I. Highlights
The second quarter of 1996
was filled with HKSA submissions to Legco. Consequently,
I have got quite bogged down with committee work and
hard lobbying in and out of Legco's Chamber. Naturally,
hard work finally pays in terms of favourable results,
as you will see in this report later. As Chairman of
the Public Accounts Committee, I have started work on
the second Director of Audit Report. But my role as
the top watchdog of public finance does not stop there.
The recent article I wrote on the controversial Western
Railway Project has received massive and unanimous support
from the media and Legco, which has directly led to
the enhanced transparency and closer Legco scrutiny
of this hugely expensive project with an estimated price
tag of $90 billion.
On the Preparatory Committee (PC) front, the speculation
of the future Chief Executive is taking flight as potential
candidates gradually emerge. I stood steadfastly neutral
and scrupulously non-speculative in the matter.
II. Committees and Panels
1. Public Accounts Committee (PAC):
The motion debate on the "access to Exco papers"
that I sponsored during the Legco meeting on 24 April
1996 was a major victory. Despite some government opposition,
all the major political parties and most independent
members supported my motion except two pro-China candidates,
i.e. 1 opposed and 1 abstained. Media reports were also
overwhelmingly supportive of my case for greater accountability
by Exco to the PAC. An article will appear in the May/June
1996 issue of the "Hong Kong Accountant' under
the Legco Column, an advanced copy together with the
wordings of the motion are attached as Appendix I.
I received the second Director of Audit Report No.
26 on the same day of the motion debate and; the PAC
has already met more than twenty times including breakfast
and lunch meetings. The PAC report is taking final shape
and I will have some original and interesting remarks
to make when it is presented by me to Legco in early
July.
2. Financial Affairs Panel:
The Panel held another three meetings (agenda attached
as Appendix II) since the last report. No significant
event. Outside the Legco Chamber, I have assisted the
President in lobbying the Exco to delay the proposed
legislation on statutory protection of auditors. It
seems that we have got a sympathetic Exco hearing and
a six-month break. The matter took a slightly surprising
turn when Mr. Peter Wong, our representative from the
Chinese Chamber of Commerce, told reporters during the
latest meeting of the Economy Sub-group of the PC on
25 May 1996 that he will take our case to the said Committee.
The issue has not been raised in the PC to-date.
3. Administration of Justice and Legal Services Panel:
The Panel held another five meetings since the last
report. The Administration decided to abolish scale
fees of solicitors and the exclusive rights of audience
in the High Court by barristers. These decisions were
bitterly opposed by the affected branch of the legal
profession. Although HKSA's previous stance taken at
the time of public consultation was mildly supportive
of the Administration's proposals in principle, I would
seek your understanding to take a more flexible stance
in view of the highly emotive nature of the issue and
our close relationships with both the Law Society and
the Bar Association.
4. Welfare Services Panel:
The Panel held another 4 meetings since the last report.
You may be interested to note that a Social Workers
Registration Bill will soon be introduced to Legco to
formally recognise the professional status of social
workers. The Consultancy Review of the Social Welfare
Subvention System which seeks to replace the existing
subvention system based on established costs by a lumpsum
grant is now meeting heavy resistance.
5. Matters relating to the formation of Parliamentary
Friendship Groups:
The Panel held one meeting since my last report. We
met Rt. Hon. Robin Cook, Shadow Secretary of State for
Britain on 1 May 1996. I also attended the 8th Commonwealth
Parliamentary Seminar from 12-18 May 1996 in Hong Kong.
6. Finance Committee and House Committee:
No significant event except Government's proposals
to inject funds into the Tradelink project and a study
on electronic road pricing were passed. TD of HKSA being
kept informed on progress of all bills on a weekly basis.
III. Bills Committees Joined
1.Prevention of Bribery (Miscellaneous Provisions)
(No. 2) Bill 1995:
Since my last report, the Administration and the Bills
Committee had all agreed on the detailed Committee Stage
Amendments proposed by me to better safeguard the secrecy
of IRD records. TD of HKSA consulted and she also indicated
her full acceptance. The Bill still drags on after more
than twenty meetings because of other unresolved issues.
2. Medical Registration (Amendment) (No. 2) Bill 1995:
Completed.
3. Sub-committee on Legislation for the Mentally Handicapped:Completed.
4. Road Traffic (Amendment) (No. 3) Bill 1995
Eastern Harbour Crossing Road Tunnel (Passage Tax)
Bill Inland Revenue (Amendment) (No. 4) Bill 1995
I have informed this Council of my efforts of lobbying
to vote this Bill down in its entirety during my the
last report. HKSA strongly opposed to the case of using
tax penalty for traffic control purposes. Upon our impressive
submissions, the Bills Committee unanimously rejected
these Bills and had asked the Administration to withdraw
them or face a total defeat when put to the vote. The
Administration is now lobbying the Democratic Party
to see if she can change their minds. Bills Committee
ceased its work on the Bill pending Administration's
further decisions.
5. Evidence (Amendment) Bill 1996
I was elected Chairman of the Bills Committee and heard
HKSA's submission. The Administration is now seriously
considering the matter with a view to giving us a positive
response.
6. Bankruptcy (Amendment) Bill 1996:
I was elected Chairman of the Bills Committee and heard
HKSA's submission. The Administration is now seriously
considering the matter with a view to giving us a positive
response.
7. Bills Committees joined but on waiting list:
Inland Revenue (Amendment) (No. 2) Bill 1996
Inland Revenue (Amendment) (No. 3) Bill 1996
Companies (Amendment) Bill 1996
Insurance Companies (Amendment) Bill 1996
8. The Eastern Orthodox Church - a Private Member's
Bill:
I have been invited by Bishop Athenagoros, who was
introduced to me by the Right Rev. Peter Kwong, Bishop
of Hong Kong and Macau, Sheng Kung Hui, to introduce
this Private Member's Bill. The Bill will create a statutory
body to hold all the Church's properties and operations
in Hong Kong. The final draft is now being studied by
the Administration.
IV. Motion Debates
List attached as Appendix III. Speeches can be accessible
on my Web Page and the highlights will be published
in my upcoming circulars to members.
V. Questions
Since my last report, I have asked another four written
questions (Appendix IV). More are in the queue.
VI. General Political Background
As we approach the final year of the countdown to 1997
and the PC is in full swing, the UK has turned their
attention to the international arena to foster a positive
case for their handing Hong Kong over to China. The
dialogue between the people of Hong Kong and China has
become much more direct with the usual ups and downs.
China has also begun to take international opinion more
seriously with Director Lu Ping making more overseas
trips. I expect the relationship between China and the
UK will turn better in the third quarter of 1996 with
some minor breakthrough. Otherwise, it is going to be
a quiet summer with everyone in politics making overseas
trips, bearing in mind that we probably cannot do the
same next year!
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