| I. Highlights
Three months ago, in my 6th LegCo Report, I predicted that the
Chief Executive would have to balance his powers with the Preparatory
Committee and the Provisional Legislature. He has so far won hands
down on both counts. The Preparatory Committee has completed its
tasks on hand and is now awaiting disbandment. The Provisional Legislature
on the other hand, enjoys a close, team-like, working relationship
with the Chief Executive's office.
The Preparatory Committee decided on 23 May 1997 that all 21 original
functional constituencies should be retained in their 1991 form.
This implies that the Accountancy Functional Constituency will be
left intact.
LegCo has had to work at a frenzied pace, barely coping with the
complicated Bills thrown at it by the Administration in the eleventh
hour of its existence. In the last few weeks, even taking time out
for lunch has become a rare luxury.
Work at the Provisional LegCo has also been accelerating with meetings
in Shenzhen beig held every weekend. Important Bills have been passed
with great speed while the public still left puzzled in their blazing
trail.
On a personal note, I have accepted appointment as a member of
the Deposit Taking Companies Advisory Committee.
II. Committees and Panels
| 1. |
Public Accounts Committee (PAC): |
| ¡@ |
The PAC met a total of 12 times before I tabled the PAC Report
No. 28 in LegCo, on 11 June 1997. This Report was finished in
a record time of just two months. |
| 2. |
Financial Affairs Panel: |
| ¡@ |
The Panel held 5 meetings (Agenda attached as Appendix I)
since the last Report. The most controversial subject for HKSA
had to be the "Review of the Hong Kong Companies Ordinance"
held on 2 June 1997. During the meeting, I strongly urged LegCo
members to take note that quotes from individual accountants
in the Consultant Report had been misleading and that the Accountancy
profession actually held serious reservations about the Report's
recommendation to set up an independent accounting standard-setting
Board and about the proposed abolition of statutory audits.
|
| 3. |
Administration of Justice and Legal Services Panel: |
| ¡@ |
The Panel held 4 meetings since the last report: no significant
item relevant to HKSA concerns. |
| 4. |
Welfare Services Panel: |
| ¡@ |
The Panel held 4 meetings since the last report. No significant
item relevant to HKSA concerns. |
| 5. |
Special Transport Panel (Western Corridor Railway task force): |
| ¡@ |
The Panel held 2 meetings since the last report. No significant
item relevant to HKSA concerns. |
| 6. |
Finance Committee and House Committee: |
| ¡@ |
TD of HKSA kept informed, on a weekly basis, of progress and
priority on all bills. There were 7 meetings of Finance Committee
and 11 meetings of House Committee. |
| ¡@ |
On 30 May 1997, I successfully urged the House not to form
a Bills Committee to study the Securities and Futures Commission
(Amendment) (No. 3) Bill 1996. |
| ¡@ |
On 6 June 1997, I expressed HKSA's position of no objection
to the introduction of the five resolutions under sections 113,
114 and 36 of the Bankruptcy Ordinance (Cap. 6). However, the
House still decided to block it because of the complexity of
the Bill and the tight time schedule given to LegCo. (Extract
of the minutes attached as Appendix II) |
III. Bills Committee Joined
| 1. |
Independent Police Complaints Council Bill (IPCC): |
| ¡@ |
This Bills Committee met 7 times and a compromise is struck
with the Administration on the gradual reform of the IPCC Council. |
| 2. |
Securities and Futures Commission (Amendment) (No. 3) Bill
1996: |
| ¡@ |
As mentioned under the Report on House Committee, this Bill
had died a natural death. Efforts will continue to persuade
the Administration not to re-gazette this Bill after 1 July
1997. |
| 3. |
Child Care Centres (Amendment) Bill 1996: |
| ¡@ |
This Committee met once more and the Bill was passed without
controversy. |
| 4. |
Medical Registration (Transitional Provisions) Bill 1997: |
| ¡@ |
This Bills Committee met once more and the Bill was passed
with overwhelming support despite the medical profession's opposition. |
| 5. |
Mutual Legal Assistance in Criminal Matters Bill: |
| ¡@ |
This is an enabling Bill aimed at providing a legal framework
for comprehensive mutual legal assistance with other countries.
The Bill also facilitates the signing of more detailed treaties
which are subjected to positive approval of LegCo. |
| ¡@ |
The Bill, which now supersedes the withdrawn Evidence (Amendment)
Bill 1996, introduces the provisions for the exchange of tax
information; it also surfaced later that the United Kingdom
had already entered into treaties with Australia and the USA
permitting their authorities to collect evidence and conduct
investigation on taxation matters here through Hong Kong Courts. |
| ¡@ |
After my strong protest and intense lobbying, the Administration
has now introduced extensive amendments to the Bill, providing
professional privileges to accountants as auditors and tax representatives
on a prescribed class of working papers. The Secrecy provision,
Section 4 of the Inland Revenue Ordinance, is also preserved.
HKSA has indicated its acceptance of this compromise solution
arrived at under immense political and time pressure. |
| 6. |
Smoking (Public Health) (Amendment) Bill 97 |
| ¡@ |
I attended as former Vice-Chairman of the Council on Smoking
and Health and Honorary Advisor to numerous health and sports
organisations. |
| ¡@ |
After many meetings of representations and protracted negotiations,
the Administration's moderate anti-smoking Bill emerged as a
mainstream Bill with the different positions taken by Legislators
on the issue of sponsorship still needing to be resolved by
vote. |
| 7. |
Justice of the Peace Bill: |
| ¡@ |
The Bill seeks to give the appointment of JPs a statutory
basis which will last beyond 1997. With the entire LegCo support,
I have successfully persuaded the Administration to retain the
JPs power to administer oaths and declarations. |
| 8. |
Sailors Home and Missions to Seamen Incorporation (Transfer
of Undertaking) Bill: |
| ¡@ |
I was invited by this charitable body to move this Private
Member Bill affecting its restructuring. The Bill was withdrawn
however, at the request of the Executive Committee of the Mission,
due to unexpected opposition from the Seamen's Unions. |
| 9. |
Legal Services Legislation (Miscellaneous Amendments) Bill
1996 |
| ¡@ |
In my report to Council on 14 June 1996, I sought Council's
understanding and asked for a more flexible stance on the issue
of abolition of solicitors' scale fees. |
| ¡@ |
The vote on this Bill is about to take place. Further discussions
with the President as well as immediate past President have
convinced me that, in the long term, it is in the overall interest
of the profession to stand with the lawyers on this issue. |
| ¡@ |
I plan to state our reservations in principle to scale fees;
I will then oppose the Bill on grounds of undue haste and because
of the likely devastating effects it would have on the legal
profession if proper transitional arrangements are not made.
Council's endorsement please. |
IV. Motion Debates
List attached as Appendix III. Speeches on my Web Page and highlights
will be published in my circular to members.
V. Questions
I have asked 13 written questions (Appendix IV) since my last report.
The relevant HKSA Committees may wish to be advised and to consider
the replies further.
VI. Provisional Legislature (PL)
The PL has shifted to high gear meeting every weekend in Shenzhen.
I have joined two Bills Committees to study the Right of Abode issue
and matters relating to reunification. To date, HKSA has not made
any representation to PL.
I have devoted much energy organising the new "Breakfast Independents
Group" (BIG) which now consists of twelve PL members. Other
former "BIG" legislators will join this group after handover.
VII. General Political Background
Hong Kong will soon be propelled into the international limelight
by the biggest ever media turnout. Judging from past performances
of the foreign press, reports on Hong Kong's handover are likely
to be a mixture of facts, fiction, cynicism and wild guess.
Towards the end of the year, real communications work may need
to be done to repair some misconceptions about the HKSAR Government
and about the political stability of the HKSAR. I have written an
article titled "Open their eyes to the Hong Kong legend"
for the upcoming issue of the Hong Kong Accountants. In this article,
I appeal to fellow accountants to speak out for Hong Kong in this
crucial moment.
The euphoria of celebration activities and optimism about Hong
Kong's future economic prospects could well be followed by a huge
"hangover". The "feel good" factor and momentary
frenzy may last a while but real issues such as housing, illegal
immigrants and social welfare will soon put the ability of the new
HKSAR Government to serious test. I believe that the people of Hong
Kong must seek unity and work hard together to prove that Hong Kong
is capable of maintaining self administration and high autonomy.
There are also clear signs that Sino-British tensions will diminish
upon the departure of the British Administration from Hong Kong
and that the restoration of normal trade relationship will again
be placed high on the two countries' agenda.
Appendix
LIST OF WRITTEN QUESTIONS ASKED BY MR. ERIC LI
| Date |
Question |
Replied by |
| 27.3.97 |
* Stormwater Drainage |
Secretary for Planning, Environment and Lands |
| 27.3.97 |
* Overseas Public Relations |
Secretary for Home Affairs |
| 3.4.97 |
* Electoral Services |
Secretary for Constitutional Affairs |
| 3.4.97 |
* (same) |
(same) |
| 4.4.97 |
* Commercial Relations |
Secretary for Trade & Industry |
| 4.4.97 |
* Overseas Government Offices |
(same) |
| 4.4.97 |
* (same) |
(same) |
| 4.4.97 |
* (same) |
(same) |
| 9.4.97 |
Arrangement for Stamp Sales |
Secretary for Economic Services |
| 16.4.97 |
Record of Revenue from Land Sales |
Secretary for the Treasury |
| 30.4.97 |
Interception of Child Illegal |
Secretary for Security Immigrants |
| 30.4.97 |
Implementation of Mother Tongue Teaching |
Secretary for Education and Manpower |
| 7.5.97 |
Safety of Marine Traffic |
Secretary for Economic Services |
* Questions relating to "Examination of draft estimates of expenditure
1997-98" |
