at refuse dumping blackspots. The pilot scheme was launched in December last year and the initial effects have been positive. The dumping of refuse at these spots has since been reduced. Besides, the Government will provide an additional funding of $119 million annually to intensify the cleansing of the environment, particularly targeting on hygiene blackspots and mosquito prevention and control. We will also step up the law enforcement and prosecution efforts. In respect of the agriculture policy, the implementation of the New Agriculture Policy announced last year is making good progress. The consultant we have engaged has largely completed the engineering feasibility study on the Agricultural Park. We are recruiting another consultant to undertake the work of detailed investigation, design and construction for the Park. In addition, the $500 million Sustainable Agricultural Development Fund started to formally accept applications from the end of last year. The Food and Health Bureau and the Development Bureau will commence a study on Agricultural Priority Areas later this year to identify quality agricultural lands, and formulate policies and measures to promote the rehabilitation of fallow agricultural land.

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As regards the development of leisure fisheries and agriculture industries mentioned by Mr Steven HO earlier, we will discuss with the responsible Policy Bureaux and departments to relax some restrictions in this regard as long as that is permitted under the existing legislation. Concerning food safety, we will review the food safety standards from time to time, which include consulting the public on strengthening the regulation of the levels of metallic contamination in food; proposing legislative proposals on regulating the safety and quality standards of edible fats and oils, as well as developing guidelines on good practices on cooking oils for the trade. The Centre for Food Safety will increase manpower and enhance information technology management systems to improve existing food import control and food surveillance efforts. The Government Laboratory is assessing site options for reprovisioning and expanding its Food Safety Laboratory to enhance its operational efficiency and testing capability. As for the columbarium policy, we have consulted nine District Councils respectively on 14 projects concerning public columbaria, which can provide a total of about 590 000 new niches representing two thirds of the total number of new niches under planning. We are planning to consult the District Councils next year on another three projects to fortify the supply of public niches in the coming 15 years. Besides, we have re-introduced the Private Columbaria Bill into the incumbent Legislative Council. The Bills Committee has entered the clause-by-clause examination stage. We will continue to work closely with the Legislative Council to scrutinize the Bill for its early enactment. In respect of public health care services, the Chief Executive has pointed out clearly in the Policy Address that we will continue to commit to the public health care services. We will provide sufficient resources and enhance the supporting infrastructure to meet the challenge of an ageing population and rising demand for health care services. Starting from the next financial year, we will provide an additional $2 billion to the Hospital Authority ("HA") in total recurrent expenditure to enable the HA to recruit additional manpower, so as to increase the number of public hospital beds and operating theatre sessions, and increase the quotas for endoscopy examination, general outpatient and specialist outpatient consultation. Concerning the enhancement of health care services for the elderly, the Chief Secretary for Administration has talked about it just now and I will not repeat.

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Many Members have voiced their concern about disease prevention and control, as well as primary care. In respect of disease prevention and control, the service of screening newborns for inborn errors of metabolism has become a regular programme. We plan to extend the service to all public hospitals with maternity wards in phases from the second half of 2017-2018. You may also be aware that we launched the colorectal cancer screening programme in the year before last and we will continue to work with various sectors in society to promote and support breastfeeding and implement the Hong Kong Code of Marketing of Formula Milk and Related Products, and Food Products for Infants & Young Children. Besides, the Department of Health will launch a pilot public-private partnership programme to test a mode of smoking cessation service supported by family physicians, and will also actively study the proposal to regulate electronic cigarettes through legislation. Some Members, including Ms Alice MAK, are concerned about the development of primary care services. Here I would like to tell Members that we will enhance primary care services in two ways. First, we have put in place a public-private partnership programme regarding primary care. In respect of diabetic patients and those suffering from high blood pressure under our care, we will treat them until their conditions are stabilized and then we will turn them over to the private sector to follow up. We can thus expand our capacity on the one hand, and at the same time, enhance the quality of service. Moreover, we will also continue to seek additional resources to extend such services at elderly health centres. In respect of Chinese medicine, we have decided to finance the construction of a Chinese medicine hospital and invite HA to assist us in identifying a suitable non-profit-making organization by tender to take forward the project and operate the hospital. We will continue to set more reference standards for Chinese materia medica and we have commenced a pilot study on the reference standards for Chinese medicines decoction pieces. A temporary Government Chinese Medicines Testing Institute located at the Science Park will commence operation in phases from the first quarter of this year. To promote the development of Chinese medicines, HA will review the salary level of Chinese medicine practitioners employed at the Chinese Medicine Centres for Training and Research.

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Some Member has shown concern about the quality assessment of Chinese herbal medicines in Hong Kong. I wish to say that our regulatory framework for Chinese herbal medicines strictly regulates the importers, retailers and wholesalers of Chinese herbal medicines as well as registered proprietary Chinese medicines. A number of Members are highly concerned about the policy on mental health. We expect the review on mental health to be finished in the first half of this year. By then, the Government will report to the Panel on Health Service of the Legislative Council. We propose to set up a standing consultation committee to follow up and implement the recommendations put forth by the mental health review committee. Moreover, HA will increase the manpower of the psychiatric health care teams to shorten the waiting time and it will also reduce the number of cases handled by each case manager under the Case Management Programme targeted at patients with severe mental illness. As regards the Voluntary Health Insurance Scheme, I hope Members will understand that for the time being, even though the high risk pool will not be included in the present Scheme as proposed, the 10 minimum requirements that are retained contain the improvement measures that most people aspire to, including items that are excluded by most health care insurance policies now, such as day procedures and certain outpatient services. In respect of health care manpower planning and professional development, we will publish the report on the first comprehensive review covering the health care manpower planning and professional development over the territory and will consult the stakeholders regarding how to implement the recommendations. On the other hand, the Government launched the Pilot Scheme of the Accredited Registers for Healthcare Professions late last year. The Accreditation Agents is now accepting applications and it is expected to publish the final accreditation results by the end of this year. As regards the improvement to the operation of the Medical Council of Hong Kong ("MCHK"), the Government is highly concerned about the progress, particularly after the Legislative Council of the previous term failed to pass the Medical Registration (Amendment) Bill 2016 within the session. We established a tripartite platform on amendments to the Medical Registration

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Ordinance ("the Ordinance") before the end of last year. It has held three meetings with an aim to providing a platform to promote understanding and communication on improving the operation of MCHK, as well as offering views on amendment proposals to the Ordinance. The Government plans to re-introduce the Medical Registration (Amendment) Bill into the Legislative Council again in the first half of this year after the tripartite platform has held four meetings. The Government has provided additional funding to strengthen the manpower support for the MCHK Secretariat and to give honorarium to experts who provide assistance to the investigation work, with a view to improving the complaint handling process through administrative means as far as possible. However, I must stress that only through amendments to the Ordinance can the handling of complaints be significantly sped up. President, I hope that Members will support the various measures proposed in the Policy Address relating to municipal services, health care and food safety. We will endeavour to join hands with the Legislative Council, the general public and also the stakeholders to improve our health care and food safety systems. With these remarks, President, I urge Members to support this year's Policy Address.

PRESIDENT (in Cantonese): The third debate session ends.

PRESIDENT (in Cantonese): We now proceed to the fourth debate session. The debate themes are "Education, Manpower, Youth, Arts and Culture and Sport". This session covers the following five policy areas: Education, Manpower, Youth, Arts and Culture, and Sport. Members who wish to speak in this session will please press the "Request to speak" button.

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MR POON SIU-PING (in Cantonese): President, this is the last policy address of the Chief Executive in his term of office, and I regard it a conclusion of the governance of the incumbent Government. As a Member of the Legislative Council representing the labour sector, I am disappointed at the labour policies in this Policy Address. In the conclusion of the Policy Address, the Chief Executive remarked that all commitments in his election manifesto have basically been implemented. While there is room for discussion as regards whether the Chief Executive has basically implemented his commitments in the election manifesto; a full implementation of the commitments is not the truth. If we flip through the Chief Executive's manifesto, we can see that under the labour policies, the commitments included promotion of standard working hours, abolition of the offsetting arrangement for the Mandatory Provident Fund ("MPF"), establishment of a special taskforce on improving protection for workers in high-risk occupations and review of the legislative effectiveness of minimum wage. However, as the five-year term will soon expire, none of the above commitment has become a government policy and implemented in the community. The pledge to "examine issues relating to … legislative proposals on standard working hours" has been expressly stated in the manifesto, and it is also the issue which attracts the greatest dispute between the labour sector and the Government over the past four years. Last month, the Standard Working Hours Committee, set up by the Government, submitted its report to the Government. The Committee insists that the problem of long working hours of Hong Kong employees should be solved through contractual working hours, and it has no intention to enact legislation on standard working hours to solve the problem. The labour sector has every reason to refuse accepting the recommendations made in the report. Last week, this Council held a debate on the Government's service outsourcing system. As I have pointed out in my speech, under the current requirement, the standard employment contract signed between contractors and their employees only has to stipulate that the overtime pay shall be 100% of the hourly wage rate. This provision is in effect encouraging employers to make their employees work long hours. It also proves that legislation is the only means to protect grass-roots employees from working excessively long hours.

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Let me reiterate, the Government is the largest employer in Hong Kong, and particularly, in respect of outsourced services for which grass-roots workers are employed, the Government should take the lead to specify in the standard employment contract standard working hours of 44 hours per week and an overtime pay rate of 1.5 times of the basic pay rate, in order to protect the rights and interests of grass-roots employees. The Government should not evade its responsibility of protecting the rights of grass-roots workers in the name of contractual working hours. Last November, the labour sector submitted the Consultation Report on Legislating for Standard Working Hours to the Chief Executive, in which a specific proposal on legislating for standard working hours was made, that is, the standard working hours should be 44 hours per week, and the overtime pay rate should be 1.5 times of the basic pay rate. We hope that the incumbent Government will carefully consider the suggestion of the labour sector and muster the strength to legislate for standard working hours, so as to substantially improve labour rights and interests. Regarding the abolition of the MPF offsetting arrangement, as I have already spoken on the subject in the third session of the debate on the Policy Address, I do not intend to repeat now. However, I must reiterate that in abolishing the MPF offsetting arrangement, if the existing entitlement of long service and severance payments of two thirds of one's month's wages is reduced to half a month's wages, it is a retrogression of employees' rights and benefits. This point is very clear. In his election manifesto, the Chief Executive proposed to establish a special task force on improving protection for workers in high-risk occupations ("special task force") with its membership comprising representatives of employees, employers and the Commissioner for Labour. I have been following up the progress of the special task force. In 2014, the Government said that the special task force was followed up by an internal working group with members from relevant bureaux/department, and the study concerned was expected to be completed by the end of 2014. In 2016, the Government set up a task force comprising representatives of relevant bureaux, departments and public organizations to explore the proposals put forward by the inter-departmental working group. However, up till now, we still do not know what proposals the

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internal working group have proposed, and what results the task force has got for its study on the relevant proposals. We do not even know the membership of the task force and working group. Last month, at the meeting of the Panel on Manpower of this Council, I enquired about the results of the study conducted by the internal working group. The authorities undertook to give a written account of the work of the working group, but I still have not received the relevant paper. Employees' right and interests against injury at work is by no means a small issue in Hong Kong. Last Wednesday, a fatal industrial accident occurred at the Central promenade beside the Legislative Council Complex. A 27-year-old worker sustained severe injury and died after falling from a collapsed working platform at height. Such tragedies are not rare. Although we do not have the figures of 2016 at hand, one or more fatal industrial accidents happened every two weeks on average in 2015. I really hope that the Government can expeditiously announce the proposals put forward by the working group, so as to improve work injury protection for workers in high-risk occupations. In the Policy Agenda of the Policy Address, it is mentioned in the part concerning occupational safety and health that large-scale promotional programmes will be launched to raise the awareness of the standard of occupational safety and health in the construction industry and the food and beverage services sector, with the focus on education. Basically, this is the Government's policy for promoting occupational safety in various industries and trades; however, the effectiveness of enhancing occupational safety in Hong Kong solely through promotion and education is limited. Take the logistics and transportation industry as an example, the Labour Department updated the Guidance Notes on Prevention of Trapping Hazards of Tail Lifts ("the Guidance Notes") in 2015. Nevertheless, so far, only 5% of lorries have been equipped with the devices recommended in the Guidance Notes, even government vehicles do not comply with the Guidance Notes to improve safety. Last year, there were fatal industrial accidents involving tail lift of lorry not complying with relevant guidance. In the first half of 2016, there were a total of 2 350 industrial accidents in the food and beverage services industry, making it an industry with most serious accidents. Nonetheless, this figure is only a tip of the iceberg in respect of the occupational safety problems of the industry. A common practice in the industry is that incidents of work injuries will not be reported unless no other

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alternative is available. Work injuries often occur in service industries for reasons of prolonged working hours and repetitive strain from work. I have urged the Administration to include strain of the shoulder, neck, back and lower limbs into the list of occupational diseases under the Employee's Compensation Ordinance; yet regrettably, nothing about this issue has been mentioned in the Policy Address. It is pointed out in the Policy Address that the current-term Government will increase the Statutory Minimum Wage ("SMW") rate for the third time, which will benefit tens of thousands of low-income employees. However, this is a far cry from the pledge to review the legislative effectiveness of the minimum wage scheme as stated in the Chief Executive's election manifesto. Under the current mechanism of reviewing SMW rate once every two years, the wage level of SMW earners cannot catch up with inflation. Let me cite an example. The inflation rates of 2015 and 2016 were 2.5% and 2.3% respectively, yet the SMW rate will only be adjusted again in May this year after the adjustment was made in 2015, thus the real wages of SMW earners will actually be decreasing instead of increasing because of inflation. I hereby urge the Government to amend the legislation to conduct an annual review of SMW rate, so that tens of thousands of low-income employees will genuinely be benefited. At present, a number of labour importation schemes have been put in place in Hong Kong, including importing overseas talent under the General Employment Policy, the Admission Scheme for Mainland Talents and Professionals and the Quality Migrant Admission Scheme. The Policy Address states that the Government is currently exploring the further extension of talent importation schemes and drawing up a talent list for attracting high-quality talent to Hong Kong. The labour sector is gravely concerned because firstly, there are at present various schemes for attracting overseas and Mainland talent to work in Hong Kong, and secondly, the definition of so-called talent is very vague. Take the Admission Scheme for Mainland Talents and Professionals as an example, a total of 10 034 applications were approved between 1 October 2015 and 30 September 2016, of which 3 355 cases were in the monthly pay range of below $20,000 and 3 734 cases do not require the qualification of bachelor's degree or above. These two categories of cases accounted for over 30% of the Scheme. I wonder if this is a scheme for importing talent or cheap workers, for the whole scheme is entirely absent of transparency in its case processing. If the

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Government intends to introduce a new talent importation scheme, it should first conduct a comprehensive review on the existing schemes. It should not use all sorts of excuses to extend the scope of importing labours in disguise. President, importing talent is far less ideal than nurturing our own talent. It is thus necessary for the Government to promote vocational education. In the coming few years, with a decreasing number of secondary school graduates, self-financing post-secondary institutions will have to face huge operation pressure. Nevertheless, crisis may lead to changes for the better. The authorities should take this opportunity to review the current education policy, and promote vocational and professional education and training to be the main pathway to further education in the long run, so as to meet the local demand for talents. President, I so submit.

MR HO KAI-MING (in Cantonese): President, I would like to talk about breastfeeding from a family-friendly perspective. Although breastfeeding should come under the purview of Secretary Dr KO, the matter involves the Labour and Welfare Bureau and is also related to the problems of young people today. Hence, I would like to take advantage of Secretary LAU Kong-wah's presence to discuss this subject. For wage earners, family-friendly employment initiatives are humanized policies in line with the progress of the times, and they represent the vision of the Hong Kong Federation of Trade Unions throughout the years. However, in this year's Policy Address and Policy Agenda, the Government has not devoted much space or effort to describe these initiatives or explain how the current system can be optimized. With more and more Hong Kong people having correct understanding of breastfeeding, breastfeeding has become a matter of great social concern. In the Policy Agenda 2017, it is stated by the Government: "Strengthening the promotion of breastfeeding and encouraging the implementation of breastfeeding-friendly measures in the community and workplace, as well as implementing the 'Hong Kong Code of Marketing of Formula Milk and Related Products, and Food Products for Infants & Young Children' through the Committee on Promotion of Breastfeeding under the Food

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and Health Bureau, with a view to enhancing sustained breastfeeding and promoting breastfeeding as a norm widely accepted by the general public for baby care." Although the Government has set the objective of promoting breastfeeding, few practical actions have been taken; in particular, there are no concrete explanations on how the relevant policies will be implemented. As a Member representing the labour sector, I am particularly concerned about the effectiveness of the Government's work on establishing a breastfeeding-friendly workplace. In fact, some members of the community have, from time to time, suggested establishing a breastfeeding-friendly workplace, but this measure is still not popular in the community. According to information provided by public and private obstetric service units, the percentage of mothers breastfeeding their newborns has increased from 66% a decade ago to 86% in recent years. However, many working mothers comment that it is difficult to pump breast milk in the workplace, so they will stop breastfeeding when their babies are one to three months old. Evidently, it is very important and really urgent to promote the establishment of a breastfeeding-friendly workplace. It reflects the company's support for breastfeeding mothers during work while employees, feeling the understanding and care of the company, will have a stronger sense of belonging. Moreover, the relevant policy also increases breastfeeding employees' confidence in returning to work and are willing to return to work at an early date, thereby reducing the chance of employees resigning after childbirth and effectively retain talent. President, I became a father almost 11 months ago. The experience over these 11 months is unforgettable and I will always remember the great efforts made by my wife. I also realize the difficulties of a working mother. Breastfeeding is a human instinct, but it is extremely difficult for mothers to make effective use of this instinct in society today. After a baby is born, the mother has to start tackling the problems of breastfeeding though her wound is not yet healed. At the beginning, a mother will produce colostrum which contains a lot of antibodies and nutrients and is the best food for a newborn baby. However, not all hospitals in Hong Kong have put in place measures to encourage breastfeeding and only public hospitals encourage mothers to share room with her babies. This is the first hurdle for breastfeeding.

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After a mother returns home from hospital, do not think that she can take a good rest for eight weeks of maternity leave as two weeks of leave have already been taken before confinement; in fact, this is the beginning of a painful journey. A newborn baby needs to be breastfed 8 to 12 times a day; it cries every two to three hours because it wants milk. Each time, it takes about 15 minutes to breastfeed the baby, and the process repeats around the clock. Can you imagine how tiring the mother is? But the baby cannot help it. With a stomach as small as a ping pong ball, the baby has to be fed frequently in small quantities. The mother is tired out but this is already the best situation. If the baby suffers from some very common infant diseases such as jaundice, not to mention serious injuries and diseases, the mother has to take him to the doctor. If the mother cannot produce enough milk, she will be very worried as the baby has to take formula milk instead. Do not think that having sufficient breast milk is definitely a good thing, because the mother's mammary gland may be swollen and if the gland is blocked, she may have a fever and get infected. My wife has abundant breast milk but if the baby accidentally hits her breasts, the gland will be blocked and she will have a fever or fall sick. There are very few professionals in Hong Kong who can deal with this situation and no one from the public or private health care sector can help. My wife found a professional from some mothers group of the WhatsApp but all she could do was to squeeze a few drops of breast milk from the blocked gland. Finally, my wife sought help from a private maternal and child hospital in Shenzhen. I used to think that everything on the Mainland might not be as good, but a miracle happened in Shenzhen and her breast milk flowed like a fountain, emptying all the accumulated breast milk. Breast milk which is not secreted has very high fat contents and can hardly be expressed. Evidently, the Mainland is far more advanced than Hong Kong in this respect. This is the second hurdle for breastfeeding. The third hurdle is that after the mother has returned to work, she faces immense pressure. Men like us may not be aware that breast milk is like other kind of secretion in our body, which is produced around the clock and it will not only be produced after work. With the advanced technologies today, working mothers can pump breast milk using different devices such as electric pumps and they can put the milk in refrigerators during working hours to keep it fresh so that they can feed their babies after work. Nevertheless, the public has little

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knowledge of breastfeeding; and ignorance will lead to prejudice. The bosses and colleagues may impose unnecessary pressure on the breastfeeding employees. At the same time, breast milk cannot always be produced. Owing to changes in physical conditions and workplace pressure, working mothers may stop producing milk. Many working mothers, when faced with workplace pressure and breastfeeding pressure, give up breastfeeding and feed their babies with formula milk, which may not give them the best nutrition. Although the international community recommends breastfeeding babies till they are one year old, many mothers in Hong Kong reluctantly give up breastfeeding when their babies are three months old and rarely can mothers persist for half a year. This reflects three issues. First, a breastfeeding-friendly workplace is very important for working mothers. Second, maternity leave in Hong Kong is extremely inadequate. Let us take a look at our neighbouring countries: 16 weeks of maternity leave in Singapore, 14 weeks in Japan and 13 weeks in the Mainland, and in most of these places, full-pay maternity leave is granted. In Hong Kong, female employees only have 10 weeks of maternity leave, so they have a hard time. If they can take two weeks' leave before confinement and eight weeks' after confinement, it is already good enough, and the maternity leave pay is equivalent to four fifths of the average pay. Shouldn't we be ashamed? From a macroscopic perspective, this is a population policy; and from a microscopic perspective, this is a matter related to the rights and interests of workers. How many times can women take maternity leave throughout their life? Most women rarely take maternity leave twice, right? Therefore, I hope that officials and colleagues present at the meeting, as well as members of the public who are watching live broadcast will support our fight for longer maternity leave for women. Although men like us may not be very familiar with the situation, we should still render support. The third issue is that paternity leave for male employees is very important. Assistance from the father is the greatest support and comfort for the new mother. The current three-day paternity leave is a step forward but I reiterate that our goal is seven days of paternity leave. How many times can a male employee take paternity leave? We want to fight for the paternity leave to be extended to seven days. I have strayed away from the subject of breastfeeding-friendly workplace; let me return to the subject.

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This kind of support can balance the responsibilities of working mothers in work and breastfeeding, reduce the chances of such employees being absent from work because of breastfeeding, as well as improve work efficiency and productivity. In addition, according to a report of the Health Resources and Services Administration of the United States Department of Health and Human Services, the medical expenses and insurance expenses of breastfeeding employees are one third lower than those of average employees. Breastfeeding can accelerate the rate of postpartum recovery and reduce the risks of breast cancer, ovarian cancer or osteoporosis, thus effectively reducing the companies' medical expenses. Therefore, establishing a breastfeeding-friendly workplace will only bring benefits to the company. Hence, I hope the authorities can take the lead and step up efforts to promote the importance of breastfeeding-friendly workplace; set up lactation rooms in government departments or encourage enterprises to make available a place or vacate a room for lactation purpose, as well as develop workplace guidelines to promote breastfeeding-friendly workplace throughout the territory, thereby facilitating, understanding and solving the needs of breastfeeding working mothers. I believe the relevant measures will play a positive role in improving the productivity of enterprises, creating a harmonious environment for the workplace and retaining female employees. President, I so submit.

MR CHAN CHI-CHUEN (in Cantonese): The President of the United States, Donald TRUMP, chanted "put America first" in his inauguration. It is right and proper for his administration to put American national's benefits first. By contrast, our SAR Government does not put Hong Kong people first when formulating many of its policies. In connection with the education policy under discussion in this session, our education policy do not put local students first; instead, priorities are given to political missions, examinations, Belt and Road Initiative, tormenting students and even Mainland students. At a Panel meeting of the Legislative Council to discuss the Policy Address, I asked the Secretary for Education whether the funding proposal for the "Belt and Road" scholarship scheme would be submitted again within his current

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term of office. The Secretary replied that an application would be submitted to this Council again. The "Belt and Road" scholarship responds to the Belt and Road proposition of the Communist Party of China. Students of the third-world countries along Belt and Road are subsidized by public funds to pursue further studies in Hong Kong. Many students and parents cannot help but ask: As Hong Kong is so affluent, why not provide additional funding to subsidize local university students and increase university places? Parents and students in Hong Kong are most dissatisfied with Secretary for Education Eddie NG, for his priority task is to torment students. Earlier, an anti-TSA movement has emerged. Many parents and students criticized the tremendous harm brought about by TSA, yet the Secretary was simply indifferent. After TSA was suspended for one year, the authorities thought that the incident was over and thus attempted to re-launch TSA in the name of BCA. The Government's persistence and insistence on TSA amply reflect its policy visions of tormenting local students and parents and placing examination in the first place. The Secretary, of course, denied that TSA would be resumed, and claimed that BCA was just an experiment pending confirmation. Nevertheless, the sampling target for BCA does cover all students across the territory. At a meeting of the Panel of Education, I said that the Nazi German army back then also conducted human studies in the name of experiment. Now the Government treats students as prisoners of the concentration camps rather than human beings, it treats students as samples without feelings to satisfy its desire of conducting studies. If the Government is so keen in conducting studies, then it should study the harm inflicted on students who are selected for assessment in TSA. Amongst the present so-called potential candidates for the Chief Executive election, John TSANG has already stated his support for abolishing TSA; Mrs Regina IP said she also has the same idea, yet John TSANG has said it first. Nonetheless, people are most concerned about the stance of Carrie LAM. She is magnificent; she proposes to increase education resources by providing an additional recurrent expenditure of $5 billion each year to improve the quality of education. In her manifesto, she has not directly stated her stance on TSA, yet rumour has it she also tends to abolish TSA or BCA. She does not state her

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stance directly simply because she does not want the current Government or the Secretary to lose face. However, when Carrie LAM announced her manifesto on education, she has actually disgraced the current SAR Government. Let us not mention other people and just talk about Jasper TSANG, the founding Chairman of the Democratic Alliance for the Betterment and Progress of Hong Kong and the former President of the Legislative Council. His column today has a rather interesting title, "Ngor Today" ("今日的娥")5. In his column, he pointed out that Carrie LAM, in her capacity as the then Chief Secretary for Administration, could not possibly have no say on many public policies implemented by the Government. However, she now criticizes openly the education policy as "problematic in both the vision and implementation". The Education Bureau is under the Chief Secretary; Carrie LAM must have been aware of the "problems" she now refers to when acting as the supervisor of the Secretary for Education. We should still recall why we call Carrie LAM "nanny". This is because back then, when the Secretary for Education came forward to explain his highly controversial education policy, she always stood in front of him to show her support, thus being called "nanny". If she really had great foresight and was dissatisfied with the education policy, how dared the Secretary not comply if she had voiced her views? Or is it that they had voiced the views, but had been overruled by LEUNG Chun-ying? TSA, or BCA, is against justice. Students are treated as lifeless objects, reflecting the governance philosophy of senior officers' will surpassing the will of professionals. Indeed, there is not much that the Legislative Council can do about this issue. However, I hereby give an advance notice that during the Second Reading of the Appropriation Bill 2017, I will make an all-out effort to move an amendment to cut the expenditure on conducting BCA. I hope the pro-establishment camp, which has already made a U-turn to oppose TSA or BCA, will support my motion, so that students will no longer be tormented by TSA or BCA. I just cannot wait to have BCA abolished after the assumption of office of the next Chief Executive. I so submit.

5

Ngor ("娥") is the last character of Carrie LAM's Chinese name. same as "我" , meaning I.

"娥" also sounds the

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MR CHEUNG KWOK-KWAN (in Cantonese): President, the time now is 8:46 pm, and a new TV drama series entitled Tiger Mom Blues is airing at our major TV broadcaster. All of us cannot watch the drama tonight, though. President, many parents, especially the mothers, are singing praises for this drama because they consider it a down-to-earth depiction of how Hong Kong mothers of today will go to extreme lengths for their children's education. The parents in this drama arrange their young children to study in two different kindergartens, so that they stand a better chance of getting into an elite primary school. To score more points under the admission system, the parents make all-out efforts to become Catholics, to the extreme of going to the Philippines for a certificate of baptism. In order to get a "right address" for school admission, they rent a subdivided unit. All these anecdotes are real-life incidents, reflecting the great efforts made by parents to ensure better education opportunities for their children. Of course, I talk about this drama not because I want to encourage you to be "monster parents". I just want to highlight the great importance attached by Hong Kong parents towards their children's education. In this Policy Address, measures are proposed to improve Hong Kong's education system, which include increasing the level of grant for kindergartens, introducing a paid non-local study leave scheme on a pilot basis for serving secondary school teachers, strengthening the support for language education, strengthening Basic Law education and allocating resources to improve the facilities of "matchbox-style school premises". To be fair, these measures can indeed help address some long-overdue education issues, and this is worth our recognition. But, President, problems in our education system are inextricably linked and straddle across a deep and wide spectrum. By contrast, the measures proposed in the Policy Address are too conservative and cannot resolve various deep-seated problems in Hong Kong's education system. In our opinion, this is disappointing indeed. In recent years, one of the issues Hong Kong people are most concerned about is the excessive pressures on students. We often come across cases about children losing sleep or throwing tantrums due to intensive study. Children lose

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their innocence early, and they can no longer enjoy a happy childhood. Some students even chose to take their own lives. President, four cases of student suicide have happened after the Lunar New Year holiday. Last year, the Democratic Alliance for the Betterment and Progress of Hong Kong ("DAB") conducted a survey on student pressures. According to the survey findings, 84% of the respondents said that their children are under stress; and of those children, over 30% are under moderate stress while close to 10% are under serious stress. Frankly, the situation is worrying and alarming. For students, their major source of stress must be their studies. Academic pressures are created when the parents are too uptight about their children's studies, say, they make their children attend tutorial classes or participate in different extra-curricular activities to increase their chance of getting into a good school. As a result, the children often feel exhausted both physically and mentally as they hardly have any time to rest and relax. Having said that, there is also no denying that the extreme pressures felt by students have everything to do with our existing education system. Against this background, we hope the Government can review the existing education system as well as the curriculum, such as from the perspective of promoting diversified learning. Apart from focusing on academic results, it would also be important for the schools and parents to encourage other pursuits by the students, for example, in arts and culture, sports, and so on. Moreover, the Government should enhance life education for primary and secondary school students, so that they understand how precious life is. Students should also learn how to handle and resolve different problems they meet as they grow up. In this regard, the Government should strengthen life planning education, rebuild the vocational education ladder and set up a platform to support business start-ups. We consider that these measures can benefit our next generation as well as students by helping them develop their potentials. These issues aside, parents are of course most concerned about the Primary Three Territory-wide System Assessment ("TSA") because their children would be subject to pressures unnecessarily as a result of over-drilling induced by TSA. All along, we have been stressing that the Government should heed the views of parents and schools and take all effective measures to prevent over-drilling. Earlier, the Government decided to introduce the Basic Competency Assessment

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("BCA"), or the improved version of TSA, in primary schools from 2017-2018 school year as a tool to help schools improve learning and teaching. Compared with TSA, BCA has indeed made some improvements, for example, the questions are less difficult or complicated, different types of reports are made available for schools' selection, and so on. We also note the support given by some participating schools and parents for the positive value of BCA. Nonetheless, it is still too early to say whether BCA can really prevent over-drilling of students. Time is needed to gauge the actual results, not to mention that some parents and schools are still skeptical about the entire BCA arrangement. That is why I would like to call on the Government to adopt all practicable measures to ensure that, firstly, assessment data obtained through BCA will not be used to evaluate the performance of individual schools, secondly, schools will not over-drill their students for taking BCA, and thirdly, adequate resources will be earmarked to provide appropriate support to those schools which encounter difficulty when implementing BCA. Of course, if there is strong resistance from parents, it would be most important for the Bureau to let the schools handle the matter themselves. We hope the relevant authorities can heed public opinion and accept our proposals. In addition to students' learning pressures and BCA, another major issue of concern in recent years is the teaching of the Chinese History subject. Last year, following the Legislative Council's passage of the motion I moved on "Requiring the teaching of Chinese history as an independent subject at junior secondary level", much discussion and concern has been aroused in society. As far as I can see, most people agree that Chinese history education should be strengthened in the Chinese territory, so that our next generation can fully understand Chinese history. This is right and proper, because through history, we can reflect on ourselves and learn how to be humble. Attaching importance to Chinese history education is of paramount importance to our next generation. But despite the support of mainstream public opinion, little has been said about this matter in this year's Policy Address, which is most disappointing indeed. The only relevant proposals are, namely, to strengthen teachers' professional development, and to provide a one-off grant of about $125 million to support teaching efforts in this respect. Nothing has been mentioned about the fundamental call of teaching Chinese history as an independent subject.

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The fact is, our call for teaching Chinese history as an independent subject is backed by public opinion. According to a public opinion survey we conducted in October last year, more than 70% of the respondents considered that junior secondary students lacked a good knowledge of Chinese history, and nearly 80% of them supported the strengthening of Chinese history education at junior secondary level. Moreover, nearly 70% of the respondents supported the teaching of Chinese history curriculum as an independent subject at junior secondary level. My expectation for the Chief Executive and the Secretary for Education is that they will seriously consider our views and public opinion and fine-tune the Chinese History subject so that it will be taught as an independent and compulsory subject at junior secondary level. In this way, the next generation of Hong Kong can learn Chinese history properly. Lately, the over-charging of application fees by kindergartens has become the talk of the town because as pointed out by the Office of The Ombudsman ("the Office") in a Direct Investigation Report published in December last year, the application fees charged by some kindergartens have far exceeded the approved ceiling of $40 set by the Education Bureau (hereinafter referred to as "above-the-ceiling application fees"), and a kindergarten even charged an application fee as high as $3,700! The Office also criticized that the Education Bureau's regulation of the collection of above-the-ceiling application fees by kindergartens is very lax, and the Bureau has failed in its duty as a gatekeeper as kindergartens are allowed to charge high application fees by exaggerating their expenses, and consistent criteria for vetting and approving such fees are lacking. In other words, the Bureau's mechanism exists only in name, and there is absolutely no protection for the parents' interests. In this connection, I, CHEUNG Kwok-kwan, and other representatives of DAB, had a meeting with the Under Secretary for Education, Kevin YEUNG. At the meeting, we urged the Bureau to step up regulation in this regard, so as to prevent further cases of kindergartens profiteering under the pretext of application fees. We hope the Education Bureau can duly perform its role as a gatekeeper for the parents' sake. The Bureau's response is fairly positive. It undertook to implement certain remedial measures which include: firstly, kindergartens will be required to provide information to the Bureau on a regular basis to ensure that an appropriate level of application fees is charged. Secondly, the Bureau is considering ways to regulate the over-charging of application fees by

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kindergartens, including the requirement for kindergartens to submit the relevant financial data to the Bureau for consideration. The Bureau will also examine whether the amount of over-charged application fees can be used for the purpose of offsetting application expenses in future. Although nothing has been said in the Policy Address about the charging of application fees by kindergartens, I very much hope that the Chief Executive can listen to our views and address the problem squarely by strengthening regulation on the fees and charges of kindergartens, in order to protect the parents' rights and interests. Of course, the fine-tuning of our pre-primary education system as a whole involves more than tackling the problem of over-charging application fees by kindergartens. The Government should also implement 15-year free education as soon as possible, provide additional whole-day and long whole-day kindergarten places, and establish a professional ladder for kindergarten teachers. President, there is another education issue I want to talk about, namely, the teaching and learning of Chinese for ethnic minority ("EM") children. Why do I raise this particular issue? It is because yesterday morning, I, together with Dr CHIANG Lai-wan, Mr LAU Kwok-fan, visited a secondary school on the Hong Kong Island run under the philosophy of Confucianism. Having a long history, the school practices integration education and accepts many EM students as well as students from foreign countries. During our visit, we noted that local and EM students are getting along very well; they play soccer together, and they study together. One of the students is a girl from Spain who is studying in the lower forms. When she started a beautiful recital of Li Yun Da Tong Section of the Record of Rites for us on the spot, we were all pleasantly surprised. The principal told us that the school's mission is to impart the teachings of Confucianism to the students. Although the students may have different cultural backgrounds, they can all benefit from the Confucius culture by learning about interpersonal relationships, etiquette, mutual respect and inclusion. It is thus evident that even EM students can fully integrate into mainstream schools and get along well with local students. This is something that can be achieved. With that said, the principal also told us that EM students have to face many difficulties when learning Chinese. Of course, one major reason is that Chinese is not their mother tongue, but the insufficient support and subsidies

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provided by the Government to the schools is also a contributing factor. One problem highlighted by the principal is that there are not enough teachers with the proper training of teaching EM students. In fact, many teachers in the school have not received any training on teaching Chinese to EM students. Separately, the principal also said that suitable teaching materials are hardly available in the market. They strongly hope that the Education Bureau can provide suitable teaching materials to the school as the basis, so that the teachers can make adjustments as necessary to better suit the need of EM students in learning Chinese. All along, we are very concerned about EM students in Hong Kong. We are also very concerned whether they can learn the Chinese language well. Why do I say so? These EM students are actually born and raised in Hong Kong, and they intend to settle in Hong Kong for good. If they cannot master the Chinese language, it will be difficult for them to integrate into society or find a good job. I have also seen some EM youngsters who are smart and have good English. But for various reasons, they do not learn Chinese well. After they graduated, they cannot find a good job and can only take up elementary jobs or labour-intensive jobs. I have also come across cases about EM young people aspiring to join the Police, so that they can help maintain law and order in Hong Kong. They are well and fit physically, and have a good outward appearance. Yet they cannot join the Police because they do not get a pass grade for the Chinese subject. Because of this single factor, they can neither fully integrate into Hong Kong's society nor serve the Police. Personally, I find these cases very disheartening. Therefore, I very much hope that more can be done by the Education Bureau in this regard because these EM young people are also a major force in our society. President, I have little speaking time left, so I want to move from education issues to the demolition of Wan Chai Sports Ground ("WCSG") as proposed in the Policy Address. Once the Government's plan to demolish and redevelop WCSG was made known in this year's Policy Address, there have been great concerns in society, with some people even criticizing it harshly. As pointed out by people in the sports sector, WCSG is the only sports venue on the Hong Kong Island or even in the entire urban area of Hong Kong that meets international standards for holding track and field events, and it is also an important venue for training activities, as

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well as sports day organized by schools. Should the Government just go ahead with the demolition of WCSG without any new venue or fallback plan, the sports sector will definitely feel worried and dissatisfied. Personally I think the Government could have handled the redevelopment of WCSG in a much better way to win public support. First of all, when the demolition of WCSG was announced, the Government also proposed the redevelopment of Hong Kong Stadium as a venue for holding track and field events, as well as for use by schools. The two projects should have been related, but the public were given to understand that there is no connection between the two projects. The Policy Address also states that WCSG will be demolished in 2019 at the earliest. Yet the redevelopment of Hong Kong Stadium can only commence in or after 2022 upon the completion of the Kai Tak Sports Park. In other words, there is a gap of five years. Does it mean that no venue will be made available for the population and schools in Island West and Wan Chai throughout that period? Given such unacceptable arrangement, the public cannot help but worry. Thus we hope that the Government can give the public a clear account of its plan to ensure that suitable transitional arrangements will be made for the provision of sports venues. There is another matter which the Government has not handled well. Notwithstanding the Government's decision to provide convention and exhibition venues on the site of WCSG, it also pledges that trendy and novel recreation and sports facilities as well as other community facilities will be provided in the future comprehensive development. As such, the redevelopment plan should be taken forward jointly by the Commerce and Economic Development Bureau, as well as the Home Affairs Bureau. But as presently announced by the Government, the Commerce and Economic Development Bureau is in charge of the overall plan. People cannot help but have the uneasy feeling that it is after all just a commercial project. President, immediately after the Policy Address was announced, DAB conducted a public opinion survey in Wan Chai District. Nearly 66% of the respondents support the redevelopment of WCSG, and 67% of the people support the redevelopment of Hong Kong Stadium. But the one thing they are most concerned about is the transitional arrangements.

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Our survey also found that nearly 60% of the respondents have not visited Hong Kong Stadium over the past two years, indicating a low utilization rate due to unsatisfactory complementary measures. So we hope the situation will improve after its redevelopment. Regarding the Chief Executive's proposal to provide trendy and novel recreation and sports facilities, our survey found that the public are far from enthusiastic about the idea. Instead, what they want most with the redevelopment of WCSG is the additional provision of traditional sports and recreation facilities, such as badminton and basketball courts, as well as community halls. I hope the Government will conduct extensive public consultation on the relevant proposals, so that the facilities to be provided eventually can suitably meet the public's needs. President, I so submit.

MR HUI CHI-FUNG (in Cantonese): Mr LEUNG, my speech will focus on the part on education in the Policy Address. Before the Policy Address was delivered, people have a great expectation on education. Their expectation is simple enough, that is, to abolish the Territory-wide System Assessment ("TSA"), but the Secretary of Education just failed to deliver. The decision of the Education Bureau to extend the basic competency assessment research study, also known as BCA, is actually no different from resuming TSA. The Government will certainly disagree and say that the name of the assessment is different and the questions are different. But, I think BCA is just another version of TSA and the Education Bureau has only changed the name. Does the Education Bureau really think that by making the examination less difficult and reducing the number of questions to be asked; advising schools not to drill students for TSA, and removing TSA performance from the indicators of school performance, the incentive for drilling students will be reduced? Is the Education Bureau really so naive? Since easier questions are set, more students will pass the assessment and it will be more difficult to tell which students perform better. According to the Education Bureau, analysis of TSA performance will allow schools to identify the subjects that the students have not mastered. If easier questions are set and the majority of students will pass the assessment, what are we really assessing?

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How useful will the analysis be? As questions set in the past cannot be reused and questions cannot be the same as the mock questions found in the market, they will only become trickier. These are exactly the reasons why the questions have become more difficult and trickier. The Education Bureau claimed that it has strongly advised schools that they should not drill students for TSA, and all government schools in Hong Kong have even taken one step further, they have taken the lead to refuse buying TSA supplementary exercise books. Nevertheless, as long as the Education Bureau will take into consideration the attainment rates of students, schools will have no choice but drill students to compete under pressure. This kind of pressure to compete and attain the standards required cannot be eliminated. The subject of TSA has now become a scurrying rat which everyone wants to get rid of. Secretary, why is TSA like a scurrying rat? The main candidates running for the post of Chief Executive in the next Government are not very interested in the subject of TSA. Some have indicated that they will not conduct TSA; although others have not given the same indication, they have commented that TSA is not compatible with the philosophy of education. If the Chief Executive candidates of the next Government do not agree to conduct TSA or do not understand why TSA or BCA has to be conducted, why should it be conducted? TSA is like a scurrying rat because it creates pressure. Apart from increasing the burden for Primary Three students who already have a lot of homework to do, TSA also puts additional pressure on schools and teachers. Thus, pressure is the main culprit for turning TSA from a low-risk assessment to a high-risk assessment. The Education Bureau has manipulated the data collected from TSA in the past to pressurize schools and school sponsoring bodies, and under the bad practice of transferring pressure from one level to another, the poor primary students are subjected to continuous drilling every day, so that the schools will have better performance in TSA. This will save schools from closure or prevent school sponsoring bodies from recording a low rate of success in their applications for building new school premises. The Education Bureau has promised that it will neither manipulate the data collected from TSA nor pressurize schools and will remove TSA performance from the indicators of school performance, but will it guarantee that TSA performance will not be used as an indicator in deciding whether a school will be

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closed and whether an application for building new school premises will be approved? Even if the Secretary for Education will personally give the promise, will schools nevertheless be worried? That is what I mean by pressure. The Education Bureau said that it would enhance the internal protocol for using TSA data to remove risks, but what does "enhance" mean? We have heard that some school sponsoring bodies have used TSA performance of their schools to compile ranking lists to exert pressure on them. Does the Education Bureau know that the data has been distorted in such a way that it has become the main culprit for putting pressure on students? Is there really no way the market or the schools can use the report issued after TSA to work out attainment rates or school ranking? Certainly, the Education Bureau has decided that all primary schools in Hong Kong will participate in BCA in May this year and even if more people signed the petition or protested, it will turn a deaf ear to them. The Education Bureau insisted that it would extend the so-called research study (i.e. resume TSA). The Secretary for Education has repeatedly avoided answering the question of whether schools would be exempted from participating in BCA. He only said that the Education Bureau would be willing to follow up on individual cases. However, if a school does not enrol in BCA, it will be bombarded with questions of why it does not enrol. That is pressure. Undeniably, some parents are TSA fans; but there are students who object to taking TSA and there are parents who object to subjecting their children to continuous drilling day and night, do these people have a choice? Do parents have the right to stop something if it affects their children's health and subjects them to emotional strain? Will the Secretary only stop implementing BCA when more children take their lives because of excessive pressure? If parents trust that the schools, the school management committees, the principals and the teachers will not drill the students because of TSA; if parents consider that TSA is just a low-risk assessment and endorse the contributions and functions of TSA, they will definitely allow their children to participate in this research study, so as to help the Education Bureau collect various data and views. Nevertheless, I am sure that some parents do not endorse the philosophy of TSA and believe that schools will drill students excessively for getting good results. Otherwise, why are there so many concern groups, alliances and groups which oppose TSA? Can the Education Bureau really ignore their voices? Therefore, TSA should be completely abolished.

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Certainly, it may be too late to demand the abolition or suspension of BCA because schools are already drilling students and many students are already suffering. However, to deal with the upcoming BCA this year, I would like to take the opportunity of this debate on the motion of thanks to tell parents that if they think it will be better for their children not to take BCA, they can write to the schools asking for exemption. The Democratic Party can give them a sample letter so that all of them can write to the schools for exemption. With regard to education, I certainly cannot stop criticizing. Since the expression of "free quality kindergarten education" is not totally clear, the public may not know that it actually means "free education for 15 years". The public certainly do not know that kindergarten education is surely not free. The Government has repeatedly said that it would "implement the free quality kindergarten education policy" from 2017-2018, but only 85% of parents and students of the half-day kindergartens will benefit from the policy. I repeat, 85% of the half-day kindergartens will benefit. I think the word "free" in the expression "free quality kindergarten education" is actually misleading. At present, there are about 760 non-profit-making kindergartens across the territory, but about 600 of them still charge a fee. That is the number of kindergartens. In terms of the number of students, according to the information in 2015, there are about 45 000 whole-day kindergarten students and about 106 000 half-day kindergarten students. If we add 20% of the number of half-day kindergarten students to the number of whole-day kindergarten students which is about 45 000, we will get a number which shows that about 40% students in the non-profit-making kindergartens in Hong Kong are paying fees. Secretary, how can that be regarded as free kindergarten education? Is something which requires payment free? While the Government is saying that it encourages women to work, it provides free education only in half-day kindergartens, how then can mothers work on a full-time basis if they have not employed or cannot afford to employ domestic helpers? Upon hearing this, the Secretary would surely like to stand up and tell me that half-day kindergarten education complies with the world trend and many advanced countries only provide free half-day kindergarten education. However, I want to tell the Secretary that child care services in advanced countries all over the world are basically better than those in Hong Kong. Women in those countries can take care of their families and work because good

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child care services are provided in their countries, but that is not the situation in Hong Kong at all. How can the Secretary shatter the hope of mothers by failing to fully implement 15-year free education? Regarding kindergartens, I have to say more because of the recent developments. I must declare that I am a parent of kindergarten students. The case of Good Health Kindergarten clearly shows the weakness of the overall planning of our kindergarten education. It is surprising that a kindergarten will actually expose its students to the risks of discontinuing and failing to complete their studies because of rental increase and its business consideration of costs. I wrote to the Secretary last week, telling him that we have received requests for help from members of the public. The people said that their children have enrolled in Good Health Anglo-Chinese Kindergarten (Ap Lei Chau). Since they have tried but failed to discuss with the landlord of the kindergarten premises, Hutchison Whampoa Limited ("HWL"), on the issue of tenancy agreement renewal, they do not know whether the kindergarten will continue to offer classes in the next academic year. Some parents have chosen this kindergarten and given up the chances for their children to study in other kindergartens. If the kindergarten will not offer classes, their children have no place to study, more than 100 students will be affected. As I understand it, HWL will discuss with the kindergarten on the issue of tenancy agreement renewal later this week. I certainly hope that there will be good results and the students can continue with their studies. I also hope that the Secretary will continue to urge the landlord to be more conscience minded and do not drive away a group of anxious students and parents just because of its business consideration of rental profit. In case the kindergarten has to close, the Education Bureau definitely has the responsibility to guarantee that there will be sufficient kindergarten places in the same district for these students. The Education Bureau should not keep saying that Good Health Kindergarten is an independent private kindergarten and nothing can be done. It can seriously negotiate with the landlord and exercise its public power to influence the matter. The incident is just the tip of the iceberg. I hope that the Education Bureau can make proper long-term planning. What is long-term planning? It includes making good planning in public housing development so as to provide a sufficient number of places in half-day and whole-day kindergartens in new public housing estates upon completion. In addition, regarding private residential development projects, the Government should include regulations in

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the land lease. If a property will be used as a kindergarten or an educational institution, the Government should include stricter regulations in the land lease so that it can play a role, voice its opinion and influence matters regarding the property. Even an independent private kindergarten should not make a group of students leave their place of study just because of monetary considerations. This should not happen in Hong Kong and I only think this can only happen in an uncivilized society. Thus, I urge the Education Bureau to properly plan for the provision of places in both private and non-profit-making kindergartens in all districts. It should take precautions against storms and duly perform its coordinative role. With the little time left, I would like to talk about students with mental illness. The Policy Agenda said that the Learning Support Grant for public sector ordinary primary and secondary schools will cover students with mental illness starting from the academic year of 2017-2018. I support the measure. Students with mental illness need appropriate support in learning, socializing and handling of emotions. Apart from providing funding support, I hope that the Government will also ensure that there will be sufficient manpower support which is necessary for providing the students in need with the most effective support on a long-term basis. If the teachers are not overloaded, they will have time to establish relationships with the students so that they can clearly identify the emotional and learning support the students need. The Government should also promote understanding of mental health in schools, teachers and parents. If people can face the problem squarely, they will not avoid talking about it. The authorities should also pay attention to the support given to designated personnel. As school social worker is an important part of the school guidance system, the authorities must review whether the arrangement of one social worker for each secondary school can meet the manpower requirement needed to dovetail with the entire policy of supporting the promotion of students' health. Many social workers have to handle 70 to 80 cases on their own and organize many activities and seminars, etc. How will they be able to provide appropriate support when their workload is so heavy? The authorities should also increase the number of primary school guidance personnel because the wastage rate is very high. If the authorities can face up to the problem, increase the number of these personnel and retain talents, primary school students will gradually form the habit of sharing their feelings with the guidance personnel without having to worry that they will be labelled as problem students.

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Finally, since there is not much time left, I would like to say that the Government definitely should not demolish the Wan Chai Sports Ground. The Government said that it would demolish the Wan Chai Sports Ground and redevelop the Hong Kong Stadium in exchange. That is not justifiable. The Government should keep the Wan Chai Sports Ground which has a utilization rate of over 90%, and redevelop the Hong Kong Stadium into a community sports ground at the same time. Otherwise, how can it say that it supports sports development and how can it encourage schools and everyone in the community to participate in sports? Even Sports Day cannot be held. Given the limitation of time (The buzzer sounded), I will finish my speech now. Thank you, Mr LEUNG.

PRESIDENT (in Cantonese): Mr HUI, please stop speaking.

MR ALVIN YEUNG (in Cantonese): President, "I am a Secondary Four student, entering the first year of my senior secondary studies. As DSE is getting closer and closer, I become more and more worried and anxious about my academic results. My teacher told us that 'joyful learning', an idea that our teachers in primary school used to talk about, actually has never existed, as one has to study assiduously in order to get good marks. Hardship is inevitable. In my view, the unhappy feeling during the learning process is not due to the hard toil, but the tremendous pressure exerted on us by society. "I once heard the comments made by someone after reading the news report on student committing suicide. Not only did he show no sign of sympathy, he even criticized that 'students nowadays are really useless, they can't even bear the slightest suffering'; some even said, 'the pressure is self-imposed, no one is pressing them.' When I hear such comments, I just feel a chill down my spine. People of the older generation always say, 'students do nothing but study, what hardship or stress do they have? When they work in society, they will know what is meant by pressure.' I find such comments not fitting in with the situation of Hong Kong today. Nowadays, even primary school students have pressure in learning, not to mention secondary school students or university students. When schools keep feeding students with drilling tests and homework to enhance their competitive edges, have anyone ever consider if students will be overloaded?"

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President, just now I was reading out one of the emails that I received from a student after the incidents of student committing suicide during the Lunar New Year were reported. Apart from this email, I have also received emails from other students, parents and teachers, denouncing the current system and the pressures imposed on them. President, everyone is saying that they are being overwhelmingly pressed by the present social atmosphere, but has the real helmsman responsible for formulating the policies heard such an outcry? President, I trust that it is definitely unfair to shift all the responsibilities onto the Government or the Secretary because all who are involved in the system, students, parents, teachers or school authorities alike, should be responsible for striking a balance for students. Nevertheless, can the helmsman of the education policy and the government policy-maker extricate himself from the situation? In the past 20 years, the education policy has undergone so many changes that people are really perplexed. Today, TSA is implemented; tomorrow, it is renamed BCA. Highly controversial policies, such as the brainwashing national education and using Putonghua as the medium of instruction for teaching the Chinese Language subject, have put students in a quandary, and the so-called "joyful learning" is simply out of the question. President, to be fair, do students have a choice? In fact, they are also at the mercy of others. Once a system has been established, they have to follow the system and get over whatever hurdle it sets. Who should actually bear responsibility? After all, it lies with the policy-makers. They must bear the greatest responsibility to find a way out for our young people. President, if one has to find something delightful from this voluminous Policy Address, I would say paragraph 206―the Learning Support Grant will cover students with mental health needs. Actually, the Grant is in essence a dedicated learning fund for students with special education needs. The Civic Party fully supports this initiative because it indirectly lists mental health as a special education need. We have all along advocated the broadening of the definition of special education needs and the enactment of legislation to protect the rights of students with mental health needs. Therefore, we consider this move a step forward. However, we hope the provision for the Grant can be increased.

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Nevertheless, President, these initiatives are far from enough. Education is fundamental to society. If our policy-makers are only willing to give out petty favours, then do we have the courage to face this group of students who are faintly voicing their sorrow and complaints? President, among the emails I have received, there is one from a student who is studying in a Band 1 school, meaning that he is a Band 1 student. Feeling exhausted from studies, he wonders what purpose does it serve to study. His interest lies in railways and buses, and he wants to be a bus driver in future. However, his mother considers such work having no prospects, and they thus quarrel frequently. He asks me: What is wrong for pursuing one's dream? President, I would like to dedicate my brief speech today to this student, surnamed LEUNG, and tell him that it is never a shame to work hard to pursue one's dream. I so submit.

PRESIDENT (in Cantonese): Does any other Member wish to speak? (No Member indicated a wish to speak)

PRESIDENT (in Cantonese): If no Member wishes to speak, I will invite the three public officers to speak. On the basis of the 15-minute speaking time for each officer, they may speak for up to a total of 45 minutes.

SECRETARY FOR LABOUR AND WELFARE (in Cantonese): President, I would like to thank Honourable Members for their speeches and valuable views. Employment is the basis of people's livelihood and the foundation of harmony. The SAR Government has been actively promoting a harmonious employer-employee relationship, and striving to improve labour rights at a pace commensurate with Hong Kong's overall socio-economic development while striking a balance between employees' interests and employers' affordability. Over the past year, the employment market in Hong Kong has been generally stable, with the latest unemployment rate remaining low at 3.3%, a level close to full employment, and the number of unemployment cases under the

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Comprehensive Social Security Assistance Scheme has even decreased for 89 consecutive months. The Labour and Welfare Bureau and the Labour Department ("LD") will continue to take forward our initiatives in the areas of promoting employment, safeguarding employees' rights, occupational safety and health, providing vocational training, and so on. Moreover, in the current legislative session, we will seek the Legislative Council's approval of the newly revised statutory minimum wage ("SMW") rate, as well as its passage of the bills and subsidiary legislation on strengthening the regulation of employment agencies, the reinstatement and re-engagement provisions, and the upward adjustments of the levels of compensation under, inter alia, the Employees' Compensation Ordinance. Meanwhile, we will also actively deal with some long-standing, major and difficult labour issues mentioned by quite a number of Honourable Members earlier on. Working hours policy is a highly complex and contentious subject which has far-reaching implications for our socio-economic development, employment relations, work culture, and so on. After three-odd years of effort, the Standard Working Hours Committee has completed a number of important tasks, which include an in-depth working hours survey and two rounds of broad-based public consultation, and submitted its report to the Government on 27 January this year. I would like to take this opportunity to express my gratitude to the Chairperson of the Committee, Dr LEONG Che-hung, and its members. I fully understand the labour sector's aspirations and concerns about this issue. I wish to emphasize that the current Government has never procrastinated on or evaded the extremely controversial issue of standard working hours. We will take full account of the report of the Committee and the views of various sectors of the community, and strive to map out within the term of the current Government the working hours policy direction that suits Hong Kong's socio-economic situation. With the smooth implementation of SMW since its introduction in May 2011, the overall employment market has remained stable, and the earnings of low-income employees have continued to improve. Total employment increased to 3 817 000 (provisional figure) in October to December 2016, up by 274 700 over the pre-SMW level. This reflects that SMW has attracted more people to enter or re-enter the labour market. Besides, in September to November 2016, the average monthly employment earnings of low-come full-time employees in the lowest decile group registered an increase of 48.9% (or 20.9% in real terms after discounting inflation) over the pre-SMW level. This shows that there has been a continuous improvement in the earnings of low-income employees. The

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Chief Executive in Council has accepted the consensual recommendation of the Minimum Wage Commission that the current SMW rate of $32.5 per hour be increased by 6.2% to $34.5 per hour. I hope that the Legislative Council will support and pass the relevant subsidiary legislation for the revised rate to take effect on 1 May this year, so as to benefit grass-roots employees. The implementation of statutory paternity leave has been generally smooth since its introduction in February 2015. LD is working on a relevant review, and will report the outcome of the review to the Labour Advisory Board and the Legislative Council Panel on Manpower upon completion of the review in the second quarter of this year. On the front of promoting employment, LD will continue to provide employment services and support for job seekers with different needs, such as mature persons, persons with disabilities and ethnic minorities, and organize thematic job fairs for them. For instance, in the case of ethnic minorities, LD has been making proactive efforts to provide them with dedicated services that cater to their employment needs. This year, LD will engage staff proficient in ethnic minority languages to provide employment services for ethnic minority job seekers (especially those of South Asian origins) at selected job centres on a pilot basis. Such staff conversant with ethnic minority languages and cultures can assist job centres in providing services for ethnic minority job seekers. They can also help LD proactively reach out to ethnic minority communities and encourage more ethnic minorities with employment needs to make use of LD's services. In 2017-2018, the Employees Retraining Board ("ERB") will continue to focus on social groups with special needs in the development of courses and services. For instance, ERB will offer training courses and support services that suit the needs of mature persons, and organize training courses in the support centres for ethnic minorities. ERB will also explore extending the "Modular Certificates Accumulation System" and the "First-hire-then-train" Programme to cover more courses, so as to allow trainees (in particular female trainees) who have work or family commitments to make flexible arrangements for further studies and re-enter the labour market. ERB will also improve the operation of the "Smart Starter" service to provide registration, referral and follow-up services of part-time jobs for new arrival trainees.

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On the front of safeguarding employees' rights and welfare, the Task Force on Improving Work Injury Protection for Employees in High-risk Industries coordinated by LD was set up in February last year to explore the improvement proposals put forward by an inter-departmental working group. Three working groups, one each on employees' compensation insurance, case processing and therapy/rehabilitation, have been set up under the Task Force to further the discussions, conduct consultations and implement the agreed measures in phases once they are ready so as to improve protection for injured employees in high-risk industries. On the front of protecting occupational safety and health, LD will continue to collaborate with the Occupational Safety and Health Council ("OSHC"), trade associations, workers' unions, professional bodies, related organizations and other government departments to further safeguard the safety of workers conducting work at height. LD will also continue to tackle systemic construction risks and contain such work hazards at source, so as to promote the occupational safety and health of construction workers. LD will also organize large-scale promotional programmes, and continue to work with OSHC in implementing the "OSH Star Enterprise―RMAA Safety Accreditation Scheme" and the "Outstanding OSH Restaurant―Pilot Scheme on Catering Safety Accreditation", with a view to raising the standard and awareness of occupational safety and health among relevant stakeholders in sectors such as the construction industry and the food and beverage services sector. On the front of manpower development, the Government will inject an additional $1.5 billion into the Continuing Education Fund to encourage the public to pursue continuing education, and explore measures to enhance the operation of the Fund. Also, the Labour and Welfare Bureau has commenced a consultancy study on the feasibility of drawing up a talent list which would serve to attract high-quality talent in a more effective manner to support Hong Kong's development as a high value-added and diversified economy. The study is expected to be completed this year. Currently, there are over 350 000 foreign domestic helpers in Hong Kong, assisting 280 000-plus households with housework and taking care of the elderly and children in their families, thereby unleashing the local labour force. LD will promote and strengthen cooperation with governments of foreign domestic helper home countries and enhance the publicity and educational efforts in a continuing process of maintaining Hong Kong as an attractive destination of work for foreign domestic helpers.

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LD attaches great importance to the regulation of employment agencies (including those placing foreign domestic helpers). To enhance the professional standard and service quality of the industry, LD promulgated on 13 January the Code of Practice for Employment Agencies ("the Code"), which sets out the standards which the Commissioner for Labour expects of employment agencies in operating their business, and clearly reiterates that employment agencies are required to operate in compliance with the relevant legislation. LD plans to introduce an amendment bill into the Legislative Council in the second quarter of this year to provide the legal basis for the Code, and to impose heavier penalties on employment agencies operating without a licence or overcharging job seekers so as to achieve a stronger deterrent effect. We will introduce the bill into the Legislative Council in due course. Some Honourable Members have brought up the issue of importation of labour. As in the past, on the premise of according employment priority to local workers, the Government will allow importation of labour on an appropriate, limited and targeted basis to relieve the manpower shortage of individual sectors. The Government will also closely monitor the manpower demand and supply for different sectors, strengthen training initiatives and attract new entrants to the sectors. For instance, LD will continue to assist local construction workers in finding jobs and employers of the industry in recruiting workers through the Construction Industry Recruitment Centre. The Centre will closely collaborate with the Construction Industry Council to achieve better synergy of the services between the two, so as to enhance efficiency in job search and recruitment. President, Hong Kong people are famous for being dedicated to their work, diligent and ambitious. Hong Kong's pool of talent and labour force are its most precious resources. Over the years, Hong Kong's economic development has been driven by the concerted effort of its labour force totalling 3.9 million-plus. Facing the double challenge of a rapidly ageing population and a shrinking labour force, we must continue to uphold the spirits of active communication, mutual understanding and respect, seeking common ground while reserving differences, and pragmatism, with a view to enabling employers and employees to jointly benefit from Hong Kong's economic development and improve their livelihood. With these remarks, President, I implore Honourable Members to support this year's Policy Address.

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SECRETARY FOR EDUCATION (in Cantonese): President, I would like to express my heartfelt thanks to various Members for their valuable views on the education policy of the 2017 Policy Address. We have all along firmly believed that nurturing of talent starts with education. The vision and mission of education is to offer all-round and balanced learning opportunities for our students, so as to tap their potential for whole person development and lay the foundation for lifelong learning, so that they can learn successfully and apply what they have learnt, and contribute to their personal development, Hong Kong and our country. Just now several Members have referred to the major education initiatives in the Policy Address this year. As such, President, I will only reply to certain major areas. First, regarding kindergarten education, efforts made by the sector have enabled us to roll out a new policy within three-odd years, increase the relevant annual expenditure to $6.7 billion, and allow children enrolled in over 80% of eligible half-day non-profit-making kindergartens to enjoy quality kindergarten education. Regarding whole-day and long whole-day kindergartens referred to just now, we will provide additional resources to assist them. As regards whether the places are adequate, the sector clearly knows how to utilize resources in a flexible manner, as one kindergarten can provide various modes of kindergarten services. In the case of a kindergarten with 90 students, its full-year subsidy under the Pre-primary Education Voucher Scheme is about $2 million regardless of whether it offers half-day, whole-day or long whole-day services. Under the new policy, the amount of its subsidy will increase to about $2.9 million, $4 million and $4.9 million for half-day, whole-day and long whole-day services respectively, representing a respective increase of about 45%, 100% and 140%. This shows that we have made appropriate adjustments in accordance with the needs of the various sides, and comprehensively subsidize, among others, teacher training, so as to realize quality kindergarten education. Second, as regards "matchbox-style school premises", we have negotiated with 26 schools and reached consensuses with them. We will specifically formulate improvement measures by fully heeding the advice of the consultancy firm. In addition, some Members have talked about the issue concerning pressures faced by students and the subject of Chinese History. Regarding the teaching of the Chinese History subject, some Members have put forward their detailed views just now. I hereby reiterate that Chinese History is a compulsory subject at junior secondary level. Over the past six months, we have had a

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consensus on various occasions, including at the discussions in the Legislative Council and the Panel on Education, that is, we should require the teaching of Chinese history as an independent subject. Generally speaking, we are progressing toward this goal. Individual schools which adopt different curriculum modes to teach Chinese history also clearly know that Chinese history should be the backbone. As regards pressures faced by students, nowadays 46% of secondary school leavers can be admitted to the first-year degree programmes of publicly-funded and self-financing post-secondary institutions. This ratio is comparable to the global average ratio. In the Policy Address this year, we specifically indicate that the number of subsidized places will be increased to 3 000, and we will offer subsidies to programmes catering for industries with specific manpower needs. As such, the ratio of young people who are able to be admitted to universities will be further increased. In addition, I would like to say a few words in response to some Members' reference to the Basic Competency Assessment ("BCA") Research Study. First, due to the discrepancy between the public understanding and actual development of the Territory-wide System Assessment ("TSA"), we invited 50 schools to participate in the 2016 Tryout Study (Primary 3) last year after two years' of detailed discussions and improvement, and the overall effect was positive. As some Members have indicated just now, four major areas have been updated comprehensively, so we no longer use the old name "TSA", which is associated with problems of the past. The Tryout Study, which lasted one year, has been well received by all the 50 schools, including teachers, students and parents. It exerts no pressure on the schools, and students and schools alike no longer strive to keep up with the Joneses. The Tryout Study mainly serves as a reflection of basic competency concerning teaching and learning. This is very important to schools. For this reason, I really hope that Members will render support. BCA is an excellent tool, which should not be associated with any drilling. This is a point that parents have specifically pointed out. School sponsoring bodies, incorporated management committees, schools and parents have formulated certain codes, with the hope of enabling BCA to be characterized by high efficiency, low risk and no drilling. I hope Members will understand that we need to face the new circumstances, while certain individual persons still linger over old problems. I hope that we will try to be involved in the new

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Tryout Study. The experience one year ago will serve as reference for us, and we will in the coming year invite primary schools in Hong Kong to participate again in the Tryout Study before making a decision on our way forward. President, I have basically replied to the areas that Members are concerned about. I would like to thank Members again. The Government will continue to adopt a practical attitude and actively improve our policies. The Education Bureau hopes to join hands with Members, the academia and stakeholders concerned to implement the various measures in the area of education as proposed in the Policy Address this year, so as to build a better learning environment for our students. With these remarks, President, I earnestly urge Members to support the motion of thanks moved by Ms Starry LEE. Thank you, President.

SECRETARY FOR HOME AFFAIRS (in Cantonese): President and Honourable Members, please allow me to give further elaboration in respect of youth development, arts and culture as well as sports development. We have all along allocated additional resources over the past few years for promoting youth development. With an array of new measures implemented for providing support to young people at different levels, the work in this regard is also bearing fruit. We will continue to promote relevant efforts to provide young people from different backgrounds with diversified development opportunities. We have invited the Commission on Youth to further explore the future direction of the youth development policy in Hong Kong in collaboration with the relevant Policy Bureaux, young people and stakeholders. The West Kowloon Cultural District ("WKCD") is the most important cultural infrastructure in Hong Kong with many of its facilities to be completed successively for operation over the next few years. The Government will implement an enhanced financial arrangement for the WKCD project, under which the development right of the hotel/office/residential portion of WKCD will be granted to the WKCD Authority for joint development and sharing of rental revenue from such facilities with the private sector through open tender and Build-Operate-Transfer arrangement. Under the enhanced financial

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arrangement, the WKCD Authority shall be able to sustain the operation of WKCD and dovetail with the financing arrangement for the development of the third batch of arts and cultural facilities. Following the population growth and the increasing number of people participating in sports activities, we need to increase public sports and recreation facilities. $20 billion will be spent in the coming five years to launch 26 projects to develop or improve 54 new and existing sports and recreation facilities. Besides, we will also conduct technical feasibility study for another 15 sports and recreation facility projects to prepare for their future implementation. These 41 projects cover all 18 districts of the territory, and include 12 projects carried forward from the two former Municipal Councils. The Kai Tak Sports Park is the most important investment of the Government in sports infrastructure. It will provide high quality and diversified sports facilities and a large landscaped park, which will not only provide more venues for hosting major international sporting competitions but also provide public sports facilities for the general public. We will consult the Panel on Home Affairs on the construction of the Kai Tak Sports Park and seek funding approval from the Finance Committee. Upon approval of funding, we will invite tender for the project. We hope that the main works of the Kai Tak Sports Park can commence in 2018 for completion in around 2022. In connection with the proposal to use the Wan Chai Sports Ground for comprehensive development, we will continue to listen attentively the concerns of the community over transport and interface issues, and duly accomplish our efforts in research and consulting various stakeholders. The Policy Address states that public sector schools are encouraged to further open up their facilities and a review will be conducted on the promotion of sports at schools for enhancing sporting culture in campus. The Education Bureau and the Home Affairs Bureau will collaborate to implement this proposal as soon as possible, so as the address the demand of society. Thank you, President.

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SUSPENSION OF MEETING PRESIDENT (in Cantonese): The fourth debate session ends. 9:50 pm. I suspend the meeting until 9:00 am tomorrow. Suspended accordingly at 9:51 pm.

It is now