LEGISLATIVE COUNCIL ─ 27 June 1997 1419 Resumption of Second Reading Debate on Bill HOUSING (AMENDMENT) (NO. 3) BILL 1996 Resumption of debate on Second Reading which was moved on 11 December 1996 MR LEE WING-TAT (in Cantonese): Mr President, I am speaking as Chairman of the Bills Committee on the Housing (Amendment) (No. 3) Bill 1996 and the Housing (Amendment) Bill 1997. Both of the above-mentioned bills are Member's bills. As the Honourable Bruce LIU has decided not to proceed with the resumption of Second Reading debate of his bill, I will only concentrate on the Bills Committee's deliberations and views on the Housing (Amendment) (No. 3) Bill 1996 proposed by the Honourable LEUNG Yiu-chung. The Housing (Amendment) (No. 3) Bill 1996 seeks to provide for a triennial rent review for residential units of public rental housing (PRH) estates under the administration of the Housing Authority (HA), and to restrict the proposed rent increases for these PRH estates to the level that they shall not exceed the increase in inflation since the preceding rent review. The Committee and the Administration have held several meetings. In the course of the meetings, both parties exchanged viewpoints but the differences in opinion could not be resolved. In response to the proposal of the Bill in capping rent increases at inflation, the Administration has pointed out that inflation may not necessarily reflect tenants' affordability as the growth in household income may be higher or lower than inflation. The Administration holds the view that the current cap of median rent-to-income ratios (MRIRs) of 15% and 18.5%, which have been set by the HA having regard to local patterns of expenditure on housing and to international trends, are reasonable and realistic in reflecting tenants' ability to pay. According to the Administration, increases in public housing rent in recent years have been much lower than the rise in real wages, and as a result, the average MRIR for PRH tenants is only about 9%. The Government has to ensure that, as an important community resource, public housing should only be provided to those in genuine need. 1420 LEGISLATIVE COUNCIL ─ 27 June 1997 Some members consider that the current two MRIRs have exceeded the affordability of PRH tenants, and it is the Government's responsibility to provide affordable housing to families of the low-income group. Several members are of the opinion that, the Consumer Price Index (A) is a more scientific and objective indicator of the affordability of tenants in the low-income bracket. Meanwhile, the Committee has also expressed the concern that once the Bill is enacted, it may lead to a drastic rise in PRH rents at times of high inflation, incurring a vicious cycle of high inflation and high rent. Although the Honourable LEUNG Yiu-chung has emphasized the need for the Administration to exercise prudence in determining rent increases, individual members still press for the introduction of an additional safeguard to ensure rent increases are within reasonable restrictions. The Administration criticizes the proposed Bill as adopting the rate of inflation as the only indicator of rent increases, which does not take account of other relevant factors including location of estates, facilities, management and maintenance costs, and rates. Some members accept the explanation given by Mr LEUNG Yiu-chung that the Administration is still at liberty to set a range of rents below the ceiling to cater for the needs of different groups of PRH tenants. The proposal of a triennial rent review in the Bill will allow tenants a longer period of time to adjust to rent increases. This is also consistent with the HA's present rent review period for commercial tenants. However, the Administration has stressed that the current practice of biennial review has been working well for over 20 years and should not be changed. The Administration also considers it inappropriate to apply the current rent review cycle to both residential and commercial tenants as the latter needs a longer time-frame for making plans and implementing business developments. However, individual members believe that the proposal of triennial rent increases may not be welcomed by PRH tenants in view of the larger increases in each revision exercise. While the Administration reiterates that the deficits of the domestic operating account of the HA have been growing and warns that the Bill, if enacted, may have significant impacts on the revenue of the HA, individual members consider it necessary for the HA to enhance its productivity so as to LEGISLATIVE COUNCIL ─ 27 June 1997 1421 avoid deficits caused by its poor cost control being transferred to the PRH tenants. Since income from rents is the major source of revenue of the HA, the Administration has suggested that the objective of the Bill may be incompatible with section 4(4) of the Housing Ordinance which stipulates that "the policy of the Authority shall be directed to ensuring that the revenue accruing to it from its estates shall be sufficient to meet its recurrent expenditure on its estates." Some members nevertheless reiterate that section 4(4) simply prescribes a policy direction. As long as the HA formulates and implements a policy which is consistent with this direction, section 4(4) will have already been adhered to. After detailed deliberations, four members of the Committee, including myself, have decided to propose Committee stage amendments (CSAs) to the Housing (Amendment) (No. 3) Bill 1996 introduced by Mr LEUNG Yiu-chung. We will be explaining the details of our amendments later. In general, the proposed CSAs not only seek to cap rent increases at inflation, but also introduce a cap of the MRIR at 10%. The Administration has been unable to reach a consensus on the proposed 10% cap with members of the Bills Committee. According to the Administration, the proposed 10% is arbitrary and inflexible. In addition, the calculation method of the MRIR has not been clearly specified and this will create difficulty in its future implementation. Members hold the view that the CSAs have already specified that it will be up to the HA to determine the method of calculating the MRIR, thus providing sufficient flexibility to the Administration. Moreover, members consider that the contents of the CSAs concerned will not hamper the HA in implementing other policies, such as the policy of requiring better off tenants to pay double or market rents. Members and the Administration remain divided on the interpretation of the proposed provisions. Although the Bills Committee holds different views from those of the Administration, under the principle of protecting the interests of the tenants of PRH, the majority of the members of the Committee support the resumption of Second Reading of the Housing (Amendment) (No. 3) Bill 1996. These are the general opinions of the Committee. Mr President, I now move on to express the views of myself and those of the Democratic Party on this Bill. Mr President, I support Mr LEUNG's 1422 LEGISLATIVE COUNCIL ─ 27 June 1997 member's bill. Although Mr LEUNG's Bill will pose some restrictions on decisions of the HA when it introduces rent increases, we have to be aware that when inflation exceeds the growth of wages, tenants will be subject to double blows. Their miseries will be twofold. On the one hand, their wages will fail to catch up with inflation; on the other hand, they will find it hard to shoulder the rising rents. At present, the rents for PRH are determined by the HA mainly on the basis of tenants' affordability at the level of the two MRIRs of 15% and 18.5%. First of all, the method of determining the rent is unreasonable. The income limit for people on the General Waiting List is very low, so the eligible persons are those in the low-income bracket. The objective of providing public housing to such applicants is to relieve them of the burden of the high rents. However, since the Government has acknowledged that applicants on the Waiting List are people who are incapable of finding accommodation in the private property market on their own and are in need of help in solving their housing problem, why does it charge them high rents? Does the Government want to turn PRH into a commodity? I believe the Government will at least agree that public housing seeks to provide homes for the lower classes, and help members of the public who cannot afford high rents of private housing solve their housing problem, instead of levying high rents on them. Secondly, whether the level of rents of PRH units are in line with the affordability of tenants is arguable. According to the information received by the Legislative Council, amongst the 20% of PRH households with the lowest income, the rents they pay range from over 10% to over 20% of their income. These are the households who are most in need of help. I will further elaborate on problems caused by the determination of rents according to the MRIR. If we think in terms of more accurate figures of calculation, we will understand that the median figure does not mean the average figure. When compared to the households with steady income, the poorer households with lower income are paying a higher portion of their income on rents than the MRIR. Let me illustrate this with an example. If the level of rents stands at the median figure of 15% of the average income, the rents paid by the poorer households probably amount to 18% or 20% or even over 20% of their income. Of course, households spending over 25% of their total income on rents are eligible for rent assistance. However, households spending 15% to 25% of their income on rents can be categorized as the poorest households. I believe those with general LEGISLATIVE COUNCIL ─ 27 June 1997 1423 mathematical knowledge can understand the above-mentioned situations. It can be deduced that the current standard adopted by the Administration for determining rents is not in line with the affordability of the tenants. While the Government insists that the above method for determining rents is reasonable, its rationale is unconvincing. Firstly, the Government claims that stipulating the MRIRs at 15% or 18.5% for rents is based on a survey on overseas countries which indicates the MRIR for these countries is 20%. We consider this claim to be arguable since different countries have different systems of benefits and social security networks. Comparisons between Hong Kong and countries of similar economic development will indicate that we have less benefits and social security. If the MRIR of the territory is set at the same percentage of these overseas countries, the quality of living of families in Hong Kong will be lower than their counterparts though they may be within the same income bracket. It is illogical and misleading for the Government to make direct comparisons of the MRIRs of Hong Kong and other countries. Secondly, the Government often quote the MRIR of 27% for private housing as the rationale in support of the level of rents for PRH tenants. This is again unreasonable. The high prices and rents of private housing are directly attributable to the Government's high premium policy. To the general public, the policy itself is unacceptable. On the part of the Government, a major reason for providing PRH units is to help households at the lower end of the social stratum solve their housing problem by providing them with suitable accommodation as they are unable to find a permanent home in the private property market. Now the Government compares the rents of PRH with those in the private property market, is it not contradicting its own policy? Hence the Democratic Party is of the opinion that the Government should take into account the income of households and the Consumer Price Index of the time when it is determining the rents. Furthermore, as there are over 660 000 PRH units in the territory, rent increases of PRH will fuel inflation. We therefore suggest that rent increases of PRH be restricted to the annual inflation rate minus 2%, thereby ensuring that the living standards of PRH tenants are safeguarded when inflation rate exceeds the rate of wage increases. In addition, the level of rents of PRH should be restricted to below 10% of the medium household income as this level is closer to the current level of rents, and is also within the affordability of the majority of tenants. 1424 LEGISLATIVE COUNCIL ─ 27 June 1997 This proposal has met with strong opposition from the Administration on the grounds that it will incur deficits of the Housing Department. I have previously mentioned that the high administrative costs of the Housing Department have been incurred as a result of huge increases of overhead expenses due to the exceedingly high salaries and the over-sized staff establishment. For instance, the monthly salary and fringe benefits of a Housing Manager is equivalent to the monthly median rent, that is, $96,000. Let me repeat the figure, $96,000. It is believed that the administrative costs will be significantly reduced if the Housing Department privatizes its housing estate management service and enhances the productivity of its staff. The substantial increase in maintenance costs of PRH estates also attributes to the growing deficits. Within the short span of the past five years, there has been an increase of 283% in such expenses. In addition to the ineffective supervision of the contractors on the part of the Housing Department which has led to the extremely poor quality of PRH buildings, the problem of concrete spalling of older estates has also been a major cause of large-scale maintenance works, which, in turn, have translated into substantial increase of maintenance expenses of PRH estates. The extremely poor quality of the estates has been the direct result of ineffective supervision on the contractors by the Housing Department. However, the Housing Department not only failed to make an effort to review their errors and to improve the supervisory mechanism of the contractors, but also transferred the responsibilities of these expenses to the tenants. This is unfair. Mr President, I am going to provide some further information to illustrate that the management and maintenance services of the Housing Department are not cost-effective. The HA implemented the privatization of estate management in 1996, with pilot schemes experimented in some estates. One of the pilot schemes was conducted in Ming Tak Estate in Tseung Kwan O. According to the information provided by the HA, the contractor awarded the contract had only spent 65% of the total expenditure of the Housing Department, but was able to take over the full responsibilities of the staff of the Department in managing the same estate. The company could also make a profit. Let us consider this: the company just made use of 65% of the total costs of the Housing Department, but it has been able to run the same estate effectively as well as making a profit. This example illustrates the extent of the problems in redundant staff and overspending of the Housing Department. Mr President, I do not intend to pursue further on the problem of expenditure. In my opinion, no matter which LEGISLATIVE COUNCIL ─ 27 June 1997 1425 motion under discussion is passed today, the Housing Department will have to review its establishment to see if there is a large number of redundant staff, and to assess if their practice on cost control has been ineffective. Mr President, I so submit. MR FREDERICK FUNG (in Cantonese): Mr President, the public officer who may speak after me has just distributed to us a paper signed by Mr Marco WU, the Deputy Director of Housing. When I am speaking now, I may respond to the contents of the paper of Mr WU. But I am not sure whether the President will allow me to respond to do so. As for the paper, it is the one which has just been distributed by the Deputy Director to every Member. Mr President, I do not know if this is the speech the Secretary for Housing will deliver in a moment. But I would like to ignore this and speak on it first and then let the President make his own judgement. Mr President, this debate is about rent increases of public rental housing (PRH) estates and I am in support of the Bill. I think we should review various issues related to PRH: the causes for its construction, its origins and its service target group. The development of public housing began in 1954, with gradual transformation of the original resettlement estates to the present housing estates. As a matter of fact, the current tenants of PRH estates can be categorized into four groups of people. I have broadly categorized them into four groups. The first group comprises residents whose original accommodation was demolished in clearance operations, including those rehoused in PRH due to the clearance of their huts or squatter huts. The second group consists of households allocated PRH units through the Waiting List and having passed the means test and complied with income limits. The third group is composed of public housing tenants who have been affected by the redevelopment of older existing blocks. The fourth group is made up of people rehoused through the compassionate rehousing programme. Such background information clearly indicates that the majority of PRH households are low-income families. While tenants from squatter areas and Temporary Housing Areas (THAs) are exempted from means tests, a survey conducted by the Government on their income shows that residents of squatter huts and THAs also belong to the low-income group. 1426 LEGISLATIVE COUNCIL ─ 27 June 1997 PRH estates have served a number of functions for the past several decades. I am referring to their social functions which are directly attributable to the low level of rents of PRH. Firstly, for PRH tenants, their living environment has seen much improvement when compared with their accommodation when they were waiting for allocation of PRH units, be they old private buildings, huts to be cleared, or THAs. The designs of PRH estates, even those of the older estates constructed 10 years ago, are much better than those of private buildings in terms of population density, open spaces, landscaping, recreational facilities for children and community facilities. It is obvious that improvements in the living environment will directly upgrade the residents' quality of living. However, the most important factor is that the PRH rents have all along been kept at a low level, and substantial rent increases were rare in the past. As I recall in my 20 years of community service in public housing, except for the rent increase from 33% to 48% for the year 1983-84, the biennial increase has always been maintained at about 20%. Hence, PRH has always offered a kind of asylum for the lower and middle classes in respect of housing. We have neither a well established social welfare system nor a sound social security system in Hong Kong. At the time of economic downturns and difficulties, the lower and middle classes, and especially the lower class, have always borne the brunt and are the first batch to be cast out of employment. The first sign of their distress comes in the form of underemployment and a meagre sum to live on, with the subsequent blow of unemployment. Living in PRH flats has sheltered them from the effects of problems of private housing brought about by the policy of high premium. As a result, the overall stability of the community can be maintained. Over the past two to three decades, even at the time of economic recessions, such as the situations in 1972 and 1974, or even in the 1980s, Hong Kong has not faced any serious problems and massive turmoil. But how about the current rent policy? Basically the current rent policy is formulated on the following basis: for the newly constructed estates, the rent should not exceed a median rent-to-income ratio (MRIR) of 15% in respect of the allocation of 5.5 sq m per person in a household; while the rent should not exceed the MRIR of 18.5% in respect of the allocation of 7 sq m per person. I myself have taken part in the review of the rent policy by the Housing Authority (HA). As a matter of fact, when the HA set the above two ratios, there were no scientific rationale indicating why 15% and 18.5% were appropriate while 20%, 13% or 10% were not. Mr WU stated in his letter that there were no particular LEGISLATIVE COUNCIL ─ 27 June 1997 1427 reasons in supporting the adoption of a MRIR of 10%. Similarly, there were also no particular reasons for the adoption of 15% or 18.5%. The determination of the percentages was solely an assessment made by the decision-making authority on the affordability of the lower classes. In fact, what is the appropriate percentage? I believe that at the time of setting the percentages, the majority of the members of the HA believed that the two percentages I mentioned were appropriate. Let us analyze the changes of PRH rents over the past 10 years. The MRIR of PRH was 4% 10 years ago, when the median rent stood at $350. Over a span of 10 years, last year's MRIR, the most updated figure provided by the Census and Statistics Department, stood at 8% instead of the 9% as advised by the Deputy Director. As for the actual rent, the figure provided by the Census and Statistics Department was $1,132, while the figure quoted by the Deputy Director was $1,200. Let me assume that the difference between the two is minimal. According to the information provided by the Census and Statistics Department, the MRIR has increased from 4% to 8% over a span of 10 years, which has doubled the original figure. Meanwhile, the actual rent has increased from $350 to $1,132, representing an increase of 3.2 times. Of all the rent increases implemented over the past seven years in the 1990s, basically there has not been a single average rent increase which is higher than the rate of inflation. In other words, the experience of the past 10 years has indicated that basically the HA can still operate smoothly and even record a surplus of $80 billion without implementing a rent increase higher than the level of inflation. Some background information we have at hand is mentioned above. As for the latest information, that is rents of new estates recently stipulated, it is found that the MRIR of the households allocated PRH units in the recent three or four years with an average space of 5.5 sq m per person is about 14.5%, which is very close to the 15% ceiling set by the Government. For the households with an average space of 7 sq m per person, the MRIR is about 17%. Take a four-person household occupying a flat of usable area of 400 sq ft as an example, the actual rent it pays is between $2,200 to $2,500. This is the present situation. Six months ago, however, the Secretary for Housing once described such a rent level as too low. He queried whether the MRIR of 9% at the time could be raised to 15% or 18%. In fact, his proposal to raise the MRIR to 15% or 18% would mean a rent increase of 60% to 100% over the current figure. In this connection, I would like to ask the Secretary for Housing a question which I hope he will answer later in the sitting. Why should he propose a rent increase of 60% to 100% over the current figure, and not a 200% increase or a 300% or 1428 LEGISLATIVE COUNCIL ─ 27 June 1997 1000% increase? On the other hand, why does he not propose a reduction of rents by 100% or 50%? Why does the Administration insist on adopting the two percentages as the criteria for rent increases? The Deputy Director has criticized us for not being scientific in our calculation. I would rather say that we are all not being scientific. Let me provide some new information which has just been faxed to me in a letter from the Director of Census and Statistics Department. I would like the Deputy Director to take down these figures and give an explanation on them later in the sitting. According to the information provided by the Census and Statistics Department, the median income of Hong Kong residents at the end of the first quarter of 1997 is $20,000. The average monthly income of permanent PRH tenants is $15,600 while the average monthly income of permanent private housing tenants is $23,500. In other words, the monthly income of families living in private housing is $7,900 higher than that of the average households in PRH estates. I would like the Deputy Director to take down these two figures, the use of which I will explain later. As the average income of PRH households amounts only to $15,600, after paying the rent of $1,132, they are left with a disposable amount of about $14,000 for other expenses such as clothing, food, transportation, entertainment and savings. On the other hand, according to the statistics provided by the Director of the Census and Statistics Department, the current average rent for private housing is $4,300. Taking out this amount of rent from the average income of private housing tenants of $23,500, the tenants have a disposable amount of $18,000 for other expenses such as clothing, food, transportation and savings. A comparison of the disposable amounts after deducting the rent shows that the amount at the disposal of PRH tenants is lower than that of private tenants. Of course, you may query the accuracy of the figures I have just provided. However, I can assure the Secretary for Housing that the figures are provided by the Census and Statistics Department. Why do we consider 10% an appropriate figure? In fact, the figure is the result of some calculation. The Secretary for Housing may consider this trivial and is not worth the effort. But I still think that I need to let him know how the figure is arrived at. If the MRIR of 8% provided by the Census and Statistics Department is increased to our proposed ceiling of 10%, the monthly rent will be increased from $1,100 to $1,500, allowing the Housing Department a revenue increase of $428 from rent collection. If we take the case of a tenant earning $15,600 as the basis for calculation, he will still have a disposable amount of $14,000. If compared to the adoption of the MRIR of 8%, when the disposable LEGISLATIVE COUNCIL ─ 27 June 1997 1429 amount is $14,400, the difference is only $400. However, an adoption of the MRIR of 15% as suggested by the Secretary for Housing will mean a rent increase to the level of $2,122, with the scope of rent increase initiated by the Housing Department reaching 9%. The disposable amount of a household will then be reduced to $13,500. If the MRIR of 18.5% is adopted, the rent will be increased to $2,600. The disposable amount of a household will be further reduced to $13,000. In other words, a comparison of the adoption of 10% as proposed by the members and the adoption of 15% or 18% as proposed by the Secretary for Housing will find the reduction of a monthly disposable amount of $1,000 to $1,400 for a four-person household, which can bring about a certain degree of hardship for the tenants. The Secretary for Housing has frequently mentioned rent increases over the past year and repeatedly referred to rent increases of 60% to 100%. What I have been discussing above are just effects of rent increases on the general PRH tenants. For well-off tenants, the proposal will bring about a rent increase of as much as threefold to fourfold. In other words, the adoption of the proposed ceiling of 18% by the Secretary for Housing will bring about a rent increase of 100% for the general PRH tenants and a rent increase of threefold to fourfold for well-off tenants. Do you not find such increases horrifying? Now I would like to turn to the second subject. Why do we think that rent increases should not exceed the rate of inflation? We all know that the calculation of the rate of inflation is based on the Consumer Price Index (A) which reflects the consumption patterns of the lower classes. An upward trend of the Consumer Price Index only indicates that consumers can afford to spend a little more, while the reverse trend indicates that they have to spend less. Moreover, if the Price Index is on the rise, even if the quality of living has not been affected, it still means that consumers have to spend a little more. Meanwhile, with the Consumer Price Index (A) on the rise, the HA will have to shoulder a corresponding rise in wages, maintenance and management costs. if the HA adopts the Consumer Price Index (A) as the basis for calculation of rent increases, its rent increases should still be able to make up for the increased expenditure . Furthermore, the adoption of the MRIR of 10% as the ceiling for rent increases will allow tenants to have an adequate disposable income, while the adoption of the Consumer Price Index (A) as the reference for the criterion of rent increases will ensure that tenants can maintain their quality of living and level of expenditure after each rent increase exercise. Hence, I believe the 1430 LEGISLATIVE COUNCIL ─ 27 June 1997 adoption of the Consumer Price Index (A) and the MRIR of 10% as the criteria for rent increases is reasonable. Finally, I would like to respond to a point mentioned in the letter of the Deputy Director. According to the Deputy Director, when the MRIR exceeds 25%, the tenants are eligible to apply for rent reduction and the maximum reduction can be as much as half of their rents. After all, we should not encourage such a rent reduction. If a tenant applies for rent reduction, it means that his level of income has remained stagnant while there are incessant increases in rent to the extent that the rent has increased from 18% to 19% or 20% or even up to 25% of their income. They have become poorer, not richer. Previously some tenants were able to save up some money to ensure a sense of security after meeting their basic expenses. But, with the adoption of the MRIR proposed by the Housing Department, the incessant rent increases will force more tenants to spend 25% of their income on their rents, causing the deterioration of quality of living of PRH tenants. Hence, the adoption of the proposed MRIR should not be encouraged. In adopting this MRIR, the Secretary for Housing will destroy the function of PRH as the asylum sheltering the lower classes for the past 43 years from the government policies of high premium and rents since 1954. In future, should any incidents cause panic among the people or create other problems, this rent policy could be the catalyst. Mr President, with these remarks, I support the Bill. MISS CHAN YUEN-HAN (in Cantonese): Mr President, I speak on behalf of the Hong Kong Federation of Trade Unions (FTU). Tonight, three colleagues will propose amendments to the Member's Bill. The FTU supports the amendments proposed by the Honourable CHAN Kam-lam on the grounds that his amendments seek to restrict the median rent-to-income ratio (MRIR) of public housing to 10%. The present MRIR set by the Government is slightly over 8%. So, I think the 10% figure is rather high already. Why do we support the amendments proposed by Mr CHAN Kam-lam? While we appreciate the overall directions of the amendments proposed by other colleagues, the FTU has always been advocating that the MRIR of public rental housing (PRH) be set at 10%. LEGISLATIVE COUNCIL ─ 27 June 1997 1431 Mr President, why has the FTU been advocating a cap of the MRIR at 10% for PRH? We have reasons for supporting this percentage and our view has remained the same over the past 10 years. The Honourable Frederick FUNG has just mentioned that at one time the MRIR figure was about 4%. Even then we had already advised that this figure should not be set too high. Subsequent to the continual clearance of older estates and the construction of newer estates such as the Harmony blocks, rent increases were drastic in the following years. At that time we already proposed that the MRIR should be capped at 10%. While the MRIR was set at 9% as part of the government policy, we had proposed a ceiling of 10%. With the continual changes of the government policy, the MRIR has been set at the present level of slightly above 8%. Not too long ago, the FTU has conducted a large-scale survey on the Long Term Housing Strategy (LTHS) put forward by the Government. Twenty three estates were drawn randomly from the 160 public housing estates over the territory as targets of the survey. Its interim report of has been released recently. Mr President, the findings of the report on PRH happen to match the MRIR ceiling of 10% all along advocated by the FTU. A detailed study of the findings reveals that 32% of the PRH tenants claimed they were stretching their means to pay their present rents. Most of these tenants are elderly people or the unemployed. The total monthly income of a family of four within this category of tenants is about $7,000 to $8,000. It is indeed difficult for the grassroots with such a low level of income to pay the present rents. Recently, the Government has reiterated in the LTHS that future rents for PRH should be increased to a level at the MRIRs of 15%, and even 18.5%. Such a level has actually far exceeded the affordability of the tenants. Mr President, the findings of the survey I have just mentioned indicate that even at the present level, more than 30% of the tenants claimed that they had some difficulties in coping with the rents. If the Government is to increase the MRIR from the present 9% to 18.5%, it will be impossible for the tenants to pay their rents. However, the present LTHS of the Government appears to suggest that the finances of PRH tenants are not bad. 1432 LEGISLATIVE COUNCIL ─ 27 June 1997 Some time ago, I organized some general meetings of PRH tenants to discuss the LTHS. I have also mentioned such meetings on a number of occasions in the Council. Every time, I made use of the same information. I am furious whenever I read Paragraph Two of Part Six of the LTHS, in which the Government considers the majority of PRH tenants no longer in need of low rents to help them improve their living. I find this paragraph most disgusting. Furthermore, the findings of the survey coincide with our observation, thus confirm the accuracy of the latter. Mr President, a review of the so-called resettlement estate and low-cost housing policy of Hong Kong has just been given by the Honourable Frederick FUNG. Although I have also mentioned such contents many times, I would like to repeat them here. In fact that policy was implemented at a time when Hong Kong was experiencing the worst period of poverty. It offered a solution to the basic housing need of our community. I think it has served its most important function in respect of the problem of housing. Other countries or regions have earlier on followed our footsteps. However, having learned from Hong Kong, these countries, including Singapore, have outperformed us. The policy of low rents has indeed contributed to improving the living conditions of the grassroots. But the changes in the policy since the 1980s have resulted in a deviation from its original objectives. Most of the estates in the districts I am familiar with will have to be cleared. While the PRH tenants living in older districts are just paying several hundred dollars on rents, their counterparts in new estates have to pay something between over $1,000 to over $2,000. In other words, the same group of tenants find themselves facing a sharp increase of rent which far exceeds the inflation of the whole community in a short period. To be frank, if the Government policy aims at taking care of the grassroots, it has to review whether it has deviated from its original policy. But the Government does not appear to think this way and has not stated clearly its stance in the LTHS. We are, therefore, very disappointed. The FTU is of the view that our observation of the situation of the grassroots is very different from the Government's. We have, therefore, conducted several surveys at the beginning of the year and also recently on the LEGISLATIVE COUNCIL ─ 27 June 1997 1433 general situation of the PRH tenants, with a view to verifying the information provided by the Government. The findings of the surveys are different from what the Government has said. Some time ago, I sent the FTU report to Mr Dominic WONG, the Secretary for Housing, and Ms Rosanna WONG of the Housing Authority. When I handed them the report, they said that they would study it seriously. It is the plan of the FTU to further conduct a follow-up study in future on the 32% tenants who indicated that they had difficulties in paying their rents at present. We will send the report to the Government of the Hong Kong Special Administrative Region in July. I hope that the Government will face the real situation of the large number of grassroots in our community. The quality of their living has not been steadily improving as claimed by the Government. In fact, it just turns out to be the contrary. I have mentioned on a number of occasions during the sittings in this Chamber, and have raised my question to the Housing Department or the Secretary for Housing over and over again: Has there been a radical improvement in the living standard of the grassroots as a whole over the past few years so that it justifies a change in the Government's existing policy in respect of public housing rents? Is it easier for them to find jobs? Have their salaries been increased substantially? Have there been rapid improvements in their living standard? However, the answers to these questions seem to be in the negative. According to the findings of our survey, the income of the majority of PRH tenants is around $10,000 for a family of four. As for the poorer tenants who have difficulties in paying their rents, their income ranges from $7,000 to $8,000, which is lower than the Comprehensive Social Security Assistance payment. Why does this happen? In the process of structural transformation of the economy of Hong Kong, the wages of these unskilled workers with lower level of education have dropped over the past few years. Their chances to finding employment with higher income are minimal. On top of this, with soaring prices in the territory, we find that their situation is not what the Government estimates it to be. The Government expects that they are able to cope with the situation easily and not in need of Government assistance in terms of lower rents. Therefore, I think that the overall direction of the Bill and the amendments moved by the colleagues are 1434 LEGISLATIVE COUNCIL ─ 27 June 1997 desirable. However, since the FTU has all along been monitoring the problem, we consider the amendments proposed by Mr CHAN Kam-lam the most appropriate among others. Maintaining the present ceiling at 9%, the Government has set the MRIR at a little over 8%. It is my view that the MRIR should not exceed 10% and should be maintained at this level without any further increase. So, should the amendments proposed by Mr CHAN Kam-lam be passed today, the policy put forward by the Government which proposes to increase the MRIR of public housing estates to 15% or 18.5% should be abandoned. When lobbying us, the Government said, "Miss CHAN Yuen-han, this is not feasible." I do not understand why this is not feasible. As a matter of fact, the Government was increasing public housing rents in the past. It is the time for us to adopt a pragmatic approach. In my speech, as well as those of other colleagues, it is stated clearly that, up till today, the grassroots still need a government policy of low rents to help them through the difficult times. And if the Government approves of our views, it should be open-minded towards our amendments or the Bill. Mr President, the Government has always claimed that the rents collected are not sufficient to cover maintenance costs. Last year the Administration recorded a deficit of $6 billion. That is what the account shows on paper. However, if the Government is determined to help the grassroots improve their lives, just like what they were able to do in the past, it should find other means to achieve the goal. For instance, there are many shopping centres, car parks and other facilities in public housing estates. Although the operations of these facilities rely on the patronage of the tenants, rents from these facilities have not been included in the revenue of the estates. In my view, charges from these markets, shopping centres and car parks should be calculated as part of the revenue of public housing estates. I think there is no problem with such a calculation method, but the Government does not agree. Although I have mentioned several times in the sittings about the visits of the FTU to Shanghai and Shenzhen, I would like to inform Honourable colleagues that study missions to the abovementioned cities have been organized by the FTU with the purpose of finding solutions to the housing problem, the toughest problem in the territory. Later we will also visit Singapore. During our visits to Shanghai and Shenzhen, the responsible officers admitted to us that their housing programmes had been modelled on Hong Kong. Mr CHENG LEGISLATIVE COUNCIL ─ 27 June 1997 1435 Yiu-tong, the Executive Director of the FTU, Mr CHAN Wing-chan and I told them not to follow our example. Subsequently we found that they had learned from the operation of the Hong Kong programme, without copying the essence of our policy. Shanghai, for example, has adopted the principle of "serving the people". If the revenue from rents fails to meet the management expenses of the blocks, the Government will lend a helping hand in an approach similar to the assistance provided to the Land Development Corporation (LDC). When the LDC had difficulties in paying for the recent redevelopment programmes, the relevant planning department gave the LDC two great gifts (provision of funds) to solve the problem. As the Government has adopted the policy to help the LDC, why can it not extend the same policy to PRH? Let us study how Shanghai tackles the problem. When the revenue from rents collected from domestic units is insufficient to meet other expenses, rents from commercial facilities such as shopping centres, markets and car parks are allocated to pay the maintenance of the estates. In addition to that, 46% of the total revenue from the sale of public housing units is set aside for the maintenance fund. I consider the above policy sound and effective. The same policy is also adopted in Shenzhen. Similar to the approach adopted by the Hong Kong Government to help the LDC, the Shenzhen Government will dispose more land for the construction of more blocks when the revenue from rents is insufficient. In fact, I think Hong Kong itself has set a good example. So the Government should neither intimidate us nor advise tenants in private housing that PRH rents are low. I am most unhappy with such actions. It appears that instead of examining the difficulties encountered by PRH tenants and studying the questions raised by me, the Government is inciting tenants of private housing to oppose PRH tenants. Whenever there are proposals of rent increases put forward by the Housing Department, tenants will demonstrate with their families in order to express their discontent and anger in a vigorous manner in front of it headquarters. What are the reasons behind these demonstrations? The Government should review the problem and examine what has gone wrong with the policy of public housing rents. It should not assume that PRH tenants do not have any difficulties and can cope with ease, so they can be forced into paying higher rents. We advised Mr TUNG chee-hwa, our Chief Executive, and Mr LEUNG Chun-ying, the person responsible for reviewing future housing problems, that housing is like the shell for a snail. If tenants are unable to protect their "shells", they will be 1436 LEGISLATIVE COUNCIL ─ 27 June 1997 forced to go against the authority. If the basic need of housing demand is not satisfied, it will lead to turmoil in the community. I object to the tactics adopted earlier by certain people in treating government officials. But I think their actions have conveyed a clear message that if the Government is adamant with the assumption that PRH tenants can afford to pay higher rents, that they have become well-off, and that they are depriving the people in Hong Kong of their resources, it will have to pay a high price which may cause grave consequences in the territory. Mr President, I have just mentioned that the FTU supports the rationale behind Mr CHAN Kam-lam's proposal of an MRIR of 10%. With the recent completion of the interim report on the study of the public housing policy, we will follow-up with the study on the 32% tenants who have difficulties in paying their present rents. There will be follow-up actions on this issue. As for today's debate on the Member's Bill, we will support Mr CHAN Kam-lam's amendments. Thank you. MR EDWARD HO (in Cantonese): Mr President, among the three Members who have spoken just now, the Honourable LEE Wing-tat and the Honourable Frederick FUNG are surely experts in housing. The Honourable Miss CHAN Yuen-han is probably another expert as she knows a lot about grassroots issues. I had been a member of the Housing Authority (HA) for 10 years before I left it last year. However, during my service with the HA, instead of handling matters related to the determination of rents, I had mainly concentrated on the construction aspect of public rental housing (PRH) flats. I think we should look at the housing issue as a whole instead of just looking at the issue of public housing. What Hong Kong is facing is an overall housing problem in the territory. We have debated on the issue for a number of times in the Legislative Council. Insufficient supply of land and inadequate infrastructure have led to problems such as the shortage of PRH and excessively high property prices. Even the supply of PRH is insufficient to meet the demand. About 100 000 applicants registered on the General Waiting List are still waiting for the allocation of PRH units. So, it is quite certain that there is a housing problem in Hong Kong. LEGISLATIVE COUNCIL ─ 27 June 1997 1437 First of all, I would like to respond to Miss CHAN Yuen-han's comments which are still fresh in my memory. She has mentioned that there has been no improvement in the standard of living for the grassroots tenants of public housing. Her observation may not be accurate. In fact, the so-called grassroots should include people living in private housing. The grassroots of Hong Kong do not make up of PRH tenants only. Some of them are residing in extremely poor conditions such as the "caged homes". We should also include them in the comparison. In addition, there is a category whose income is above the income limit and is therefore ineligible for allocation of PRH. Since these people have to spend a higher percentage of their income on rents, the financial burden they have to bear is even heavier than that of PRH tenants. According to the findings of a survey, they could be spending 27% of their income on rents. And in some cases, they may have to spend as much as 40% of their income on this item. That is why I believe that the issue of rents should be examined from the perspective of the whole community. Some Members may argue that high rents are attributable to the Government's high land premium policy or the inadequacy of infrastructure, as mentioned by me earlier. While tenants of private housing are spending more on rents, it does not mean that PRH tenants have to pay more as well. Miss CHAN Yuen-han have just talked about the conditions in Shanghai and Shenzhen. But we all know that the social system of China is totally different from that of Hong Kong, resulting in a different approaches to tackle the issue of housing. Furthermore, income is an important factor. As the people in Mainland China earn much less than the people in Hong Kong, they would not be able to pay for the high rents. It is therefore inevitable for the Chinese Government to adopt a different policy to help its people solve the problem of housing. And they have found the solution in the supply of low-cost housing accommodations. As for Singapore, if we are to follow the example of this country, we will have to study its tax system as well. Not only is the rate of tax in Singapore higher than that of Hong Kong, every Singaporean has to contribute to the mandatory central provident fund. I know our colleagues from the democratic parties are against this policy. Yes, people in Singapore can borrow money from the central provident fund for purchasing public housing flats. If we just look at the housing aspect, we can say that everyone in Singapore is provided with housing accommodation, with many of them owning the flats they are living in. But there are many other problems in Singapore which we may not wish to 1438 LEGISLATIVE COUNCIL ─ 27 June 1997 have. And we may not wish to live in that country either. During the recent visit of Mr LEE Kuan Yew to Hong Kong, some people in the territory said that it would be nice if we could have Mr LEE become the Chief Executive. They believe Mr LEE has the ability to ensure political stability and a good living environment in the territory. I think many of our colleagues may not endorse this view. We have our own way of life and we would like to maintain it in future. So in learning from the experience of other countries, we have to take into account their circumstances as well. I suggest the Democratic Alliance for the Betterment of Hong Kong (DAB) to look further than China and Singapore and learn from the experience of western countries when they examine the issue of housing. There are many visitors from western countries in the gallery today. I do not know if there are any reporters among them. Public housing development in Hong Kong to date, in my opinion, has been a great achievement and is an example many foreign countries would like to follow. First of all, about half of our population is living in housing units subsidized by the Government. Although not all of these people are living in PRH flats - some of them are owners of Home Ownership Scheme (HOS) flats. The quality of PRH flats has been improving greatly over the years. In the beginning, public housing projects were only intended to provide people with basic accommodation, that is, just a roof to live under. Now many PRH flats are self-contained, with larger space and building quality comparable to private housing. While the Housing Authority (HA) has set a space allocation standard of about 5.5 sq m to 7 sq m per person, some households with several members are living in larger flats and may be enjoying a space allocation of up to 9 sq m per person. When compared to tenants of private housing, they are actually enjoying a much better living environment. That is why in examining the issue of PRH rents, we should not only consider whether rent increases for PRH are justifiable, but should also take into account the affordability of the tenants. I have to admit that this is not a scientific approach. The Administration has pointed out that the 10% ceiling proposed by some Members does not have a scientific basis. Similarly I consider the 15% figure set by the HA not scientific either. As far as I know, the median rent-to-income ratio (MRIR) of 15% has been arrived at by making comparison, that is by comparing rents paid by tenants of private housing and people in overseas countries and eventually working out this so-called reasonably affordable figure. LEGISLATIVE COUNCIL ─ 27 June 1997 1439 Besides, as the HA has not yet increased the rents to reach MRIR of 15% (current at 9% only), some members suggest that it should be capped at 10%. Maybe we can put it that way. Judging from its past operation, the HA obviously has tried to give an impression that it is not a harsh institution. Despite the fact that there is a system which gives it the discretion, it would not squeeze the last cent from the tenants. Therefore, is it necessary for us to make downward adjustment to the ceiling of rent increase, or should we peg it with inflation? The Liberal Party does not accept this policy on the grounds that we believe people who receive public subsidies should be those in genuine need. People who can afford to pay more should pay their share. This is the basis on which we formulate the policy for the well-off tenants. The so-called well-off tenants refer to those who own properties, or those whose assets have reached a certain level that justifies the payment of market rents. The Liberal Party is the only political party in the Legislative Council that supports a policy for well-off tenants. All other political parties are against it. But I think the policy is very fair. Why should we rely on Government subsidies if we are well off? Dependence on subsidies is incompatible with the mentality of the Chinese people. Believing in the values of self-sufficiency, the Chinese are reluctant to rely on Government subsidies all the time. It is this mentality which forms the foundation of achievement and holds the key to the success of Hong Kong. It also highlights the difference between the values of our community and western countries. Then we come to another issue. Just as I have mentioned before, the quality of PRH flats has greatly improved. As space allocation per person increases, many tenants are willing to pay higher rents for larger flats. If we worry whether tenants are able to spend a higher percentage of income on rents, and then we request the HA to review the need for constructing larger public housing flats in order to give tenants the option of living in smaller flats, or suggest that larger flats are not required in new estates, I strongly oppose to such a suggestion. When we build PRH, we are not aiming at providing accommodation for a short span of five or 10 years. We are hoping that after living in the estates for 10 to 20 years, tenants would still find the estates a good and satisfactory living environment. Therefore we should not compromise on the standards of public housing just for financial considerations. In other words, we should not deliver smaller flats to tenants so that they can pay less in rents. Of course, we are not constructing luxurious flats for people who are in 1440 LEGISLATIVE COUNCIL ─ 27 June 1997 need of subsidies. We have yet to reach this stage. In fact, we should not go this far. This is also a factor for consideration. Mr President, finally I would like to put forward some suggestions on the issue of public housing. Firstly, if we want to solve the housing problem of Hong Kong, we really need to implement investment programmes in infrastructure and land supply. This will not only benefit PRH tenants but also tenants of private housing. Secondly, we have been urging the HA and the Government to sell PRH flats at reasonable prices for some time. We are advocating that the prices of PRH flats should be calculated on the basis of construction costs plus interests. We believe this would eliminate the need for arguments about rent increases in future. If a person owns a property, he will have to be responsible for its management and maintenance costs since the flat will become his own asset. As his income and standard of living improve, he will be able to afford buying a private housing flat with large space and better quality, and then vacating his PRH flat for those who have more urgent needs. All in all, PRH flats are financed by public funds and subsidized by tax payers. So, such flats should be given to those in genuine need, and on top of that, such people should be provided with reasonable subsidies. MR CHAN KAM-LAM (in Cantonese): Mr President, the development of public housing in Hong Kong started in the 1950s, and the Hong Kong Housing Authority (HA) was established in 1973. The objective of public housing development was very clear at that time, namely, to solve the housing problem of the poor people, and to reduce the burden of their housing expenditure so as to improve the quality of their living. Unfortunately, since the establishment of the HA in 1973 up to the recent housing development trends, we feel that the Administration is deliberately making use of the rent policy to penalize the grassroots who have made some improvement to their own livelihood. The most obvious example is the Well-off Tenants Policy as well as the Long Term Housing Strategy Review Consultative Document (the Consultative Document). The document proposes to increase rents for public rental housing (PRH) drastically to achieve the median rent-to-income ratio (MRIR) of 15% to 18.5% in 10 years. The Administration claims that the rent for public housing should be increased progressively and better-off tenants should pay higher rents. On this point, we agree to a certain extent, but we think there are some problems in the implementation of the policy by the Administration. LEGISLATIVE COUNCIL ─ 27 June 1997 1441 Mr President, I agree with the opinion of the Government that PRH rents should be pegged with the affordability of the tenants. However, we think that such a relation should be set at a level which the people are able to afford and is reflecting the reasonable market rental values of the flats they are living in. This policy should not aim at squeezing all the money out of the people once the Administration finds that they have some improvement in their income. And what is more, it should not set a target of generating any specific amount of revenue for the HA through the collection of rents. Mr President, the Democratic Alliance for the Betterment of Hong Kong (DAB) is strongly opposed to the proposals stated in the Consultative Document, that is, to increase PRH rents to levels where the MRIRs reach 15% to 18.5% in 10 years, which was also strongly objected by the HA in a recent meeting. In addition, we are also very dissatisfied with the Government, which makes rent comparisons between PRH and private housing tenants. Why are the rents for private housing so high? This is absolutely a result of the high land premium policy of the Government. As most people cannot afford the high rents for private housing, the Government have to provide them with PRH. In addition, as there is a serious shortage of public housing, there are over a hundred thousand families on the Waiting List awaiting allocation of flats. These families have to spend 40% or more of their income on payment of rents. Taking a family of four as an example, if it meets the income limit of $14,700 and spends $7,000 on rent, there will be less than $2,000 left for use by each person on non-housing items per month. The Government has neither policy nor concrete measures to provide them with any rent subsidies. It even adopts private housing rents as the comparison criterion for determining PRH rents. We think this is absolutely unreasonable. The DAB thinks that the MRIR for the average PRH tenant should not exceed 10%. Recently, the Deputy Director of the Housing Department, Mr Marco Wu, strongly criticized through the press four Members of the Council who proposed amendments to the increase of PRH rents, and he had deliberately distorted their proposals. We deeply regret about this incident and hope that these are only personal opinions of Mr WU. What dissatisfies us most is his criticism of our proposal. He criticized our proposal to cap the MRIR at 10% as putting forward a random percentage. 1442 LEGISLATIVE COUNCIL ─ 27 June 1997 He also said that the Bill did not define how the MRIR should be set. Mr President, the use of MRIR for determining PRH rents was absolutely not my invention. It has been a criterion set by the Government and has been used for years. The major difference now is that the percentage I propose is not the same as the target percentage put forward by the Government. The Bills Committee has requested the Housing Branch or the Housing Department several times during the various meetings with the Administration to explain the method of calculating the MRIR, but the Administration has never provided any detailed information in this respect. Members had no choice but to specify in their amendments that the method of calculating the MRIR is to be decided by the HA. I think Mr WU's criticism on the Members is unfair. As to capping the MRIR at 10%, the figure was not randomly set by the Members either. Given that the average median income of a four-member family living in public housing is about $13,000, the average rent they pay should not be higher than $1,300. I think this figure is absolutely accurate. The Honourable Frederick FUNG just now also calculated with his own method the household incomes and standards of living of tenants living at private and public housing in great detail. Mr President, PRH tenants are on average paying rents at MRIRs of between 8% and 9%. The several recent rent increases, however, were not only higher than the inflation rates, for certain types of public housing, the increases were even higher than the nominal accumulated salary increase. With the completion of the redevelopment programmes of older estates as well as the construction of a large number of new estates, it is estimated that even if the current rate of rent increase is maintained all through the years, the MRIR for public housing will only increase further after 2006. Therefore, we believe that it is necessary to set a ceiling for MRIR now to avoid a sharp rise in rents going beyond the affordability of the tenants. In fact, the Bills Committee had repeatedly requested the Government to explain the basis of arriving at the 15% and 18.5% it proposed, but it failed to do so. If the Housing Department now criticizes the percentages proposed by the Members as random figures, it is just like the pot calling the kettle black. The Government stated recently that if Members succeed in restricting the rent increase of PRH by this Bill, the HA will suffer a $30 billion loss in revenue LEGISLATIVE COUNCIL ─ 27 June 1997 1443 over the next ten years, and it will affect PRH production. Mr President, I think there is still a very strong demand for public housing in Hong Kong. The Government saying this at a time when 150,000 families are waiting for allocation of public housing flats, contains, I would say, a threatening note. The Government has always said PRH is being run in a deficit, but with some calculation, we find that it is just a game of figures. According to the budget for the year of 1997-1998, the Domestic Operating Account for PRH did show a deficit of $1.78 billion, but the Non-Domestic Operating Account recorded a surplus of $2.44 billion. So, actually there is a net surplus of $5.8 billion in the budget for the year of 1997-1998. Mr President, if public housing is subsidized in nature, the rents collected by the HA should be set at a level affordable to the tenants. Naturally the HA should not rely on rents collected from PRH as its major source of revenue and funding for housing production. Instead, its major revenue should be derived from rents collected from commercial units and sale of HOS flats. I think the so-called large deficit of the HA is, to a large extent, due its mis-management and its poor cost control. The recent privatisation of housing estate management, for example, shows clearly that there is room for improvement in many aspects such as maintenance and management by HA. Mr President, finally, I would like to respond to the comments made by some officials. They said that even if the Legislative Council passed the amendments proposed by Members today, the decision on the final effective date would still rest with the Housing Branch, which may propose further amendments. I surely agree that the Government should possess this authority, but I feel that if it really acts this way, it will possibly lead to another major conflict between the Administration and the Legislature. Therefore, I really hope that the Housing Branch will accept good advice from this amendment and formulate a good policy for setting PRH rents. Mr President, with these remarks, I support the Bill. MR BRUCE LIU (in Cantonese): Mr President, I am a member of the Bills Committee. I had also introduced a Private Bill, which I subsequently decided to withdraw. I withdrew my Bill because both the Hong Kong Association for Democracy and People's Livelihood (ADPL) and I hope that the Legislative 1444 LEGISLATIVE COUNCIL ─ 27 June 1997 Council will adopt a rent increase mechanism which is in the interests of both the public housing tenants and the community as a whole. First of all, we have to understand that public housing, low-rent public housing in particular, serves a very important social function and bears a positive impact on the community as a whole. Since half of the population in Hong Kong is living in public rental housing (PRH) flats, the stabilizing effect generated by public housing on the community is thus very desirable. It enables Hong Kong to have a stable community. And it is under such a stable social environment that the business sector, various professions and other trades are able to contribute and invest, promoting the continuous growth of the community as a result. How do we achieve this stable community? It is built on the sense of security enjoyed by PRH tenants, who are the grassroots of the community. Although some of these tenants are classified by the Housing Department as well-off tenants, the majority of them belong to the grassroots. We do not have many social benefits in Hong Kong. While our medical services and the nine-year free education system that provides opportunities for everyone to receive education are said to be our best social benefits, public housing is the third on the list. It provides the grassroots of the community with "borrowed shells" under the policy of low rents. Though they do not own the flats in which they are living, the borrowed shells give them a sense of security and a warm home, sheltering them from the worry of basic housing needs, so that they can devote all their efforts to contributing to the community. No matter what difficulties they face in the world, once they return home, they can count on the borrowed shells to ease them of the worry of being left homeless. With the security of a home, they can devote their efforts and contribute to the continuous growth of Hong Kong. Thus, public housing serves an important social function and embodies a social power which should be treasured by the Government. Basing on this observation, we have been fighting for reasonable and low rents for PRH. It is not a question of fairness, but an issue of great importance to Hong Kong. While I do not wish to repeat the large number of figures the Honourable Frederick FUNG has just quoted, I would like to respond to the objections put forward by the Government to the Bill we moved and the amendments proposed by the three Members during the deliberations of the Bills Committee. The major rationale behind the objections raised by the Government is that LEGISLATIVE COUNCIL ─ 27 June 1997 1445 affordability should be adopted as the only criterion to determine whether rents are set at a reasonable level. No other factors should be considered. However, how is affordability calculated? It is measured by a reasonable percentage of the median rent-to-income ratio (MRIR). According to the Government, the most reasonable percentage is 15%. Let us look at the figures of the past. The ratio in question has been increased from the initial percentage of 4% to the current percentage of 8%. In fact, this MRIR of 8% has already caused much difficulties among PRH tenants. They complain that 8% is already on the high side as their disposable income after paying the rent is insufficient to meet other needs. It is clear that the MRIR set at 15% by the Government is arbitrary. Since the percentage set by the Government was 8% in the past, we have proposed the line to be drawn at 10%. It is true that 10% is arbitrary, but it has been fixed at a reasonable level in accordance with the percentage set by the Government. This is the first point. The second reason given by the Government is that with the implementation of the Bill, social resources will be wasted as they are used to subsidize public housing tenants only, and such social resources should not be used to subsidize those who are not in genuine need. But the Government already has other policies in place to solve the problem, such as the policies of double rent and means test, which ensure a fair allocation of resources, to be imposed on those who are not in need of subsidies. However, the subject of our debate today is the rent imposed on PRH tenants at large. The reason given by the Government is therefore unconvincing. As for the third point, the Government has all along insisted that there will be difficulties in the implementation of the Bill. Recently it has revealed to the media that, the Bill of the Honourable LEUNG Yiu-chung, if passed, will cause a lot of trouble because it is unenforceable. The Government has even advised that since the Bill is unenforceable, the commencement date will be deferred indefinitely, which would appear that there has never been such a legislation. We have in fact considered this situation as well. That is why we try to address the concern by proposing amendments with a view to amending the Bill to such an extent that it is workable and completely enforceable. Our amendments include the adoption of the calculation method of the MRIR implemented by the Housing Department, that is, the method all along used by the Administration. For instance, if the Administration considers that it is not necessary to conduct on a survey on the incomes of all PRH tenants, and that sample survey should 1446 LEGISLATIVE COUNCIL ─ 27 June 1997 suffice, we will accept this approach. This is our legislative intent which we have reiterated during our deliberations. The fourth reason put forward by the Administration is that there are many legally doubtful points in the Bill. It has listed four such points which I would like to address now. The first point suggests that the Bill has not clearly explained how it will comply with the legal provisions, such as the definitions of inflation and MRIR. Amendments of the Bill indicate that these will be defined according to the data collected by the Housing Authority (HA), that is, they will be "determined by the authority". With this provision, the problem is solved. Secondly, the Administration alleges that our proposal is in breach of section 4(4) of the Housing Ordinance, which stipulates that the policy of the Authority shall be directed to ensuring that the revenue accruing to it from the estates shall be sufficient to meet its recurrent expenditure on its estates. This means the HA must balance its budget and its revenue should not fall short of its expenditure due to our proposal. It fact, it is this provision which indicates clearly that the accumulative revenue of the HA must be able to meet its expenditure. And the revenue refers to the revenue from all estates. According to the Interpretation in the Ordinance, the HA is the owner of all units in the estates, including commercial units and the Home Ownership Scheme flats. The so-called accumulative revenue from the assets also include revenue from all these sources. Hence, it is clear that even if there is a deficit in the revenue from the rented units, the overall revenue of the HA will not be affected, since the HA itself has admitted that it has an enormous amount of surplus, which has been mentioned earlier. The third point raised by the Administration is that section 11 of the Housing Ordinance authorizes the HA to let land by virtue of a lease. With this provision, it is possible that the current proposals in the Bill may violate the contractual tenancy obligation. This argument can be easily refuted as section 16 of the Ordinance stipulates that the power to determine rents rests with the HA. All rents are to be determined by the HA. Will tenants challenge the power of the Administration to determine the level of rents? They may wish to express their discontent by petitioning, but definitely they will not waste any solicitor's fees on challenging the HA's power to determine rents in court. So the Government's argument is again unconvincing. LEGISLATIVE COUNCIL ─ 27 June 1997 1447 Finally, the Administration queries whether our proposal will have any effect on the HA in its implementation of other policies, such as the policies of double rents and market rents. During the scrutiny of the Bill, we had stated clearly that our legislative intent was that other existing policies would not be affected. We are only handling the issue of how rents should be determined. We do not wish to influence the policies of the double rents or the means test. Regarding the four legal challenges alleged by the Government, in fact we have already responded to each one of them during the deliberations of the Bills Committee. The lobbying letter only repeats these old points once again. I can only say that the Government is really very redundant in repeating itself, so I have to take the trouble of spending a few minutes to refute the points one by one. These are my supplementary remarks. Thank you, Mr President. SECRETARY FOR HOUSING (in Cantonese): Mr President, as the enactment of any legislation could have a far-reaching effect on society, we ought to be extremely careful in studying whether the legislation in question is fair, desirable and feasible. Unfortunately, the Housing (Amendment) (No. 3) Bill 1996 proposed by the Honourable LEUNG Yiu-chung and the subsequent amendments proposed by three other Members obviously go against the principle of fair and reasonable distribution of resources in our society and will bring about many negative legislative and financial impacts. The Bills Committee has identified a number of critical problems during its scrutiny of the Bill. All of them remain to be further studied and resolved. However, some Members have insisted that this Bill be put to the vote in the Legislative Council Meeting today. The Government strongly opposes such a move and I earnestly urge Members to be extremely cautious when casting their votes and to take the responsibilities expected of them as legislators and carefully consider the fairness and credibility of the Bill. It will be a grave mistake to rush through a bill which will have serious consequences. The position of the Government is very clear. We are firmly against this Bill and all the relevant amendments to it on the principle of fairness and enforcement considerations. I must point out that the Bill and the proposed amendments have made three fundamental mistakes in concepts. The first one 1448 LEGISLATIVE COUNCIL ─ 27 June 1997 is the proposal that the rate of the increase in rent be restricted to no more than that of inflation. This proposal is unreasonable in three aspects. Firstly, tenants' affordability is linked with their family income instead of inflation. This is clearly known to many economists. It is also common knowledge to the general public. Secondly, some Members proposed to peg the rent with inflation through legislation in the belief that the rate of inflation can reflect the affordability of public housing tenants. During the time of high inflation, however, family income may not necessarily increase at a corresponding rate and very often it may increase at a rate lower than that of inflation. If the Housing Authority adjusts the rent in accordance with the spirit of those Members' proposals, that is, the increase in rent is kept in line with inflation, is this very unfair to public housing tenants? I stress this is the spirit of those Members' proposals. Finally, if legislation is made to provide that the Housing Authority (HA) must use the rate of inflation as the only criterion in setting rents, the HA will not be able to take into account other factors, such as the location of the housing estate in question, its age, facilities and so on, when setting the rate of increase in rent for individual housing estates. This indiscriminate use of inflation rate as the only criterion for rent increase is extremely unfair to some tenants. The second mistake is the restriction on the rate of increase in rent by limiting the median rent to income ratio (MRIR) to no more than 10%. Members use this percentage simply because it is close to the current ratio. This has clearly proved that this percentage has been set at random regardless of those families which are in genuine need of assistance. Many years ago, the HA came up with the 15% or 18.5% MRIR ceiling by drawing reference to the figure (that is, 13%) of households living in public housing and taking into account the expenditure pattern of households living in private housing. At that time, housing expenditure accounted for about a quarter of total expenditure for households living in private housing. However, the percentage has since then risen to 37% or 40%. Why do Members of this Council buck the trend by proposing to lower the MRIR of households living in public housing to 10%? We do not have the slightest idea as to why they have come up with such a proposal. LEGISLATIVE COUNCIL ─ 27 June 1997 1449 The third mistake is the proposal for restricting the rate of increase in rent to no more than the inflation rate and reducing it by 2% each year thereafter, or a total reduction of 4% in two years. Based on a three-year period, the total reduction will be 6%. Such a proposal is illogical and groundless. Moreover, some Members proposed that rent review should be conducted once every three years. Such a proposal, when compared to the current policy of reviewing the rent once every two years, brings no special benefits to either the tenants or the Housing Authority. Nor is it necessary. One of the reasons is that the present policy of reviewing the rent once every two years has been implemented for over 20 years and public housing tenants have become accustomed to this policy and accepted such an arrangement. What is more, if rent-adjustment is made once every three years, one can image that the accumulated rate of increase must be higher than that of a biennial adjustment. Some tenants will find it more difficult to get used to it. In fact, when compared with the current rent-adjustment policy, such a proposal will make life more difficult for tenants. Apart from the various problems which I have identified comprehensively in connection with the Bill and the relevant amendments, and its various defects on grounds of principle, the implementation of the Bill and the relevant amendments will create more serious difficulties and undesirable consequences. First, I will talk about the financial aspects. The domestic operating account of the HA is an independent account and has been running at a deficit. Even if the current rent-adjustment mechanism continues to be used, the HA expects that the total deficit will be about $6 billion within a five-year period from 1996 to 2001. If the rate of increase in rent is restricted to no more than that of inflation, or if the rate is restricted to 2% below inflation, or if the MRIR ceiling is arbitrarily set at 10%, all these three courses of action will cause the HA to suffer more financial losses. In view of the increasing expenditure of the HA on public housing construction and maintenance, the problem will soon come to light. It will not be able to maintain the quality of management and service at current levels by then, let alone improving the service or meeting various and higher expectations from tenants. I believe that some Members will remember the saying of "You cannot expect a horse to run fast without feeding him well," which I believe a few Members from the Democratic Party have made mention of and some other Members have also used this saying at meetings during the past few days. 1450 LEGISLATIVE COUNCIL ─ 27 June 1997 Secondly, the Bill also poses practical difficulties. Members only proposed to set a statutory median rent to income ratio ceiling but have not come up with any legislative proposals to define how to comply with such a statutory provision. It is a very difficult task to accurately assess the family income of individual public housing tenants and I believe that all of us realize the difficulties involved. The HA will have to allocate substantial resources to carry out in-depth survey of individual households and, at the same time, require every family to provide accurate information about their income at least three times every year. Why three times are needed every year? It is because the HA is currently responsible for the management of more than 660 000 public housing units and it has divided all housing estates into seven groups to carry out such a survey once every two years. Based on an average two-year period, at least three or four surveys are required every year. Every time when the MRIR is needed, the HA will have to carry out such a survey. In other words, it will have to formally carry out seven surveys of the family income of households living in public housing in a two-year period, or at least three times every year. If this is the case, I would like to ask every Member whether they think public housing tenants will welcome their proposal or prefer them to force the HA to implement their proposal? Is this not an unnecessary harassment to the tenants? I believe that the question about the public being subject to harassment is a favourite topic for many Members, but what they are proposing is a genuine harassment to the people. This may not be their original intention, but to be honest, if the HA really implement this proposal and thus arousing widespread discontent among the public, will those Members who today are in favour of this Bill and the relevant amendments stand up and take the responsibility by telling public housing tenants that the HA is required by the legislation which they have passed to harass them frequently and ask for information about their income? Mr President, the third question concerns a legal point of view. The Bill and the relevant amendments will lead to many problems that are prone to legal proceedings or litigation's. What I say is based on three reasons. Firstly, when the MRIR becomes a statutory provision for the HA to follow while the legislation itself does not define how the Authority should comply with the provision, there is bound to be ambiguity. How can this be resolved? Will there be many disputes or lawsuits? LEGISLATIVE COUNCIL ─ 27 June 1997 1451 Secondly, Members insisted that inflation rate or the MRIR should be used to restrict the increase in rent while no amendment is made to section 4(4) of the Housing Ordinance, which requires the HA to direct its policy to ensure that the revenue from its housing estates is sufficient to meet its recurrent expenditure. Some Members think that the revenue should include all income from commercial operations and the sale of Home Ownership Scheme flats. There are bound to be different legal opinions about this. We are of the view that if section 4(4) of the Housing Ordinance is inconsistent and incompatible in spirit with the future amended version of section 16, the HA will be at a loss as to what it should follow. The third reason is that the purpose of the rental policy for better-off tenants adopted by the HA is to ensure a fairer and more reasonable distribution of public housing resources. This policy has been implemented for more than one year and has been widely accepted and recognized in the community. The current legislative proposals by some Members to restrict the rate of increase in the rent of public housing estates lack flexibility and will in the future seriously affect the implementation of the rental policy for better-off tenants. Furthermore, I would like to respond to the questions raised by the Honourable Miss CHAN Yuen-han and other Members concerning less well-off tenants. If we really want to help these people get over their difficulties, we should turn to the Rent Assistance Scheme operated by the HA. Under the scheme, qualified households can apply for a reduction of up to 50% in rent, which is quite a significant amount and will bring considerable relief to them. The other option is the Comprehensive Social Security Assistance Scheme operated by the Social Welfare Department. We should not tackle the problem by turning to the overall operation and the level of rent. Mr President, in conclusion, both the Bill and the relevant amendments are inconsistent with the principle of fairness and will also harm the interests of the public. They will subject public housing tenants to harassment and will also pose various difficulties and potential worries to the HA. I want to reiterate that the Bills Committee has not completed the scrutiny of the Bill and the relevant problems have not been thoroughly considered and they remain to be solved. But much to my regret, Members have decided against holding any more meetings and given the impression that the work has been completed. Therefore, I appeal to every Member to vote against this Bill and the relevant amendments. I repeat that I oppose this Bill and the relevant amendments. 1452 LEGISLATIVE COUNCIL ─ 27 June 1997 Thank you, Mr President. MR LEUNG YIU-CHUNG (in Cantonese): Mr President, first of all, I would like to thank the six Members who have spoken on the Bill. In the course of deliberations of the Bills Committee, I was very surprised to find that three colleagues have proposed three separate sets of amendments to the Bill introduced by me earlier on. At first, I thought they were opposing my proposal. But it was not the case. They are all heading towards the same direction and endeavouring to improve on the current Bill in order to make it better and more comprehensive. I hope it is clear to the Secretary for Housing that various political parties and groups are all working on my Bill with a view to perfecting it. Perhaps this has never occurred to the Secretary for Housing, and this is an indication that the entire system of increasing rent is not good enough. If this were not the case, the various political parties would not have put forward their views all on this subject. This is the first point that the Secretary for Housing has failed to realise. Secondly, the Secretary said that the Bills Committee had not continued with the meetings. In fact, I want to tell him that his colleagues failed to provide new information for our discussion during the meetings of the Bills Committee. They were repeating the same arguments all the time. Similarly, in delivering his speech a moment ago, the Secretary for Housing has failed to listen to the views of the Honourable Bruce LIU, Frederick FUNG, LEE Wing-tat and CHAN Kam-lam. He did not listen to our views, just like what his colleagues had done during meetings of the Bills Committee. So, we asked ourselves why we should hold any further meetings. Since the Administration did not listen to our views and just repeated theirs all the time, we did not want to waste any more public funds or the time and effort of the civil servants. That is why we thought further meetings were meaningless. However, when we said we did not want to hold any further meetings, it did not mean that we had refused to hold meetings. We said we did not want to hold any further meetings only after we had held many meetings with the Administration. I hope the Secretary for Housing could understand this. Besides, one incident gave me a deeply regret. It was what the Secretary for Housing said in the press release issued on the 26 June. It would have been acceptable to me if the Administration had really discussed the merits of their case and deliberated on the feasibility of the Bill. But unfortunately, what the LEGISLATIVE COUNCIL ─ 27 June 1997 1453 Secretary for Housing said has caused much concern among us. It seems that Hong Kong will be entering another dark age. Why do I say so? The Secretary stated that if the Bill was enacted, he would try to use his authority to delay the commencement date of the Bill when there were difficulties in its implementation. Obviously, he is hoping to make use of the Provisional Legislative Council to amend or repeal the legislation passed by the present Legislative Council in order to prevent its implementation. I have originally intended to denounce the move as "backward". However, as we have used "backward" too often, it does not carry any significant meaning now because it does not reflect the real issue of the situation. In fact, the situation leads us to think that there is the possibility that legislation passed by the present elected Council can be reversed by the Administration. By exercising its authority or using its relationship with the future Provisional Legislative Council, it can bring about a great change to what we have achieved through our previous efforts. Such a change could make all our efforts go down the drain ─ a course of action that would make us feel that it is plunging us into a dark age, instead of allowing us to handle the problem in a pragmatic manner. Hence, I am very dissatisfied with this. Mr President, I wonder if the Secretary for Housing would like to clarify on this. PRESIDENT (in Cantonese): Point of Order? If so, please stand up to speak. SECRETARY FOR HOUSING (in Cantonese): Mr President, I would like to seek your approval to raise a question. PRESIDENT (in Cantonese): Questions concerning a point of order should not be put to a Member. Instead, if a Member breaches a rule or if there is a fire, this is a question concerning a point of order. SECRETARY FOR HOUSING (in Cantonese): Mr LEUNG just now mentioned some remarks which he said were made by me on the 26. This is not true at all. I think it is contrary to the fact. 1454 LEGISLATIVE COUNCIL ─ 27 June 1997 PRESIDENT (in Cantonese): You can seek clarification at the end instead of raising a question concerning a point of order. If he uses foul language, that will be a question concerning a point of order. Mr LEUNG, please move on. MR LEUNG YIU-CHUNG (in Cantonese): Thank you, Mr President. I was not talking nonsense. What I said was based on a report of a newspaper, the name of which I do not want to disclose. Yet, it did report clearly on 26 June the remarks made by the Secretary for Housing. I do not want to waste any more time on this issue. Six Members have already given their speeches and five of them explain how unsound the existing rent system is from different points of view. They also explained from different points of view how feasible our Bill and the Committee stage amendments are if they are implemented. Everything was stated clearly and in great detail. However, the Secretary, like what his colleagues did in the Bills Committee meetings, only has his own approach in mind and does not listen to our opinions. As we do not speak the same language, there can never be any consensus. Mr Frederick FUNG has just quoted a lot of data in support of his viewpoint, but the Secretary has not been able to respond to his queries. Our legal expert, Mr Bruce LIU, has also explained from a legal point of view but the Secretary does not listen to him either and only reiterates his previous views. This is especially so when we come to the issue of section 4(4). We have already told the Secretary many times in the Bills Committee meetings that, in spite of the fact that section 4(4) stipulates that the Housing Department should be responsible for ensuring a balance of revenue and expenditure, we have reiterated many times to him that the Housing Department or the government department concerned is just required to do it best to meet this target. If this target is not met, the department will not be regarded as having violated the law. I do not know whether the Housing Department has consulted any legal advisers, but we have already done so and said many times that it is not illegal even if you cannot meet the target as long as you have done your best. This viewpoint was conveyed in the Bills Committee time and again, but the Administration did not accept our opinion. There is really nothing more we can say. LEGISLATIVE COUNCIL ─ 27 June 1997 1455 Actually, today we are debating on the issue of how to determine the level of rents. This is very important and that is why we keep debating on it. But right at the very beginning, the Secretary has said that it is only reasonable and fair for rents to be determined on the basis of the tenants' affordability. I wish to ask the Secretary, will it be absolutely reasonable and fair if rents are really determined on the basis of affordability? Can he let us know his rationale for this? I have been listening to him making his speech for about 20 minutes but he did not explain at all why it will be reasonable and fair if rents are determined on the basis of affordability. He does not explain but only says that the Administration would determine the level of rents on the basis of affordability and that it is unreasonable to peg rents with inflation. But he never explains why the principle of affordability is definitely reasonable. This is a point I doubt very much. Of course, we may not be able to identify a perfect approach, but I do not think the principle of affordability is the uniquely perfect, fair and impartial way. In fact, even if we implement the rent policy by adopting the principle of affordability as what he has said, there is still a possibility that the Housing Authority will incur a deficit, especially in the expenditure on public rental housing (PRH) estates. If that happens, what are we going to do? Will the Secretary allow such a deficit to exist on a permanent basis? Therefore, please do not say that our approach will generate a deficit. The direction the Administration is moving towards, that is the adoption of the principle of affordability as a criterion, may also lead to a huge deficit, just as what the Secretary has mentioned a moment ago. Therefore, he should not have told us that determining rents on the basis of affordability is the fairest and most reasonable or the best operating method as there is no strong supporting argument for this. I do not know whether the Secretary has asked himself why there should be such a huge deficit when he keeps saying that it is likely that a huge deficit will be incurred. Mr LEE Wing-tat pointed out clearly that the current deficit was actually caused by two major factors: management and maintenance. Mr Lee has said that the performance of the Housing Department in maintenance and management has been really disappointing. He has already quoted some 1456 LEGISLATIVE COUNCIL ─ 27 June 1997 examples, so I do not want to quote more. Regarding the maintenance issue, I wish to add some points to Mr LEE's remarks, as he has not explained this point in detail. What the Administration disappointed me most in maintenance and I believe a lot of you who attend this meeting still remember, are the 26 problematic PRH blocks. They reflect the inadequacy of the Housing Department and the government in supervising the contractors in constructing the housing estates in the 1970s, which led to 'substandard blocks', the result of jerry-building practices. Some buildings constructed in the 1970s still require a lot of costly maintenance now. Why should tenants bear this kind of consequences? I wish to tell the Secretary that this is not normal wear-and-tear nor damages caused by the tenants; they are the consequences of inadequate supervision by the Administration at the construction stage. To our surprise, he wishes the tenants to bear the consequences of this kind of deficits. I believe that we will never regard such practices as reasonable! Moreover, a lot of tenants always complain about management issues. I believe the Secretary must have conducted some inspection visits to the housing estates. However, as all the staff concerned knew about his visit in advance, they all acted as if they were working busily and industriously. But he may ask the tenants about the normal attitude of the management staff, then he would know the true picture. The Administration actually wasted a lot of human and other resources in the whole operation. The Secretary once told me that he thought that there were a lot of problems with the current management method of the HA which require improvement. But he also said that despite this, rent increase restriction should not be used to force the Administration to make improvement. However, I hold opposite views. It was actually the Administration which made us think of using the rent increase restriction as a weapon. The Housing Department does not know how to make the best use of the money it gets or has used it improperly. That is why I think we cannot go on like this. We must find a way to impose restrictions on the Administration in order to stop it from spending money unwisely. On the other hand, the Secretary has just said that the different accounts should be financially independent. If we look at the expenditure on estates, there is a huge deficit. But I think as the society nowadays is becoming diversified and the scope of management of the HA is no exception. It does not just manage PRH estates but also commercial units and Home Ownership Scheme (HOS) flats and so on. If this is the case, why should there be separate LEGISLATIVE COUNCIL ─ 27 June 1997 1457 accounts? Why can we not regard the accounts as a whole? A lot of my colleagues have just pointed out that there is a huge surplus which we do not know how to make use of. The Administration has even commissioned a consultant to help it study how to spend this money so as to avoid wastage. This is a fact. I have not got it wrong. This is a fact repeatedly conveyed to us by press reports. I think if we have a large surplus, we should identify another rent system. We should not just say, "let us base our rents on affordability" and stop at that. I think the most important thing is how to make the overall operations of the Housing Authority or the Housing Department more efficient and to identify a better operating method for their actual expenditure. The Bill we propose today covers two parts. One is on inflation and the other is the cap of MRIR for PRH rents. Pegging rent increases with inflation is a very good approach indeed. We do not mean to stop the Administration from increasing rents. We just hope that the extent of the increase can be kept at a reasonable level so that the tenants can cope with it. To make it simple, if everything worked smoothly the previous year and there was no problem with the operation of the last rent increase, we can take account of the rate of inflation and then we can use it as an indicator for the next rent increase. In this way the problem is solved. However, the Secretary says that adopting the rate of inflation as the indicator will not address many actual problems. For example, factors such as the facilities and locations of the buildings cannot be reflected when the rents are determined. He therefore says this approach is not fair and unreasonable. I hope that the Secretary can take a good look at the Bill. What we propose is to cap rent increases at the rate of inflation, which does not mean that every rent increase has to reach this maximum point. Instead, it means there can be several ranges below this ceiling which may vary according to the districts and facilities. In this respect, we can also satisfy the Administration's requirements. Mr President, I do not think we have not given careful consideration to the Bill we are proposing now. The Secretary accuses us of proposing a Bill which is a totally non-feasible, undesirable, unfair and unreasonable way of allocating resources without giving careful consideration to it. In fact, contrary to what he has said, we, consisting of several organizations, have all given careful 1458 LEGISLATIVE COUNCIL ─ 27 June 1997 consideration to the Bill and are of the opinion that it is a feasible, desirable, fair and reasonable way of allocating resources. Mr President, finally, I would like to discuss the triennial rent review. Why we propose three years? The Secretary always says that the current biennial review has been working well and if the triennial rent review is adopted, the accumulated increases in each revision exercise will be larger. The Secretary has this concept because there is a constant belief on his mind, that is, the current method of rent increase will continue to be used. If so, the extent of the rent increase after three years must be very substantial. But in the triennial rent review proposed by us, the current method of rent increase is not to be used again. Instead, if the approach proposed by us is adopted, the extent of the increase will not be too high and the tenants will not find the change too substantial and sudden for them to bear. We actually did the calculation ourselves, so we hope the Secretary will not criticise this. The logic is simple. We now quote a random example. Usually the annual inflation is around 8%. The accumulated inflation for three years will be around 24%. This means that the maximum rent increase will only be 24%. But the average rent increase under the current biennial rent review cycle is already slightly higher than 24%. In other words, even if the triennial rent increase cycle is implemented as suggested by us, the increase will only be as much as the average increase under the biennial review. Furthermore, my calculation was based on the maximum increase. In reality, the actual increase can be lower. Therefore, why will tenants find it difficult to accept? I think the Secretary should consider carefully all the details of our Bill and should not just extract a certain part from it and apply it to the current system. If he really did so, a lot of problems would arise, rendering the system difficult to implement. Mr President, these are my remarks. PRESIDENT (in Cantonese): Secretary for Housing, you wish to clarify that you have in act never made the remark he said you had made. Therefore, you are asking him to clarify on what basis he made such a remark. SECRETARY FOR HOUSING (in Cantonese): Mr President, the Honourable LEUNG Yiu-Chung has just accused me wrongly. He says on 26 June, I ...... LEGISLATIVE COUNCIL ─ 27 June 1997 1459 PRESIDENT (in Cantonese): Secretary for Housing, you may only ask for clarification. You cannot take this opportunity to make a speech. SECRETARY FOR HOUSING (in Cantonese): Mr President, I request that Mr LEUNG Yiu-Chung make a clarification. He said the Secretary for Housing had mentioned on 26 June that even if the legislation was passed, he might choose not to implement it or repeal it. I would like to ask Mr LEUNG to tell us when and where the Secretary had said this, basing on all the information he has. MR LEUNG YIU-CHUNG (in Cantonese): I read this from a newspaper. If the press report was inaccurate, there is nothing I can do. If the Secretary said he had not said this, it does not matter. Maybe it was just a mistake made by the newspaper. PRESIDENT (in Cantonese): Under such circumstances, I would like to ask you which newspaper it was. MR LEUNG YIU-CHUNG (in Cantonese): The Apple Daily. The Government was reported to have warned that even if the legislation restricting the rent increase of PRH estates was passed, there would be difficulties in implementing it, or the Government might repeal it. PRESIDENT (in Cantonese): Mr CHIM Pui-Chung. MR CHIM PUI-CHUNG (in Cantonese): The Honourable SZETO Wah has mentioned that most of us, Legislative Councillors, are very firm with our stances, and that our voting decisions will not be changed by the speeches of other councillors. 1460 LEGISLATIVE COUNCIL ─ 27 June 1997 PRESIDENT (in Cantonese): Mr CHIM Pui-chung, it is not the time for you to speak (Laughter), as now we have come to the time for the mover to make the reply. I thought you were rising to a point of order. I am sorry. MR CHIM PUI-CHUNG (in Cantonese): My personal view is, be it the time for the reply or some other situations, I ...... PRESIDENT (in Cantonese): The time for the reply is over. There should be no more speeches made by Members. I now put the question to you. MR SZETO WAH (in Cantonese): Will the remarks just made by the Honourable CHIM Pui-chung be included in the Official Record of Proceedings of the Sitting? PRESIDENT (in Cantonese): Mr SZETO Wah, let us forget it. He has just spoken a few words. MR SZETO WAH (in Cantonese): If they will be included in the Official Record, I would like to ask him to clarify at what exact time and date I made that remark, or in which newspaper he had read a report on that remark. (Laughter) Question on the Second Reading of the Bill put. Voice vote taken. PRESIDENT (in Cantonese): Council shall proceed to a division. LEGISLATIVE COUNCIL ─ 27 June 1997 1461 PRESIDENT (in Cantonese): I would like to remind Members that when the division bell rings, it is still meeting time. So I hope you would behave yourselves even if you are chatting. Now, I would like to remind Members that they are now called upon to vote on the question that the HOUSING (AMENDMENT) (NO. 3) BILL 1996 be read the Second time. Will Members please register your presence by pressing the top button and then proceed to vote by choosing one of the three buttons below? PRESIDENT (in Cantonese) : Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed. Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Miss Christine LOH, Mr LEE Cheuk-yan, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr Andrew CHENG, Mr CHENG Yiu-tong, Dr Anthony CHEUNG, Mr Albert HO, Mr IP Kwok-him, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEE Kai-ming, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Mr NGAN Kam-chuen, Mr SIN Chung-kai, Mr TSANG Kin-shing, Dr John TSE, Mrs Elizabeth WONG and Mr YUM Sin-ling voted for the motion. Mr Allen LEE, Mrs Selina CHOW, Mr NGAI Shiu-kit, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Mr CHIM Pui-chung, Mr Eric LI, Dr Philip WONG, Mr Howard YOUNG, Mr James TIEN, Mr Paul CHENG, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr Ambrose LAU, Mr LO Suk-ching and Miss Margaret NG voted against the motion. Dr LEONG Che-hung abstained. THE PRESIDENT announced that there were 36 votes in favour of the motion and 18 votes against it. He therefore declared that the motion was carried. 1462 LEGISLATIVE COUNCIL ─ 27 June 1997 Bill read the Second time. Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1). Committee stage of Bill Council went into Committee. HOUSING (AMENDMENT) (NO. 3) BILL 1996 Clause 1 MR LEUNG YIU-CHUNG (in Cantonese): Mr Chairman, I move that Clause 1 be amended by the addition of the Chinese text as set out in the paper circularized to Members. Mr Chairman, Clause 1 of the Bill tabled by me today is to specify the commencement of the Bill. I hope Members will support and pass the Bill. Proposed amendment Clause 1 (see Annex XXVI) CHAIRMAN (in Cantonese): Clause 1 is about the commencement of the Bill, but what do you wish to amend? Is it the Chinese text that you wish to amend? SECRETARY FOR HOUSING (in Cantonese): Mr President, I would like to reiterate the Government's position. As the Chinese version will be added, which is tantamount to adding the spirit of the entire Bill, I therefore want to reiterate the Government's position that we strongly oppose the Bill and all the relevant amendments on the principle of fairness and enforcement considerations. I beg all Members to vote against the Bill and the relevant amendments. LEGISLATIVE COUNCIL ─ 27 June 1997 1463 MR FREDERICK FUNG (in Cantonese): We are now discussing the question about the Chinese version, are we not? It seems to me that the Secretary for Housing is not speaking on the Chinese version. SECRETARY FOR HOUSING (in Cantonese): Yes. I am raising a question about the Chinese version. CHAIRMAN (in Cantonese): Mr FUNG, you have mastered the rules for answering questions. (Laughter) CHAIRMAN (in Cantonese): Secretary for Housing, when I mentioned the Chinese version just now, my intention was to invite you to speak on this subject, which is the Chinese version, but you have spoken on the entire Bill. A few words are not a big deal, though. MR MARTIN LEE (in Cantonese): Mr Chairman, if we can speak Chinese on the English text, we may speak English on the Chinese text as well. CHAIRMAN: I think I had better conduct the rest of the business in English? Question on the amendment put and agreed to. Question on clause 1, as amended, put and agreed to. Clause 2 1464 LEGISLATIVE COUNCIL ─ 27 June 1997 CHAIRMAN: Mr LEE Wing-tat, Mr CHAN Kam-lam and Mr Bruce LIU have separately given notices to move amendments to the proposed section 16(1A)(a) in clause 2. I propose that the amendments to the proposed section 16(1A)(a) in clause 2, proposed separately by Mr LEE Wing-tat, Mr CHAN Kam-lam and Mr Bruce LIU, be debated together in a joint debate. CHAIRMAN: Committee shall debate the amendments, proposed separately by Mr LEE Wing-tat, Mr CHAN Kam-lam and Mr Bruce LIU, in a joint debate. I will first call upon Mr LEE Wing-tat to move his amendment by virtue of his seniority. MR LEE WING-TAT (in Cantonese): Mr Chairman, I move that section 16 (1A)(a) under clause 2 be amended as set out in the paper circularized to Members. The amendment involves the rent increase cycle. In fact, this amendment is a technical amendment to the proposal of the Honourable LEUNG Yiu-chung. Mr LEUNG put forward a proposal to increase rent once every three years when he spoke just a while ago. I agree that this proposal will give tenants a longer break between two rent increase exercises. In addition to that, I would like to supplement my proposal by drawing your attention to the fact that rents may have been substantially increased for those tenants who have moved to newly constructed estates or old estates that have undergone redevelopment. The rents may be increased from $700 - $800 for units in old estates to $2,500 - $3,000 for units in new estates. If the interval between two rent increase exercises can be extended to a longer period, they will be given sufficient time for adapting to the rent increases. Thank you, Mr Chairman. Proposed amendment Clause 2 (see Annex XXVI) LEGISLATIVE COUNCIL ─ 27 June 1997 1465 CHAIRMAN: I will call upon Mr CHAN Kam-lam first to speak on Mr LEE Wing-tat's motion and his own amendment, as well as the amendment proposed by Mr Bruce LIU. After Mr CHAN Kam-lam has spoken, I will call upon Mr Bruce LIU to speak. However, no motion may be moved by Mr CHAN Kam-lam or Mr Bruce LIU at this stage. MR CHAN KAM-LAM (in Cantonese): Mr President, I think there are major problems with the proposals contained in the amendments moved respectively by the Honourable LEUNG Yiu-chung and the Honourable LEE Wing-tat. They consider that the rent review cycle of public housing tenants should be the same as that of commercial tenants, that is, a triennial rent review cycle, so that tenants may have a longer adaptation period which would relieve them of the pressure from rent increases. In my opinion, a triennial rent increase would not bring about a relief period for tenants. Instead, it would exert greater pressure on them at every rent increase exercise. Take a rent of $2,400 as an example, with a triennial rent increase, the amount increased could be quite large, probably as much as $800 to $1,000. Hence, I think such a practice will only subject tenants to greater pressure at every rent increase. On the other hand, tenants who have just moved to new estates may have to face enormous pressure as well as large increases at every rent increase. I hope our colleagues will understand that, be it triennial or biennial rent increase, the total amount of rent increases, when added together, is almost the same. Furthermore, the current practice of biennial review has been in place for a long time to such an extent that all the parties have got accustomed to it. If the practice is changed from a biennial to a triennial review, tenants may not necessarily be able to get any benefit from it. I hope that Members will object to the amendments proposed by MR LEUNG Yiu-chung and Mr LEE Wing-tat. Thank you. 1466 LEGISLATIVE COUNCIL ─ 27 June 1997 MR BRUCE LIU (in Cantonese): Mr Chairman, my views have been expressed by Mr CHAN Kam-lam just now. There is nothing I would like to add at the moment. CHAIRMAN: Members may now debate the amendment moved by Mr LEE Wing-tat as well as the respective amendments proposed by Mr CHAN Kam-lam and Mr Bruce LIU. Secretary for Housing, do you wish to speak? This is the meat of the entire Bill, only two clauses. SECRETARY FOR HOUSING (in Cantonese): Mr Chairman, under normal circumstances, the rent of public housing is currently reviewed once every two years. As I said during the Second Reading debate, this arrangement has been implemented for more than 20 years and proved effective. The review will gradually adjust the rent to a level which is both realistic and affordable for public housing tenants. I would like to reiterate that some Members' proposal for at least a three-year rent review cycle is unnecessary for tenants and the Housing Authority alike. This is because tenants have already accepted and adapted to the two-year rent review cycle. The cumulative increase of a three-year rent review cycle will be bigger than that under a two-year cycle, which will be more difficult for some tenants to adapt to. Therefore, the Government opposes the relevant amendments. I also urge Members to vote against those amendments. Thank you, Mr Chairman. MR LEUNG YIU-CHUNG (in Cantonese): Mr Chairman, as I have mentioned a moment ago, it all depends on the calculation method to be adopted. If the method of calculation we proposed is adopted, the level of rent will not be too high. It will be within the affordability of tenants. In addition to that, I would like to provide some information. Some of the commercial tenants of the Housing Authority are currently under the practice of a triennial rent review. So we are only asking the Housing Authority to bring the rent review system of LEGISLATIVE COUNCIL ─ 27 June 1997 1467 residential tenants in line with that for commercial tenants, so that there will only be one system, instead of two, under the Housing Authority. I hope Members will support this proposal for a triennial rent review. MR FREDERICK FUNG (in Cantonese): Mr Chairman, in both the response given by the Secretary just now and the letter distributed to us by the Deputy Director, it was mentioned that if rent increases were calculated on the basis of a median rent-to-income ratio (MRIR) of 10%, income surveys of tenants would have to be conducted in each rent increase exercise. According to the current practice of a biennial rent increase for different groups of estates, if surveys have to be conducted for each increase, altogether seven surveys would have to be conducted. As the number of surveys, seven, is just arbitrary, why can we not reduce it to two or three? The number of surveys is determined by the Housing Department. But why should rent increases be implemented separately? Why should we have two rent increase exercises for Group A estates, two for Group B estates, and then a separate one for former Housing Authority estates, and a further one for the Harmony blocks of public housing? As a matter of fact, the number of Group B estates is steadily diminishing. By the year 2005, they will no longer exist. Besides, there are only four former Housing Authority estates, with a total number of flats not exceeding 20 000. Meanwhile, the number of Harmony blocks is on the rise. If Group B estates are to be grouped with former Housing Authority estates into Group A1 or Group A2, while the Harmony blocks remain a separate group, three surveys should be enough to cover all these estates. Instead of conducting seven surveys in two years, it is possible to conduct only three, a practice which will not cause so much inconvenience to tenants as suggested by the Administration. Thank you, Mr Chairman. CHAIRMAN: Before I put Mr LEE Wing-tat's motion to the Committee for a vote, I would advise Members that if Mr LEE Wing-tat's motion is agreed, that will by implication mean that the respective amendments proposed by Mr CHAN Kam-lam and Mr Bruce LIU are not approved. If Mr LEE Wing-tat's motion is negatived, I will call on Mr CHAN Kam-lam to move his amendment. Whether 1468 LEGISLATIVE COUNCIL ─ 27 June 1997 or not Mr Bruce LIU will be able to move his amendment will depend on the Committee's decision on Mr CHAN Kam-lam's motion. Question on Mr LEE Wing-tat's amendment put. Voice vote taken. THE CHAIRMAN said he thought the "Ayes" had it. Mr Bruce LIU and Mr CHAN Kam-lam claimed a division. CHAIRMAN: Committee shall proceed to a division. CHAIRMAN: I would like to remind Members that they are now called upon to vote on the question that the amendment moved by Mr LEE Wing-tat be approved. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below? CHAIRMAN: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed. Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Mr LEE Cheuk-yan, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr Albert HO, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEE Kai-ming, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Mr SIN Chung-kai, Mr TSANG Kin-shing, Dr John TSE, Mrs Elizabeth WONG and Mr YUM Sin-ling voted for the amendment. Mr Allen LEE, Mrs Selina CHOW, Mr NGAI Shiu-kit, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Dr LEONG Che-hung, Mr CHIM LEGISLATIVE COUNCIL ─ 27 June 1997 1469 Pui-chung, Mr Eric LI, Dr Philip WONG, Mr Howard YOUNG, Miss Christine LOH, Mr James TIEN, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr Paul CHENG, Mr CHENG Yiu-tong, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr IP Kwok-him, Mr Ambrose LAU, Mr LO Suk-ching and Mr NGAN Kam-chuen voted against the amendment. THE CHAIRMAN announced that there were 29 votes in favour of the amendment and 25 votes against it. He therefore declared that the amendment was carried. CHAIRMAN (in Cantonese): As Mr LEE wing-tat's amendment has been agreed, it is not possible for Mr CHAN Kam-lam or Mr Bruce LIU to move their respective amendments, as they are inconsistent with the decision already taken. CHAIRMAN: Mr LEE Wing-tat, Mr CHAN Kam-lam and Mr Bruce LIU have separately given notices to move amendments to the proposed section 16(1A)(b) in clause 2. I propose that the amendments to the proposed section 16(1A)(b) in clause 2, proposed separately by Mr LEE Wing-tat, Mr CHAN Kam-lam and Mr Bruce LIU, be debated together in a joint debate. CHAIRMAN: Committee shall debate the amendments, proposed separately by Mr LEE Wing-tat, Mr CHAN Kam-lam and Mr Bruce LIU, in a joint debate. I will first call upon Mr LEE Wing-tat to move his amendment by virtue of his seniority. MR LEE WING-TAT (in Cantonese): Mr Chairman, I have to pull myself together as I have yet to score a comprehensive victory. We have only won the part related to the rent increase cycle. Now we come to the "core" of the Bill. We had spent a lot of time on deliberating whether rent increases should be determined on the basis of affordability or the rate of inflation, or whether it 1470 LEGISLATIVE COUNCIL ─ 27 June 1997 should be set at the levels of median rent-to-income ratio (MRIR) of 15%, 18.5% or 10% when we resumed Second Reading of the Bill. Now I would just like to put forward several points, and wish that the Secretary for Housing would respond to them if he has the time. Firstly, he had produced a lot of information when he spoke. As it has already been recorded on tapes, I only hope that I have heard correctly. He said that the Domestic Operating Account of the Housing Authority (HA) "all along has incurred deficits". This is obviously inaccurate as surpluses were recorded from the years 1988 to 1992. Hence, this remark is incorrect. Secondly, we raised a number of questions at the meetings of the Bills Committee, but he had never responded to them. It is no exception today. Questions left unanswered include why it was sufficient for a private contractor to spend only 65% of the total expenditure of the Housing Department in managing the same housing estate and was even able to achieve a surplus in doing so. Why had the number of staff of the Housing Department grown from 13 000 to the present 15 000 over the past 10 years when it had already contracted out many of its services including maintenance, cleaning, management of car-parks in housing estates, and even security to private contractors? A number of our colleagues have already pointed out that the crux of the issue is the absence of a cost control awareness on the part of the Housing Department. I do not wish to elaborate on this point again. Many of our colleagues, two of them in particular, have expressed skepticism in the feasibility of our proposal. As a matter of fact, it is feasible. Through effective reforms and cost control on the part of the HA and the Housing Department, not only can we succeed in reducing the deficits of the account of the entire housing estate, we would also be able to achieve a surplus. Furthermore, many of our colleagues have shown their support for setting rents at the level of the MRIR of 10%. Mr Chairman, I am not going to repeat my views expressed during the resumption of Second Reading debate of the Bill. I only wish that Members will support this amendment. Thank you, Mr President. Proposed amendment Clause 2 (see Annex XXVI) LEGISLATIVE COUNCIL ─ 27 June 1997 1471 CHAIRMAN: I will call upon Mr CHAN Kam-lam first to speak on Mr LEE Wing-tat's motion and his own amendment, as well as the amendment proposed by Mr Bruce LIU. After Mr CHAN Kam-lam has spoken, I will call upon Mr Bruce LIU to speak. However, no motion may be moved by Mr CHAN Kam-lam or Mr Bruce LIU at this stage. MR CHAN KAM-LAM (in Cantonese): Mr Chairman, many of our colleagues in this Council like to adopt inflation as the benchmark when discussing issues such as increases in rents or fares. It seems that such increases are a matter of course as long as they do not go beyond the inflation rate; if they are higher than inflation, they must be disapproved of. Increases in fares for bus and ferry services and public housing rents are typical examples. I think this is because we rely too much on the inflation rate as the benchmark and ignore other factors. Mr Chairman, both the Honourable LEUNG Yiu-chung and the Honourable Bruce LIU have proposed that the increase in public housing rents should not be higher than the accumulated inflation rate since the last increase. But if we use inflation as the sole determining factor, and if the inflation rate is higher than the salary growth of the tenants and the rent increase introduced really reaches the ceiling of the inflation rate, the new rents would be beyond the affordability of the people. For example, the Consumer Price Index A(CPI A) in 1992 and 1996 showed higher increases than the salary growth. If it is stipulated that future increases of public housing rents are capped at the inflation rate, the tenants' spending on non-housing items will be reduced. In fact, the Honourable LEE Wing-tat also thinks that the problems I have just mentioned may arise if we just adopt the inflation rate as the benchmark for rent increases. That is why he proposes to cap rent increases at 2% below inflation. The DAB thinks that this figure, as pointed out by Mr Marco Wu , is arbitrary. Mr LEE did not explain why it should be inflation minus 2%, instead of minus 3%, or like increases of telephone charges, minus 4%. Nevertheless, if the inflation rate is higher than the salary growth, and if the difference is greater than 2%, Mr LEE Wing-tat's proposal will face the same problem as Mr LEUNG Yiu-chung's amendment. 1472 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr Chairman, the proposal to restrict public housing rent increase to a MRIR of 10% is in line with the principles of the current policy of the Housing Authority (HA) in determining rents, and the affordability of public housing tenants is taken as the criterion. We do not agree to setting higher percentages for rent increases such as 15% or 18.5%. The Government thinks that fixing the percentage at 10% would deprive the rent increase mechanism of flexibility, so that even financially well-off tenants are only required to pay relatively lower rents. We would never accept this allegation because it misleads the public. First, we must emphasize that the amendment of restricting public housing rent increase to a MRIR of 10% would not affect other polices of the HA such as the policy for well-off tenants, which we oppose all the time, or the market rent policy which ensures reasonable allocation of public housing resources. Although the DAB is strongly opposed to these policies, the HA will still be able to impose 150%, 200% rents or even market rents on the tenants even if our amendment is passed. On the mind of the Government, these tenants have sufficient resources to pay the rents they are charged. In fact, under the present policies, some of the tenants are already paying very high rents due to the constraints imposed on them by the relevant policies of the HA. Mr Chairman, in short, the DAB opposes pegging the increases of public housing rent to inflation, so we oppose the amendment of Mr LEE Wing-tat. Thank you, Mr Chairman. MR FREDERICK FUNG (in Cantonese): Mr Chairman, I would like to respond to and refute the points contained in the written reply we have just received from Mr Marco Wu, Deputy Director of Housing Department, as well as those contained in the speech delivered by the Secretary for Housing on this issue. First of all, both of them stress that if the increase in family income of some tenants is lower than the inflation rate, it will be unfair to these tenants if we put a cap on rent increases at 10% of the MRIR and the inflation rate. This argument is not supported by any data at all, or maybe they are not good at mathematics. Why do I say so? If the family income of these tenants in these two years is lower than before, 10% of the median income will see a downward adjustment. For example, if the median income of this year is $15,600 and if LEGISLATIVE COUNCIL ─ 27 June 1997 1473 people's salaries in the next two years remain unchanged, 10% of the median income will still be calculated on the basis of $15,600. The amount arrived at by 10% will not change. Even if the annual inflation rate is 10% and the total inflation rate for two years are 20%, the rent increase will still be capped at 10% of the median income, that is, $15,600. Also, even though rent increases are capped at the inflation rate, the Administration could just increase rents by 3% to 4% if the salaries of tenants only increase by 3% to 4% while the inflation rate is 10%, and it is not necessary to increase rents by exactly 10%. It would be illogical if we insist on increasing rents by 10% just because rent increases are capped at 10%. Of course, the Secretary still has the discretion to determine the increase of rents. It will be up to him to decide whether the above methods would be adopted for determining rent increases. Secondly, both the Secretary and the Deputy Director have mentioned that as the locations, ages and facilities of different housing estates may vary, the rent increases for different estates need not be the same, and eventually the objective of the Bill cannot be fulfilled. I think they say this because they do not understand the policy of the Housing Authority on increasing rents. Under the existing policy, the HA group all housing estates into several districts during each rent increase exercise. Urban areas like Shatin and Tsuen Wan are put into the same district, areas in the New Territories such as Tai Po and Sheung Shui are categorized into another district, while outlying islands are grouped into a separate district. So, public housing estates are classified into different groups for the purpose of implementing different rates of rent increases, with more or less the same increase for estates in the same group. I would describe this as a "same group same increase" policy. For example, all urban residential units will have their rents increased by $3 per square foot. I have joined the HA for 12 years, during which no one has ever queried during rent adjustment exercises whether the rent increase for Nam Shan Estate is higher than that for other estates, despite the fact that Shep Kip Mei Estate is 25 years old while Nam Shan Estate is only 10 years of age. No one would ask why there should be differences in their rent increases because this is not the way for deciding the differences. All Group A estates would have their rents increased by the same amount, while all Harmony blocks would have a different amount of rent increase. We determine rent increases by such a grouping method. So the differences are not substantial. In fact, the impact of the different grouping of housing estates does not occur when rent increases are introduced, but rather at the very beginning when the rents were determined. For instance, if the rent for 1474 LEGISLATIVE COUNCIL ─ 27 June 1997 urban housing estates is fixed at $10 per square foot and that of housing estates in the New Territories is $5 per square foot, the rents for both kinds of estates will be very different. With the same size, residential units in the urban areas will be rented at $1,200 but those in the New Territories will be rented at $600 only. The present Bill proposes to increase rents once every three years. But the fact is that the initial rents are already different: one is $600 while the other is $1,200. The initial rents will be taken as the base rents for calculating further increases. The Administration has already taken into account such factors as location, age and facilities of housing estates when the rents are first determined. Future rent increases will not be affected by such factors any more. What we are discussing is the increase of rents, not the determination of rents. I hope that the Secretary can see the difference. The third argument I would like to raise is the Well-off Tenants Policy. The Administration has just mentioned that some tenants are better off but they are paying the same rents as others. So the proposed rent policy is not fair enough because it will affect the existing Well-off Tenants Policy now imposed on relatively well off tenants. Of course, we are opposed to the Well-off Tenants Policy, but we have to let the Secretary know that this policy will not be affected. Why? According to the figures provided by the Census and Statistics Department, although I do not know whether the figures in the Long Term Housing Strategy Review are the same as those from the Census and Statistics Department, the rents of public housing estates in 1996 were 8% of the MRIR, which has already included the income of well-off tenants. In other words, for both well-off and ordinary tenants, the overall percentage is 8%, which is the median rent-to-income ratio. The 8% figure is calculated this way, unless the Secretary Housing tells me that the figures from the Census and Statistics Department are incorrect. Even if this is the case, I can still do nothing because I have believed in the information supplied by the Department and think that they are accurate. However, I am still presuming that these figures are accurate. Therefore I believe that the present proposal will not affect the Well-off Tenants Policy or any other policies. Last of all, I would like to refute the allegation made by the Administration that the expenditure of the Housing Department will keep on increasing. In fact, it will not. I completely agree with Mr LEE Wing-tat's opinion: there are a lot of redundancies in the Housing Department and whether certain facilities are being abused. All these factors may lead to increases in expenditure of the LEGISLATIVE COUNCIL ─ 27 June 1997 1475 Housing Department. I believe that the reasons I put forward now should be sufficient to answer the questions raised by the Secretary. Thank you, Mr Chairman. SECRETARY FOR HOUSING (in Cantonese): Mr Chairman, I would like to stress again that the amendments proposed by three Members are neither fair, desirable nor feasible for the following reasons. Firstly, these proposals are conceptually wrong in that they have completely neglected the basic principle that public housing rent must be linked to the affordability of tenants. Secondly, the amendments, if passed, will certainly affect the income of the Housing Authority and the resultant financial losses will make it impossible for the Authority to maintain its present management and service quality. Some Members have suggested the losses could be offset through subsidies from other sources of income. This of course is another way of looking at the matter. However, a prudent financial policy should be one that strikes as far as possible a balance in principle between income and expenditure of any individual account. Thirdly, the Housing Authority will find it technically very difficult to implement the Bill. As I said earlier, public housing tenants may even be subject to harassment, something which I do not think Members will wish to see. Fourthly, the relevant amendments also have legal ambiguities, which will not only affect the implementation of the widely accepted rental policies applying to better-off tenants, but also expose the Housing Authority to legal challenges. Some Members are of the view that the two ways of calculations under the current amendments will not affect the rental policies applying to better-off tenants. I take exception to this view. In fact, the impacts of the amendments on this policy are far too obvious. The implementation of these amendments or the new Bill will deal a serious blow to the policies applying to better-off tenants and shatter the principle of equal distribution of scarce public resources. 1476 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr Chairman, on the whole, all of these amendments go against the principle of fairness and are not in the interests of the public. They will subject public housing tenants to various kinds of harassment. On the other hand, they will also bring many difficulties and potential worries to the Housing Authority. I would like to stress again that the Bills Committee has not formally completed the scrutiny of the Bill. As for the accusations made by some Members that the Government has withheld information from them, in fact, the Government has been providing a lot of relevant information to them while at the same time has requested to continue discussions with them. However, Members and the Chairman of the Bills Committee have made the final decision to put an end to all the discussions and the scrutiny of the Bill by the Bills Committee so that the Bill and the amendments can be brought back to the Legislative Council. The reasons for putting the Bill and the amendments to the vote in this Council are that the Council will soon be in recess. In my opinion, such a course of action is a big mistake and goes against the spirit of legislation. I appeal again to every Member to be extremely cautious and not to rush through this Bill and the relevant amendments. Thank you, Mr Chairman. MR EDWARD HO (in Cantonese): Mr Chairman, the Liberal Party does not support any amendments, and just now I have pointed out that we advocated in principle that public housing rent should be determined on the basis of tenants' affordability. First, we should look at the issue of public housing rent from the perspective of the entire community. Obviously, public housing tenants would think that it is better not to introduce any rent increase at all, or may even think that the present rents are already too high. But on the other hand, people who have never enjoyed the benefit of living in public housing would surely say: The Government has already heavily subsidized public housing tenants, but why should we, who also have financial difficulties like them, pay such high rents which take up a large portion of our income? Therefore, I think the opinions of these two groups of people should be considered. LEGISLATIVE COUNCIL ─ 27 June 1997 1477 Secondly, some Members say that if we make use of other revenues from housing estates to subsidize public housing rents, the rents paid by tenants can be lower. But why can we not do that? I think we should not consider the issue this way. If the Housing Authority (HA) is able to generate profits from its commercial complexes, Home Ownership Scheme (HOS) projects or other sources, the HA would be able to make use of such profits to develop public housing projects in future without seeking funding from the Government, or without borrowing from the Government. This is surely something to be applauded. The profits generated from commercial complexes built on land granted by the Government need not be used to further subsidize tenants already living in public housing flats. The issues we are discussing are: at which level we should fix public housing rents, and how much we should subsidize public housing. Of course, some people suggest that the rents should be fixed at a MRIR of 10%. But we think public housing rents need not be as low as that. Besides, there are also some Members who raised questions about the management of housing estates or queried whether the operating costs of the Housing Department are too high. They wonder if improvement can be made in certain areas so as to enhance the cost-effectiveness of the department. I am completely in favour of this suggestion. I think the Housing Department should by all means improve its productivity and cut down its operating costs. They may go as far as privatizing some of its services, that is, to contract out certain services to private contractors. For example, in the past the Government operated the major tunnels in the territory which proved to be unprofitable and had incurred losses. However, after handing over these tunnels to private operators, they have been able to make a profit without introducing increases in tunnel fares. Therefore, I think this is an approach we should try out. But it does not necessarily mean that the money we can save from certain aspects should be used to further subsidize public housing tenants. This is illogical. If we all think that public housing rent is taking up too large a portion of the income of tenants, we should of course consider at which level we should set the rents. But I would like to reiterate that when we approach this issue, we must also consider the housing and non-housing expenditures of non-public housing tenants. Only in this way would we be able to ensure a fair allocation of social resources. Thank you, Mr Chairman. 1478 LEGISLATIVE COUNCIL ─ 27 June 1997 MR LEUNG YIU-CHUNG (in Cantonese): Mr Chairman, I support the amendment proposed by the Honourable LEE Wing-tat, and hope that other colleagues will also support it. Just now we have taken our first step, that is, we have successfully changed the rent review cycle from two years into three years. If we do not change the present system, we will, as said by the Secretary, put the tenants into great trouble, although our intention is to improve the system for increasing rents. This is the first point. Secondly, I hope my colleagues would not compare public housing with private housing which is now operating under an unreasonable mechanism. The high land price policy has made the present private housing mechanism a very unfair one. So I hope we would not draw any comparison between private and public housing because such a comparison would be unfair and unreasonable. Mr Chairman, I hope my colleagues will support the amendment of Mr LEE Wing-tat. MR CHAN KAM-LAM (in Cantonese): Mr Chairman, just now I have said that there are a lot of problems if we use the inflation rate as a criterion for setting rent increases. This is because when the Housing Authority (HA) and the Housing Department prepare their respective annual budgets, that is, when they are drafting up the estimation of salaries of their staff, maintenance costs and other expenditures, such items may not bear any direct relationship with inflation. Besides, if we adopt the proposal of the Honourable LEE Wing-tat, that is, setting rent increases at inflation less 2%, it will reduce substantially the flexibility of the HA in the management of its financial resources. Furthermore, I have also questioned why rent increases should be restricted at the inflation rate minus 2%, and not minus 3%, 4% or 1%. So, this proposal does not contain any reasonable arguments that are convincing to others. On the other hand, when we are discussing public housing rents, many members of the public may question whether we are really speaking for public housing tenants, or whether we are speaking for the purpose of courting votes or other reasons. However, I really hope that the public know that when we are LEGISLATIVE COUNCIL ─ 27 June 1997 1479 discussing public housing rents, we take a most impartial stance. We consider public housing a kind of resources belonging to the community as a whole. Public housing tenants are people who the public consider should be provided with assistance. That is why we should set rents at a reasonable level which is acceptable to the community as a whole. If we set the rents too low, I think the Hong Kong people would find them unreasonable. I think increases in public housing rents have a very significant relevance to the general public. I believe the HA would accept this as well. They have recently held a meeting to discuss the issue of increases in public housing rents in the context of the Long Term Housing Strategy Review Consultative Document released by the Government. They are also of the opinion that public housing rents should be linked up with the affordability of tenants. Unfortunately, due to the expiry of their term of office, they are unable to set the criteria for assessing the affordability of tenants. Therefore, I really hope that I can move my amendment which proposes to restrict rent increases to the MRIR of 10%. I think this should be the most ideal proposal at the moment. I hope Members will vote against the amendment of Mr Lee Wing-tat, so that I can move my amendment. Thank you, Mr Chairman. MRS SELINA CHOW (in Cantonese): Mr Chairman, I was a member of the Housing Authority (HA) in the 1980s. Due to my own career commitments, I left the HA subsequently. However, my service with the HA at that time enabled me to learn a lot about public housing issues. During my service with the HA, I participated in fighting for the appointment of some public opinion representatives into the HA. The representatives so appointed included the Honourable LEE Wing-tat, the Honourable Frederick FUNG and the Honourable WONG Wai-yin, now Members of this Council. These are the facts. At that time, both Sir David ACKER-JONES and me believed that if they could participate in the management of the HA, they would understand how the HA considered various issues in an overall perspective, and then they would not look at the public housing issue from the perspective of pressure groups only. Unfortunately, their performance in the debate today has illustrated how wrong I was at that time. I am sure they know how the HA operates and manages its financial resources with a view to benefiting more people with housing needs in the 1480 LEGISLATIVE COUNCIL ─ 27 June 1997 territory. Despite their knowledge of all these, they are still adopting the approach of pressure groups in addressing the issue of housing. Assuming the dual roles as Legislative Councillors and members or even leaders of political parties, they can now use their votes in this Council to legislate and pass laws that will become "superlaws" overriding the authority of the HA, thereby controlling the finance of the HA. This development is really beyond my expectation. I can never believe that having served on the HA for such a long time, they do not realize that the HA has to take into account of and strike a balance among the interests of various parties, as they are men with intelligence and wisdom. But I do not understand why they insist on amending the Bill just for the purpose of enabling public housing tenants to pay cheaper rents. I do not dispute the fact that some public housing tenants are financially poor, but I do not believe that all public housing tenants are financially poor. We should realize that a large number of public housing tenants have been living in public housing for many years. As they are not as heavily burdened with housing expenditures as private housing tenants, their financial difficulties have gradually been alleviated. As their children have grown up and started to work, their family income has naturally increased. Yet, the rents these tenants pay remain at a reasonable and even low level when compared to the rents paid by private housing tenants. Public housing tenants therefore can save up more money than private housing tenants. Under such circumstances, if we continue to cut down rent expenditures for tenants who have already lived in public housing for a long time and subsequently made improvement to their financial conditions, eventually the HA will not have sufficient resources to help those in genuine need. I think it is wrong to allow this to take place. Mr Dominic WONG, the Secretary for Housing, often says that the present housing issue has been politicized. I think it is a basic issue. Half of the population in Hong Kong are public housing tenants who have benefited from the housing policy. As the beneficiaries, they will not object to other people fighting for more benefits for them. However, I do not believe that all public housing tenants would like to see this relatively unfair resource allocation system continue to operate. Some of them are willing to pay more on rents. We have half of the population living in public housing. To be frank, I have heard some Members say that fighting for the benefits of tenants living in several public LEGISLATIVE COUNCIL ─ 27 June 1997 1481 housing blocks would suffice. This is a true reflection of what they think at the time of election. It's 100% true. Are these Members wrong in thinking this way? No, it is not their fault. Whoever stands for a direct election will act and think along such a line since every candidate has to fight for the best benefits of the electors whom they represent. Hence, this is basically the result of a lack of foresight on the part of the Government. Based on the current situation, I think Members who have not been elected through popular or direct election will inevitably be accused of not fighting for the interests of public housing tenants. When these Members take part in the discussion on public housing, they will encounter a lot of opposition and resistance. Does this mean that we have not striven for the interests of Hong Kong? Of course not. As pointed out by the Honourable Edward HO just now, we have to consider the interests of various parties as well as the overall interests of Hong Kong, both in the long term and short term. Some Members may refute my argument later in the Sitting. Indeed I hope they will do so, so that I may have the opportunity to get to know their rationale. It is my belief that the current situation is partly attributable to the fact that half of the population of the territory are living in public housing flats. And with popular and direct election in place, Members have no other option but to continue with their fight for cheaper rents for public housing tenants. I think this is wrong, but unfortunately we cannot do anything about it. That is why I think we should think carefully about it and draw a clearer picture of the whole situation. The enormous efforts contributed to meeting the housing needs of the general public should not be allowed to bring about divisive effects on our community. I hope that Members will consider the related issues carefully and I also hope that Members will think carefully about how the issue of public housing rents can be handled in a fair manner, so as to enable the HA to carry on with its work to maintain its past success. We must not create a legislation that is in effect a "superlaw" restricting the development of the HA. After all, the HA is not a profit-making organization, and its only function is to do its best to serve those with limited financial resources and in genuine need. 1482 LEGISLATIVE COUNCIL ─ 27 June 1997 MR RONALD ARCULLI: Mr Chairman, I had not actually intended to speak on this debate, but I was listening to my colleagues sitting in the ante-chamber and I just wondered whether some of the bare facts have been actually laid before this Council tonight. Perhaps some of my colleagues who are much more knowledgeable in the matter of public housing, be it for rental or be it ownership, would know these facts far more intimately than I would, but I thought that at least as a Member of this Council I ought to perhaps remind them that in terms of the housing policy of the Hong Kong Government, despite all the efforts of Mr Dominic WONG, the Secretary for Housing, over the last few years, obviously as politicians we are never completely and totally happy with anything that the Government does, however well they do it. But I think fair is fair, in terms of the Hong Kong Government, over the past years, public housing in Hong Kong actually houses, as I recall, just over 50% percent of our community. In terms of public rental housing, if I am correct, there are about 660 000 units and of these units, all of which are rental and I think there are a couple of 100 000 Home Ownership Scheme or Private Sector Participation Scheme through which the occupiers of houses actually buy the home at a fairly subsidised rate, but coming back to public housing on a rental basis because that is what this particular Bill is all about, about a third of them are new units and about two-thirds of them are old units. And in terms of the rent that is charged, my understanding is that the overall average for the MRIR is about 8.7, so call it 9%. For the new premises it is 14%, whereas for the old it is somewhere between four and a half and 5%. Now, why do I particularly want to bring out these particular statistics? It is actually quite simple, because we always press the Government to improve the living conditions of the less fortunate in Hong Kong, and I daresay that some of our housing tenants certainly would fall, without any doubt, within the definition that I have just made, the less fortunate. But having said that, some of them also fall within the more fortunate. We actually have tenants living in our public housing units driving Mercedes Benz. All you need to do is go and look at the car park, you'll see it. We have multi-millionaires as public housing tenants. LEGISLATIVE COUNCIL ─ 27 June 1997 1483 I notice I got some reaction from the Gallery. If my comments surprise you, but that unfortunately is the policy that our Government has decided that if you are a public housing tenant basically ...... CHAIRMAN: Mr Ronald ARCULLI, may I remind you that you are not supposed to address the gallery. MR RONALD ARCULLI: My apology, Mr Chairman, I just cannot help noticing some reactions from the gallery. I was not addressing the gallery, I would not do the Chair that disrespect, and I do apologize. But some of our public housing tenants are actually multi-millionaires. Where in the world, what country in the world, I ask, would you find multi-millionaires? But the reason for that is because of a policy that was decided some years ago by the Hong Kong Government, and that policy was simply this. CHAIRMAN: Mr Ronald ARCULLI, please speak to the question. question is on section 16(1A)(b) in clause 2. The MR MARTIN LEE: Is Standing Orders against filibusters, Mr Chairman? MR RONALD ARCULLI: Mr Chairman, obviously my Honourable colleague, Martin LEE, realizes that the longer he keeps me on my feet the longer I would, in his words, filibuster, but I am not seeking a filibuster. But, as I said, Mr Chairman, coming back to the point, in terms of resources that we have in Hong Kong, in terms of wanting to improve the housing quality and housing standards, a lot of our old units need to be ─ and I do not say "need" in a frivolous way ─ need to be demolished, rebuilt ...... 1484 LEGISLATIVE COUNCIL ─ 27 June 1997 CHAIRMAN: Mr Ronald ARCULLI, we are on section 16(1A)(b) which is about the determination of rent. MR RONALD ARCULLI: Mr Chairman, if you would bear with me, I pointed out earlier that in terms of the rent for new premises, it was 14%. In terms of the rent for old premises it was 5% of the MRIR. The point that I am seeking to address Members, and indeed you, Mr Chairman, is that if we have to redevelop the old units and rebuild new units the 5%, which is two thirds of our existing public rental housing units, the 5% will no longer apply. So, if let us say we redevelop half of the old units, Mr Chairman, we would then still have a third of our public housing rental units paying 5%, but the new units would be paying 14% of the MRIR. Now, if that is so the average that I drew your attention to earlier, Mr Chairman, of 8.7% or indeed, say rounded up to 9%, would far exceed the limit that is sought and has been, sort of, agreed to by some colleagues here in the Honourable LEE Wing-tat's amendment. So, basically what I am saying is that if we want to have, to improve the quality of housing and ultimately redevelop the entire two thirds of the old units then the rent, even if we kept the percentage of MRIR at 14%, it would certainly far exceed the limit that is set by Mr LEE Wing-tat's amendment. My spies tell me that if that happened in 10 years' time, the Housing Authority, who all of us are under the impression right now, is totally flush with cash, will have a $30 billion deficit. Where does that leave us? Is that what we want to see? It does not matter whether it is in five years' time or five days' time or five months' time. I think what we do owe our community is decent housing at an affordable price and I think as far as the current policy is concerned, part of which is set out, Mr Chairman, as you realise in the Long Term Housing Strategy Review, and part of which is quite controversial, I think we owe it to the community to come to a rational and a fair decision. And on that basis, Mr Chairman, I would say that Members should not support the particular clause in question. Thank you. MR AMBROSE LAU (in Cantonese): Mr Chairman, Members of this Council are all very concerned that the affordability of tenants should be taken into account in implementing increases in public housing rents. But the crux of the LEGISLATIVE COUNCIL ─ 27 June 1997 1485 issue is that the proposals of the Bill or its amendments are basically confusing the roles of the Legislature and the Executive. It is the role of the Legislature to monitor the work of the Executive. If the Executive has implemented measures which lead to injustice or situations adversely affecting or endangering the livelihood of the people, then we have the responsibility to rectify such problems. As we all know, Hong Kong's economy is developing fast, and we also enjoy rapid developments in many other aspects. If a three-year interval of rent increase for public housing is imposed, it will undoubtedly bring about great impact on the policy implementation as well as the source of revenue of the Hong Kong Government. MR LEE WING-TAT (in Cantonese): Mr Chairman, I cannot put up with this any more because many colleagues are just repeating the same points without speaking specifically on the question. The topic we are discussing is the setting of rent at the MRIR of 10% or at the rate of inflation minus 2%. But the Honourable Ambrose LAU is speaking on the constitutional system and the triennial rent increase, which has nothing to do with the question itself. Mr Chairman, I think you have to determine whether this debate is fair, and whether there are Members deliberately delaying the passage of the amendment. If this is the case, I will be very much saddened. If this situation is allowed to continue, the voting will probably be delayed to 6 o'clock this morning. CHAIRMAN: Mr Ambrose LAU, please speak to the question. MR AMBROSE LAU (in Cantonese): Mr Chairman, if you can be a little more patient, you will understand the purpose of my speech. The purpose of my speech is to assess whether the current proposal of limiting the amount of rent is a rational and fair practice in the best interests of the whole community. I think it is against the interests of the community of Hong Kong as a whole if the Legislature is going to instruct the Government on what it should do in future. We are all concerned about the interests of public housing tenants. But the important point is: we have to take the overall interests of the community as the major concern and the guiding principle of our measures. If the 1486 LEGISLATIVE COUNCIL ─ 27 June 1997 Legislature takes the place of the Executive in discharging its duties, or instructs the Executive on what it should do, under the guiding principle I mentioned earlier, it will, without any justifiable grounds, impose restrictions and prescribe limits on the functions and responsibilities of the Executive. Hence, I think the Legislative Council should not make a decision that will restrict the increases in public housing rents to be implemented by the Government in future. As we all understand, we should not assume that any measures implemented by the present Hong Kong Government and the future Government of the Special Administrative Region will have adverse effects on the interests of public housing tenants. We cannot make such an assumption. As we cannot make such an assumption, there are no grounds for us to restrict any decisions to be made by the future Executive by way of our legislative decision. Furthermore, if there are really some unjust circumstances, the Legislative Council can still rely on its capacity and authority to impose restrictions on the Government. We can then exert our pressure on the Government through a number of means, such as moving motion debates ...... CHAIRMAN: Mr Ambrose LAU, please speak to the question. MR AMBROSE LAU (in Cantonese): Mr Chairman, regarding the issue of rent increases and the restrictions imposed on rent increases to be introduced by the Government, I think since we have this mechanism in place at the moment, we can also use it to impose restrictions on the Government in future. That is why I do not think we should prescribe strict stipulations on rent increases at this stage. I hope that Members will consider carefully whether this measure is definitely in the interests of public housing tenants. I think we should consider seriously the overall interests of the community before making a decision. Thank you, Mr Chairman. I so submit. CHAIRMAN: Before I put Mr LEE Wing-tat's motion to the Committee for a vote, I would advise Members that if Mr LEE Wing-tat's motion is agreed, that will by implication mean that the respective amendments proposed by Mr CHAN Kam-lam and Mr Bruce LIU are not approved. If Mr LEE Wing-tat's motion is LEGISLATIVE COUNCIL ─ 27 June 1997 1487 negatived, I will call on Mr CHAN Kam-lam to move his amendment. Whether or not Mr Bruce LIU will be able to move his amendment will depend on the Committee's decision on Mr CHAN Kam-lam's motion. Question on Mr LEE Wing-tat's amendment put. Voice vote taken. THE CHAIRMAN said he thought the "Ayes" had it. Mr CHAN Kam-lam claimed a division. CHAIRMAN: Committee shall proceed to a division. CHAIRMAN: I would like to remind Members that they are now called upon to vote on the question that the amendment to section 16(1A)(b) moved by Mr LEE Wing-tat be approved. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below? CHAIRMAN: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed. Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Mr LEE Cheuk-yan, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr Albert HO, Mr LAU Chin-shek, Mr LAW Chi-kwong, Mr LEE Kai-ming, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Mr SIN Chung-kai, Mr 1488 LEGISLATIVE COUNCIL ─ 27 June 1997 TSANG Kin-shing, Dr John TSE, Mrs Elizabeth WONG and Mr YUM Sin-ling voted for the amendment. Mr Allen LEE, Mrs Selina CHOW, Dr David LI, Mr NGAI Shiu-kit, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Dr LEONG Che-hung, Mr CHIM Pui-chung, Mr Eric LI, Mr Henry TANG, Dr Philip WONG, Mr Howard YOUNG, Miss Christine LOH, Mr James TIEN, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr Paul CHENG, Mr CHENG Yiu-tong, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr IP Kwok-him, Mr Ambrose LAU, Mr LO Suk-ching, Miss Margaret NG and Mr NGAN Kam-chuen voted against the amendment. Dr LAW Cheung-kwok abstained. THE CHAIRMAN announced that there were 28 votes in favour of the amendment and 28 votes against it. CHAIRMAN: In accordance with the principle set down by Speaker DENISON in 1867, I exercise my casting vote in the negative. The amendment is negatived. CHAIRMAN (in Cantonese): As the amendment moved by Mr LEE Wing-tat has been negatived, I now call upon Mr CHAN Kam-lam to move his amendment. MR CHAN KAM-LAM (in Cantonese): Mr Chairman, I move that the proposed section 16(1A)(b) in clause 2 be amended as set out in the paper circularized to Members. Proposed amendment Clause 2 (see Annex XXVI) LEGISLATIVE COUNCIL ─ 27 June 1997 1489 Question on Mr CHAN Kam-lam's amendment put. Voice vote taken. CHAIRMAN: Committee shall proceed to a division. CHAIRMAN: I would like to remind Members that they are now called upon to vote on the question that the amendment moved by Mr CHAN Kam-lam be approved. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below? CHAIRMAN: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed. Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr CHIM Pui-chung, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Mr LEE Cheuk-yan, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr Andrew CHENG, Mr Paul CHENG, Mr CHENG Yiu-tong, Dr Anthony CHEUNG, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr Albert HO, Mr IP Kwok-him, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEE Kai-ming, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Mr NGAN Kam-chuen, Mr SIN Chung-kai, Mr TSANG Kin-shing, Dr John TSE, Mrs Elizabeth WONG and Mr YUM Sin-ling voted for the amendment. Mr Allen LEE, Mrs Selina CHOW, Dr David LI, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Dr LEONG Che-hung, Mr Eric LI, Mr Henry TANG, Dr Philip WONG, Mr Howard YOUNG, Miss Christine LOH, Mr 1490 LEGISLATIVE COUNCIL ─ 27 June 1997 Ambrose LAU, Mr LO Suk-ching and Miss Margaret NG voted against the amendment. THE CHAIRMAN announced that there were 40 votes in favour of the amendment and 15 votes against it. He therefore declared that the amendment was carried. Mr NGAI Shiu-kit complained that his voting machine did not work. CHAIRMAN: When there is a complaint, first of all, the Clerk will test the unit again. Does it work? We will test the unit again. MR MICHAEL HO (in Cantonese): Mr Chairman, I wish to clarify whether this is a testing of the unit, or a revoting. CHAIRMAN (in Cantonese): How many Members voted just now? Were there 56 Members? It seems that there is one short of head count, because there are 57 Members now. I will now take head count. MR JAMES TIEN (in Cantonese): Mr Chairman, I did not vote. CHAIRMAN (in Cantonese): It does not matter. CHAIRMAN : It is a very big margin, 40 for the "Ayes" and 15 for the "Noes". It does not affect the result at all. CHAIRMAN (in Cantonese): As Mr CHAN Kam-lam's amendment has been agreed, it is not possible for Mr Bruce LIU to move his amendment, as it is inconsistent with the decision already taken. Question on clause 2, as amended, put and agreed to. LEGISLATIVE COUNCIL ─ 27 June 1997 1491 Long title MR LEUNG YIU-CHUNG (in Cantonese): Mr Chairman, I move that the long title be amended by the addition of its Chinese text as set out in the paper circularized to Members. Question on the amendment put and agreed to. Council then resumed. Third Reading of Bill MR LEUNG YIU-CHUNG reported that the HOUSING (AMENDMENT) (NO. 3) BILL 1996 had passed through Committee with amendments. He moved the Third Reading of the Bill. Question on the Third Reading of the Bill proposed and put. Voice vote taken. Dr YEUNG Sum and Mr SZETO Wah claimed a division. PRESIDENT: Council shall proceed to a division. PRESIDENT: I would like to remind Members that they are now called upon to vote on the Third Reading of the Housing (Amendment) (No. 3) Bill 1996. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below? 1492 LEGISLATIVE COUNCIL ─ 27 June 1997 PRESIDENT: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed. Mr Martin LEE, Mr SZETO Wah, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Mr LEE Cheuk-yan, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr Andrew CHENG, Mr CHENG Yiu-tong, Dr Anthony CHEUNG, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr Albert HO, Mr IP Kwok-him, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEE Kai-ming, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Mr NGAN Kam-chuen, Mr SIN Chung-kai, Mr TSANG Kin-shing, Dr John TSE, Mrs Elizabeth WONG and Mr YUM Sin-ling voted for the motion. Mr Allen LEE, Mrs Selina CHOW, Dr David LI, Mr NGAI Shiu-kit, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU, Dr LEONG Che-hung, Mr CHIM Pui-chung, Mr Eric LI, Mr Henry TANG, Dr Philip WONG, Mr Howard YOUNG, Miss Christine LOH, Mr James TIEN, Mr Paul CHENG, Mr Ambrose LAU, Mr LO Suk-ching and Miss Margaret NG voted against the motion. THE PRESIDENT announced that there were 38 votes in favour of the motion and 19 votes against it. He therefore declared that the motion was carried. Bill read the Third time and passed. Resumption of Second Reading Debate on Bill INTERCEPTION OF COMMUNICATIONS BILL Resumption of debate on Second Reading which was moved on 23 April 1997 MR ALBERT HO (in Cantonese): Mr President, Section 14 of the Hong Kong Bill of Rights Ordinance (BORO) provides that, "No one shall be subjected to arbitrary or unlawful interference with his privacy, family, home or LEGISLATIVE COUNCIL ─ 27 June 1997 1493 correspondence, nor to unlawful attacks on his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks." This provision is the same as Article 17 of the International Covenant on Civil and Political Rights (ICCPR) and is similar to Article 8 of the European Convention for the Protection of Human Rights and Fundamental Freedoms. However, under the existing laws of Hong Kong, if public interest so requires, the Governor may authorize any public officer to intercept communications under section 33 of the Telecommunication Ordinance (TO), without giving any reasons. Section 13 of the Post Office Ordinance (POO) also empowers the Chief Secretary to authorize the Postmaster General or any officer of the Post Office to open any specified postal packet or all postal packets of whatever class. The Ordinances have not clearly provided for the situations under which such powers can be exercised or the nature of offences they seek to deal with. Also, there is no restriction in the Ordinances in respect of the usage of the intercepted information or who can obtain such information and to whom such information can be divulged. Although the Ordinances provide that the power must be exercised in the interest of the public, there is no express provision on the meaning of public interest. The Democratic Party considers that the powers conferred by these Ordinances are too broad and not properly circumscribed. As a result, the provisions will easily be subjected to abuse, seriously undermine personal privacy and go against the right of personal privacy protected by Section 14 of the BORO. The United Nations Human Rights Commission (UNHRC) has made the following comments on the provisions of Article 17 of the ICCPR, that is the same as Section 14 of the BORO, which safeguard the right of personal privacy: "The provisions should ensure that this right be guaranteed against all interference, whether they emanate from state authorities or legal persons."; "Relevant legislation must specify in detail the exact circumstances in which such interference may be permitted. A decision to permit such authorized interference must be made only by the authority 1494 LEGISLATIVE COUNCIL ─ 27 June 1997 designated under the law, and on a case-by-case basis. The signatories should provide its own legislative framework prohibiting such acts." From a number of cases of the European Court of Human Rights (ECHR), we have concluded that there are some elements which are vital to that legal framework. Such elements include specifying the persons against whom and the types of offence for which an authorized interception warrant may be issued, the valid period of the authorized interception warrant, the detailed procedures for extracting sections of intercepted conversations and safeguards for erasing or destroying the tapes containing intercepted messages, so that the scope of such discretion conferred to government authorities and the ways in which such power is to be exercised are stated in reasonably clear terms. Furthermore, the law must be sufficiently clear to the public as to the circumstances and conditions under which government authorities would be empowered to intercept communications. Such conditions include the following: (1) there must be a "bona fide serious" crime; (2) normal investigation methods must have been tried but subsequently failed; and (3) there must be good reasons to believe that the interception of communications will most likely lead to the arrest and conviction of criminals. If the law is unclear, even if it has been enacted, it will still be criticized by the ECHR as breaching the relevant convention. The United Kingdom has been criticized by the ECHR for breaching the ICCPR because it failed to specify clearly the scope of the discretion conferred to government authorities and how such discretion can be exercised. The ECHR also held that the public lacked the minimum legal protection which should have been provided for in a society that is ruled by law. In view of the above cases, the Privacy Sub-Committee of the Hong Kong Law Reform Commission (LRC) had examined the provisions of the TO and POO, and concluded that such provisions had similarly failed to specify the scope of such discretion and the ways in which such power should be exercised when the executive authorities are empowered to intercept communications. It also failed to tell the public clearly the circumstances under which interception of LEGISLATIVE COUNCIL ─ 27 June 1997 1495 communications is permitted. As such, the provisions are inconsistent with Section 14 of the BORO. Obviously, as a responsible administration that lives up to its obligations, the Hong Kong Government should have provided the relevant legal framework as soon as possible in order to regulate the power of the executive authorities to intercept communications, to protect personal privacy and to bring the laws of Hong Kong in line with the BORO and ICCPR. However, the Hong Kong Government has always taken a "lay back" attitude and tried to use "delaying" tactics. It was not until being urged repeatedly by human rights organizations and Legislative Council Members from the Democratic Party that the Government came up with a white bill, which has so far not been presented to this Council. Even now, the Hong Kong Government still resorts to the argument that the Member's Bill proposed by the Honourable James TO is unworkable from an administrative point of view and tries to lobby Members of this Council to vote against the regulation of the interception of communications by legislation. At this time when the British Administration of Hong Kong is soon leaving the colony, on the one hand, it tells the world that it has carried out its obligations under the ICCPR, and on the other hand, it acts in the way I have just mentioned. I would like to ask the Government how it can be accountable to our people, and how it can explain itself to the UNHRC. At present, when the change of sovereignty over Hong Kong is just around the corner, there are still many pieces of legislation in Hong Kong that are inconsistent with the BORO and other international covenants on human rights. But the Government is still turning a blind eye on these matters and we think this is very regrettable indeed. This Bill, the Second Reading of which the Democratic Party now seeks to resume, aims at enacting the Interception of Communications Ordinance that can fulfil the above requirements and conditions under the BORO. It provides that law-enforcement officers can only apply for a warrant to intercept communications under specified conditions and with sufficient reasons. This is in line with the spirit of existing legislation that requires a law-enforcement officer to apply to court for a warrant before entering a premise to conduct any search. The original version of the Bill proposed by Mr James TO seeks to restrict the application by law enforcement officers for such warrant to the greatest 1496 LEGISLATIVE COUNCIL ─ 27 June 1997 extent possible in order to protect personal privacy. However, after discussions with the relevant panel of the Legislative Council as well as other organizations and Members, Mr James TO and we have taken on board the views that have been expressed and are willing to make certain amendments. Later on, I shall move on behalf of the Democratic Party some less drastic amendments, which have accommodated the advice of the Government to amend the term "serious crime" to the effect that it only means any offence punishable by a maximum period of imprisonment of not less than seven years, as well as accepted our colleagues' proposal in order that a warrant granted under each application shall be valid for 90 days, and can be extended for another 90 days. Moreover, the amendments that I am going to propose in my personal capacity also include the procedures for destroying the intercepted materials and permitting authorized persons to request in writing to the court objecting to the destruction of the intercepted materials. Mr President, with these remarks, I urge Members to support the Second Reading of this Bill, as well as the amendments to be proposed by the Democratic Party. 1.05 am THE PRESIDENT'S DEPUTY, DR LEONG CHE-HUNG, took the Chair. MISS EMILY LAU (in Cantonese): Mr Deputy, I speak in support of the Second Reading of the Interception of Communications Bill introduced by the Honourable James TO. As the Honourable Albert HO has just said, under section 33 of the Telecommunication Ordinance (TO), the Governor may authorize a law enforcement officer to interfere or intercept any communications in the interest of the public. Also, in accordance with section 13 of the Post Office Ordinance (POO), a warrant may be granted by the Chief Secretary to open or delay any postal packets. The criterion of public interest is not even mentioned in the latter ordinance. The Law Reform Commission (LRC) has commented that these two ordinances are in contravention of Article 17 of the International Covenant on Civil and Political Rights (ICCPR) and Section 14 of the Bill of Rights Ordinance (BORO). These two provisions stipulate that no one shall be subjected to arbitrary or unlawful interference with his privacy or LEGISLATIVE COUNCIL ─ 27 June 1997 1497 correspondence, and that everyone has the right to the protection of the law against such interference. Mr Deputy, the Privacy Sub-Committee of the LRC issued a consultation paper on the regulation of interception of communications by legislation in the middle of last year and the LRC had completed its report by the end of the year. Therefore, public opinion on the matter is already very clear and the Government should have proceeded with legislation much earlier. But sadly, the Security Branch subsequently issued another consultation paper on the Interception of Communications Bill in February this year, "forcing" for another one-month consultation exercise. This was but a trick to delay legislation. By the end of the exercise, the Government said that it had received 14 submissions. Given the consistently high efficiency of the Civil Service, in particular the Security Branch under Mr Peter LAI, I believe that had the Government wished so, it would no doubt have sufficient time to prepare the required bill and introduce it to the Council. However, Mr LAI would not bother to come to discuss the matter with Members of the Council. He just sent his deputies to attend the joint meeting of the Panels on Information Policy and Security, and these officials came up with the excuse that the bill was not gazetted for the consideration of the Council because the Government was not certain whether there would be enough votes for its passage. I believe that all colleagues who were present at that joint meeting, perhaps with the exception of the Honourable IP Kwok-him, were as angry as I was about the way in which the Government handled the matter. Has anyone ever heard that a bill would only be introduced to this Council when it is certain that there will be enough supporting votes? Of course, the Secretary for Security would say, "Why should it not be the case? It was really a hard blow last time when the Crimes Bill was introduced!". I do not think it is fair to say so. The most important thing is that, even the LRC considered that interception of communications was in contravention of human rights conventions. And who would have thought that the Secretary for Security would put up the excuse of being not sure whether there was enough supporting votes? This is unacceptable indeed. Moreover, our Governor, Mr Chris PATTEN, who will leave his office in just two days, should be very ashamed. I am sure Mr Deputy will recall that, when he first took up his office, he said that he would review all laws concerning 1498 LEGISLATIVE COUNCIL ─ 27 June 1997 freedom of press and that he would definitely repeal or amend any legislation that obstructed the freedom of press or ran against the BORO or the ICCPR. The TO was one of the laws on the list he gave us. However, despite strong criticisms of prominent human rights organizations all over the world, he dared not, and would not, amend this ordinance. Therefore, I very much support this Member's Bill introduced by Mr James TO. It is proposed in the Bill that a law enforcement officer must obtain a warrant from the court for tapping or intercepting communications. I support the implementation of this court warrant system to replace the existing system whereby the tapping or interception of communications is only allowed with the authorization of the Governor or the Chief Secretary. Only in this way can better protection be provided to the public in respect of their right to privacy. Finally, Mr Deputy, I would like to mention that, in the consultation paper issued by the Secretary for Security, nothing has been said about the regulation of communications transmitted through the computer network. Experts in this field, especially those from the Hong Kong University, are extremely annoyed by this omission. The Government has explained that section 27A of the TO has already had sufficient safeguard built in. However, if we look at section 27A of the TO more carefully, we will see that it only regulates unauthorized access to computer systems, which means hacking. This provision cannot possibly safeguard the messages transmitted through the computer network and ensure that such messages will be not be arbitrarily or unlawfully intercepted by law enforcement officers. This matter should have been dealt with in Mr James TO's Bill and I am going to give the Bill my support. Of course, we feel sorry that we do not have enough time to study the Bill. But I do not think the Legislative Council should be held responsible for it, rather it is because of the Government's repeated procrastination that left us no time to do the job. Even though the Government knows very well that the two ordinances are in contravention of the ICCPR and BORO, it just turns a blind eye on the matter and takes no action at all, thereby making the same mistake again and again. It is hard to understand how the Hong Kong Government, which always takes pride in being a government that respects human rights and the rule of law, can actually tolerate this grave situation for so many years and completely ignores its existence. It has intentionally delayed action and gives us the excuses of insufficient time and insufficient supporting votes only at the very last LEGISLATIVE COUNCIL ─ 27 June 1997 1499 minute. It seems that the Government does not care about the matter at all. I am very angry about this and I do not think it is an attitude that a responsible government should have. With this remarks, I support the Second Reading of the Bill. MR IP KWOK-HIM (in Cantonese): Mr Deputy, ever since the enactment and commencement of the Bill of Rights Ordinance (BORO), many pieces of legislation that were inconsistent with the Bill of Rights previously have been amended and a set of laws aiming at protecting the individual's right to privacy has been in place. The Personal Data (Privacy) Ordinance is one of such examples. After years of efforts by the Government, there is only one area, that is the interception of communications, which still lacks an effective statutory regulatory framework. At the end of last year, the Law Reform Commission (LRC) issued a report on the regulation of interception of communications and proposed the introduction of a court warrant system to replace the existing system under which the authorization of the Governor or the Chief Secretary is required for the issue of a warrant. I believe that the Interception of Communications Bill now proposed by Mr James TO for the consideration of this Council is modelled on the major recommendations contained in the LRC report, and its purpose is to protect individual privacy and prevent it from any unnecessary interference. This principle is desirable. But at present, law enforcement authorities have been relying heavily on the interception of communications to obtain important clues for the detection and prevention of serious crimes. It is necessary if Hong Kong is to preserve its high crime detection rate and maintain good law and order. Mr Deputy, as far as the privacy of individuals and the law and order of Hong Kong are concerned, the Democratic Alliance for the Betterment of Hong Kong (DAB) is of the view that any relevant legislation must be drawn up after thorough deliberation and wide consultation of the public and all law enforcement authorities, so that a balanced proposal may be made. This is the kind of attitude that we legislators should have. If controversial or disputable laws were rushed through without detailed discussions, unimaginable 1500 LEGISLATIVE COUNCIL ─ 27 June 1997 consequences might arise, resulting in the situation where "bad things are done out of good intentions". It is certainly something that we do not want to see. Moreover, the Government has already issued a white bill earlier on and the related consultation exercise has concluded. I think Mr TO also admits that the mechanism proposed by the Government in regulating the issue of warrant is better, and the treatment of intercepted materials and the establishment of an appeal mechanism are more preferable. On the contrary, in respect of the operation of law enforcement authorities, the present Bill has imposed many restrictions against which the Government has raised its objections in various aspects. Mr Deputy, given the far-reaching implications of the Bill and the absence of adequate consultation with and discussions by interested parties, the DAB has reservations about the hasty passage of the Bill at this stage. At the same time, I hope the future SAR Government will introduce the relevant legislation to the SAR legislature for consideration as soon as possible so as to make up for the shortcomings of the existing system. Mr Deputy, with these remarks, I object to the amendment of the ordinances. MR BRUCE LIU (in Cantonese): Mr Deputy, I speak on behalf of the Hong Kong Association for Democracy and People's Livelihood (ADPL). The existing Telecommunication Ordinance (TO) empowers the Governor to order interception of communications if he considers that public interest so requires. The Post Office Ordinance (POO) also gives similar authority to the Chief Secretary or the Postmaster to inspect postal packets. I was asked whether Members in this Chamber had experienced such interceptions by the Hong Kong Government, or rather, the Governor? Mr Deputy, has your medical clinic ever been intercepted with in terms of communications? How about the headquarters of political parties to which Members in this Council belong? Have those telephone lines ever been tapped? Is it usual that telephone or communications are intercepted? I cannot provide an answer to this question. But the Honourable LAU Chin-shek at one point LEGISLATIVE COUNCIL ─ 27 June 1997 1501 disclosed in the press and magazines that, in the place he works, that is, the office of the Christian Industrial Committee, tapping apparatus could be found all over and he had hired people to conduct demonstration on anti-tapping there. I believe that interception by the Administration is quite a prevailing matter. But why do I see it that way? It is because the LRC has made an interesting comments in its report on privacy. Although the question that how many tappings the Government actually made in the past has been asked many times, according to our record, Mr Gilbert LEUNG first asked that question on 11 November 1992. The answer provided by the Administration at that time was that it could not disclose the details due to security reasons. This model answer has been adopted so far and it is not known whether the Administration has made tapping or not, let alone the numbers. Recently, however, there are indications that tapping is increasing because it is reported in the press that the Independent Commission Against Corruption (ICAC) has installed extra equipment and hired ten more staff members to enhance its tapping capability from 50 to 80 lines. The ICAC alone can already tap 80 telephone lines and it is not known how many lines can be tapped by other government departments. In fact, we all know that this situation exists. I think that it makes sense if tapping is for public safety, the security of Hong Kong and some other security reasons. That is to say, there must be good reasons such as the three major reasons mentioned by Mr Albert HO just now. Yet it is not so in reality. Apart from those reasons such as for the investigation of serious crimes, there are many other reasons, including political considerations. Given the Hong Kong situation, the existing practice is not desirable. The LRC has concluded that such actions are in violation of the ICCPR, the detailed provisions of which I shall repeat no more as they have just been mentioned by other Members. The LRC states in its report that, at present, section 33 of the TO and section 13 of the POO have suffered nine drawbacks due to the absence of a good regulatory framework. I shall briefly talk about these nine drawbacks which are the very reasons why legislation is needed. First, the provisions do not specify the grounds on which an interception may be carried out. Second, neither the Governor nor the Chief Secretary is required to have any grounds for suspicion when authorizing an interception, that is, no reasons need to be provided when making such application. Third, the authorizing officer is not required to be satisfied that the information sought by 1502 LEGISLATIVE COUNCIL ─ 27 June 1997 the applicant cannot reasonably be obtained by other less intrusive means. Fourth, the provisions do not impose any restrictions as to the duration of the warrant. Fifth, the provisions make no requirements on the contents of an order, that is, no remarks are made for the contents. Sixth, they are not monitored by an independent body on a regular basis. Seventh, the officer issuing the order or warrant is not accountable to the public at large. Eighth, the provisions do not provide for any means by which the legality of an interception can be reviewed by a judicial or administrative body. Lastly, the provisions do not provide for any judicial or administrative remedies for an individual who suffers damage by reason of an interception which has been improperly authorized. Actually, these nine points are already good reasons for us to seek legislation. Hence the LRC concludes that it is clear that the two ordinances do not provide sufficient protection against unlawful or arbitrary interference with the individual's right to privacy and freedom of communication. Therefore, legislation must be put in place to regulate the interception of communications. It is a very clear conclusion that the best party to draft the legislation is the Administration because bills drafted by the Government normally involve experts and are therefore more specific and can have charging effect. It is for these reasons that the white bills drafted by the Government contain more details. If the Government does not take the initiative to draft, it is the duty of Members to introduce a Member's Bill. However, there is a restriction that a Member's Bill may not have a charging effect. Thus, we must apply certain skills when drafting such bills. Regarding Mr James TO's Bill, I have gone through it in great detail in order to see whether it is workable. The Government says that a few things contained in the Bill are not workable and therefore it should not be supported. I would like to comment and respond to this. Firstly, the Bill proposed to remove "the security of Hong Kong" as a ground for issuing an interception warrant. In this connection, I think the ground "the security of Hong Kong" should be added back and I have discussed this with Mr James TO. I think this point should be supported at the Committee stage. Secondly, it says that the scope of this ordinance is too broad because oral conversations will also be included and amounted to interception of communications. For instance, if I said something to the Honourable MOK Ying-fan and it was overheard and recorded, it will also amount to an LEGISLATIVE COUNCIL ─ 27 June 1997 1503 interception. Mr James TO is agreeable to this and he has deleted oral interception from his Bill. Therefore, we need not worry about this. Thirdly, at present, the duration of an interception warrant is 30 days and renewable for another 30 days. It is not operational if its duration is so short. In this regard, we have to see and compare the situations in other countries and then we will see the problem regarding the duration and renewal of a warrant. The duration of a warrant in the United States is 30 days, in New Zealand it is also 30 days and these are the shortest. In Canada and the United Kingdom, the duration of a warrant is 60 days, whereas in Australia it is 90 days. If a warrant is to be extended, it will be of a similar duration. Mr TO has opted for the shortest duration of 30 days in his Bill; yet he will move an amendment. The Honourable Albert HO is going to move amendment too. In order to allay the worry of the Administration, we may give a warrant the longest duration to allow for more working time. Therefore, I am in support of Mr Albert HO's proposal that the duration should be extended to up to 90 days and renewable for another 90 days. As such, the duration of a warrant will amount to six months altogether and this should be feasible. There is a further point I would like to make. The power to issue warrant should be taken away from the Governor and put into the hand of a High Court Judge. The Administration of course wants things to remain unchanged. However, the LRC has indicated that Hong Kong should separately provide an independent mechanism under which the relevant decision would be made by the Judiciary. This is to avoid the so-called conflict of roles. The warrant system under the Judiciary is meant to strike a balance in case there are conflicts between the individual's rights and the Government's interest. As interception of communications involves certain sensitive issues, the monitoring of the Government by an independent authority is important in maintaining public confidence in the warrant issuing system. This cannot be achieved just by a senior Government official granting permission to application referred to by a government department. The best way is to appoint a judge as an arbitrator to determine whether it is really necessary to intercept communications. It is believed that after the amendments, the Bill will be enforceable and consistent with the BORO. I think the LRC and the public are keen to see expeditious enactment of the Bill. As such, the ADPL will support the Bill. Lastly, as a Member's Bill may not have any charging effect, the only deficiency 1504 LEGISLATIVE COUNCIL ─ 27 June 1997 in Mr TO's Bill is that it lacks a so-called monitoring authority or the establishment of another monitoring body to directly channel such complaints to that authority. It is hoped that the Administration will introduce amendments at appropriate time to ensure the presence of a regulating authority. In that case, there will be a two tier system which will in fact enhance the enforceability of the Bill. Mr Deputy, with these remarks, I support the Second and Third Readings of the Bill. MRS SELINA CHOW (in Cantonese): Mr Deputy, I speak on behalf of the Liberal Party to spell out our views on the Honourable James TO's Interception of Communications Bill. We very much respect Mr TO for introducing this Bill. We also agree in principle that this Bill is really necessary. Anyhow, we feel regret and pity because the Government has in fact delayed the matter and in this regard, Mr TO had expressed to us his grievance. We also understand and recognize his feeling because we are of the opinion that it is really necessary to legislate and conduct studies as early as possible with regard to such an important Bill which provides protection to individual's privacy as well as human rights. However, we do have some comments on the present way of legislation. Although some consultation papers are drawn up, there has not been detailed examination or appropriate time to complete the necessary work as far as deliberation of the Bill is concerned. We consider that, after all, the work has been done too hastily. Therefore, although the Liberal Party raises no objection to the Bill, we will abstain from voting. We hope Mr James TO can understand and respect our way of thinking. The most important thing is that we are worried that the Bill might impose unnecessary restrictions on law enforcement and as a result, a price has to be paid at the expense of law and order. As we are not fully satisfied that the passage of the Bill will not cause such a consequence, we cannot support the Bill, but we will not vote against it. Thank you, Mr Deputy. LEGISLATIVE COUNCIL ─ 27 June 1997 1505 SECRETARY FOR SECURITY: Mr Deputy, the Administration strongly opposes the Honourable James TO's Members' Bill. Having carefully studied Committee stage amendments proposed by Mr James TO and the Honourable Albert HO, we find that the Bill, with or without the Committee stage amendments, would pose serious operational difficulties to our law enforcement agencies. The proposals in the Bill and the Committee stage amendments have been drawn up without prior consultation with our law enforcement agencies. The implementation of the Bill would be prejudicial to the security of Hong Kong and would bring no benefit other than to criminals who will benefit from its flaws. Some of the proposals in the Bill will increase privacy risks and they run against the recommendations of the Law Reform Commission in its report on privacy. It is important that we should not rush into enacting a Bill in this area without the most extensive consultation of affected parties and careful scrutiny by a Bills committee of this Council. Let me now set out for Honourable Members the main defects of this Bill and the proposed Committee stage amendments. First, Mr James TO has proposed a Committee stage amendment to remove "security of Hong Kong" as a ground for issuing an interception warrant. This would have serious and adverse consequences detrimental to the security of Hong Kong. Interception of communications is an important means for our law enforcement agencies to keep track of and take necessary preventive measures against activities which might pose a threat to the security of Hong Kong, such as the activities of terrorist groups. In many overseas jurisdictions like Canada, the United States, Australia and New Zealand, security is one of the grounds for granting an interception warrant. It is also one of the grounds recognized under Article 8 of the European Convention on Human Rights, and Article 30 of the Basic Law which justifies interference by the relevant authorities with the exercise of the right to privacy. 1506 LEGISLATIVE COUNCIL ─ 27 June 1997 Removing "security of Hong Kong" as a ground for interception will deprive our law enforcement agencies of an important tool to safeguard the security of Hong Kong. Secondly, although Mr James TO has proposed Committee stage amendments to exclude from the Bill surveillance aspects, that is to say the recording of oral communication, it would still pose operational difficulties to law enforcement. The Bill does not provide exemption to cater for the operational need of law enforcement agencies to intercept certain radio communications for which it is impossible to specify the target and the radio spectrum, for example, for the purpose of detecting smuggling cases where criminals invariably use unlicensed telecommunications equipment. Neither does the Bill provide exemption for the routine operation of the Telecommunications Authority to intercept radio communication for detecting unlawful interference, some of which could affect the safety of life, for example, interference of aeronautical and navigation or landing aids. Thirdly, by allowing only one renewal of an interception warrant, the Bill also poses practical difficulties to law enforcement. Although Mr James TO has proposed to extend the duration of warrant from 30 days to 60 days and Mr Albert HO has proposed to extend this to 90 days, the restriction allowing for only one renewal of the same duration will still affect long-term investigations into, for example, organized and serious crimes, where the interception operations are by their very nature necessarily protracted. It would mean that even if the continuance of an interception operation could yield crucial information leading to the detection of a serious crime, it has to stop on the expiry of the warrant if it has been renewed once. Fourthly, apart from posing operational difficulties to law enforcement, the Bill also increases privacy risks in two important aspects. It allows intercepted material to be used as court evidence. This will entail public dissemination of personal information and is recommended against by the Law Reform Commission. It will, of course, also have the undesirable effect of revealing our law enforcement capabilities to intended criminals. Although the Committee stage amendments proposed by Mr Albert HO would remove the privacy risk arising from the original proposal to notify the target of interception following the termination of an interception operation, Mr LEGISLATIVE COUNCIL ─ 27 June 1997 1507 James TO has proposed to introduce a new clause on remedies to allow persons aggrieved by an unlawful interception to apply for remedies through court proceedings. The Law Reform Commission has examined this issue and concluded that this is not a preferable course of action. For one thing, the aggrieved person would invariably have an impossible task to secure enough evidence to prove that he has been a victim to an unlawful interception. Moreover such civil proceedings would inevitably involve the disclosure of sensitive information related to the interception operation, thereby increasing privacy risks, just as in the case of admitting intercepted material as evidence in criminal proceedings. In order to provide effective remedies for aggrieved persons, the Law Reform Commission recommends the setting up of an independent supervisory authority who may award compensation and at the same time help maintain public confidence in the system by keeping the warrant system under regular review. This course of action is not adopted in the Bill. It is clear from the above that it is not in the public interest to pass this Bill. While the Administration fully acknowledges that the regulation of interception of communications is an area of understandable public concern, it must be recognized that this is a complicated area with wide-ranging implications. It is important to ensure that legislation on this area strikes the right balance between the protection of privacy and the justifiable needs of law enforcement agencies for an effective tool to combat crime and to safeguard the security of Hong Kong. To this end, we are working hard to examine the various issues raised in response to our consultation exercise on the Administration's White Bill on the Interception of Communications in February this year. We believe the proper way forward is for the Administration to press ahead with its work with a view to resolving all the outstanding issues as quickly as possible. Meanwhile, it would not be practicable to introduce a Bill into the current Legislative Council. Mr James TO's Members' Bill, drawn up without prior consultation with the law enforcement agencies, is entirely unworkable and the Administration will not be able to bring it into operation. It would be irresponsible to rush through legislation on this area especially since the change to an entirely new system is 1508 LEGISLATIVE COUNCIL ─ 27 June 1997 involved. In other jurisdictions, changes of this nature take years to work out and to reach a broad consensus on the sensitive aspect of law enforcement. It would be reckless to pass legislation which would deprive our law enforcement agencies of a useful tool to safeguard the security of Hong Kong. Nor would it be helpful to introduce changes hastily if the result was that our law enforcement capability against serious crimes, such as drugs trafficking, kidnapping and money laundering, were seriously jeopardized. The effect of Mr James TO's Members' Bill would be detrimental to the security of Hong Kong. It would also have an adverse impact on our common efforts to maintain Hong Kong as one of the safest cities in the world with an enviably high detection rate. For these reasons, we urge Honourable Members to vote against the Bill. Let me make one last point abundantly clear. If the Bill were passed today, the Administration will have no option but to seek to repeal it as soon as possible thereafter. Thank you, Mr Deputy. MR JAMES TO (in Cantonese): Mr Deputy, how much time have I left? DEPUTY PRESIDENT: 15 Minutes. You do not have to use all your 15 minutes. MR JAMES TO (in Cantonese): Mr Deputy, first of all, I would like to thank colleagues for their careful scrutiny of the Bill, including those who cannot render their support or those who will abstain from voting. In fact, I know that they have studied the Bill in great detail before arriving at their conclusions. The Secretary for Security started by saying that the Administration would require full consultation with various departments. I am really shocked at such a statement coming from the Administration. In fact, as far as consultation is concerned, the Administration has received many comments on its white bill. As for Government departments, they have been sending us submissions when the issue was taken up by the LRC. There are representatives from the police in LEGISLATIVE COUNCIL ─ 27 June 1997 1509 the Subcommittee of the LRC as well. Actually, comments such as whether the proposals are workable and where the point of balance should lie have been dealt with in the LRC report. I believe that the Administration has conducted consultations and has found the ideas enforceable before introducing its white bill. Many of my points are in fact similar or even identical to the ideas of the Administration, except those areas where public money cannot be used, such as the monitoring aspects mentioned by the Administration or a second level of monitoring proposed by the Honourable Bruce LIU. In fact, it is because of the need to avoid the charging effect that I proposed the provision on compensation to be awarded to victims in accordance with court decisions. But then, the Administration argued that nothing could be done if one did not know that he was being tapped. In fact, if such situation exists, there will be compensations. The matter is whether it is easy to obtain compensation and I think it is not. However, I believe that, if the Administration really acts in good faith to deal with the problem, after my amendments, it should amend rather than repeal the provision as it has said so irresponsibly. For instance, it could introduce a regulatory mechanism, a second level monitoring mechanism and the awarding of compensations. Furthermore, if the Administration says that there has been no full consultation in relation to the Bill, it is wrong. Why? It is because the Administration has already expressed its views during our meetings with the Panel on Security. I believe that, at the time when the Government criticized my Bill, it would not do so without consulting the police or the related law enforcing departments. If the white bill was drafted by an Administrative Officer on his own without consultation, I would be really surprised. It is definitely not the case. No matter how he did the drafting and no matter how his department conducted the consultation, the Bill should have contained all information available and should have everything written down. I can only assume that the bill proposed by the Administration is exhaustive because the Administration is in a much better position than I am in terms of manpower and resources. Therefore, it should have written down everything they can put up. Now I would like to respond to the comments made by the Administration. First of all, it said that I deleted the reference of the security of Hong Kong from the definition. In this connection, the Honourable Bruce LIU has been helpful in saying that the Honourable Albert HO's amendment will retain the reference of the security of Hong Kong as well. Later on, I hope to seek permission from the 1510 LEGISLATIVE COUNCIL ─ 27 June 1997 President for separate voting to be taken on the Committee stage amendments (CSA) in respect of section 4B. In fact, I will urge Members to vote against my amendment so that the reference to the security of Hong Kong can be retained. Perhaps I shall explain why I change my position from proposing the deletion of the "security of Hong Kong" to asking for your objection to my amendment so that my proposed deletion can be retained. I really think that the scope of "security of Hong Kong" is too broad and in response to requests made by the Bar Association, I would like to narrow it down so as to make it more specific. In this connection, the "security of Hong Kong" already covers the terrorists mentioned by the Administration just now. If this is the case, they are already included in offences punishable by a maximum period of imprisonment of not less than 7 years. If the terrorists and terrorism it mentioned refer to activities in connection with bombing, poison gases, chemical weapons, nuclear weapons and so on, the terms of punishment for such offences all exceed the aforesaid sentence and can basically be dealt with by interception of communications. We have also taken into account whether the so-called "anti-government activities" have ever been considered by the Administration and what such activities are. In fact, I originally included in my amendment the newly passed offence of espionage, such as spying provided in the Official Secrets Act and the related offences. Moreover, offences like treason, sedition and subversion are also included in my Bill. As court permission is required, I hope to narrow down the scope instead of looking for what constitutes the security of Hong Kong other than such crimes. We note that national security is included in the legal provisions of many western countries or democratic countries. We now have similar provisions in our laws and that the permission will ultimately be given by a court. In the light of the abovementioned situation and that all members of the LRC seem to agree to this view, I think that such a viewpoint can be taken and retained as a principle for the time being. And that is what I am going to do. Regarding the interception of oral communications, in response to Members' requests and after careful considerations, I have decided to withdraw such requirements and will propose amendments at the Committee stage. As the LRC will later issue a report in this regard, I hope the Administration will consider the problems in detail then. LEGISLATIVE COUNCIL ─ 27 June 1997 1511 As regards the renewal of warrants, that is, the maximum period of extension and duration of a warrant, I want to thank Mr Bruce LIU for citing examples of other countries, that is, the countries in which the duration of a warrant is 30 days, 60 days, 90 days and so on. In fact, all the countries or territories I mentioned just now apply those standards even for uncovering spying activities, matters concerning national security or anti-intelligence operations. In another word, I really think that 90 days plus another 90 days is the maximum and can be extended no more. Therefore, if you go for 60 days plus 60 days, please give me your support. If you go for 90 days plus another 90 days, then please support Mr Albert HO. The choice merely represents certain ideology or certain viewpoints that relaxation is wanted. If you say that the six-month duration referred in the Administration's white bill can be extended indefinitely, I really cannot imagine what the situation will be. You go to a court to apply for a warrant every half a year and then the Administration argues that some of the cases are long-term investigations. To be honest, it is just like the kind of fishing strategy extending every half a year and it will go on for a long time. If this is the case, where is the point of balance with regard to the so-called individual's right to privacy? How can we agree to provisions like these? On the other hand, in other countries, reference is made by comparing the manpower with the law enforcing efficiency. For example, in the interception of communications, no matter how advanced the equipment used is, it is still necessary to deploy lots of manpower and resources. It is like a situation where you had intercepted certain communications for 90 days, that is, three months, and you still said that it was not long enough and you made another application for a further three months. After six months, you still got nothing. In such case, you had deployed manpower and resources that were not commensurate with the efficiency as you originally stated. Given our limited police strength, we just cannot deploy our human resources like that for half a year. Many countries have concluded that this method is not cost effective and it is impossible for the law enforcing departments to apply this kind of fishing strategy. Moreover, if, for instance, the duration of a warrant is 90 days and during which you have found some crucial information, you can in fact make a new application. Reasons? It is because you have obtained additional evidence with which you will soon solve the case. Why is it so? It is because within that 180 days or 90 days, the so-called target should have begun to contact other people on secret codes, to talk about the places of transaction as well as 1512 LEGISLATIVE COUNCIL ─ 27 June 1997 how to hide the money, how to conduct the robbery and how to make arrangement for firearms. As crucial information will soon be obtained, the court will be convinced to grant another 90 days. This is quite reasonable and the court will easily be convinced. Therefore, it does not sound reasonable when you say it is not known whether this can be done or not. The Administration argues that, under certain circumstances, if law enforcing officers really have to produce materials to be used as court evidence, it may reveal the so-called law enforcement capabilities. I think there will always be such a contradiction. For instance, if an "undercover agent" is deployed to collect information on a long term basis, his identity should not be revealed in courts for testification. Why? It is because if it is the case, the identity of the undercover agent will be known to all and the line through which crucial information is collected will be broken. The common saying for that situation is that the line " has turned yellow" and that means the line is broken. The evidence can only be used for prosecution on that charge. You may say that it is not the case. The undercover agent might not have to appear in court and other evidence might be resorted to. Thus, the undercover agent would not have to show himself and could continue his undercover assignment. But from the point of prosecution, the problem is that it is not known whether it is sufficient to initiate a charge without the evidence of the undercover agent. Therefore, this argument is basically unacceptable because, even though other methods are available, you still have to decide whether to reveal the method or continue to collect evidence by that method. Also, some of the so-called advanced technology can in fact be used more than once. Mr Deputy, I would like to quote a recent article which is quite interesting. The writer of that article is the Chairman of Better Hong Kong Foundation, Mr CHAN Kai-chung, who has written an article criticizing the Governor, Mr Chris PATTEN. His first criticism is on democracy. As soon as the Governor issues a warrant, anyone can intercept telephone lines. He very much believes that many people in the business community who are not in the same line with the Governor are having their telephone lines tapped. It is interesting that this criticism comes from Mr CHAN Kai-chung because he always criticizes the Governor and he knows a lot about the business community. I think this reflects part of the situation and it is natural for most members of the business LEGISLATIVE COUNCIL ─ 27 June 1997 1513 community and even everyone to feel anxious. Given that intelligence information can be collected at any time "in the interests of Hong Kong" with no grounds being given, how should such a line be drawn? It is impossible and it will be a very loose line. In fact, everyone can strike his economic rivals or political rivals and do everything they like. Recently, the World Bank also issued a report praising the efficiency of the ICAC that they have done well in terms of their powers, all of which are vital assets to anti-corruption operations in the future. But we must be watchful at the same time that we need to have a more efficient, more independent mechanism capable of monitoring the ICAC that is so powerful and efficient. Otherwise, should the Chief Executive of the Hong Kong Special Administrative Region really wants to abuse his power, he can turn the ICAC, the Commercial Crime Bureau, the Securities and Futures Commission, the Inland Revenue Department and so on, into his personal political instruments against his political and economic rivals. If this were the case, it would be very dreadful and one of such means was to know what his rivals have got. This could be done easily by creating a file on matters of ambiguous nature. The present legislation is even worse that any interception of communications would be justified "in the interests of Hong Kong" and it is highly likely that it will lead to abuse of power. Therefore, I urge Members to support this Bill, especially at the Committee stage after its Second Reading. In fact, I have offered a number of options which will reflect Members' ideology, degree of concerns and allow them to choose the point of balance that they think appropriate. Mr Albert HO will make a number of mild concessions for me. If you think his amendments are better, it is all right with me. I also hope to get a majority consensus so as to urge the Administration to immediately rectify this piece of legislation that is inconsistent with the Hong Kong Bill of Rights Ordinance. Thank you. 1.55 am THE PRESIDENT resumed the Chair. Question on the Second Reading of the Bill put and agreed to. Bill read the Second time. 1514 LEGISLATIVE COUNCIL ─ 27 June 1997 Bill committed to a Committee of the whole Council pursuant to Standing Order 43(1). Committee stage of Bill Council went into Committee. INTERCEPTION OF COMMUNICATIONS BILL Clauses 1 and 3 MR JAMES TO (in Cantonese): Mr Chairman, I move that clauses 1 and 3 be amended as set out in the papers circularized to Members. Mr Chairman, my amendment is mainly about the deletion of oral communications. That is to say, if Members support this amendment, it will only regulates communications in the form of telephone, telegraph and post. Oral conversation, that is, oral communications intercepted in the air will not be part of the Bill. I also believe that the Administration will agree to this amendment because it is one of the criticism put forth by the Government. Proposed amendments Clause 1 (see Annex XXVII) Clause 3 (see Annex XXVII) Question on the amendments put and agreed to. Question on clauses 1 and 3, as amended, put and agreed to. Clause 4 LEGISLATIVE COUNCIL ─ 27 June 1997 1515 MR JAMES TO (in Cantonese): Mr Chairman, the amendment to clause 4(1) is a related amendment to clause 1(3), which deletes the "interception of oral communications" so that it will not stand part of the Bill. Proposed amendment Clause 4(1) (see Annex XXVII) Question on the amendment put and agreed to. Clause 4(2) MR JAMES TO (in Cantonese): Mr Chairman, I move that clause 4(2) be amended as set out in the papers circularized to Members. As I have said just now, originally, I hoped to delete the "security of Hong Kong" as a ground for applying for a warrant and replace it with "serious crime". However, as I said during the Second Reading of the Bill, I will urge Members to vote against my original amendment. If you think the "security of Hong Kong" is within the definition of serious crime, you should vote for it. If you hope to retain the "security of Hong Kong" as a ground for applying for a warrant, you should vote against it. For the time being, I just hope that the whole Bill will be passed and enacted. I also hope, as I explained, that my proposal be opposed. Mr Chairman, actually, can I withdraw my amendment? Proposed amendment Clause 4(2) (see Annex XXVII) CHAIRMAN: If you do not move the amendment, then there will be no amendment on the floor. 1516 LEGISLATIVE COUNCIL ─ 27 June 1997 MR JAMES TO (in Cantonese): I am sorry. Anyway, I now call on Members to vote against my amendment. MR BRUCE LIU (in Cantonese): Mr Chairman, The Hong Kong Association for Democracy and People's Livelihood considers that the "security of Hong Kong" should be retained as one of the grounds for the application of a warrant. Therefore, I call on Members to vote against the Honourable James TO's amendment. Question on the amendment put and negatived. Question on clause 4, as amended, put and agreed to. Clauses 5, 8, 9, 11 and 14 MR JAMES TO (in Cantonese): Mr Chairman, I move that clauses 5, 8 9, 11 and 14 be amended as set out in the papers circularized to Members. Now let me explain the relevant amendments. The amendment to clause 8 is a consequential amendment to the amendments to clauses 1, 3 and 4(1), that is, "oral communications" should be deleted so that it will not stand part of the Bill. The amendment to clause 14 is purely a technical amendment. In my original proposal, I have repeated one phrase, namely, the "Communication Ordinance". Actually, in the heading of clause 14, the term "Communication Ordinance" has already been referred to. However, in the main text, "Communication Ordinance" is mentioned again. Thus, the term has been repeated. Both the Legal Adviser and I consider that the repetition of the term makes the text look less agreeable. As such, I hereby propose a textual amendment instead of a substantial amendment. Proposed amendments Clause 5 (see Annex XXVII) LEGISLATIVE COUNCIL ─ 27 June 1997 1517 Clause 8 (see Annex XXVII) Clause 9 (see Annex XXVII) Clause 11 (see Annex XXVII) Clause 14 (see Annex XXVII) Question on the amendments put and agreed to. Question on clauses 5, 8, 9, 11 and 14, as amended, put and agreed to. CHAIRMAN (in Cantonese): Mr James TO and Mr Albert HO have separately given notices to move amendments to clause 6(4) and clause 6(8). I suggest that the amendments to clause 6(4) and clause 6(8) proposed separately Mr James TO and Mr Albert HO be debated together in a joint debate. CHAIRMAN (in Cantonese): The Committee shall debate the amendments to clause 6(4) and clause 6(8) proposed separately by Mr James TO and Mr Albert HO in a joint debate. I first call upon Mr James TO to move his amendment as he is the Member in charge of the Bill. Clause 6 MR JAMES TO (in Cantonese): Mr Chairman, I move that clauses 6(4) and 6(8) be amended as set out in the papers circularized to Members. Mr Chairman, this motion is about the duration of a warrant. Originally, I proposed a period of 30 days plus 30 days, that is, it could be renewed once with the same duration. I have also taken on board comments made by some 1518 LEGISLATIVE COUNCIL ─ 27 June 1997 Members as well as the opinions contained in the submissions forwarded to me, which pointed out that a duration of 30 days might be too short and that, in other places, the duration of a warrant might be 30 days, 60 days and 90 days and so on. As such, they urged me to compromise and make the duration to 60 days, which is thought to be more appropriate. After considerations, I took on this view and proposed to change the number of days from 30 to 60, that is, from 30 days plus 30 days to 60 days plus 60 days. It is nature that we all have our own ideology. Later on, the Honourable Albert HO will propose his amendments which will put forth a period of 90 days plus 90 days. If you support his amendments, you must vote against my amendment. I really think that 60 days plus 60 days is appropriate at this stage and it is already a compromise. Although it might look like shopping around to compare prices, it is necessary to consider the various needs for law enforcement and make reference to the comments made by the Secretary for Security. After taking into account of all the views expressed, I think that 60 days plus 60 days is the most appropriate option. I hope that everyone will vote according to his or her own understanding and wish. The Democratic Party will vote for a period of 60 days plus 60 days. Proposed amendment Clause 6 (see Annex XXVII) CHAIRMAN (in Cantonese): I now call upon Mr Albert HO to speak on the amendment proposed by Mr James TO as well as his own proposed amendment. But I would not call upon Mr HO to move his amendment unless Mr TO's amendment has been negatived. If Mr TO's amendment is agreed, that would by implication mean that Mr HO's proposed amendment is not approved. MR ALBERT HO (in Cantonese): Mr Chairman, I urge Members to make a choice between Mr James TO's amendment, my amendment and the original proposal. All these proposals are good ones. Thank you. LEGISLATIVE COUNCIL ─ 27 June 1997 1519 MR BRUCE LIU (in Cantonese): Mr Chairman, the Hong Kong Association for Democracy and People's Livelihood urges Members to support a period of 90 days plus 90 days for two main reasons. Firstly, we will later move an amendment to the effect that serious crime be made one of the grounds for the application of a warrant. It is because it really takes a longer time to investigate serious crimes. Hence, it is necessary to apply for a longer period to intercept communications. We have also included the "security of Hong Kong" as one of such grounds in the event that security of Hong Kong is involved and longer period for investigation is required. Secondly, the matter has already been discussed by the Law Reform Commission (LRC). It concludes and recommends that 90 days should suffice for both crime and public security. A similar period should govern extension. So, the conclusion of the LRC is that 90 days is appropriate and adequate. However, the Administration criticized that 30 days would not be good enough. In order to make a compromise with the Administration, we have opted for a longer period. Actually, we have the strongest point in this regard and I therefore urge Members to vote against Mr James TO's amendment and support Mr Albert HO's amendment. In this case, the Government could not argue that the proposed period was too short and that it was recommended against the conclusions of the LRC. Otherwise, our arguments would be weakened. Therefore, I urge Members to vote against Mr James TO's amendment and support Mr Albert HO's amendment. Thank you. Question on the amendment put and negatived. CHAIRMAN (in Cantonese): As the amendment to clauses 6(4) and 6(8) proposed by Mr James TO has been negatived, I now call upon Mr Albert HO to move his amendments to clauses 6(4) and 6(8). MR ALBERT HO (in Cantonese): Mr Chairman, I move that clauses 6(4) and 6(8) be amended as set out in the papers circularized to Members. 1520 LEGISLATIVE COUNCIL ─ 27 June 1997 Proposed amendment Clause 6 (see Annex XXVII) Question on the amendment put and agreed to. MR JAMES TO (in Cantonese): Mr Chairman, I move that clause 6 be further amended as set out in the papers circularized to Members. Proposed amendment Clause 6 (see Annex XXVII) Question on the amendment put and agreed to. Question on clause 6, as amended, put and agreed to. Clause 7 CHAIRMAN (in Cantonese): Mr James TO and Mr Albert HO have separately given notices to move amendments to clauses 7(3),(5),(6) and (7). I suggest that the amendments to clauses 7(3), (5), (6) and (7) proposed separately by Mr James TO and Mr Albert HO be debated together in a joint debate. CHAIRMAN (in Cantonese): The Committee shall debate the amendments to clauses 7(3), (5), (6) and (7) proposed separately by Mr James TO and Mr Albert HO in a joint debate. I first call upon Mr James TO to move his amendment as he is the Member in charge of the Bill. LEGISLATIVE COUNCIL ─ 27 June 1997 1521 MR JAMES TO (in Cantonese): Mr Chairman, I move that clauses 7(3), (5), (6) and (7) be amended as set out in the papers circularized to Members. Let me first explain my original proposal. My original proposal is that, if intercepted materials are not used for prosecution or otherwise within 90 days, they should be withdrawn or destroyed. Also, the intercepted party would be informed of the fact that he had been intercepted and how long he had been intercepted. My present amendment has taken into account the comments made by some Members as well as representations made by some delegations. It is considered that the police sometimes need not destroy the intercepted materials at once because such materials may be used for future investigation on related cases. Also, those evidences may need to be kept for some time to supplement other investigations. On the other hand, as the Administration pointed out, after the intercepted party is informed, there may be other related cases for which interception of communications is still required. This time, however, it might not be that person but his accomplice who is being investigated. In which case, the target would know that the police is investigating certain cases and would inform his accomplice. If so, further interception of communications would serve no avail. Therefore, the law enforcement officers may have to apply to the court for not to destroy immediately the evidences obtained by interception and not to inform the intercepted party that he had been intercepted so that further action can be taken. This is why I move this amendment. Perhaps I need to give an explanation on the Honourable Albert HO's amendment as well. The amendment proposed by Mr Albert HO will delete the procedure to notify the intercepted party. That is to say, no matter what, if you support Mr Albert HO's amendment, the intercepted party will not be informed that he has been intercepted under this provision. As regards whether or not the intercepted materials should be destroyed, Mr Albert HO will also move an amendment to enable law enforcement officers to have time to apply to the court for keeping the intercepted communications. The court will specify a time during which the materials will be destroyed or otherwise. For instance, the court may specify that, upon the completion of a case, the related communications will have to be destroyed. It can also specify a certain months or years after which the materials will be destroyed. Of course, it depends on how the law enforcement officer is going to convince the court which will then 1522 LEGISLATIVE COUNCIL ─ 27 June 1997 balance the privacy of the individual with the operational need of law enforcement officers before arriving at a decision. I have just explained the two options in the hope that they can serve as useful reference to Members. On behalf of the Democratic Party, I tend to think that the requirement under which the intercepted party shall be notified is more appropriate. Why? It is because in the course of the proceedings to inform the intercepted party, the law enforcement officer is able to raise objection and apply to the court as to the reasons why the intercepted party need not be informed. This would in fact be a point of balance, that is, a law enforcement officer will have to convince the court if indeed, the intercepted party should not be notify. I shall later propose a mechanism for civil remedy in addition to the notification requirement. If the intercepted party feels aggrieved because of the interception, he will need some evidence to serve as a trigger point from which he can institute legal proceedings. This is also the criticism made by the Administration or the Law Reform Commission. If there is a mechanism to institute legal proceedings but the intercepted party simply does not know that he has been intercepted or he is unable to obtain evidence to prove that he has been intercepted, there is no way to institute proceedings. Therefore, the civil remedy proceedings will serve no purpose. To suit the purpose stated above, I urge Members to support this amendment. Proposed amendment Clause 7 (see Annex XXVII) CHAIRMAN (in Cantonese) : I now call upon Mr Albert HO to speak on the amendment proposed by Mr James TO as well as his own proposed amendments. But I would not ask Mr Albert HO to move his amendments unless Mr James TO's amendment has been negatived. If Mr TO's amendment is agreed, that would by implication mean that Mr HO's proposed amendments are not approved. LEGISLATIVE COUNCIL ─ 27 June 1997 1523 MR ALBERT HO (in Cantonese): The Honourable James TO has just explained the substance of my amendments and I therefore would not have them repeated. Colleagues who cannot support Mr James TO's amendment please support mine. Thank you. MR BRUCE LIU (in Cantonese): Mr Chairman, the Hong Kong Association for Democracy and People's Livelihood urges Members to object to the Honourable James TO's amendment and support the Honourable Albert HO's amendment. It is because there are now two major grounds for the application of a warrant: one of which is for the investigation and prevention of serious crime and the other is for the security of Hong Kong. If the relevant authority wants to apply for a warrant, the warrant would be issued by a High Court judge after considering all the factors. Hence the interception of communications will also be for the interests of Hong Kong and the targets of such interception are generally people whose actions would put public order and security of Hong Kong into jeopardy. Should the target, that is, the person who is being intercepted, be informed after he has been intercepted? Well, in theory, the person has the right to know that he is being intercepted and he should therefore be informed. However, such notification will alert this person and his accomplice will be able to know that the Government is taking certain investigations. If they embark on other activities, they can avoid actions taken by the police or law enforcement officers and thus weaken the ability of the law enforcement officers to maintain the law and order of Hong Kong. Under such circumstances, I urge Members to make a balance which will take into account the above factors and support the option of not informing the target person. Such consideration is also a judgement of balance. I hope Members will find my explanation reasonable and that you will vote against Mr James TO's amendment and support Mr Albert HO's amendment. Thank you. MR JAMES TO (in Cantonese): Mr Chairman, I would like to make a brief response here. Actually, we do not have to worry about the point raised just now by the Honourable Bruce LIU. Why? It is because, in my amendment, 1524 LEGISLATIVE COUNCIL ─ 27 June 1997 there is already a mechanism whereby, before the court notifies the intercepted person, the law enforcement officers will have already been informed and they will be the first to make an application. In other words, the law enforcement officers would have already convinced the court why the target should not be informed before the target came to know about the interception. For instance, we may have reasons to believe that the target is not guilty of any offence this time but we may also have very solid grounds to believe that, the court will be convinced on the surface of our evidence that the target is a member of terrorists. Hence, the scenario that the target will be alerted cannot be established. In fact, the court could decide not to notify the subject for those reasons. I can say that, this step is provided for in the justice system of the United States, that is, there is a requirement that the target should be informed. However, the court has the discretion not to notify the subject after considering the grounds listed in the application. This is also a matter of finding a right balance. Question on Mr James TO's amendment to clause 7(3), (5), (6) and (7) put. Voice vote taken. THE CHAIRMAN said he thought the "Ayes" had it. CHAIRMAN: Committee shall proceed to a division. CHAIRMAN: I would like to remind Members that they are now called upon to vote on the question that the amendment to clause 7(3), (5), (6) and (7) moved by Mr James TO be approved. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below? CHAIRMAN: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed. Mr Martin LEE, Mr SZETO Wah, Dr LEONG Che-hung, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LEGISLATIVE COUNCIL ─ 27 June 1997 1525 LAU, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Miss Christine LOH, Mr LEE Cheuk-yan, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr Albert HO, Mr LAU Chin-shek, Mr LAW Chi-kwong, Mr LEUNG Yiu-chung, Mr SIN Chung-kai, Mr TSANG Kin-shing, Dr John TSE, Mrs Elizabeth WONG and Mr YUM Sin-ling voted for the amendment. Mr CHIM Pui-chung, Mr Frederick FUNG, Mr Eric LI, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr CHENG Yiu-tong, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr IP Kwok-him, Mr Ambrose LAU, Dr LAW Cheung-kwok, Mr LEE Kai-ming, Mr Bruce LIU, Mr LO Suk-ching, Mr MOK Ying-fan, Miss Margaret NG and Mr NGAN Kam-chuen voted against the amendment. Mr Allen LEE, Mrs Selina CHOW, Mr NGAI Shiu-kit, Mr LAU Wong-fat, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU and Mr Howard YOUNG abstained. THE CHAIRMAN announced that there were 26 votes in favour of the amendment and 19 votes against it. He therefore declared that the amendment was carried. MR JAMES TO (in Cantonese): Mr Chairman, I move that clause 7 be further amended as set out in the papers circularized to Members. Mr Chairman, I just need to make a very brief explanation. This amendment is really a technical one. The original wording is that "evidence must be relied on". However, the Bar Association has commented that "evidence must be relied on" or "evidence must be used" is not clear enough and it is better to change it to "the evidence is required to be admitted in court for criminal proceedings". Therefore, this is a technical amendment, the purpose of which is to make improvement. Obviously, it applies to criminal proceedings, not civil proceedings. Mr Chairman, these are my remarks. 1526 LEGISLATIVE COUNCIL ─ 27 June 1997 Proposed amendment Clause 7 (see Annex XXVII) Question on the amendment put and agreed to. Question on clause 7, as amended, put and agreed to. Clause 2 MR JAMES TO (in Cantonese): Mr Chairman, I move that clause 2 with the exception of the definition of serious crime be amended as set out in the papers circularized to Members. This amendment is related to clauses 1, 3 and 4(1) mentioned earlier. They are all about the deletion of oral communications so that it will not stand part of the Bill. Proposed amendment Clause 2 (see Annex XXVII) Question on the amendment put and agreed to. MR ALBERT HO (in Cantonese): Mr Chairman, I move that the definition of "serious crime" in clause 2 be amended as set out in the papers circularized to Members. Mr Chairman, this amendment is to define "serious crime" in the original Bill as the offence listed in the Schedule of the Organized and Serious Crimes Ordinance, and to add into it the ground of "security of Hong Kong". What will these two changes bring about? The changes will be that anyone who commits an offence will be sentenced a term of imprisonment of not less than seven years on conviction. LEGISLATIVE COUNCIL ─ 27 June 1997 1527 The amended definition is actually the same as contained in the White Bill put forth by the Administration. I urge Members to support my amendment. If my amendment is defeated, I hope you will support the original version of the Bill. Proposed amendment Clause 2 (see Annex XXVII) MR JAMES TO (in Cantonese): Mr Chairman, I hope that Members can support the Honourable Albert HO's amendment. Perhaps I should explain why I change my position from proposing an offence under the schedule of the Organized and Serious Crimes Ordinance to asking you to support Mr Albert HO's proposal of making those offences punishable of a term of imprisonment of not less than seven years. In fact, I consider that the Organized and Serious Crimes Ordinance gives the Administration a very special power of investigation. I believe that many Members in this Chamber have participated in those long meetings which took more than two years to examine that Ordinance. We have studied such organized and serious crimes one by one and really considered that extra powers of investigation are required. In my view, interception of communications is really a very special and important power of investigation. If the same Schedule is used, it is in fact a good foundation. Of course, there is the reference of imprisonment of not less than seven years in the definition of the white bill of the Government. After clause by clause examination, it is founded that the scope of the Government bill is much narrower in terms of imprisonment of not less than seven years. In other words, if Mr Albert HO's proposal is agreed to, the definition will in fact be narrowed down. Why? It is because some the offences listed in the Schedule of the Organized and Serious Crimes Ordinance are not punishable for imprisonment of seven years or more. If asked about my ideology, I tend to think that the imprisonment of not less than seven years is necessary as far as the subject matter is concerned. But at the same time, we do not have to worry because of the requirement of the 1528 LEGISLATIVE COUNCIL ─ 27 June 1997 "security of Hong Kong". Interception of communications will be allowed if certain offences are really have something to do with the security of Hong Kong. My earlier amendment to clause 4(2) has been negatived and I also urge Members to vote against this amendment so that the part on "security of Hong Kong" can be retained. Hence, there is no need to worry that once the imprisonment of seven years is established, the scope of the Bill will be narrowed to the extent that law enforcement officers are deprived of means to carry out their operations and the security of Hong Kong will be jeopardized. In reality, this situation will not happen. Therefore, I suggest that Members support Mr Albert HO's amendments. If his amendments are opposed, that would mean by implication that the original version of the Bill will be endorsed. Members might find it even more difficult to accept. MR BRUCE LIU (in Cantonese): Mr Chairman, the Hong Kong Association for Democracy and People's Livelihood supports the amendments proposed by the Honourable Albert HO to define serious crimes as those punishable by a seven year sentence. The approach proposed by the Honourable James TO in connection with the Organised and Serious Crime Ordinance draws reference from the approach adopted in the United States of America and Canada. The Law Reform Commission has discussed this issue and it concluded that "as this approach requires frequent addition or removal of the offences to be listed in order to reflect the contemporary situation, we have no intention to adopt such approach." It has given the issue very thorough consideration and has grave concern about it. Hence it has drawn such conclusion in its report. The final suggestion is that "serious crimes should be defined by the maximum sentence of the crime." The Government proposes in its white bill that it should be defined as an offence punishable by imprisonment of seven years. Up to this day, we can see that no formal Bills Committee has been formed to study the Bill yet. To avoid arguing over the same point with the Government, we have adopted the Government's definition. Hence the Government can say nothing more and this enhances our argument. Therefore, I urge everyone to support Mr Albert HO. Thank you. LEGISLATIVE COUNCIL ─ 27 June 1997 1529 Question on the amendment put and agreed to. Question on clause 2, as amended, put and agreed to. CHAIRMAN (in Cantonese): Mr James TO, as Mr Albert HO's amendment to the definition of "serious crime" in clause 2 has been agreed, that means by implication that clause 10 and the schedule, which are related to the original definition of "serious crime", are not agreed. Clause 10 and the schedule will therefore be deleted from the bill." You may not therefore move amendments to clause 10 and the schedule. Part IVA Heading New clause 7A Safeguards for Intercepted Material Safeguards Part VA Heading New clause 8A Remedies Remedies Heading before New clause 13A New clause 13A Post Office Regulations Regulation amended New clause 13B Penalty for contravention of order under section 33 Clauses read the First time and ordered to be set down for Second Reading pursuant to Standing Order 46(6). MR JAMES TO (in Cantonese): Mr Chairman, I move that Part IVA Heading before new clause 7A, new clause 7A, Part VA Heading before new clause 8A, new clause 8A, Heading before new clause 13A, new clauses 13A and 13B as set out in the paper circularized to Members be read the Second time. 1530 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr Chairman, I have a few points to make here, and I shall make it simple. Firstly, Part IVA is about safeguards for intercepted material. In other words, how should the interest of the intercepted person be safeguarded in the process of interception. I am quoting the white bill of the Government here. Due to the sequence of gazetting, my Bill was published first, followed by the white bill of the Government. However, I find that this part of the Government bill is quite good. In the first place, it tells you whether consideration has been given to the so-called principle of minimum extent when the relevant material is used, which means the principle of limiting to the minimum the intercepted material to be disclosed and the number of persons with access to the material, such as, only the responsible police officers can have access to the material. The minimum extent is to obtain the material, by means of copying or making a few photocopies. Furthermore, if the material concerned is no longer required for its intended purpose, such as for criminal proceedings or investigation, the minimum extent means to limit the number of copies to be passed round or circulated to the minimum, and to destroy the intercepted material as soon as practicable. I reiterate that my amendments are copied from the white bill of the Government. Moreover, the heading of Part VA mentions remedies. As I just said, if someone really thinks that his right has been infringed, he can bring the case to court and take civil proceedings, which include claiming the interception of communication in question to be unlawful, requesting for remedial relief, and prohibiting further eavesdropping by means of an injunction. The proceedings, however, must be taken within six years of discovering the eavesdropping. I draw reference from the Australian law in this respect. As for the Heading before Section 13A, some technical amendments have been made to 13A and 13B. These are my remarks. Question on the Second Reading of the clauses proposed, put and agreed to. Clauses read the Second time. LEGISLATIVE COUNCIL ─ 27 June 1997 1531 MR JAMES TO (in Cantonese): Mr Chairman, I move that Part IVA Heading before new clause 7A, new clause 7A, Part VA Heading before new clause 8A, new clause 8A, Heading before new clause 13A, new clauses 13A and 13B be added to the Bill. Proposed additions Part IVA Heading and new clause 7A (see Annex XXVII) Part VA Heading and new clause 8A (see Annex XXVII) Heading before new clause 13A and new clause 13A (see Annex XXVII) New clause 13B (see Annex XXVII) Question on the addition of the Part IVA Heading before new clause 7A, new clause 7A, Part VA Heading before new clause 8A, new clause 8A, Heading before new clause 13A, new clauses 13A and 13B proposed, put and agreed to. Long title MR JAMES TO (in Cantonese): Mr Chairman, I move that the long title be amended by adding the Chinese text as set out in the paper circularized to Members. Proposed amendment Long title (see Annex XXVII) 1532 LEGISLATIVE COUNCIL ─ 27 June 1997 Question on the amendment put and agreed to. Council then resumed. Third Reading of Bill MR JAMES TO reported that the INTERCEPTION OF COMMUNICATIONS BILL had passed through Committee with amendments. He moved the Third Reading of the Bill. Question on the Third Reading of the Bill proposed and put. Voice vote taken. THE PRESIDENT said he thought the "Ayes" had it. Mr IP Kwok-him claimed a division. PRESIDENT: Council shall proceed to a division. Next time, yell. PRESIDENT (in Cantonese): Mr Frederick FUNG. MR FEDERICK FUNG (in Cantonese): I hear that you have made the ruling. PRESIDENT: I am ordering a division. LEGISLATIVE COUNCIL ─ 27 June 1997 1533 PRESIDENT (in Cantonese): This is the last Bill and there is no another time, so a division makes no difference but a good record. (Laughter) PRESIDENT: As I said, when you want to claim a division, you have to stand up and yell. PRESIDENT: I would like to remind Members that they are now called upon to vote on the Third Reading of the Interception of Communications Bill be approved. Will Members please register their presence by pressing the top button and then proceed to vote by choosing one of the three buttons below? PRESIDENT: Before I declare the result, Members may wish to check their votes. Are there any queries? The result will now be displayed. Mr Martin LEE, Mr SZETO Wah, Dr LEONG Che-hung, Mr Albert CHAN, Mr CHEUNG Man-kwong, Mr Frederick FUNG, Mr Michael HO, Dr HUANG Chen-ya, Miss Emily LAU, Mr LEE Wing-tat, Mr Fred LI, Mr James TO, Dr YEUNG Sum, Mr WONG Wai-yin, Miss Christine LOH, Mr LEE Cheuk-yan, Mr Andrew CHENG, Dr Anthony CHEUNG, Mr Albert HO, Mr LAU Chin-shek, Dr LAW Cheung-kwok, Mr LAW Chi-kwong, Mr LEUNG Yiu-chung, Mr Bruce LIU, Mr MOK Ying-fan, Miss Margaret NG, Mr SIN Chung-kai, Mr TSANG Kin-shing, Dr John TSE, Mrs Elizabeth WONG and Mr YUM Sin-ling voted for the motion. Mr NGAI Shiu-kit, Mr CHIM Pui-chung, Mr Eric LI, Mr CHAN Kam-lam, Mr CHAN Wing-chan, Miss CHAN Yuen-han, Mr CHENG Yiu-tong, Mr CHEUNG Hon-chung, Mr CHOY Kan-pui, Mr David CHU, Mr IP Kwok-him, Mr Ambrose LAU, Mr LEE Kai-ming, Mr LO Suk-ching and Mr NGAN Kam-chuen voted against the motion. 1534 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr Allen LEE, Mrs Selina CHOW, Mr LAU Wong-fat, Mr Edward HO, Mr Ronald ARCULLI, Mrs Miriam LAU and Mr Howard YOUNG abstained. THE PRESIDENT announced that there were 31 votes in favour of the motion and 15 votes against it. He therefore declared that the motion was carried. Bill read the Third time and passed. VALEDICTORY MOTION PRESIDENT (in Cantonese): Valedictory Motion. I will remind Members that in accordance with the House Committee's recommendation which I have accepted, the usual time limits on speeches for motion debates also apply to this debate, that is 15 minutes for the mover of the motion including his reply and seven minutes for each Member speaking. DR LEONG CHE-HUNG to move the following motion: "That this Council bids farewell to the British Government and wishes the Hong Kong Special Administrative Region continued stability and prosperity." DR LEONG CHE-HUNG: Mr President, I move the motion under my name as printed in the Order Paper. In a few days' time, Hong Kong will face an unprecedented change which no other place has witnessed before ─ the end of colonial rule; not a return to self government but a transfer of sovereignty. The Union Jack will be replaced by the Chinese national flag. To the majority of Hong Kong people, it is time for jubilation, for as Chinese, few would not be glad of returning to the motherland. To some, there is still a sense of gloom, the uncertainty of a capitalist system operating within a communist rule will not be dismissed with the glamour of the fireworks on 1 July. LEGISLATIVE COUNCIL ─ 27 June 1997 1535 To this Council, today marks the last session of a legislature under a colonial government of more than 150 years. It is an emotional session. Emotional not only because it means an end of an era, but it is also a time to bid farewell to some of our colleagues who could not ride the through train ─ they are victims of the Sino-British squabble. Let us hope that they will continue to speak for the people of Hong Kong. Let us hope that they will return to join the ranks in this Chamber in the nearest possible future. Emotional aside, Mr President, we bid adieu to the British Government, as representative of the Hong Kong people, it is not only a time for reminiscence, but also a time to take stock of the past, the do's and do not's of the 150-plus years of history. It is a time to gather our experience and plan for the prosperity and stability of the new government ahead. Mr President, as the Chairman of the House Committee, I am grateful for the privilege of moving this motion. I would therefore like to kick off this motion in the following directions: the trials and tribulations of British rule; valedictory remarks of Members and others related to this Council; and finally trains of thought of the best way for the future. Legacy left by the British Rule Mr President, it is no magic that Hong Kong was transformed from a barren rock to one of the most advanced metropolis. Much owes to the ingenuity of the people of Hong Kong. Much owes to the opportunities offered by the changes and development of our motherland. Yet the contributions and the tribulations of the British to Hong Kong in nurturing it through the last 150-plus years must not be forgotten and dismissed! The active non-interventional policy within a framework of rule of law forms perhaps the best basin for culturing the economic success that Hong Kong enjoys today. The rule of law in Hong Kong as executed by a second to none independent judiciary underpins the confidence of not only local but international investors. All these the colonial government plays no small part. 1536 LEGISLATIVE COUNCIL ─ 27 June 1997 Basic Livelihood Issues Mr President, in any developing territory, the provisions of adequate housing, an efficient welfare scheme and a comprehensive health system are essential to keep the public satisfied. Yes, the public housing policy may be said to be forced onto the Administration after the massive influx of migrants from China and the disastrous Shek Kip Mei fire in the 1950s when some 50 000 are left homeless. Yes, the Government still lags behind in the development of adequate public housing. Yet few could dispute that the policy and the development so far deserve a good pass. Yes, the public is still calling for a higher, a more comprehensive welfare deal for the elderly. Yet even in the presence of an enormous financial surplus, one has to accept a proper balance between what is welfare and what is a welfare state. It would be difficult for me not to say a few words on health. From a rock heavily infested with all sorts of infectious diseases to a port free of epidemic is no easy matter when over 6.5 million people are concentrated in a few parts of this just over 1 000 sq km in this territory. My praise goes to the forefathers in health care for their efforts and foresight. Yet with civilization comes the health problems of social advancement. Much therefore needs to be done. We are grateful that the British brought in the science and technology of western medicine on which we can build our health blocks. Pitfalls in the British Rule But are there no pitfalls in the British rule? Could the British have done better? Mr President, it has frequently been said that Hong Kong people are politically inert. This may well be so, but how much is this the result of the colonial style of education that the Government has imparted to the people of Hong Kong; an education which produces perhaps good, law abiding citizens, no doubt but also an education system that dampens the mind for independent LEGISLATIVE COUNCIL ─ 27 June 1997 1537 thinking; an education system that imparts the gospel of "the Government knows best, do not question it". Regrettably, Hong Kong people have never been given the taste of administrative participation. For more than 100 years, the concept of democracy, the concept of having people with the public's mandate to decide on policies for themselves, has never been put into the Hong Kong soil. And if it is not for the imminent transfer of sovereignty, Hong Kong people may still be in the era of "father knows best". Yet, regrettably, even with the chance some 10 years ago for granting Hong Kong people a faster step towards representative government, this was truncated. Should history be re-written otherwise, we would now have perhaps a smoother road towards Hong Kong people ruling Hong Kong. Efficient Civil Service Perhaps the greatest legacy that the British rule have left for Hong Kong is a system of civil service. Nevertheless, it takes both a song and a singer to make things work. Mr President, few would doubt that we have an unsurpassable civil service in this world ─ efficient, politically neutral. On behalf of the House, I salute them. In the last few years, life has not been easy for them ─ they have to take full responsibility without the public's mandate; they have to remain apolitical yet having to continuously lobby and satisfy the unsatisfiable needs of the Members of this Council. My praise in particular goes to the head of the civil service, but unfortunately she is not here tonight, the Honourable Mrs Anson CHAN. For some two years, I have worked closely with her acting as a bridge between the Administration and this legislature. The initial feeling was that of an iron lady who could not be budged. I was wrong, for under the no nonsense look is a devoted Hong Kong belonger who is willing to listen, yet firm on her commitment, and more importantly, who delivers what she agrees. Valedictory to Legislative Council Colleagues 1538 LEGISLATIVE COUNCIL ─ 27 June 1997 Talking about the legislature, Mr President, brings me home to this Chamber and this body. Mr President, time would not allow me to sing in praise of each and every colleague although I would have gladly done so. Mr President, suffice it to say that I have the fullest respect to all of them. Many have neglected their personal work, their family and their health to dedicate to the work of this Council. The many bills that we have gone through, the areas we have diligently monitored government policies so bear witness. Mr President, I was asked which Member I would like to work with most. With no intention of "scratching your back", Mr President, I have voted you. As the first elected member to be elected President, you have done a job that commands full marks. You have been fair, unbiased and adhered strictly to the rules that your position demands of you. But it is on the same reason I stated that you, Mr President, is the person that I hate to work with most. You know the rules too well, and you smoke too much to the detriment of your own health and the health of those in this Council. The Honourable Ronald ARCULLI, my Vice Chairman of the House deserves my special praise, for he is the kingpin behind the many bills we have gone through and in particular the many and heavy subsidiary legislations that have been perpetually loaded on his shoulder. Mr President, this House would not have done its duty if we have not saluted the Secretariat. They are the unsung heroes, the bumble bees that supported our work and you, Mr President, as Queen Bee. I would have called you King Bee, but there is no such term. What about our last Governor? Well, he is not exactly a Member of this Council, although he has been a frequent visitor at his pleasure and to our delight. As I said in his last Question Time, whether he has done good or otherwise to Hong Kong, history will be a witness. Yet no doubt he has brought in a new culture as the Chief Executive of Hong Kong and he has instigated a more open and transparent government. These must be commitment to the people of Hong Kong to which we should be grateful. This Council bids him and his family bon voyage. LEGISLATIVE COUNCIL ─ 27 June 1997 1539 DR LEONG CHE-HUNG (in Cantonese): Mr President, no banquet in the world will go on forever. The last sitting of the Legislative Council under the British rule is drawing to an end. In less than three days, it will be 1 July. This day marks not only the end of one era, but also more importantly, the dawn of another era for the people of Hong Kong and China. I believe that to the overwhelming majority of the Chinese in Hong Kong, the reunification with the motherland and casting off the role of obedient citizens under the colonial rule to become masters of our own house bring about a moment of great excitement. With the election of the Chief Executive (CE) of the Hong Kong Special Administrative Region (SAR) and the CE's subsequent recommendation made to the Central Government to retain all senior officials with Chinese nationality, the system of "Hong Kong people ruling Hong Kong" has already taken shape. Of course, quite a number of Hong Kong people, including my colleagues in this Council, also wish to see all Members of this Council in the current session ride the through train to 1997 and become part of the team of the "Hong Kong people ruling Hong Kong". Regrettably, things do not turn out as the way we want them to. Still, it is a comfort that more than half of my colleagues in this Council will continue to serve in the ensuing legislature. For those colleagues who will be leaving us, I shall miss their friendship, their eloquence in this Chamber, and even the time when we were having heated arguments. Without their rich experience, this Council will definitely suffer a great loss. I hope that you will come back and join us again in the near future. Yes, there will be a change of sovereignty and Government in Hong Kong on 1 July. But whether it is before or after 1 July, the same group of Hong Kong people still live on this piece of land, which is barely over 1 000 sq km in area. They have high hopes for their future. They have long been enjoying a life of freedom, rule of law and stability. So the future SAR Government and my colleagues who will continue to serve in the legislature should learn from the history of the development of Hong Kong during the past hundred years and make every endeavour to serve the people of Hong Kong. While we feel glad for the reunification with the motherland, our worry and anxiety brought about by the transition from an era to another and the uncertainty caused by changes can neither be removed by the exciting celebration activities nor by the glamorous fireworks. In order to clear up all these uncertainties, to seize the turning point in the history of Hong Kong and to run 1540 LEGISLATIVE COUNCIL ─ 27 June 1997 the SAR successfully, the people of Hong Kong should make concerted efforts to materialize the concept of "Hong Kong people ruling Hong Kong". Here, Mr President, I wish the SAR continued stability and prosperity. And I hope that our motherland will also move towards democracy, stability and prosperity. With these remarks, I beg to move. Question on the motion proposed. MR ALLEN LEE (in Cantonese): Mr President, when I was appointed by the then Governor Lord Murray MACLEHOSE in 1978, I would not have imagined I could work in this Council for 19 years. At that time, all Members were appointed for a six-year term. Upon completion of the six-year appointment by the Governor, Members would be conferred titles and then they had to bid farewell to this Council. In the past 19 years, I witnessed various changes in Hong Kong. As far as this Council is concerned, the all-appointed legislature has already transformed into an all-elected Council. This is a very significant change. In addition, meetings of the House Committee and Finance Committee of this Council, which used to be held in closed sessions, are now open to the public. As a result, the transparency of the Legislative Council is greatly enhanced. Such changes also brought about a Government machinery which is more accountable to the public in its policies. I remember that in the early 1980s, Members moved a motion demanding that the Government disclose the schemes of control applicable to the two electric companies. At the time, the Government exerted a lot of pressure on me. Some of the more senior Members dissuaded me from moving motions of this kind as the Government disapproved of such motions. They said even if I moved such motion debates, the Government would not disclose the schemes. I was also told that I would not be appointed for another term. Yet, as the schemes of control were concluded by the Government with the electric companies on behalf of the general public, I believed that the people of Hong Kong should have the right to know the contents of those schemes. Why did the electric companies have to increase their charges every year? As expected, the then Financial Secretary, Sir Philip HADDEN-CAVE, took a very firm stance LEGISLATIVE COUNCIL ─ 27 June 1997 1541 and refuted me with the Standing Orders several times. After that motion debate, however, the Government eventually disclosed the schemes of control. Mr President, I also witnessed the negotiations over the future of Hong Kong, which was an issue of wide concern among the people of Hong Kong. Before the negotiations took place, I went to the Xinhua News Agency and expressed my wish to form a delegation to visit Beijing, for the purpose of reflecting the concerns of the people of Hong Kong to the leaders of China. Not until 2 May 1983 could I form a delegation to visit Beijing. Members of the delegation included the Honourable Mrs Selina CHOW, the Honourable Martin LEE, the Honourable Edward HO, the current Chief Justice of the Court of Final Appeal Mr Andrew LI and a good friend of mine, the late Honourable Stephen CHEUNG. Without any fear, we related the opinions of the people of Hong Kong on the future of the territory to the leaders of China. The Sino-British negotiations over the future of Hong started in July that year. I cannot recall how many times I had been to London and Beijing during the course of the negotiations. Even though Members of the Legislative Council were not recognized by the Beijing authorities and were insulted in London on a number of occasions by the British authorities, I still thought that we had the responsibility to reflect the truth to the Chinese and British Governments. Over the past 19 years, I have also witnessed various changes in China. When I visited China for the first time, the Cultural Revolution was just over. Seeing what was happening in China, I felt very sad as an ethnic Chinese. Not only was China poor, it was extremely backward too. I was very disappointed with the situation in China. Yet after that visit, I had lots of opportunities to visit China again. I saw changes take place in China. I saw continuous imporovement in the livelihood of the people in China. I believe that the 21st century will be the century for China to prove itself. Living in Hong Kong will give us an unprecedented opportunity to participate in the future development of China and to contribute to the four aspects of modernization in China. Mr President, I cannot forget the June 4 Incident in 1989 which took place while I was the Senior Member of this Council. The efforts made by the Members of the Executive and Legislative Councils on the future of Hong Kong will be imprinted in my mind forever. Today, I still keep a T-shirt with the slogan of "Hong Kong is my home" made by the two Councils. 1542 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr President, although the British Government is about to withdraw from Hong Kong, we cannot deny the contributions of Britain to Hong Kong. Hong Kong has the tradition of rule of law and the people of Hong Kong are living in a free society. Only with the laissez-faire economic policy and the diligence of our people can we perform such an economic miracle in this world. We should cherish all these. Regrettably, there is no through train for this Council and some of my colleagues in this Council can no longer serve the people of Hong Kong. Nevertheless, the election of the first legislature of the Special Administrative Region will be held very soon. I am sure that my colleagues in this Council will participate actively in the election and make contributions once again to the future of Hong Kong. MR MARTIN LEE: Mr President, of course we are all thinking "back", so let me begin with one of Shakespeare's sonnets. "When to the sessions of sweet silent thought ...... I summon up remembrance of things past, I sigh the lack of many a thing I sought ─ democracy, and with old woes new wail, my dear, time's waste." Government. The time is wasted when Bills were withdrawn by the I wonder what our friends up in China will think of this session, the marathon session, when the last Government Bill was entitled "Dogs and Cats Bill", or "Dogs and Cats (Amendment) Bill 1996". I am sure our Chinese friends will say, "there you are, the Governor is always thinking of his dogs." Mr Speaker, you always try to be fair and keep the proceedings going like a good referee should, but of course, some of us will not agree with some of your decisions, when you ruled on points of order, for example, or when you gave a red card to the Honourable LEUNG Yiu-chung for having insulted some unidentified grass in an unidentified vase. But, Mr President, I think we shall miss you because Mr Speaker, you will soon be succeeded by Madam Talker. We are going to miss our friends in the Liberal Party. Whenever we voted together, 19 plus 10, we won every vote, did we not, Allen? I shall miss the Honourable Mrs Miriam LAU for having exempted the Honourable Ronald ARCULLI from the party line and allowing him to speak up for the Bar regarding honorary Queen's Counsels. I am sure our Party Whip, the Honourable SZETO Wah, would not have been so generous with me. But, we LEGISLATIVE COUNCIL ─ 27 June 1997 1543 also saw some specimens tonight, or this morning, of poor filibustering on some of the Members' part, so I shall award them with the Worst Filibustering Party Award. As for the Democratic Alliance for the Betterment of Hong Kong, they had some teething problems in the beginning but they soon matured very quickly into a well-organized party. The Honourable IP Kwok-him, of course, gained himself a reputation amongst civil servants of being the most feared chairman of any committee of enquiry. Even the Chief Secretary had to back down before him, so I award them with the Most Improved Party Award. I now come to the Association for Democracy and People's Livelihood. They never had it so good, Mr President, as in the last two weeks. The Gang of Four controlled every vote. I still cannot figure out why their four is greater than my 19. In 1998, in those elections, I shall aim at having only four seats, but I shall try to get four seats or four Members to vote together and not three Members plus one abstention. I would award them with the Most Influential Small Party Award. I now come to the Hong Kong Progressive Alliance, with two Members. The Honourable Ambrose LAU is always so serious and on any division is always voting against me, although we came from the same school. As for the Honourable David CHU, he is the proud owner of a Ferrari sports car and a Harley Davidson motorbike. The guy loves speed, Mr President, and excitement in everything except when it comes to democracy when he finds even a snail's pace to be too fast, and indeed he would eat the democratic snail as an escargot. I will award the Hong Kong Progressive Party by naming it the Least Progressive Party Award. PRESIDENT: They have three members, Mr LEE, he is Mr CHOY Kan-pui. MR MARTIN LEE: Ah, I beg your pardon. The Citizen's Party has been newly formed, but the question is, where are the citizens? There is only one the Honourable Miss Christine LOH, but how much was achieved by the party of one. I think we should look at the Victoria Harbour 10 years from now, it should be the same. So, I would give it the Most Powerful Party of One Award. 1544 LEGISLATIVE COUNCIL ─ 27 June 1997 Of course the Honourable Miss Margaret NG is not a party, otherwise I would have given it to her. Now, I come to the Frontiers. Well, they do not call themselves a political party and I understand why. It is neither a party of five who could follow any party line, nor five parties of one each. But who cares so long as they keep voting with us? I am sorry, they will say, "no, we're voting with them." I will give them this award, the Party with the Largest Number of Leaders Award. Now, Mr President, I will tell something which is true, but I shall avoid breaking the rule of using non-parliamentary language. PRESIDENT: Unparliamentary. MR MARTIN LEE: Unparliamentary. Some time ago the former British Ambassador to China, Sir Robin MCLAREN, came back to Hong Kong and I heard him over the radio saying "the Hong Kong people should wake up and be prepared to sacrifice 3% of their freedom so as to keep the other 97", and I got furious because I said "well, by that logic, I would have to sacrifice 50% of my freedom to keep the other 50, or even to sacrifice 97 of my freedom to keep the other three." When I repeated this the following day to a lunch meeting, there was this Englishman who heard me, and then he said, "b-lls". He said, "well, b-lls constitute 3% of my body weight and I am not going to sacrifice them for anything." With that happy note, Mr President, I say goodbye to you, Mr President, and all my friends. God speed. MR IP KWOK-HIM (in Cantonese): Mr President and dear colleague of this Council, after days of arduous struggle, we have eventually finished all the legislative work for the current session. This motion debate will be the last chance for Members to make speeches in this session of this Council. I would like to quote a Chinese cliche here, which says, "Even the longest feast must break up at last," to describe exactly how I feel now. And I find a double meaning in it. Firstly, Hong Kong will soon reunite with China. Three days LEGISLATIVE COUNCIL ─ 27 June 1997 1545 later, the relationship between the United Kingdom and Hong Kong, which has been that of a suzerain state and a colony for 156 years, will be over. This Council, which derives its authority from the Letters Patent and the Royal Instructions, will be dissolved along with the change of the sovereignty over Hong Kong. Perhaps some colleagues do not feel the same as I do. At any rate, we have worked together for over a year. Wherever we are, whatever positions we take up, we all should work for and contribute to the future Hong Kong Special Administrative Region. In the Opium War in 1842, the corrupted Ching Government was forced to sign the first unequal treaty ─ Nanjing Treaty. As a result, Hong Kong was ceded to Britain and became a British colony. It cannot be denied that for the past 150 years, Hong Kong has developed from a small fishing port into an important financial and shipping centre in the Asian Pacific region. Its economy is prospering. In these years, Hong Kong people displayed their national disposition of being hardworking. Furthermore, the British has established efficient rule over Hong Kong, a team of 180 000 honest and dedicated civil servants and an integrated legal system which enables Hong Kong citizens to comply with and abide by the law and to enjoy various kinds of freedom. All these factors bring about the success of Hong Kong today. From another perspective, we see that under the "meticulous nurturing" of the British Government, Hong Kong, an insignificant island, was turned into the last goose that laid golden eggs for Britain. For many years, Hong Kong has brought huge profits to the British Government. Since China started its reform and adopted an open door policy, Hong Kong plays a more important role in economy. It serves as an important gateway of communication between Britain and China. No wonder when Mrs Margaret THATCHER, the then Prime Minister of Britain, started negotiations with DENG Xiao-ping, the late founding member of the Chinese Communist Party, over the future of Hong Kong, Britain was so reluctant to part with Hong Kong that it proposed the preposterous idea of giving up sovereign rights in return for the right of administration. Hong Kong has been under British rule for over a century. It is quite natural that some Hong Kong people will miss the British rule and even resist the reunion with China. This is understandable. However, we must realise that Hong Kong is returning to the embrace of the motherland. It will turn a new chapter in the history of Hong Kong. It is an unquestionable fact that we are soon bidding farewell to the British Administration. 1546 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr President, since the signing of the Joint Declaration by Britain and China in 1984, many Hong Kong people suffered an acute confidence crisis over the future of Hong Kong in the past decade or so. Those who had a chance to emigrate racked their brains to decide whether they should leave Hong Kong. At that time, the norm was for them to choose emigration. If, on the contrary, they chose to stay, they had to explain. Time flies. The countdown to the moment of reunification is now a matter of hours instead of years. Hong Kong will have a bright future. We have already "gone through" the toughest times when China and Britain were having a lot of disputes. And therefore, we should be able to overcome difficulties one by one in the years to come. Up to this day, we do not see Hong Kong people flocking for refuge to other countries. On the contrary, those who have emigrated to other lands are now returning to Hong Kong, looking for new jobs and starting a new life. Hong Kong people are looking forward to the historic moment of Hong Kong returning to China. Facing such a drastic change, every citizen of Hong Kong will take pride in witnessing this moment. They should pluck up their courage to shoulder this historical mission and make contributions to the Hong Kong Special Administrative Region of the People's Republic of China. The transfer of sovereignty on 1 July marks the beginning of a new era. Hong Kong will be in its best political, economic and social shapes to enter an era of "one country, two systems", "Hong Kong people ruling Hong Kong" and a high degree of autonomy. Every Hong Kong citizen hopes that, as assured by the Chinese leaders, the way of living in Hong Kong will maintain for 50 years, "horse racing will continue as usual, and people will dance as usual". The stability and prosperity of Hong Kong will continue. "Trails leading to the precipitous fortress set tough hurdles; yet with long strides we march on and now left them behind." The dazzling pearl will glimmer forever at the southern gateway of our motherland. Mr President, these are my remarks. MISS EMILY LAU (in Cantonese): Mr President, sorrow is inevitable when time has come to say goodbye. The present valedictory motion is quite different from those of the previous terms. Last time, the Council was dissolved for an election. Some Members stood for the election while others did not. This occasion, however, heralds the end of the colonial rule. Yet it upsets us very LEGISLATIVE COUNCIL ─ 27 June 1997 1547 much. I do not think anyone would like to see the situation as it is, be they Members from the Liberal Party or the Democratic Alliance for the Betterment of Hong Kong or other Members of this Council. As we handle the matter differently, some 30 Members have joined the Provisional Legislative Council. Although we often engaged in heated debates in this Council, I believe my colleagues will agree that most of the time, we argued with reference to matters and rarely resorted to personal abuses. Therefore, even though the democratic camp strongly opposes the Provisional Legislative Council, I do not deliberately engage in what the Honourable LEE Wing-tat describes as "individual duels", picking Members out one by one and scold them. No matter how downhearted we are when leaving this Council, I hope we can still be friends. However, Mr President, the motion in question has in fact gone too far. I do not want to be so gentle and mild, as many of us here say, just to bid farewell to the British Government and wish Hong Kong stability and prosperity. Is it just as simple as to bid farewell? I think we should settle scores with Britain. Mr President, it is high time we spoke our mind. The Britons have done some good things; yet many other things perplex Hong Kong people. Just now, some Members highly praised Britain for what it has done. But we have to ask ourselves honestly: is it really that good? They say that we would like it to be that good. Of course I will not object to this. But what have we actually done so that we can be so relieved? Just now, many Members mentioned how we should celebrate. Mr President, do you find many Hong Kong people who celebrate spontaneously? It is reported that many young people are apathetic and some even do not like the transfer of sovereignty. But why do things happen like that? Whose fault is it? Is it the fault of the Britons, the Chinese Government or the six million people of Hong Kong? We should have been in high spirits and jubilant on the eve of the closing of the colonial era. However, nowhere in this entire colony can we find those spontaneous and joyous celebrations. I think Britain should be held responsible for this to a large extent. During the motion debate session this morning, some Members said that we did not find ourselves taking charge of our own affairs. Although some Members earlier on said that we were now masters of ourselves, the problem is that up to this moment, many people are still really very worried. 1548 LEGISLATIVE COUNCIL ─ 27 June 1997 In the last few days, many reporters asked me what our future would be. I said we might not be arrested immediately. But as to the questions of what our future would be and who would meet with misfortune, who dare say for certain that there would not be any such misfortune? Many people say that they do not want it to happen. Of course, nobody wants it. A few weeks ago, Mr TUNG Chee-hwa said on the television that incidents like the Tiananmen massacre would not take place in Hong Kong. Why? He said it was because he would not allow it to happen. It really gave me a start on hearing what he said. He would not allow it? In 1989, even ZHAO Ziyang, the General Secretary of the Chinese Communist Party, was unable to prevent the Tiananmen massacre from happening. How can Mr TUNG, who is merely the Chief Executive of the Hong Kong Special Administrative Region, disallow such thing, especially that he has no command over the armed forces in Hong Kong? Therefore, Mr President, I hope all Members will understand, although we have different political beliefs, we have our own worries too. I hope we will do something through our own channels and in our own ways to prevent the worries of the democrat camp from coming true. The Honourable David CHU has invited some Members to attend the luncheon gathering held at the end of June next year. In English, it is roughly something like, "I told you so." He will definitely give an elucidation on this later. What he meant was that nothing would happen. A year later, all of us would come to the Furama Hotel. He predicted that nothing would happen. Hong Kong people would still enjoy their freedom; horse races would go on as usual. Nothing would be changed. I said I hoped so. Maybe because of our efforts, we will be able to organize that luncheon gathering. I believe the lesson we can learn from the whole incident is that there are many things which we have to strive for. Here is a very funny joke. Some people told me that the Provisional Legislative Council was selected by a Selection Committee comprising 400 people. Some others said that the Committee was indeed the most representative in that it symbolised Hong Kong people's manners to resign themselves to adversity. I, of course, do not agree. I certainly think that elected Members like us are the most representative. But sometimes, I think Hong Kong people should have more confidence when faced with challenges. Indeed, many colleagues of mine in this Council are gifted. I appeal to them that they should communicate with the Chinese Government through their own channels. I hope that all of us will do our best to fight for LEGISLATIVE COUNCIL ─ 27 June 1997 1549 Hong Kong people in the days to come and that the Chinese Government will be broad-minded enough to appreciate the reasons for our worries. It is not our intention to "bad-mouth" Hong Kong, but we really have our own worries, which may have good cause. We should argue no more. I very much hope that all of us will be able to attend the luncheon gathering hosted by Mr David CHU next year with light hearts. But the problem is: Are things just as simple as that? Why do so many overseas mass media keep on asking us whether there will be problems in future? Are they all maniacs? Therefore, Mr President, although I do not object to this motion, I do not have the tender feeling. We all hope Hong Kong will have a bright future. However, if we do not strive hard, I believe it will only be a vain hope. Mr President, these are my remarks. MR FREDERICK FUNG (in Cantonese): Mr President, I have joined this Council for six years. Now I am to give this valedictory speech, actually, with a little sorrow. One does not have many periods of six years in one's life. Although it now comes to an end, I would like to take this opportunity to sum up my gains and losses, maybe as a caution. What have I done over these six years? I would like to mention a few events briefly. What I did was usually related to housing. After striving for eight years, we had the Housing Authority set up Estate Management Advisory Committees. And it took us 10 years to have the Housing Authority establish a rent reduction policy for households in hardship. Recently, I also discussed with the Housing Department on the introduction of a trawling policy for overcrowded families. Having spent over 2 000 days of my life in return for just a slight improvement in housing policies, I feel a bit helpless, feckless and powerless. Indeed I was no more than a political ornament. The process, however, was a test on our will to endeavour. Please do not laugh at me, as we may all be such an ornament in the same Council. What relieved me a little was that in these six years, 60% of the cases brought to me by some 3 000 citizens regarding issues of housing, medical, social welfare and the like were solved. As the motto of the boy scouts goes, "Do a good deed for the day", I hope I have met the minimum requirement. 1550 LEGISLATIVE COUNCIL ─ 27 June 1997 I am, in fact, somewhat dissatisfied with the little achievement I made after spending so much time. Yet I am encouraged by the fact that we should go on following the policy to work for the interests of the grassroots and adopt a fair stance. What have I lost? It could really be a long tale. People say that things change a lot in a decade's time. Among the changes in membership of this Council in these six years, the most significant of all was that God took back to Him three of our colleagues, the late Honourable Stephen NG, Stephen CHEONG and Dr the Honourable Samuel Wong. Governor PATTEN's political reform package has brought into this Council the largest number of elected Members. Ironically, however, the Council will lose a batch of elected Members starting from tomorrow or 1 July, because of the same reform package. I think, and believe, this situation is temporary. The Council will have another new start in 1998. I believe history will pass a fair judgement on the desirability of the changes that took place in our community in these six years. What puzzled me most in these six years was that people said the Association for Democracy and People's Livelihood (ADPL) and Mr Frederick FUNG vacillated, this moment to the left and the next to the right. Giving the matter a closer thought, I found that it was in fact an era of vacillation. Both camps on the extremes made big moves. According to the pendulum theory, the harder you push the pendulum, the greater the force it swings back. Hong Kong is a pluralistic society where people's beliefs, means and interests all vary, and therefore differences are inevitable. Conflicts are common but they have been more frequent these days. On many occasions, things were handled in a polarized manner. Members were described as pro-China, if not pro-British; anti-Communist, if not pro-Communist. If they did not defend free trade, then they belonged to the free lunch camp. Other Members who were not as radical as certain Members were dubbed the conservatives. The message behind these labels was that all others had to follow their policy; the non-conformists would not be regarded as a friend, and most likely be treated as an enemy. If our society was as simple as that, matters could in fact be handled easily. If the two camps confronted each other in extremes, they would only cause the pendulum to swing wildly. While one camp said that they would amend the next day whatever the other camp passed that day, the other camp would retort that since in any event, their proposals would be amended, they would do all they LEGISLATIVE COUNCIL ─ 27 June 1997 could on the day. tug-of-war? 1551 Would Hong Kong people benefit from this kind of The ADPL is independent and impartial. We are not willing to join any of these camps. We hope we can have independent thinking, seek truth from facts and base our own decision on the merit of each case. As an individual or as a group, the ADPL has never supported any Members or political parties on each and every matter as we believe that no individuals or groups present will totally see eye to eye with us. Therefore, we are not willing to join a particular camp blindly. If the only way to prove that the ADPL and Mr Frederick FUNG are steadfast in their stand is to join a particular camp, I would rather be criticized as vacillating. The way in which the ADPL deals with China is another area said to be vacillating. Can there not be something else other than praising or criticizing China? The ADPL is unable to give such a simple response. It does not follow that in the eyes of China, Hong Kong people are either its supporters or a thorn on its side. The ADPL would like to be the third category. We will show our support when the Chinese government has done the right thing and we will point out its mistake and even protest if it has done something wrong. I think it is most natural to be reasonable. At least, up to now, the ADPL is a political group in Hong Kong which submitted a petition letter to QIAN Qichen at the Great Hall of the People, protested in a street in Beijing by waving a banner against XI Yang's arrest, and handed to the Foreign Ministry the signatures of Hong Kong people showing support for the protection of Diaoyu Island. Although lobbied by many Chinese officials, we voted against the proposal put forward by the Co-operative Resources Centre in 1994 as well as against the setting up of the Provisional Legislative Council. We will never forget the June 4 Incident. We draw a clear distinction concerning cardinal issues of right and wrong, no matter when we are under British rule or Chinese rule. Sometimes we are a bit distressed to note that apart from our opponents, some of our friends in the democratic camp with whom we used to co-operate also criticize us for being vacillating. This reminds me of the situation of some Trotskyist groups in the past. In the game of power struggle, one could co-existed with his enemy for mutual dependence, but he had neither neighbours nor close relatives. Looking ahead, I believe there will still be conflicts. However, I hope a pluralistic situation will develop. We should work together to create a 1552 LEGISLATIVE COUNCIL ─ 27 June 1997 pluralistic society. I hope that under this system, the Council will be more open and tolerant to various cultures. Whether this can be achieved depends very much on the extent of our democratic mind. The ADPL will uphold its policy to remain independent, seek truth from facts, work for the interests of the grassroots and adopt a fair stance. Thank you, Mr President. MR DAVID CHU: Mr President, we are ready to bid the colony farewell with a sense of triumph, relief and anticipation. We are now finally on our own. As a Chinese I am proud to see the closing of the colonial era which began with pain and which ends with pomp and pageantry. For a long time, our ancestors, ourselves and our children have been stared down at by the Queen's portrait. Her picture and other symbols of our subjugation have bred in us both an alien feeling and self contempt. The fault is not Her Majesty's, who personally shall remain a fond memory as we file away her visages to the scrapbook of our history. We have inherited from the British many valued institutions, such as an independent judiciary, a professional civil service and the English language. These we are to retain and then to refine to suit our circumstances. There is a Chinese saying, "when we drink the water, we must think of its source". Over recent years we have had a lot of unsolicited advice from Great Britain and the international community whose care and concern we thank. But we would like them to respect our ability to manage our own affairs and to do things our own way. While we have much more to learn from the West, they too can learn much from us such as a profitable and efficient public transport system, universal health care at an affordable cost, welfare which does not destroy the work ethic or incentive, a crime rate among the lowest in the world, good education standards, individual responsibility, family value, and the freest economy. For the last five years, we have had a loss of British and Chinese co-operation. None of the manufactured crises has dampened our enthusiasm for success and weakened our confidence in ourselves. No matter what the last LEGISLATIVE COUNCIL ─ 27 June 1997 1553 British administration here has done, we bear no grudge for we are a forgiving people who always turn adversity into an advantage, a challenge into a cause. Now is the time to turn over a new page and move on to deal with three critical tasks ahead. The first is to govern ourselves well with care and patience because what we have is a proven system and, with 50 or more years to refine, there is no need to rush. The second is to develop even more the mutually beneficial bond with China. The third, perhaps our most sacred mission of all, is to help China modernize and achieve its rightful place in the community of nations. So let us see the weaknesses in ourselves but turn them into a spur for greatness. Let us see the shortcomings of our society but turn them into a stimulus for prompt community actions. Let us see the problems of our nation but turn them into a rallying point for our patriotism. And together, let us anticipate the challenges of the 21st Asian Pacific century and be galvanized by them to reach for the stars. Thank you, Mr President. MRS SELINA CHOW (in Cantonese): Mr President, in the twinkling of an eye, I have already been a Member of the Legislative Council for over 15 years. I have experienced the vicissitudes of life as a councillor. Looking back on those years, however, I found them quite fruitful. I am honoured to have the opportunity to look on and participate in the discussions and decisions about Hong Kong in this momentous instance of history. I was brought up under the colonial rule of Britain. Throughout my life as a student, to a professional in the broadcast industry, and to a councillor, I have all along been deeply influenced by British culture. I believe many of my colleagues who used to be appointed Members will probably share my feeling. 1554 LEGISLATIVE COUNCIL ─ 27 June 1997 Hong Kong has achieved remarkable success under British rule. This, in fact, has something to do with the traditional philosophy and wisdom of Britain itself. It cannot be denied that among the colonies of different countries in the world, the British approach is recognized as comparatively humane and fair. Generally speaking, Britain will establish a distinguished civil service in the colony. The administrative strategies and regulations it adopts are also very desirable. Many former British colonies still rely heavily on members of their civil service to sustain the operation of the entire country after their independence. Coming back to Hong Kong, there are a galaxy of talented people in the Government. University graduates with best results and who are the cream of the society all apply for the post of Administrative Officer, except for those who would like to develop their career in their own professional fields. This tradition still prevails today, as evidenced by the large group of elite in the senior ranks of the Government. I also recall my father saying that Britain had perfect highways and road systems. While we often criticize the Hong Kong Government for occasional delays in infrastructure projects and being slow in response, on the whole, it should be fair to say that the developments of Hong Kong today are indeed very remarkable. We should therefore acknowledge the contribution of Britain towards Hong Kong. Regrettably, Sino-British relations turned sour in these few years for various reasons. The Governor's reckless push for political reform and the change in his policy towards China have brought about adverse impacts to Hong Kong. Yet we all have to pay the price for what he has done. It is indeed very lamentable that there will be no through train for the Legislative Council. It is also a grave contrition in the history of British rule over Hong Kong. Nevertheless, the spirit of freedom and democracy which Britain has cultivated in Hong Kong is commendable. Even those who criticize the institution of Hong Kong as not democratic enough will concede that the freedom enjoyed by Hong Kong people in many aspects, including those for the individual, of speech and in economy, is no less, if not more, than that found in some of the more democratic countries. I think what we should cherish most is that our society attaches great importance to a balance of interests and justifications, the means to achieve such LEGISLATIVE COUNCIL ─ 27 June 1997 1555 balance and its determination to honour the rule of law. Hong Kong people fear nothing. As reflected in the words of advice written in beautiful calligraphy given to Mr Allen LEE by the Mr SO Kwok-wing, the ombudsman, which reads, "One would only fear his wife and not the government", everybody breathes the air of freedom in our society. May this valuable feature of Hong Kong last forever! MR SZETO WAH (in Cantonese): Mr President, if the Honourable Edward HO asks me to evaluate the 66 years of my life in two simple sentences, I would firstly say that mine is a story of a Chinese who has neither succeeded nor failed, and secondly, it is a story of a Chinese bearing the characteristics of Hong Kong. Governor PATTEN made the following comment about me during an interview by Apple Daily a few days ago, "No one has ever called him a tool of the British Empire. He is an anti-colonialist, a staunch, tough patriotic Chinese full of wits." I am honoured to be called "an anti-colonialist" by the last colonial Governor. I, nevertheless, have to put one thing right. "Full of wits" is indeed an overstatement. I am merely not stupid. During the dispute over the salary of Certificated Masters in 1973, I led teachers to go on strike. Our success led to the founding of the Hong Kong Professional Teachers' Union (PTU). Since then, I have constantly participated in social movements, always at the forefront, doing my part and never shrunk back. If Hong Kong has indeed made some progress during the past two decades, the efforts of my friends and me should also count. The Sino-British Joint Declaration was signed in 1984. Being the most powerful trade union in Hong Kong in 1985, the PTU was entrusted with the social responsibility and historic mission to make contributions to the society so that the idea of "one country, two systems and high autonomy' could be materialized. I was assigned to take part in the Education Functional Constituency of the Legislative Council which was, by that time, the first Legislative Council election in the history of Hong Kong. Among the six candidates, I was elected by 68.5% of the votes. 1556 LEGISLATIVE COUNCIL ─ 27 June 1997 Except for the uncontested election in the Education Functional Constituency in 1988 election, I experienced landslide victories in all direct elections, including the Legislation Council election in Kowloon East in 1991 and 1995, and the Urban Council election in 1995. The results of the open, fair, and impartial elections prove that I have won the support of the majority of voters and they have placed trust in me. I have been a Member of the Legislative Council for 12 years since 1985. My current term is supposed to end in 1999. It, nevertheless, is now shortened by two years. It not only deprives me of my service as a Member, but also goes against the support and trust placed in me by the voters. No one can, however, ever deprive me of my commitments and service to my voters. "Devote myself to the task and carry through to the end" was the slogan I chanted when I first took part in the election in 1985. During these 12 years, I have borne this slogan in mind all the time and served my voters whole-heartedly. Whether I will once again become a Member of the Legislative Council or not in the days to come, I will serve Hong Kong people in the same way as I did in the past. A friend of mine, a columnist who has emigrated abroad, once said to me that among the lengthy theory of the communist party, it will be enough if they can make good an expression found in the "Quotations from MAO Zedong", "To serve the people", an inscription of which is erected at the main entrance of Zhong Nan Hai. I have trusted, obeyed and made good this statement since I was old enough to serve the community. I am not a Communist. I do not think that only Communists will "serve the people". "I have neither succeeded", because I have not yet achieved the goals of my life; "nor failed" because I am still struggling. Whether I will succeed or not, I remain a Chinese. Goodbye, colonial Hong Kong. We will part forever! I bid farewell to colonial Hong Kong with my national pride and sentiment. The Special Administrative Region will soon be set up. I embrace Hong Kong as the Special Administrative Region by facing challenges. "Regardless of success or failure", "by doing my part without shrinking back", "by devoting myself to the task and carrying through to the end" and "by serving the people", I will face challenges as a Chinese bearing the characteristics of Hong Kong. LEGISLATIVE COUNCIL ─ 27 June 1997 1557 Mr President, these are my remarks. MRS ELIZABETH WONG: Thank you, Mr President, for giving me the early chance to speak because it is really not my turn, so I am speaking out of turn because I am getting off this train in order to catch a boat to Discovery Bay, so thank you, Mr President. Words fall short to describe a 156 years of British rule, particularly in the small hours of the morning, and I think it is difficult for me to express my feelings without turning my speech into some sort of confession, so I shall be brief. Now, to do justice to the history of Hong Kong, I have actually anticipated this valedictory motion. I have written a book, the world's little red book ─ it is like the Mao's Little Red Book─ called "Thanks for the Memories: Hong Kong 1997". It is about people we know, the great people, the brave people, special people and special places and special things. It is about this Legislature. It is also about the provisional legislature. Now, if you want to read about yourself you can, I am going to donate this to the library, you can check it up in the library, and I am in fact following it up with a sequel, and if you want to do something which appears in my sequel, you have got to do something either heroic or very crazy, or both. And Mr President, as we say goodbye to the British rule and to each other, we must see the end as a beginning. I shall remember all of you and all of these with fondness and I remember you, every one of you, with affection including yourself, Mr President, whom I have condemned in one motion. I hope you have forgiven me. And in the parting of ways I wish you good luck, good health and God bless you, and in the famous words of MAO Zedong, he was my compatriot, we came from the same village, so I will say, I will spend the rest of my days "為 人 民 服 務 ". MR EDWARD HO (in Cantonese): Mr President, I was born in Hong Kong and so was my father. I went to a Chinese school when I was a little boy. During my school life, what impressed me most were the Chinese history lessons on the 1558 LEGISLATIVE COUNCIL ─ 27 June 1997 Opium War and the invasion of China by the Eight-Power Allied Forces. China was so weak that other countries could simply send their troops to invade it. At that time, I felt the helplessness and the shame of being Chinese. In 1984, when China and Britain concluded the Joint Declaration, I was honoured to be invited to attend the ceremony. I still remember in that chilling evening, I stood outside the People's Hall to wait for Mrs THATCHER. Upon her arrival, military music and the national anthem of China were played. I disapproved of the Communist Party since my childhood, and perhaps up to now. That is why I am so glad that "one country, two systems" will be implemented. Yet back then, when the national anthem of China came to my hearing, I was greatly moved. Albeit the national anthem of the communist China, it was the national anthem of China after all. Perhaps I am rather sentimental, so much so that sometimes a movie can move me to tears. Hearing the national anthem, I was deeply touched for I felt that China had finally risen as a strong nation and Britain would return Hong Kong and Kowloon to her. Today, when we are bidding farewell to Britain on this occasion, I would like to say this first. Glancing through the history of Hong Kong, the British should have nothing to take pride in. In the past, they subjected Chinese people to various discriminatory measures. Chinese people were not allowed to live in the Peak and some clubs even prohibited the participation of Chinese. In recent years, regrettably, I find that Chinese people still treat foreigners differently. For example, one day, when I was in Central, a policeman found a car parked in front of Peddar Street, which was a no parking zone. An expatriate woman was in the car and her husband had just crossed the road to do some shopping. I told the traffic policeman that parking was illegal there and asked him why he did not give her a fixed penalty ticket. Yet he just kept pestering her without further action. On another occasion, I went to a club to have dinner, where a waiter told me to wear a tie. I said to him, "All right, please lend me one and I will put it on." Then I saw that an expatriate, who was not wearing a tie, sat there to enjoy his dinner. I found this most intolerable. I stood up at once and wanted to leave. But my wife said, "Take it easy. Don't lose temper for this." I said, "This is not a matter of losing temper. I just cannot put up with such things." As the Honourable SZETO Wah has just said, we must respect our own nation pride. Mr President, as there is only three minutes left, let me change to some less serious topics. First of all, I have to commend you, Mr President. During the LEGISLATIVE COUNCIL ─ 27 June 1997 1559 past few years, in particular, you had to give up two of your favourites to take up the duties of the President. Of course, I do not mean you have to give up your wife. As the Honourable Allen LEE is not in this Chamber, I am not going to say anything about him. Back to the days in the university, the Honourable Martin LEE and I were hallmates. Mr President was also living in the same residential hall but he was a bit younger than we were. I have great respect for Mr Martin LEE. To be honest, we have a lot to learn from him, especially if we want to become a politician. Taking into account the 10 years I have worked in this Council, you may barely say that I am following a political life. Still, I think I have a lot to learn from Mr Martin LEE. He has a high level of political wisdom and a role to play in the international political arena. This is why he is not the same as the rest of us. Mr SZETO Wah previously said that he respected my sincerity and his comment became a newspaper headline that read, "Mr SZETO respects Edward HO". I was nearly prompted to stand for direct election. Indeed, I find Mr SZETO a sincere person, too. These are the words from the bottom of my heart. Although sometimes we may have different views on certain political issues, what he says and what he does are true to the way he feels. And his speeches are never long and tedious. Actually, I have a lot of things to say. Since I am running out of time, I cannot talk about other Members, say the Honourable Miss Emily LAU. I wonder if she knows that she is nicknamed "unguided missile" because everything is under her attacks. On balance, she is a lovely person. Even when she criticises other people, she does it with sincerity. The Honourable Miss Christine LOH, on the other hand, is a "smart bomb". She does not say much on each occasion but hits the mark with a single comment. Now it comes to Mr Allen LEE. You may say that I entered into politics because of him. After I followed him to Beijing in 1983, my political journey was started. Thank you. MR ERIC LI: Mr President, "Borrowed time, Borrowed place": a familiar phrase to us all before the signing of the Sino-British Joint Declaration in 1984. Clearly, the return of Hong Kong to China is, and has always been, inevitable. The question is, how do we, the people of Hong Kong today, perceive our departing temporary Sovereign? 1560 LEGISLATIVE COUNCIL ─ 27 June 1997 In a historical context, Britain might have been the "borrower"; but the fact is, that many of our fathers, our grandfathers and great grandfathers chose to migrate here. To them, Hong Kong under British rule, was more than a prosperous harbour; it was a safe haven which self-reliant people could call home and where they could raise their children in peace and with hope for a better future. British merchants might have been motivated by profit only, when building their business empires in the colony; but they also created ample business and career opportunities in the process and established a valuable network with China's distant outside world. Early British Governments might have neglected long term improvements to our housing, welfare and other livelihood problems; but such an environment strengthened our spirit of self-help. Too little democracy might have come too late; but we are blessed with an exceptionally strong team of apolitical civil servants who are trained to administer Hong Kong professionally. Successive British Governments might have offered us more bold promises than tangible deeds; but a growing number of self-assured local politicians have earned international repute while articulating the case for Hong Kong. The remarkable history of Hong Kong created our unique pluralistic political culture and a thriving, almost legendary, economy. Although it still sometimes hurts to be reminded that we were often considered second class British citizens, we are extremely proud to be Hong Kongers. As far as many of us are concerned, we already enjoy a high degree of "autonomy", "freedom" and "independence" under British rule without the need to draw up specific constitutional rules and a national boundary. It would be hypocritical to say that the British Government provided us with all the ingredients of success. China has also played an at least equally important role. But it is also true that, because of the British presence, we learned and developed our own skills. These skills we used for fishing, farming, trading and eventually for achieving financial security. Much more recently, we applied our minds and accumulated skills to democracy, human rights and self administration. It will take us a little time to assimilate this relatively new knowledge and mould it into our own unique, pluralistic culture. But success is never likely to be far from sight. There is no denying, in any case, that British traditions and practices have already become very much part of LEGISLATIVE COUNCIL ─ 27 June 1997 1561 our own local heritage and of our sense of values. We have a deeply rooted desire to live as free men, to decide our own fate and to set our own political agenda. This agenda will reflect the true aspirations and vision shared by the people of Hong Kong. To respect Hong Kong today, is to let us conduct our own affairs and fend for ourselves. On the eve of British rule, this city of proud people bids farewell to the British Government. We draw great satisfaction from the success achieved so far and our new national identity allows us to stand tall, to face the future with confidence and dignity. Despite difficult beginnings, I sincerely hope that, when looking back at the 150 years of British rule, the people of Hong Kong, as well as the people of Great Britain, will choose to focus on the good fortune and mutual benefits derived during that period. Mr President, history is still in the making. The departure of the British Government does not mark an end to be forgotten but rather the beginning of a new chapter in Hong Kong's history. While Hong Kong reunifies with China, Britain, in a sense, is also faced with the challenge of reunification with the rest of the European Community. We both have a separate but significant role to play in the wider international community. The contribution to our people and to the world community will be far greater if we look ahead positively and if we strengthen existing natural ties with genuine friendship, care and mutual support. May God bless the Queen and her people at this time of fond farewell. May He give us all the courage and wisdom we need to guide Hong Kong and Great Britain. May we always live and work together in peace and total harmony. Mr President, I shall deliver the speech to the second part of the motion in my mother tongue. MR ERIC LI (in Cantonese): In any part of the world, to lead a decent and worry-free life is the most modest wish of people. The shocking dispute over the 1994 political reform package might not have gained as much attention in our community as a World Cup football match. 1562 LEGISLATIVE COUNCIL ─ 27 June 1997 The climax of unification activities was triggered, surprisingly, by a triple trio pool with a prize of nearly $700 million. People just sat comfortably at home "watching football match, horse-racing and dreaming of making a fortune". We can see that the people of Hong Kong are already living in bliss. If we need not confront the authorities, if we need not take unnecessary political risks, our stability and prosperity will sustain. I wish the Hong Kong Special Administrative Region continued stability and prosperity. If this Council, like the rest of Hong Kong people, sees placidly the great wheel of history move, then we will be able to set aside our differences and show our support. Every Member of this Council is fully aware that if our people are to keep their way of life, the concepts of "one country, two systems" and "Hong Kong people ruling Hong Kong" have to be materialized successfully. From now on, the fate of Hong Kong is inseparable from our motherland's. We are in the same boat to stay through thick and thin. To win the triple trio, we have to pray to the heavens. Even knowing that chances are slim, our passion is never dampened. With the opportunity arising from the reunification with China, Members of this Council should have a better understanding of the new situation. China is relieved to see that the historical issue of Hong Kong has been settled satisfactorily and at the same time, Britain has a new Labour Government with new personnel and new practices. While Hong Kong is entering a new era, the three of us ─ China, Britain and Hong Kong ─ can work together for a harmonious victory for all three parties. I strongly believe that this tripartite victory can bring about a much larger prize than the triple trio pool. Mr President, as there is still a little time left, I would like to pass a few words to my colleagues. I do not want to bid sad farewell because we will not be parted for more than a year. I hope we will come together again in 1998. Mr President, these are my remarks. LEGISLATIVE COUNCIL ─ 27 June 1997 1563 DR YEUNG SUM (in Cantonese): Mr President, the sun rises and sets. Here, sunset refers to the end of 150 years of British colonial rule, the official disappearance of a twilight government from the political arena; sunrise signifies the birth of "Hong Kong people ruling Hong Kong". Amidst thick dark clouds, however, we can only hope for a better tomorrow. Yet it all depends on changes in China and efforts made by the people of Hong Kong in fending for themselves. Unequal treaties started the British colonial rule that lasted for more than 150 years. In the early days of the British rule, interests of the Britons were the only concern. Hence laissez-faire and low-tax policies were adopted from the onset and an apolitical attitude was fostered among the people of Hong Kong to discourage them from taking part in political activities. Neither at school nor in the political arena did the people of Hong Kong have any political consciousness or channels to take part in political affairs. Starting from the 1960s, when the economy of Hong Kong took off, and through the 1970s and 1980s, the Government began to change its policy. Many social welfare services were provided to upgrade people's living standards. In 1983, election took place at district level and in 1991, part of the Legislature was returned by direct election. Mr President, what will be left behind to influence Hong Kong when the British colonial rule comes to an end? There are four things: firstly, an independent judiciary, an adequate legal system which will ensure that everyone is equal before the law; secondly, a market economy which is in smooth operation to form a level play field for the community and investors; thirdly, the scrupulous, neutral and efficient civil service; and finally, a trend for the Government to become more open in dissemination of information, public consultation and performance pledges. But unfortunately, Mr President, there are in fact three things about the British colonial rule that warrant our criticism. They are probably blemishes in the British colony. First, it is but colonial rule. The Government is not formed by election. As the Government is not elected by the people, it need not be responsible or accountable to the people. Yet the Hong Kong Government is a merciful dictator. Through consultations with the Councils and progressive democratization, it draws political elite into the representative government to reinforce its colonial rule. 1564 LEGISLATIVE COUNCIL ─ 27 June 1997 Secondly, it was a big mistake on the part of the British Government to develop a democratic system in Hong Kong so late. In the 1940s, the then Governor Sir Mark Aitchison YOUNG already thought of introducing democracy in Hong Kong. This idea was finally aborted because he was afraid that the Communist Party might sweep all the seats by election. It is not until 1991 that part of the Legislature was returned by direct election. As a result, the development of political parties, political consciousness and even the awareness of human rights among the people of Hong Kong were rather limited. Luckily, Mr President, Hong Kong has many favourable conditions. We do not have racial disputes. Instead, we have stable economic development and a sound legal system. Between the 1970s and the 1980s, many social movements took place in Hong Kong and a number of pressure groups were formed in a few years' time. The 1990s saw the emergence of political parties. Many of my colleagues in this Council are also active participants of party politics. Thirdly, Mr President, social services in Hong Kong depend too much on its economy. It is true that the entire world is amazed by our economic achievements, saying that they are enormous miracles. But I just want to tell you that the gap between the poor and the rich is widening along with our economic development. The general public cannot share our economic achievements. The academics believing in free economy draw an analogy between the economic situation and a funnel: growth in wealth of the entire society is somewhat like rising water in a funnel, which will be full at a certain point. In the same way, all of us will be wealthy when our society has got rich. Mr President, this is actually not the case. The rich do become richer but not the poor. In fact, the middle classes have also been impoverished recently. Even with their lifetime savings, they cannot afford a flat of their own. This is why we have to blame the British rule in Hong Kong. We should not only open our eyes to the bright side but also keep watching the dark side. Since Mr Christopher PATTEN assumed office as the Governor, in what ways has Hong Kong been affected? To me, he is just like a gust of whirlwind, bringing fresh air to the stuffy situation. Step by step, he opens the Government and introduces further democracy. I consider him more a conservative than a fighter for democracy. He has successfully created a friendly and caring image for himself. I hope that when Mr TUNG Chee-hwa assumes office, he will be able to learn something from him. LEGISLATIVE COUNCIL ─ 27 June 1997 1565 Mr President, looking ahead, we will find that China will resume the exercise of sovereignty over Hong Kong in a few days' time. We should be glad, and even joyous, and the whole community should be rejoicing. Yet actually, I have mixed feelings. I do support the resumption of sovereignty over Hong Kong by China. On the other hand, I do not have much confidence in "one country, two systems and a high degree of autonomy". Chinese intervention comes from all directions. This elected Legislative Council will be replaced by the Provisional Legislative Council. The freedom of assembly and association enjoyed by the people of Hong Kong will be severely restricted by the Public Order Ordinance and Societies Ordinance. Mr President, however, I have high hopes on Hong Kong. Firstly, the people of Hong Kong strive hard. The achievements of Hong Kong in the past few decades under the British rule, instead of saying that it is a success on the part of the British rule, should attribute to the hard-working population of Hong Kong. I believe that Hong Kong people will keep striving on. Secondly, people who grow up in Hong Kong after the Second World War already regard Hong Kong as their home. Unlike their ancestors, they do not ask to be buried in their native place after their death. Perhaps we are just immigrants to this borrowed place. We simply call Hong Kong our home and establish our identity as Hong Kong people. Those who have experienced the Second World War have already grown up and become the pillars of various sectors of the community as well as the backbone of political parties. I have great expectations of them. Mr President, the people of Hong Kong were accustomed to being obedient citizens. Only in recent years have they become more civic-conscious and started to speak out for their own rights. I hope that they will not slip back to their old ways, playing the role of obedient citizens under one-party dictatorship. I do not want to see the change from a colonial system to a closed society. The people of Hong Kong have to stand up and endeavour for their own rights such as democracy, human rights and the rule of law. The establishment of a fair and democratic social system under the Chinese rule will benefit the people of Hong Kong. In the long run, China will be greatly affected. As a matter of fact, the influence of Hong Kong on China is not limited to economy. It will also extend to areas of culture, ideology, religion, and especially politics and law. Mr President, let history be the witness of our efforts. Thank you. LEGISLATIVE COUNCIL ─ 27 June 1997 1566 MR RONALD ARCULLI: Mr President, firstly I would like to thank our audience in the Gallery, otherwise we would be talking to ourselves like we have been doing for the past week. But I think this is both an occasion to jest as well as to reflect on some of the serious points of life, so I think I will get rid of the serious points of life first because in my life there is not really too much seriousness these days. We cannot even follow amendments here to the extent that when we pass Bills we have to adjourn to see what we have passed. PRESIDENT: It is a sign of maturity. MR RONALD ARCULLI: ...... which indeed, Mr President, is a sign of maturity, but of course I am referring to Government Bills and not Private Members' Bills. I was in fact going to thank the Secretary for Housing for staying behind because he probably has the most difficult job of all government officials today, but seeing that his wife tells us in the newspapers that he works until about 3.30 or 4 o'clock, that is about the time he left. Well, I think I would like to go down, not Memory Lane, but go down the voting sheet and maybe try and give a few words and claim parliamentary privilege for what I am about to say. The Honourable Allen LEE, I would describe him as the most trusting party leader. He leaves most things to us. The Honourable Martin LEE, for a legal heavyweight he is not a very good comedian ─ did not raise a single laugh despite all his wisecrack remarks about the Liberal Party. The Honourable Frederick FUNG, the most misunderstood Member of this Council. PRESIDENT: Or hard to understand. MR RONALD ARCULLI: The Honourable IP Kwok-him, who is not here, so I will wait for him. The Honourable Ambrose LAU, the fastest kid on the block. LEGISLATIVE COUNCIL ─ 27 June 1997 1567 No sooner did he join this Council, he acquired Maria TAM's party and kicked her out at the same time, all within a matter of weeks. Mr LAU, you have no idea how much we are going to miss her in the Provisional Legislative Council (PLC). The Honourable Miss Emily LAU, not easy to say something funny about. Single-minded. I do not agree with my friend, the Honourable Edward HO, by the way. Single-minded to the point of being blind at times. Sometimes it is a strong point, sometimes it is a weak point, and I mean that sincerely, because Miss LAU and I had a conversation many years ago and she thought that I was too good for the Legislative Council, that I should have gone straight to the Executive Council, but of course, you know, Mr Allen LEE was there, the Honourable Mrs Selina CHOW was there, and do you think they would make space for me? No way. One or two absent Members. The Honourable James TIEN, the most improved politician within a span of three, four years. Mr James TIEN in the 1980's was so right that he was sitting outside of this Chamber. My good friend and close friend, the Honourable Paul CHENG, the big picture man ─ details are nothing, just concentrate on the big picture. Miss Miriam LAU, Party Whip of the Liberal Party, the most difficult job. You have no idea how difficult that job is. When we say we are the Liberal Party, Mr President, we are the Liberal Party. If we feel like it, we turn up and vote. If we do not, we will not, like we did a couple of nights ago. We did not feel like coming in. We did not come in. The second-last, Dr the Honourable LEONG Che-hung, Chairman of our House Committee. His hairstyle belies his fairness. Looking from the front he neither favours the left or the right, but when you look from the back you do not know where he is coming from. Mr President, you, the last. I think you have, probably amongst all of us, and I mean this in all sincerity and seriousness, sacrificed the most because we know how you cannot resist the odd repartee here and there. Did you notice Mr Speaker joining in the debate signalling us how to vote? Poor man has been contained for two years. But I think when we go on to the PLC you will feel 1568 LEGISLATIVE COUNCIL ─ 27 June 1997 unleashed, but please try and control yourself. Do not make us, sort of, embarrassed because this is the start of a new government and so on. But lastly, Mr President, I think what I really would like to say is this, that the cut and thrust of politics in Hong Kong has changed so dramatically in the last nine years when I first joined that even I cannot recognize this Council, and all for the good. And all I can say to friends that will not be joining us at the PLC is that, for whatever it is worth, the Liberal Party will do its utmost to make sure that we have good and fair electoral laws to contest the elections in 1998, when I expect unfortunately to see most of you back here again! MISS CHRISTINE LOH: Mr President, it is time to bid you fond farewell. It is also time to say goodbye to Britain, and I suppose in a day or so that emblem of the lion and the dragon will be removed and we will have new images and new icons for the future. I never thought I would be in politics, Mr President. I never thought that I would be and I never sought to be, and it came as a shock in 1992 when I was invited by appointment to join this Council. I never thought I would run an election. I do not know how many people here, particularly those of, kind of, my generation ever thought that they would be in full-time politics, but here we are. And as Dr the Honourable YEUNG Sum said, I know there are many of you who were involved in student politics back in the seventies and, gosh, we are all here. So, I never thought I would run an election and win. I never thought that I and others would found a political party. I think my parents and my friends never thought I would do anything like this. So, I would like to think, Mr President, that this represents a generational break. When I was young, and I am sure many of you will feel the same, none of us ever thought that we would want to be the Governor. Probably none of us ever thought of wanting to become a legislator or an Executive Councillor because we never saw these people. We never knew what they were doing for us. But I think young people today, and certainly this is confirmed by my visits to schools and talking to even high school students, they notice us. They notice that this Council exists. They notice our work and some of them say to me that they too would like to be a legislator. Little Johnny or Little Mary in Hong Kong can, I think, LEGISLATIVE COUNCIL ─ 27 June 1997 1569 in future aspire to be the Chief Executive, and this is something quite extraordinary. Also our young children can also aspire to be Chinese leaders. We will have a country in a very short time. Just now when we were having dinner, Mr President, upstairs, a couple of my colleagues were talking about running for the National People's Council (NPC) and they said, "Well, are you going to do it? Are you going to do it?" Well, it is something that Hong Kong people now can do. I am certainly not ready for the NPC. If nothing else I must improve my Chinese. But also for me it is extraordinary that I could run an election in Cantonese. When I first joined this Council it was very difficult for me to talk for more than about 20 seconds entirely in Cantonese. Well, I am very pleased that I can do so now and I suppose it is a kind of transformation. I will be the only member of my immediate family on 1 July who will become Chinese again. This is extraordinary. I think I am going to wake up and I am going to think, boy, we are in China. Legally and rationally and intellectually I can cope with this new, this new status but I must admit emotionally I still have some problems. It is not easy for me to think of myself and to feel myself as a citizen of the People's Republic of China. There is nothing bad about this. I think I am going to remember always warmly those images and icons of British rule in Hong Kong. That experience, I think, has not done me any damage and I hear many acknowledgments in this Council today that obviously it was not all bad. And I think it is important for us to acknowledge our past in order to go forward in the future. In looking at political life I have also realised that first of all it is a strange kind of business. It is the kind of business where you can be out of it for thirty years and come back and be president. You can also be out of office for 18 years and come back with a landslide victory. And sometimes you have to go out in order to come back in, and I guess this is one of those moments where some of us will leave this Council in order to get back in, in a way that we want to get back in. Another thing that I have really enjoyed about this last five years as a legislator is the extraordinary number of people that I have met and an 1570 LEGISLATIVE COUNCIL ─ 27 June 1997 extraordinary number of people that I have been able to work with. I never thought I would become a champion of women's rights. It was not something that I knew anything about before 1992 but I have come to meet many women who have been fighting for women's rights. I have come to meet many other groups, labour groups. I never thought I would stand up in this Council in the last week and speak about labour issues. It was not something that I knew anything about. So, the privilege is that we are able to meet a vast range of people serving in this Council. And each one of them, each group that comes to meet us in a way shares something with us that they believe most in, and in that ten minutes, in that half an hour, in those few times where we interact on a particular subject that moves them, in a way they are giving us something that they most believe in, and I find that a great privilege to be able to share that with them. Well, Mr President, I have decided to embrace the future. I have decided to embrace change, and I must get used to thinking of myself as a citizen of the People's Republic of China. I do not know how long that is going to take before my heart feels it but I will try and do what I can. I acknowledge that in politics, if we are going to attach ourselves to this country, we will have to acknowledge that we are going to be citizens of that country. It is not very easy for me but, as I said, I know this is going to be a challenge that I will face. So, I do want to say goodbye to the British warmly. I do want to welcome China in the hope that despite all the difficulties and the conflicts that we do have because of our very different values and culture, we will be able to work them out. And I wish you well, Mr President. Thank you for presiding over us over the last two years. MR CHEUNG MAN-KWONG (in Cantonese): Mr President, today I would like to focus my speech on the Legislative Council. A colonial Legislative Council finally comes to an end. The Council will dissolve after the valediction. It is a place where I have been working for six years. Traces of our footprints can be found in every corner of this Council with records of our struggle in every conference room. At this moment of LEGISLATIVE COUNCIL ─ 27 June 1997 1571 parting, it is natural for us to have a feeling of reluctance. During these six years with the Legislative Council, I have experienced the joy, the sorrow, the laughter and the anger. These sentiments are not only originated from personal feeling, but also related to my concern of the community and the pulse of the times. At this moment, I am filled with memories and nostalgia. Mr President, as I recollect the events occurred in the past six years in the Legislative Council, I think the most significant change was the independence of the Council. In the past, it was a colonial Legislative Council with its power given under an appointment system. Most of the time, the Council was unable to truly reflect public opinion. Drastic changes have occurred in these few years. The Council, which has been separated from the Government and the Executive Council, has an independent and neutral secretariat vested with the power to exercise financial autonomy. Also, the President is elected by the Council. All these changes have paved the way for a truly independent and credible Legislative Council. We really spoke for Hong Kong people during these few years. Although this was done by various political parties in the Council, no one can deny that we represent an important miniature and strength of our society. I believe all of you will agree that there are different political parties and views in the Council. We have too many political differences. We sometimes engage in heated arguments and some debates even last overnight. Our differences, arguments and even conflicts, nevertheless, help Hong Kong people realize that the Legislative Council is a place for the expression of public opinion. It is a place where the minority obey the majority but the majority will respect the minority. During these six years, the Legislative Council has built up a parliamentary culture with Hong Kong characteristics. Compared with that of many places and countries, this culture has a lot of features. Firstly, it is clean. Secondly, it is subject to the rule of law. Thirdly, it is peaceful and lastly, it is pluralistic. We have political parties with members from the industrial and commercial sectors. But we are certain that our election is absolutely free from corruption. While Hong Kong is under British colonial rule, the Council is set up according to the rule of law. We do have political and class conflicts, and views are expressed in a peaceful way. We have a strong and executive-led government, but we are still able to present different views when China and Britain are locked in a never-ending struggle. Though excessive remarks and incisive criticisms are occasionally made in this Council and the President sometimes even asks us to withdraw our remarks, basically rules are observed and courtesy exists. I very much hope that this healthy 1572 LEGISLATIVE COUNCIL ─ 27 June 1997 parliamentary culture will not disappear with the end of the colonial rule. I hope this culture will continue beyond 1997. Of course this Legislative Council has some shortcomings. It is still far from operating under a democratic political system or far from a democratic Legislative Council. The legislature is not guided by public opinions yet. We, however, believe that time is progressing. Our Legislative Council will gradually become more democratic and make more progress even after 1997. We have a very important objective: the Executive Council should be truly accountable to an elected legislature so that people's power will ultimately be given back to the people and democracy will take root in Hong Kong politics. Today I will have to bid farewell to the Council. I am filled with nostalgia. I shall miss the heated debates in the Council and the joy following victory on the sports ground when the Council took part in a competition. At the same time, I miss how we cheered while watching soccer matches in the common room. I particularly miss the free discussions we had after drinking bottles of wine in the dining room. No one will be able to appreciate the sentiment we have except for ourselves. But, I have regrets too. During these six years, three dear colleagues passed away: Mr Stephen NG, Mr Stephen CHEONG and Mr Samuel Wong. We have experienced sorrowful events. The struggle and friendship of these six years will remain deep in my heart. Many Members went grey in these six years. Mr Albert Chan even becomes bald while Mr CHIM Pui-chung's bald head shines more brightly. Many Members indeed strive for the interests of Hong Kong. I respect them. I shall remember all these with fondness. Finally, Mr President, I would like to express my gratitude to the staff who work with us all night long in the Legislative Council Building for their kindness and hard work. A meticulously recorded document, a piece of accurate and vivid translation, an appropriate and considerate arrangement and a cup of warm, refreshing coffee, will all remain in my mind. It is because of the same reason, although we bid farewell due to political reason, we will come back to continue to strive for our goals and to continue our cordial friendship. Thank you. MR CHIM PUI-CHUNG (in Cantonese): Mr President, it is now already some time after four o' clock. Recently, it is rare for me to work so late except for LEGISLATIVE COUNCIL ─ 27 June 1997 1573 engaging in political work in these six years. I usually go to bed very early. I would, therefore, like to make use of this opportunity to comment on the moments of joy, anger, sorrow and laughter of the Council. The moment of joy, as we all understand, is that Hong Kong, in the words commonly used by the Mainland, "finally returns to the embrace of China" after more than 150 years of British rule. As a Chinese, this is something what we should do. We have also taken a step forward. I hope our expatriate friends will understand our sentiment and the way we feel. After the Chinese Communist Party has liberated China for some 40 years, China now moves the first step towards unification through the implementation of "one country, two systems". I hope Taiwan can reunite with China sometime in future and therefore, I expect that the era of the Eight-Power Allied Forces invading China is over. Mr President, we recently noticed that the eight powerful nations in the world made comments on the future of Hong Kong. I hope this was done out of goodwill and not with an intent to attack China again. We are pleased to note that in the modern society, Chinese people have made progress in modern technology and indeed in every aspect, which brings about the success of Hong Kong today as the transfer of sovereignty is going to take place. Secondly, my anger refers to the fact that in the past six years, we did not share the same political views in the Legislative Council. I personally, however, staunchly believe that the Democratic Party also hopes to bring about a better future to Hong Kong people by striving for human rights, democracy and freedom. It is, however, very unfortunate that we handle matters differently, perhaps owing to our different political views, our different pace and different demands and aspiration of the Hong Kong people. I hope that we will be able to reach a consensus on issues in the future so that the future parliament of Hong Kong, that is, the Legislative Council, and of course in the coming year, the Provisional Legislative Council, will achieve greater success. The moments of sorrow, as already mentioned by some colleagues earlier on, is that in the past six years, three of our dear colleagues unfortunately, as Christians put it, returned to the embrace of God. It is indeed even more lamentable that the other 26 Members will leave the Council owing to the political reform put forward by Governor PATTEN. Their term is supposed to end in 1999. During the debate on political reform on 29 June 1994, I already stressed that the term could only last until 30 June 1997. There were only 14 Members who voted for my amendment at that time. Up to this day, it is indeed 1574 LEGISLATIVE COUNCIL ─ 27 June 1997 lamentable and sorrowful to see that some Members have to leave the Council. Leaving the Council, however, does not mean that they will not make a comeback. I staunchly believe, as we can learn from the newspaper, that most of the 26 Members will make a comeback in 1998. I also firmly believe that their ambition is to serve Hong Kong and make contributions to the future Hong Kong Special Administrative Region Government and the future Central Government. I staunchly believe that as a Chinese, we have the strength to face any challenges we come across in today's world. We very much hope that Hong Kong will establish better political, economical and financial relations with other countries in the world so that we will be able to live in perfect harmony in future. While we will definitely respect human rights, protect freedom and promote democracy, no one should make use of these issues as weapons to challenge Hong Kong and the Chinese Government, the future suzerainty of Hong Kong. We are steadfast in our stand. We will have better co-operation with other countries in the world, especially those who are making progress. I am very grateful that apart from those present, there are about 10 Members sleeping outside. I am particularly pleased to note the we have an audience of some twenty to thirty people sitting on both sides. Of course, what makes me feel proud is that in three days' time, around 2.45 am to 4.00 am on 1 July, perhaps some Members can spend three minutes to make a declaration or express their views in front of the mass media all over the world. Mr President, as I now come to the moments of laughter, we all understand that in the past six years, Hong Kong was prosperous in every aspect. Of course, a country or a region has to tolerate different voices of opinions so as to make progress. While there are, of course, many Chinese leaders who reproach some Members of the Hong Kong Legislative Council for their behaviour, they also fully understand that some Legislative Councillors cannot but express the views so as to gain votes or for any other reasons. I personally have to express my deepest gratitude to them. Their dissenting opinions have made it apparent that our views should be cherished. On many occasions, some Members and I do not see eye to eye on the issues. We, nevertheless, have to bear in mind that what I propose is for the sake of the Hong Kong people because after all, it might be the case that not many views were reflected to the Chinese Government in the past. I voice LEGISLATIVE COUNCIL ─ 27 June 1997 1575 different opinions. They are glad to see that such opinions are also shared by some Hong Kong people and therefore, they will not hold a hostile attitude towards Hong Kong people and political participants. I also have trust in the Chinese Government. After all, over one billion of people are under Chinese rule while there are only some six million people in Hong Kong. I staunchly believe that in the days to come, our common goal is to strive for more happiness. Heng Sang Index reached a record high today and was closed at 15196.79. While it does not represent any great achievement, it at least shows that we firmly believe Hong Kong will definitely have a better future. It depends on the continual struggle of those who will make a comeback to this Council in 1998 and those outside the Council, including the political participants who take to the street. Mr President, owing to the time limitation, I cannot say much. These are my remarks. MRS MIRIAM LAU (in Cantonese): Mr President, when Britain took over Hong Kong in 1841, it named the first main street in downtown Queen's Road, reminding the people of Hong Kong, "I, Britain, have come." 156 years later, at the Hong Kong Convention and Exhibition Centre (HKCEC) Extension, Britain is going to say to the people of Hong Kong, "I, Britain, am leaving." Her departure will be made via the new road adjacent to the venue of the handover ceremony. Yet the new road is not named Queen's Road, Glorious Withdrawal Road or anything like that. Instead, it is called Expose Drive. During the 100 years or so, from Queen's Road to Expose Drive, changes in the naming practice of streets in Hong Kong can be divided into three stages. In the early days of the British colonial rule, Hong Kong streets were named after personalities and places in Britain. Queen's Road and King's Road are such examples. In the second stage, streets were named after the people who had contributed to the local community, such as the Governors, or with reference to special features of the locality. Pottinger Street, Hennessy Road, Tai Hang Road and Nullah Road all belong to this category. In the third stage, practical circumstances and needs were the basis of naming new streets. Expose Drive, for instance, is named so to complement the completion of the magnificent HKCEC Extension as well as marking the extraordinary achievements of Hong Kong. 1576 LEGISLATIVE COUNCIL ─ 27 June 1997 Changes in the naming of streets roughly outline the changes in Hong Kong during the past century. After taking over Hong Kong as a colony, and with the exception of moving the British Palaces to Queen's Road, Britain have brought to Hong Kong a lot of her good things, such as western style of living, and a system under which the rule of law and free economy are respected. As time went by, the flavours of British tradition were gradually diluted by the addition of local touches. Finally, Hong Kong has established a system that bears her own characteristics as well as the fortes of China and the West. Under this system and with their great efforts, the people of Hong Kong have created a Hong Kong miracle. Here, the miracle refers to the "Hong Kong miracle", not the "British miracle in Hong Kong" In the past two decades, as long as the name Hong Kong was mentioned, people would be reminded of her dazzling economic achievements. From 1992 onwards, however, once the name Hong Kong was mentioned, people would think of her constitutional developments in recent years. This was attributed to the long-overdue political reforms introduced by Britain. Many people have raised this question: if Britain had wanted Hong Kong, her colony, to have democracy, why had she not done so 100 or 50 years ago, but waited until the handover had come in sight? I do not understand the rationale of Britain behind this move. Yet I believe that if we could turn back the clock and had Britain introduced democracy progressively into Hong Kong 100 or 50 years ago, the road via which Britain will make her departure might have been named "Democracy Boulevard" as a tribute to the British contributions to promote democracy in Hong Kong. Mr President, the system on which Hong Kong bases her success is much cherished by the people of Hong Kong and commands the respect of China. Hence China is prompted to implement an unprecedented system ─ "one country, two systems" in Hong Kong. I am sure that under the banner of "one country, two systems", Hong Kong will go on taking advantage of her unique feature to perform miracles. But success cannot be taken for granted. It has been no plain sailing for Hong Kong to accomplish her present achievements. It took Hong Kong people their unremitting efforts, unyielding spirits and unbounded confidence to brave the stormy sea, to head off one disaster after another. All roads are built by people. In the past, the people of Hong Kong LEGISLATIVE COUNCIL ─ 27 June 1997 1577 built many roads. I believe that the same people, while facing the future, will march on their new roads with the same dignity and confidence. Thank you, Mr President. MR MICHAEL HO (in Cantonese): Mr President, I am much delighted to bid farewell to the British Government which has been ruling Hong Kong for 150 years. In about two days' time, I shall become a Chinese citizen. The Honourable CHIM Pui-chung has just said that we are about to "alight from the train", thanks to the political reform package put forward by Mr PATTEN, the Governor. Still, I have no regrets. Over the past few years, this Council has changed quite a lot. And because of us, the people of Hong Kong have witnessed and tasted a few democratic changes. Had this not happened, many people might not have been able to conjure up such a picture on their minds. These slight changes also tell the people of Hong Kong: this is probably the right way to materialize the concept of "Hong Kong people ruling Hong Kong". Before elections took place, everyone said that elected legislators would call for higher taxation and undermine the stability of Hong Kong. A few days ago, I said to a visiting American journalist during an interview, "You can have a look at the history of Hong Kong since elected Members joined the legislature. Did these Members ask for an increase in profits tax every year?" Last year, even the Democratic Party asked for reducing the rate of profits tax by 0.5%. The people of Hong Kong can see that democracy is not something to be afraid of. Instead, democracy can help us further develop the concept of "Hong Kong people ruling Hong Kong". The reunification of Hong Kong with the motherland reminds me of a Social Studies lesson in primary school. For those people who are in their forties, I wonder if you still remember it. According to that lesson, Hong Kong was divided into four parts: Hong Kong Island, Kowloon Peninsula, New Kowloon to the north of Boundary Street and the New Territories. Hong Kong Island and Kowloon Peninsula were ceded to Britain whereas the areas to the north of Boundary Street were held on lease. At that time my family was living in Boundary Street. When my mother told me that the places across the street 1578 LEGISLATIVE COUNCIL ─ 27 June 1997 would be returned to China some day, I was very upset. But, seeing that this chapter in history has been rewritten, my heart is now filled with joy. During the 150 years of colonial rule, we have been living in a closed system without democracy. Under the British administration, however, we have an independent judiciary, and a neutral and efficient civil service. The Government is getting more and more transparent and accountable to the public. These achievements of the British administration in Hong Kong should be recognized. Yet most regrettably, Britain has not helped us establish a democratic system in Hong Kong before her departure. Of course, this can also be attributed to the fact that the Chinese Government does not wish to see democracy flourishing in Hong Kong. After all , it is easier to rule a place under the colonial system. It is sad that the reunification of this colony with the motherland does not bring about a higher degree of democracy. And it is even sadder to have an elected legislature replaced by a provisional legislature whose members are appointed to be elected. Yet the saddest thing of all is that they intend to restore the draconian legislation which is even less tolerable than those which were enacted by the British colonial regime. Recently, a newspaper reported that some university students indicated in a questionnaire their reluctance to reunite with China, and some members of the public were somewhat scared by the presence of the Liberation Army in Hong Kong. Though we are aware of the celebration activities in place, I doubt whether the people really celebrate the reunification with all their hearts. I do not mean to "bad-mouth" Hong Kong with the above remarks, for I am only referring to facts. I hope that these facts will change very soon. I shall soon be leaving the place in which I have worked for six years. In the days to come, I shall stay with my fellow countrymen who love our country and Hong Kong. If we find that the Government is doing something wrong, we will surely speak out because we love our country and Hong Kong. May our motherland be prosperous and may her people enjoy democracy. It is my wish that in the near future, both Hong Kong and China can have not only a legislature elected by the people like the existing one in Hong Kong, but also a Government returned by the one person, one vote system. LEGISLATIVE COUNCIL ─ 27 June 1997 1579 These are my remarks. MR CHENG YIU-TONG (in Cantonese): Mr President, I am a Hong Kong Deputy to the National People's Congress (NPC) of the People's Republic of China and I am the only NPC Deputy who is also a Legislative Councillor. Such a position poses real challenges to me. While discharging my duties, I have acquired an intimate knowledge of the differences between the two systems. In order to adapt myself to circumstances, I have to use different ways of working and thinking. Since we have two different social systems, we must understand and communicate with each other, so as to establish a working relationship that is based on mutual trust. Hence in the past one year or so and during the 10 years of my participation in the NPC, I find my job particularly challenging. First of all, I support you, Mr President, in acting as referee in these matches. In fact, you are impartial in your work with all the rules strictly enforced. Though you only showed one "red card" during this term, such a "red card" had already made a deep impression on us. Everybody remembers what you said ─ "You are not allowed to return to this Chamber today." I find "you really hard to put up with". With you presiding over the meeting, we have been sitting here for some good 20 hours. You are indeed able to complete the task of the legislature. But anyway, I am so honoured that under your presidentship, we, as the legislature of Hong Kong, are able to accomplish such a historic mission. This valedictory motion, therefore, is not only moved to mark the end of the legislature under the British rule. Looking beyond this, the motion also marks the end of colonial rule in Hong Kong. With the lapse of the Letters Patent and the dissolution of the Legislative Council, a new era is dawning. The implementation of "one country, two systems" promises a continuation of the existing social system in Hong Kong under which the people of Hong Kong will enjoy "a high degree of autonomy" after its reunification with the motherland. According to the Basic Law, except for matters relating to foreign affairs and defence, the affairs of Hong Kong should be administered by the people of Hong Kong, free from the interference of the Central People's Government. If we have to carry out this broad principle conscientiously, we should face our country with courage, get to know our nation and our people. Though the Central People's Government and Hong Kong may not have the same pace of development, we are, after all, one country. Instead of crying for help, 1580 LEGISLATIVE COUNCIL ─ 27 June 1997 drawing support from foreign countries to exert pressure on our own country, our differences can be resolved through discussions. In addition, the principles of "Hong Kong people ruling Hong Kong" and "a high degree of autonomy" actually derive from the spirit of the "two systems" in "one country , two systems". In fact, the social policy of Hong Kong has been developed along the line of pluralism. People of different social strata can uphold their own interests and express their own views through their representatives. But , what is meant by "Hong Kong people ruling Hong Kong"? What is meant by "a high degree of autonomy"? In the future, how are we going to put all these concepts into practice while adhering to the fair, open and just set of new rules of the game? As a matter of fact, the Central People's Government and the Chinese leaders, including the Chairman JIANG Zemen and the Vice-Premier QIAN Qichen, have stressed a number of times that the Central People's Government will not interfere with Hong Kong affairs. Besides, local governments are also advised to follow the line of the Central People's Government. As the Central People's Government has made it clear beforehand, I think Hong Kong should stand by these principles. After reunification, Hong Kong, being a pluralistic community, will still be a place of contradictions, divergence and conflicts. Yet I believe that these problems can be tackled within Hong Kong's own system. People can express their views on building our community through standing for elections, holding consultations and peaceful assemblies. The prerequisite to solve our internal problems is to find a solution familiar to the people of Hong Kong and that is what we mean by "Hong Kong people ruling Hong Kong". Then, what is meant by "Hong Kong people ruling Hong Kong"? No doubt it must be "administering Hong Kong affairs in the Hong Kong way". We should root up the bad habit of asking the Central People's Government to interfere with our affairs at every turn. The one and only way to implement the concept of "Hong Kong people ruling Hong Kong" at its best is to seek the recognition of the people of Hong Kong and the consensus of the members of the public. Mr President, 1 July 1997 is the beginning of a new era to the people of Hong Kong. It brings to us the challenges of the 21st century earlier than expected. I hope that people who care for Hong Kong, particularly those who LEGISLATIVE COUNCIL ─ 27 June 1997 1581 insist on promoting democracy, prosperity and progress in Hong Kong, will witness such a great historic event with unswerving determination and strive for the realization of "one country, two systems", "Hong Kong people ruling Hong Kong" and "a high degree of autonomy" Thank you, Mr President. MISS MARGARET NG: Mr President, I support the motion. It is not easy to sum up 150 years of British rule in seven minutes and be fair. So I will not try to do so. This is an occasion to bid farewell, not to settle scores, and as the Chinese saying goes, men of honour do not yell at each other when they part company. The immorality of colonialism is obvious. Yet we are all bound by history. What we do and think right reflects the epoch we are caught in. No doubt, the right-minded among us, British or Chinese, are glad that tonight we are putting that embarrassment to an end. Mr President, let us leave to the judgement of history whether Britain retreats with honour. I note that British and Chinese people have this in common: we both think much of our history, except we Chinese have much more history to think about. Today, let me, as someone born in Hong Kong and have spent her life here, acknowledge rather the good things which had come of this tiny part of history. The first thing for which I give acknowledgement is the English language. I was forced to learn English, like millions of other Hong Kong children. But having learnt that language, I have come to appreciate how fine it is. Of course, to me, Chinese is the most beautiful language in the world, but as I have grown to recognize, English has its own beauty. More than that pleasure, having acquired the English language we are given direct access to a whole new world of literature, thinking, and institutions, among these institutions is the common law. 1582 LEGISLATIVE COUNCIL ─ 27 June 1997 And this makes us, the Hong Kong people, unique in our bilingualism. This is the only place where mastering both Chinese and English languages is common and institutionally enforced. Once having mastered these languages, the learning of the entire world is at our feet. We can choose from a unique range of options. We can be, if we choose, more well-rounded than the Renaissance Man. The second good thing I want to acknowledge is the legacy of the common law, and the rule of law under the common law system. Mr President, as the legal profession's representative in this Council, throughout the past two years, I have on many occasions voiced my views on the importance of the rule of law, and of safeguarding the legal system which gives it effect. I shall not repeat these views today. What I wish to point out on this occasion, is that this uniquely complements our Chineseness. It is not that China had never developed a sophisticated system of law. But the Chinese concept of law and the legal system is very different. It emanates more from a need for authoritative control and to preserve the collective good, than the need of the individual to be protected from those in power, and of citizens to settle their disputes without violence. As China's legal development was seriously disrupted in the early 20th Century, the common law stepped into the breach in the small territory of Hong Kong. Forced to learn the ways of the conqueror, we have now become proficient in that law, and found it an invaluable instrument to achieve our aspirations in the modern world. Thirdly, I want to give acknowledgement for the creation, albeit inadvertently, of this refuge so close to China, to millions of Chinese people in a very difficult period of our history. It allowed our forefathers to escape to a safe environment, a well-regulated place where although they might have to pocket their pride, they were allowed to lead a quiet life. The British colonialists of those days were a practical breed. They ran an efficient bureaucracy, made comprehensive regulations, looked after health and hygiene, and ran a relatively well-ordered and clean city which in 1923 impressed Dr SUN Yat-sen. LEGISLATIVE COUNCIL ─ 27 June 1997 1583 Time and again, Hong Kong had acted as a place of refuge for the sorrowful Chinese who had to leave their country; revolutionaries, poets, intellectuals, the hungry masses. The British largely left them alone, and so gave them breathing space. In that breathing space, they made whatever living they could, and raised their families, and so, in time, brought about our generation. Mr President, many have commented on Hong Kong as an economic miracle. But the more profound miracle is a cultural one. Out of those unequal treaties grew a people who consider equality their right. Out of colonialism ─ grew a people who firmly believe in freedom, in human rights, democracy, and the rule of law. We, the Hong Kong people, are a fact here to stay. We have our sense of dignity. We are confident, accomplished, proud of our Chinese heritage, unashamed of our British advantages, alive to the issues of the world and Hong Kong's role in them. On the eve of the change of sovereignty, we are calm and collected, ready to meet new challenges as we always are. Mr President, we take the change of sovereignty in our stride. Few people are better equipped to do so. Tonight, we have to say our farewell to the British Government hurriedly, because each of us are busily moving into a new phase of our lives and history. As they no doubt wish us well, Mr President, I return those good wishes. Mr President, as we ring out the old so we ring in the new. As we bid farewell with good wishes, we welcome the Hong Kong Special Administrative Region, also, with sincere goodwill. I wish it should continue its stability and prosperity with all my heart. It must not fail the 6.5 million of Hong Kong people. Indeed, with their assistance and unfailing courage, it cannot fail. Thank you, Mr President. MR HOWARD YOUNG: Mr President, as this Council bids farewell to the British Government, it is not bidding farewell to the legacy of rule of law, a sound legal system and a sound civil service system and the use of English as a business language. 1584 LEGISLATIVE COUNCIL ─ 27 June 1997 For 13 years now we have known that there would be a change of sovereignty and that this Council would not be able to exist in its current form under the auspices of the Royal Instructions and the Letters Patent. This hour is only 67 hours away now. Now, as we usher in the new era of a Hong Kong Special Administrative Region and ask ourselves whether we will have continued stability and prosperity as indicated in the motion, we will have to use our own efforts to prove to the world that this can be achieved. What will happen after 1 July 1997? What about the future of Hong Kong? Is it a prediction? Is it fiction? Is it a forecast? Is it a guess? In three days' time it will be the first time anyone will be able to show that it is fact. It is upon us now and we will have to prove to the world that one country, two systems can work. As for the world looking on us during this time of change I only hope that the world will give us a chance to prove ourselves. And in one year's time I hope the thousands of journalists will flock back to Hong Kong again, not only to boost our tourism industry but also to see for themselves that Hong Kong is stable and is prospering and the system does work. And as for the mystery question which will no longer be asked of us, Hong Kong people, when we go abroad, "what will happen after 1997?", or "what comes after 1997?", Mr President, the answer has always been simple: it will be 1998. MR FRED LI (in Cantonese): Mr President, when I came here to attend meetings recently, once I stepped out of the Legislative Council Building, reporters from the radio and television stations repeatedly asked me, "What are you going to do after "getting off the train"?" "Who will support your family?" "How can you make a living?" "What plans do you have after losing this well-paid job?" The mass media keep on asking us, full-time legislators who will have to "get off the train", this kind of questions. This is the last time I make a speech before leaving this Council and it is delivered during the early hours of the morning. The same question was repeatedly asked and my answer became rather mechanical. This is, however, a sad question because having LEGISLATIVE COUNCIL ─ 27 June 1997 1585 joined the Council for six years, we have already had a deep affection for this Chamber of the Legislative Council. In fact, among the various Government proposals and legislation relating to the livelihood of Hong Kong people, particularly the 31 bills which were passed in the past few days ─ some were Government Bills while the others were Members' Bills ─ most of them are closely related to Hong Kong people and we are all involved in the legislative procedure. The task is meaningful; yet there are heated arguments. The 26 of us are, of course, reluctant to part with this Council. Reporters would like us to relate how miserable and dejected we are. Having talked about it for so many times, in fact I am not that miserable. As Chinese people always say, "Another village appears from behind the dense willow trees and bright flowers", "A loss sometimes spells a gain". A few months' absence from this Council may bring better prospects to us. Of course, teachers can go back to school and set their minds on teaching while lawyers can take up more cases. After discussion, we, full-time legislators, have decided to form a "shadow cabinet". Members of the Provisional Legislative Council should not be elated as we will be sitting up there watching you. We will come whenever you have meetings. You are bound to be criticized for making any wrong moves and we will also put forward our views. We firmly believe that we will soon come back and play the role of legislators in this Chamber again. Recently, many reporters asked me which event had the deepest impression on me during my days with this Council. Many colleagues will, of course, think that they are the incidents related to the Britons. To me, however, it is a doubt which I had when I was a child. Why police officers at the inspector rank and those with "stripes" on their uniform were all expatriates? I am now over 40 years old. I do not know whether you had the same query as I did when I was a child. When I came across those inspectors with a red "stripe" in my childhood, I was so perplexed and thought to myself: Why were they all Britons? Why were they all expatriates? They were especially fierce and dignified and we Chinese were particularly afraid of them. Moreover, many Government officials and legislators at that time were expatriates, so were the Executive Councillors. Belonging to a younger generation born in Hong Kong, we would query why all the important posts were taken up by Britons. Why were all our buses imported from Britain? Their vehicles were in fact not the best. Why did we inherit such a lot from Britain? In fact, those who launched 1586 LEGISLATIVE COUNCIL ─ 27 June 1997 social movements in the 1970s were the ones who felt a repugnance to British rule. We had a strong sense of anti-colonialism. Up to this day, we are dubbed "pro-British messing up Hong Kong affairs" and "anti-China". This really puzzles me. We have never been "pro-British" from the beginning to the end. JP, MBE and OBE titles are seldom conferred on our party members. Giving the matter a closer thought, one can realise that these titles are seldom conferred on the members of the Democratic Party. We also have the fewest members who are appointed to the advisory committees of the Hong Kong Government. It was not until the past few years that our members were able to join the above-mentioned advisory committees. Although the Government started to adopt a liberal stance in constitutional affairs, nothing done by us, the "trouble-makers" or the so-called social activists, including those of the older generation who participated in the Use of Chinese Movement, the Jubilee Incident and Yau Ma Tei Boat People Incident a decade ago, was appreciated by the Hong Kong Government. I have only been engaged in this kind of work for 10 to 20 years. It is not until now that we are able to become councillors by taking part in an open, fair and "one man, one vote" geographical constituency election. I think we have "paved the way" by ourselves. We have never been "pro-British" nor obtained any free lunch in this colony. And when Hong Kong returns to the embrace of China in future, we still have to rely on ourselves to pave the way. No favours will be bestowed upon us. The 26 colleagues and I will soon leave this Council ─ it should be the Legislative Council, it will only be called the Provisional Legislative Council three days later. I hope all of us will be steadfast in our stand and full-time legislators will continue to show their concern for Hong Kong. Many of us, full-time legislators, have stated clearly that we will often go in and out of this Chamber and continue to play the role of a "shadow cabinet". To those Members who will not seek a re-election, I wish them every success in the future and hope they will continue to show their concern for Hong Kong. I never expect that my speech can last some six minutes. I do not have any draft, merely sharing with you my personal opinions. Here, I hope Mr President will smoke less and he will then have better performance in football games. These are my remarks. LEGISLATIVE COUNCIL ─ 27 June 1997 1587 MR CHAN KAM-LAM (in Cantonese): Mr President, we have been holding a succession of meetings in the past five days. Today, our last meeting has already been going on for more than 20 hours. My colleagues are very tired. At this last meeting, I think the greatest contribution I can make is perhaps to deliver the shortest speech, so that everyone can go home early to have a rest. Looking back on the past two years in the Legislative Council, we, the "newcomers" from the Democratic Alliance for the Betterment of Hong Kong ("DAB"), have learnt a lot of things. Here I have a secret to share with you in particular. I am nicknamed the "hot stuff" by the Honourable Miss CHAN Yuen-han. She bantered with me that every time I had delivered my speech in a motion debate, Members belonging to the Democratic Party such as the Honourable LEE Wing-tat, the Honourable Albert CHAN and the Honourable CHEUNG Man-kwong would "spurt flames" at me in no time. Now they have raised their hands once again. I guess it is time for them to "spurt flames". As the Honourable Emily LAU has just said, despite the heated debates among Members in this Chamber, we directed our attacks against the issues in dispute, not against anybody. For example, concerning the recent passage of the Housing (Amendment) (No. 3) Bill 1996, Mr LEE Wing-tat eventually decided to give me his support. Of course, I have to thank Dr the Honourable LAW Cheung-kwok of the Hong Kong Association for Democracy and People's Livelihood (ADPL) for his persistence. Sticking to economic principles and the principle that the Legislative Council should not interfere in administrative matters, Dr LAW finally withdrew his opposition and my amendment was therefore carried inadvertently. We may say that these are the most constructive decisions of the ADPL and the Democratic Party at this last meeting of the Legislative Council. Probably being impressed by our satisfactory performance, the President commended us over dinner, saying that we progressed with amazing speed. On the other hand, the Honourable Martin LEE also conferred to us an Award of Rapid Progress in his speech. Thank you all very much. DR LAW CHEUNG-KWOK (in Cantonese): Thank you Mr President. As an economist who was locally born and bred, and has studied abroad, I am not only proud of but also surprised at the economic achievements and the international status of Hong Kong. The key elements contributing to the economic achievements attained by Hong Kong can be summed up in the following points: 1588 LEGISLATIVE COUNCIL ─ 27 June 1997 First, a free market economy; Second, a free flow of information; Third, the rule of law; Fourth, entrepreneurship and a hardworking labour force; Fifth, the compatibility of the people of Hong Kong; Sixth, a highly efficient and increasingly open Government; Seventh, low taxation; and Eighth, the long term economic support of China to Hong Kong, which is also a very important point. In the past two years, I joined the Legislative Council in the capacity of a member of the Hong Kong Association for Democracy and People's Livelihood (ADPL). Whilst fighting for the interests of the grassroots, I have to ponder on the ways to maintain the prosperity of Hong Kong. It is by no means easy to strike a balance between the two. I have faced the greatest challenges in the last couple of days. When I returned home in the evenings, this is the first thing I said to my wife: "No big trouble has been stirred up today". (Laughter) I remember when I left home yesterday, I said to my wife, "Today we will be discussing the issues relating to discrimination and housing. As I am not in charge of this, I think I can have a quiet day". Out of my expectation, the abstention vote I cast this morning would not let me slip from the mind of the Democratic Party. I have to thank the Honourable Martin LEE for just mentioning casually my abstention vote while criticizing the ADPL. I believe that we, the ADPL, and the Democratic Party, as well as other parties and independent legislators in this Council will still be working together, making endeavour to build Hong Kong into a democratic and prosperous community. I studied at the Chinese University of Hong Kong from 1969 to 1971. In the Chinese Language Movement and the Diaoyu Islands Movement, I was in the front line of anti-colonialism activities and demonstrations. Many people said LEGISLATIVE COUNCIL ─ 27 June 1997 1589 to me, "After participating these activities, don't expect that you can be a civil servant." But it is true that the policies of the British Administration in Hong Kong is getting more and more liberal. I was admitted into the civil service in the 1980s. The political reform package, which constituted the "three violations", brought forth by the Governor Mr PATTEN had done me a special favour. By obtaining 26 votes, I became a Legislative Councillor. I have to thank him with all my heart. A few days later, China will restore her sovereignty over Hong Kong. Though "one country, two systems" is the established Chinese policy in handling matters relating to Hong Kong, there is no relevant experience to which we can make any direct reference. During this process, it is inevitable that some people may worry and others may even hold pessimistic views. I hope that the people of Hong Kong will stand fast to their positions. Under the banner of "one country, two systems" and "Hong Kong people ruling Hong Kong", we should be patient and do our best to continue with our journey to democracy and prosperity, as well as setting a good example for the great unification of China. Hong Kong is just a small special administrative region of China, which is a country with a population of 1.2 billion. Yet Hong Kong is the most advanced and prosperous city of China. It is impossible that the move we make will not have any influence on the policies of the Chinese Government and the way the people in China see things. The social and economic systems, and a free and democratic political culture in Hong Kong will surely carry forward. Thank you, Mr President. DR ANTHONY CHEUNG (in Cantonese): Today, this Council bids farewell to the British Government. What exactly do we want to bid farewell to? What does the British rule represent? During the British colonial rule spanning over 100 years, the British administration in Hong Kong, for most of the time, consolidated its rule by running an autocratic Government, separating expatriates from the Chinese, absorbing Chinese elites and using the Chinese to control the Chinese. There had been no freedom in Hong Kong over a long period of time. Someone has said, "We have freedom in Hong Kong although 1590 LEGISLATIVE COUNCIL ─ 27 June 1997 there is no democracy." In fact, when we take a closer look, freedom has become something within our reach for only two decades. Numerous colonial "draconian legislation" used to suppress civil rights in the past has already made it clear that, for long, the so-called free society in Hong Kong is but merely a show of hypocrisy. Hong Kong was a place with no democracy and only limited freedom. However, why did so many people come here from mainland China after the war to be merely refugees? Such a phenomenon can be attributed to economic as well as political reasons. When the "issue of 1997" came to light in the 1980s, why did so many pillars of the society prefer exchanging sovereignty with the right to rule, hoping for the continuation of the British rule? It is not because the Chinese were unwilling to reunite with the motherland and were reluctant to accept Chinese nationality with dignity. Rather, it is simply because they had no confidence and trust in China. In the early 1980s, Mr LAM Sham-muk of the Hong Kong Economic Journal made the following observation: "The people of Hong Kong find China not trustworthy and Britain not reliable". In the 1980s when China gradually opened herself to the outside world and introduced a series of reforms, the people of Hong Kong did earnestly hope that China would be progressing day by day. The reunification with China was therefore no longer greeted with reluctance. Instead, it was an event with positive significance. In 1989, the Democratic Movement broke out in Beijing and a million people in Hong Kong took it to the street. While acting in sympathy with the students, these people also firmly believed that the destiny of Hong Kong and that of China had been hung together and could not be separated. At that very moment, the concept of national reunification had already taken root. Actually, the Chinese in Hong Kong had said "goodbye" to Britain a long time ago. Bidding Britain farewell should mean a farewell to her autocratic colonial regime. Yet many people worry that the parting would be like draining a bath together with the baby, meaning that the systems cherished by the people of Hong Kong, such as the excellent civil service, an independent judiciary, the rule of law, and so on which my colleagues have mentioned, will be eroded by the change of sovereignty. In addition, as the British colonial rule has a firm grasp of power, it has launched a succession of reforms since the 1980s such as the introduction of election, the Bill of Rights, the liberalization of the Government. LEGISLATIVE COUNCIL ─ 27 June 1997 1591 Hence many people worry that these reforms will be refuted for being part of the anti-China conspiracy contrived by Britain, leading Hong Kong back to the old days. We hope that the end of the British colonial rule will not mark the beginning of another era of autocratic rule. It is hoped that history will prove that some people have unwarranted worries in this regard. Mr President, under the British rule, many local elites were happy to be British in the past. Or, as Sir CHUNG Sze-yuen put it, "In order to serve the people of Hong Kong, the elites had no choice but to serve the British indirectly". Today, the British are leaving. Our elites have to pledge their allegiance to another sovereign. They have to resume their Chinese identity and curry favour with the Chinese Government. In real life, they give no cause for much criticism. But in my opinion, they should not "pretend to be Chinese" as if they were "pretending to be British". With yellow skin, black eyes and Chinese blood, we were born Chinese. We do not have to play or sing deliberately the songs of mainland China during the 1950s and 1960s to show our allegiance to our motherland. Nor do we have to require schools to hoist the national flag and students to sing the "March of the Volunteers" to show their love for the country. Around May and June 1989, when the people of Hong Kong staged demonstrations in support of the Democratic Movement in Beijing, they sang the national anthem and held up the Five-Starred Flag spontaneously, showing that their hearts were linked to those of their compatriots in the motherland. It is natural for us to love our country. We do not become patriotic all of a sudden and we do not have to feign it. As for the reports about the schools which required young students to "listen to Grandpa TUNG and be a good baby of the SAR", this is completely nonsense. These schools were simply putting on the old play of hysteria shown in the fanatic worship of leaders in mainland China during the Cultural Revolution. I want to reunify with the motherland. When the colonial rule comes to an end, the Chinese in Hong Kong can finally raise their heads and just be themselves ─ the Chinese who are confident in their own national identity, bearing no traces of pretence or affectation. Mr President, the Honourable Miss Emily LAU has just said that we have to get even with the British. I think that we should get even on the issues of democracy. The British Government has all along been hypocritical. If the 1592 LEGISLATIVE COUNCIL ─ 27 June 1997 British gave us democracy in all sincerity, why did they not do so before the 1980s? When the representative Government was introduced in 1985, why did they not have the courage to hold direct elections but invented such a freak as "functional constituency" which was then used by the conservatives and the Chinese Government as a means to thwart the development of a democratic election system? Even though the British has introduced democracy to Hong Kong, it is dreadfully late. Yet regardless of their intention, it is, after all, better late than never. Besides, having a democratic election system is far better than doing without it. However, democracy is never bestowed upon us by those in power and must be fought for with the strength of the masses. The people of Hong Kong should not be wishful for any democracy, freedom and human rights granted by the British Government. By the same token, they should not be wishful for any democracy, freedom and human rights granted by the Chinese Government in future. Upon the withdrawal of Britain from Hong Kong, the people of Hong Kong should be fully aware that in the end, they themselves are the masters of the destiny of Hong Kong as well as their own fate. Democratic Movement is a hard and long struggle. Not only is our bargaining power in diplomatic talks at stake, we also have to bet our future, freedom and even our lives and properties on that. We must succeed in our struggle for democracy, otherwise the prosperity and stability of Hong Kong will not be guaranteed. Mr President, these are my remarks. MISS CHAN YUEN-HAN (in Cantonese): Mr President, I think it is a very good idea for us to move the valedictory motion today. In the past few months, I was too busy to think about the reunification. I have been sitting here for several hours this evening. Though I have taken a doze of ten minutes or so outside the Chamber, now I am full of vigour again. As I return to this Chamber and listen to the speeches of my colleagues, a lot of things come to my mind. Hong Kong, following the wheel of history, LEGISLATIVE COUNCIL ─ 27 June 1997 1593 has transformed from a tiny fishing village into a place with great reputation and extraordinary achievements. It is referred to as the Pearl of the Orient and the Little Dragon. Such a miracle is made possible by a number of factors. As our Doctor in Economics has just said, the factors contributing to the success of Hong Kong are manifold. I have summed up these factors into three categories: firstly, a society abides by the rule of law for which Hong Kong has been striving for years; secondly, as we have mentioned before, the hardworking and vigorous Hong Kong people who have performed a Hong Kong miracle; and thirdly, the geopolitical relationship between Hong Kong and the motherland. To a large extent, a long-term stable supply of foodstuff to Hong Kong owes much to this. In particular, I remember when Hong Kong was still a poor city, mainland goods were a great bargain. For example, a pair of twill trousers could last many years. The above circumstances gave rise to the development Hong Kong attains today. But as some of my colleagues have said, under the administration of the Hong Kong Government, we saw that the entire community had undergone drastic development. On the other hand, we also saw that during the course of development, some voices had not been taken heed of by the Government. Over the past few days, we have passed a lot of bills in this Council and many people have given us a new name ─ the collusion between the Government and the labour sector. We used to accuse the Government of colluding with the business sector and now people say that there is a collusion between the Government and the labour sector. To me, whether it is a collusion between the Government and the business sector or the labour sector, this process shows that changes have taken place in Hong Kong. I joined the labour movement and the women's movement in the early 1970s. At that time, it was clear that the Government paid no attention to the opinions of the grassroots, especially those of the pro-China camp. The situation had remained the same for a very long time. It was only when China made known her intention to get back Hong Kong in the 1980s that a system of representative government was introduced to Hong Kong, incorporating voices of the grassroots and the opposition into the establishment. I want to emphasize that, from my own experience, I agree with Dr the Honourable Anthony CHEUNG that the Hong Kong Government had all along been a believer of the typical colonial elitism. In a way, it was a policy of absorbing the elites into the administration, which was a covert act of using the Chinese to control the Chinese. This situation, however, has changed little by little since the last decade. We, the pro-China grassroots being long rejected by 1594 LEGISLATIVE COUNCIL ─ 27 June 1997 the Government, gradually have our voice heard in the establishment. Albeit a bit late, this change is all to the good. After all, it is better late than never. As a newcomer to this Council for just over a year, I have lots of thoughts and feelings. This evening, I have heard from different colleagues that they liked this place very much. But I believe many of them know that I do not like parliamentarism. I resent the so-called harmonious working relationship, or rather the ultimate compromise in the legislature. I am a person who goes in for labour movement and being compromising is not my nature. Every time I stood for elections, it was because of the Honourable CHENG Yiu-tong. It was he who urged me to stood for elections in 1988, 1991 and 1995. I loathed standing for elections. I think my colleagues in the union are well aware of this. I joined the legislature soon afterwards. Mr President, I worried that I would be assimilated into the legislature. But now I am doing fine. For example, in the last couple of days, there were quite a few excitements, particularly the two battles that took place today, or rather the night before. I watched these battles with fixed eyes. This is what I called parliamentarism. You win when you were about to lose; you lose when success was in sight. Mr President, sometimes the outcomes are full of surprises. I have to thank my colleague, the "hot stuff", for the real surprise. I believe that even if I staged a five-year, six-year or 10-year street demonstration, yelling for changes, I would not be able to achieve what we have done today. Take the Honourable CHAN Kam-lam's proposal on revising the public housing rental policy as an example, at first I thought we were just having a try but unexpectedly, but the proposal has been endorsed today. I think it is very good and that is why sometimes I do worry. As I am against the establishment, I worry that I will be assimilated into the establishment. But now I am struggling with myself. Some people asked me whether I would stand for elections in 1998. Perhaps this time I may not say no again but I am still thinking about it. Time is running out. First of all, I have to say that I do appreciate the achievements of Hong Kong as accomplished by our endeavours and I do cherish everything we have in Hong Kong today. I have confidence, though not absolute confidence, in the future of the concept of "one country, two systems", "Hong Kong people ruling Hong Kong" and " a high degree of autonomy". If the people of Hong Kong do not get themselves involved but just standing by with folded arms and empty words, success will never be on our side. "One country, two systems", just as the term implies, means that there will be two separate systems, each has LEGISLATIVE COUNCIL ─ 27 June 1997 1595 its own logic and mode of thinking. Certainly, it takes two to put such a concept into practice. Respect and communication, however, are paramount in the process. As long as we can make concerted efforts, I think there should be room for development in Hong Kong. Mr President, I wish you could give me some more time. Thank you very much, Mr President. You are a scrupulous person. When I first became a legislator, I was given many "lessons" by you for being anti-establishment. Still I admire your impartiality. Moreover, I have to thank the staff of the secretariat for their support during the transition from the Legislative Council today to the future Provisional Legislative Council. I have to thank all my colleagues in this Chamber too because you really are a big help. This legislature has made a very deep impression on me. Hence I shall have the courage to stage a comeback in 1998. MR LAU CHIN-SHEK (in Cantonese): Mr President, do you need to puff a cigarette first? Thank you, Mr President. I originally thought that the motion debate today is going to be a boring one. Quite unexpectedly, it turns out that Members can praise the British Government and criticize the Chinese Government, or do it the other way round by criticizing the Chinese Government and praising the British Government. Some Members criticize both of them while the others praise them all. Members not only use both English and Chinese languages in their speeches, but also show their gratitude to the English language. The speeches are of all kinds, commenting from the events occurred over a hundred years ago to the present situation, recounting from one's infancy to adulthood, showing off one's great achievements by standing on the stilts, praising oneself through another person and even promoting one's aspiration. Members promote not only their own aspirations, but also their books. Mourning over the loss of dear colleagues is indeed inevitable. Members can also show their authority at home by telling us that one would fear his wife more than the Government. We had this story before in the Ante-Chamber. A person named Chow Ming-kuen is called "Chow Ming" at home. The character "kuen" (which means "power" in the Chinese language) is missing. Returning to the subject, interpreters from the Simultaneous Interpretation Section always remind me not to talk so quickly because if they cannot catch what I say, neither 1596 LEGISLATIVE COUNCIL ─ 27 June 1997 can other people. This time, I will say it very slowly, "Thank you for your hard work." I would, however, like to mention one thing. Whenever you, Members, "filibustered", they really had a hard time and could hardly breathe. Therefore, if you want to "filibuster" to wait for someone, it is better for you to seek an adjournment from the President so that they can have a rest and arguments can be avoided. Otherwise, they will not even be able to have a chance to take a rest. I would like to thank those staff who provide service to us. I am the one who pass notes round most frequently. You can imagine that it is indeed tiring to go back and forth this circuitous passage. And they also have to serve us tea. I would suggest that whenever Members rattle on, there is no need for replenishment. Thank you for your kindness. I would also like to thank the staff of the Legal Service Division. The Legal Advisor was still here a moment ago, I believe he must be too tired to be our audience. During these few days, many of us need their assistance regarding the Bills put forward by us. I am very disappointed because some of the bills have been negatived. I would, however, like to express my gratitude to them for their great effort. I have to thank the staff of the Security Office too. I have a bad habit of carrying cumbersome items around and leaving them behind at night. Therefore, they have to take the trouble of moving them from one place to another. There is, however, one good thing. Except for moving the items for me, I do not fear you. I just fear the Public Security officers. I would also like to make use of this opportunity to pay tribute to each and every staff member of the Secretariat. I, probably, cannot thank you one by one. The fact, nevertheless, is that during this long period, you have helped me a lot. If I omit anyone, it does not matter as God will remember everyone of you. Let me tell you this. I shall miss all of you. I nearly forget to do one thing. Some reporter friends asked me to give a mention in my speech of the reporters here who sit up all night. I really have to thank all of you. There is nothing more to say. Yet the conclusion is the most important of all. May peace of God be with you and with the people of Hong Kong. LEGISLATIVE COUNCIL ─ 27 June 1997 1597 MR LEUNG YIU-CHUNG (in Cantonese): Mr President, during a motion debate in this Council on 13 November last year, I used a slang expression "foul grass out of a foul vase" to describe the small circle appointment system. That was the only red card given in the Legislative Council under the British colonial rule for over 150 years. PRESIDENT (in Cantonese): It depends on how you put it! (Laughter) MR LEUNG YIU-CHUNG (in Cantonese): Mr President, I would like to challenge you again today for I would like to use this expression in my speech. I would like to clarify first of all as I explained on the last occasion, although it was not accepted by you, that I did not mean to insult Members of this Council. On this occasion, I would like to use this slang expression to describe the total acceptance of all the repulsive issues arising out of colonialism by the Chinese Government and the future SAR Government and bring these issues to a greater height of development. Nothing is more repulsive arising out of colonialism than autocracy, trampling on human rights and a collaboration between the Government and the business sector. It is indeed regrettable that these repulsive issues do not disappear along with the end of the colonial rule. The handover simply signifies that Hong Kong becomes a colony of China instead of Britain. Judging from the current trend of development, we can notice that there will be a smooth transition of colonial autocracy. An authoritarian rule by the Britons will soon become that by the Chinese. Apparently "small circle appointment system" has long been a colonial characteristic of Hong Kong. Not only are the majority of Hong Kong people unable to participate in the election of their representatives in the process, their right to know about the policy making and the operation of the Government is not safeguarded either. In the past decade or so, there was a slight change of the "small circle appointment system". On the eve of the handover, however, the adoption of the small circle appointment method in politics makes a comeback again. From the Preparatory Committee to the Selection Committee, from the Chief Executive to the monstrous Provisional Legislative Council, those appointed are all regarded as "friends" by the Chinese side. Under the small circle appointment system, those 1598 LEGISLATIVE COUNCIL ─ 27 June 1997 in power can treat parliamentary seats as their private property and allocate them to their supporters as a reward. Another characteristic of colonialism is the trampling of human rights. Colonial legislation is full of draconian laws which are in violation of human rights. Recently, with the persistent struggle of the Hong Kong people, there was eventually gradual improvement. Quite a number of the draconian laws were rescinded. The Chinese Government, however, by specious reasons, blatantly acted against the will of the Hong Kong people and announced the restoration of the draconian laws which had been amended to enhance the protection of human rights. The drawing up of the draconian laws such as the Societies Ordinance, the Public Order Ordinance and so on, at that time by the colonial government aimed at providing strong measures against the political activities of the pro-Communists in Hong Kong. Ironically, up to this day, these draconian laws are able to revive in a new guise. Hong Kong people are once again bound by these draconian laws and our freedom is suppressed. The collaboration between the Government and the business sector has all along been another feature of the colonial rule. Capitalists had the monopoly of political power in the colony all along. Capitalists and financial groups dominated each and every political structures, from the Executive Council and the Legislative Council to every district organisations and advisory bodies of large or small scale. They were just like their clubs. Under the collaboration between the Government and the business sector, most of the Government policies were in favour of the capitalists' interests. The Government acted under the pretence of creating a favourable environment for business and in fact took no heed of the livelihood of the grass roots. The rights and interests which workers were entitled were ignored. Since the introduction of the direct election of the Legislative Council, there were, comparatively, more Members who fought for the interests of the grass roots in the Council. The Government policies were also, comparatively, beneficial to the grass roots. Unfortunately, with the establishment of the Hong Kong Special Administrative Region (SAR) Government, there will be a total capitalist restoration. Great retrogression on livelihood issues will be ensued in the future. Two days ago, the Legislative Council passed a few pieces of legislation to improve the rights and interests of the workers. Representatives of the commercial and industrial sectors immediately gathered together to create a disturbance, deliberating on how to persuade the Chief Executive to scrap these pieces of legislation. We can see LEGISLATIVE COUNCIL ─ 27 June 1997 1599 the inkling of the colonial collaboration between the Government and the businesses. Mr President, if I have to sum up the work done by me and other Members who represented the grass roots in this Council over the past two years, I would say we tried to prevent the colony from turning into a foul vase. We do not want this foul vase to be fraught with foul grass in future. Unfortunately, our work has only been barely satisfactory. We can still see that the future SAR is overgrown with foul grass. In particular, we can see that the handover is simply the transfer of sovereignty; it does not symbolise the genuine reunification of Hong Kong people with China. Mr President, I hope there will not be any foul grass on this colony one day. And all the foul grass can be eradicated. Mr President, I hope this day will come as soon as possible so that Hong Kong people can truly experience reunification and only then will there be an honourable return of the Hong Kong people. Mr President, these are my remarks. PRESIDENT (in Cantonese): I am not going to make a ruling on what you have just said. I think you have deliberately brought up an old case. Since I made a public ruling on the matter at that time, you could either write a letter to me or discuss the matter with me in private if you were not satisfied with the ruling. You did write a letter to me, and that letter was also made known to the mass media. However, my reply to you has not been publicized all along. I will seize the opportunity to make the reply known to the public within a few days to explain my ruling when I am still the President of this Council. There is no other alternative for me to handle this matter. MR AMBROSE LAU (in Cantonese): Mr President, as the British poet Kipling puts it, if a person only knows Britain, he fails to understand Britain. In other words, you cannot understand Britain without understanding the history of British colonialism. By the same token, while bidding Britain farewell, this Council should also look back at the history of British colonialism for a more rational farewell. 1600 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr President, in just a few days' time, Hong Kong, the "Pearl of the Orient" in the history of British colonialism, has to reunify with China. But British colonialism has not yet reached its very end. After withdrawing from Hong Kong, Britain still has 13 dependent territories scattered around the world. "There is no banquet in the world that never ends". By the turn of the 20th century, the British colonial empire gradually disintegrated. When the Second World War was over, the American President Roosevelt denounced British colonialism as "immoral". Following the tide of history, there aroused a wave of movements for independence in the colonies after the Second World War. At the same time, the "de-colonization" policy was promulgated in these colonies by Britain. But Hong Kong is not a British colony. Instead, it is a historical issue left over by unequal treaties. On the basis of the concept of "one country, two systems" engineered by the late Mr DENG Xiaoping, both China and Britain agreed to settle the issue of Hong Kong through peaceful talks. While bidding farewell to the British Government, this Council highly appraises China and Britain for their mutual understanding and accommodation, and their respect for history and reality in settling the issue of Hong Kong. The resolution of the issue of Hong Kong sets an exemplary precedent for the world in resolving historical issues through peaceful talks. Mr President, in the history of British colonialism, there has never been a dependent territory or a place which can accomplish the achievement as great as that of Hong Kong. As for the 13 remaining British dependent territories, their people are in financial straits with a lacklustre economy. Most surprisingly, although the legal system, civil service and set of values installed by Britain in these colonies are in fact very similar to those of Hong Kong, the degree of prosperity enjoyed by these colonies can hardly match up to that of Hong Kong. None of the cities in Britain is as successful as Hong Kong, either. What are the factors contributing to the success of Hong Kong? This is a meaningful issue for the historians to ponder. Mr President, history is the reality of the past and reality is the continuation of history. When this Council bids farewell to the British Government, the achievements and errors of the British rule in Hong Kong during the last 100 years or so should be left for history to decide. In fact, we are more interested in the future. The Prime Minister of the Labour Government in Britain said that Hong Kong, rather than an obstacle, was a bridge leading to China. The wisdom behind these words gained much praise. We LEGISLATIVE COUNCIL ─ 27 June 1997 1601 wish that after the handover of Hong Kong, both China and Britain can still use Hong Kong as a bridge for mutual communication, so as to promote the interests of their people, world peace and world development. Instead of the end of an era, the handover of Hong Kong marks the beginning of a new epoch. Starting from 1 July, under the banner of "one country, two systems", the Special Administrative Region of Hong Kong (SAR) will implement the policy of "Hong Kong people ruling Hong Kong with a high degree of autonomy". The prosperity enjoyed by Hong Kong in the past owed much to the Hong Kong people, mainly the Chinese. With the support of China, the British legal system and the civil service, the people of Hong Kong have made use of the exceptional geographical advantages of Hong Kong to achieve success. If Hong Kong people can create prosperity in Hong Kong, they should be able to rule Hong Kong with the same success. Mr President, the stability and prosperity of the SAR are not only where the confidence and hope of the Hong Kong people lie, there also lie the interests of Britain, China and the rest of the world. Hence, the prosperity and stability of the SAR will not only be given the blessing of this Council, but also the blessing of the people of Hong Kong and the rest of the world. Mr President, the stability and prosperity of the SAR basically hinge on whether the people of Hong Kong can unite as one in implementing the concept of "one country, two systems". The Hong Kong Progressive Alliance believes that when the people of Hong Kong become the masters of their own house, they will maintain harmony and vitality in the community with harmonious yet distinct spirits. "Harmony" and "uniformity" are in opposition to each other. "Uniformity" refers to monotony and unitary whereas "harmony" refers to the life and growth in nature in an endless succession under a pluralistic and harmonious environment. Hence, according to Guoyu, "Harmony begets vitality but uniformity gets nowhere." In The Analects of Confucius, Confucius also says, "The gentleman aims at harmony, and not at uniformity. The small man aims at uniformity, and not at harmony." I have to send my sincere thanks to the Honourable Martin LEE, an old friend of mine for the past 30 years. His speech proved that I am as good as my word. We have a harmonious relationship though our viewpoints are not the same. So he cast his vote and I cast mine. As for the compliment of the Honourable Ronald ARCULLI, I really do not deserve this because I did not kick out Maria TAM. I merely kicked her up. "U" "P", "UP". 1602 LEGISLATIVE COUNCIL ─ 27 June 1997 Mr President, as long as Hong Kong people and the political parties can establish a harmonious relationship among themselves while retaining their different viewpoints, "one country, two systems" should be a success. Freedom, democracy, stability and prosperity will then be within the grasp of the SAR. Mr President, these are my remarks. MR ANDREW CHENG (in Cantonese): Mr President, as a Chinese with righteous ardour, I feel utmost ambivalence towards the valedictory motion today. No Chinese will feel shame about the Unequal Treaty signed 150 years ago because the Ching Government was corrupt and decadent. A century later, the return of Hong Kong to China under the Sino-British Joint Declaration worried quite a few Hong Kong people. Those who do not have confidence in the future regime already voted with their feet and became second class citizens in foreign lands. The reason for their lack of confidence is because, unfortunately, the present regime is corrupt and decadent. Moreover, it tramples on human rights and freedom. Same reason brings about an entirely different consequence for the Chinese. A century ago, Chinese people "hated to leave but they had to do so". A century later, the Chinese "wish to stay but they choose to leave". This is the sorrow of the Chinese. I therefore have mixed feelings when bidding farewell to the British Government. If we are too sad, we will be severely criticized by those who have a blind faith in nationalism for being the lackeys of imperialism, or even traitors and collaborators of the nation. If we refuse to give credit to the British Government for the work done in Hong Kong over the past century because we are taking too narrow a view of nationalism, it is indeed unfair to the British Government. Mr President, due to time constraint, I will only go into the subject of how the Hong Kong Special Administrative Region (SAR) can remain prosperous by learning from the experience and the gains and losses of the Hong Kong British Administration. Firstly, it is the issue of anti-corruption. Some people say that Chinese people stress the importance of connections, from "giving face" to "offering bribes". From a century ago up to the Valentine's Day in 1974, that is, LEGISLATIVE COUNCIL ─ 27 June 1997 1603 14 February, the date on which the Independent Commission Against Corruption was set up, corruption was the prevailing practice of society in Hong Kong. Here, I cannot but praise the determination of the Hong Kong British Administration to fight corruption. In the operation of "Fighting corruption, Bringing GODBER to justice", a number of Chinese ICAC officers went all the way to the homeland of the Hong Kong British Administration to arrest corrupt and decadent officials. This demonstrated the determination of the Hong Kong British Administration to uphold justice and righteousness even at the sacrifice of blood relations. Let me narrate a story to which the Honourable Martin LEE often referred. One day, while DENG Xiaoping was having a walk with ZHOU Enlai at Tiananmen, they discussed national affairs, in particular, how to fight corruption in Mainland. DENG Xiaoping asked, "Comrade ZHOU, how many corrupt officials do I have to arrest so that the problem of corruption in Mainland can be solved? How about five million?" ZHOU Enlai shook his head. "Will 500 000 be sufficient?" He shook his head. "50 000, is that enough? Too many? How about 5 000?" DENG Xiaoping said, "Comrade ZHOU, tell me how many officials do I actually have to arrest?" He said, "Two. Your son and mine." Mr President, maintaining a corruption-free SAR is very important to the prosperity of Hong Kong. Whether the SAR is able to fight the infiltration of corruption from Mainland depends on the determination of the SAR Government. Corruption is not only a behaviour but in fact a way of life in Mainland. I think a lot of courage, much more than that of upholding justice and righteousness even at the sacrifice of blood relations, is needed so as to change this habit. Recently, it is learnt that the Commissioner of the ICAC is keen on studying the possibility of amending the Prevention of Bribery Ordinance so as to prevent employees of the private sectors from engaging in corruption activities outside Hong Kong. It is very important to head towards this direction and I hope this can be done as soon as possible. Yet the Commissioner disclosed another more worrying issue in the same press conference the independence of the Commission in the future. The English short title of the Commission will change from "ICAC" to "CAC", without the letter which stands for "Independent". The Chief Executive explained that this was done to make it consistent with the text of the Basic Law. He, however, failed to get rid of the worries of the Hong Kong people and the foreign investors. Questions such as whether the Commission will remain truly and completely independent and 1604 LEGISLATIVE COUNCIL ─ 27 June 1997 impartial in future; whether the Commission will contract the bad habits of the Mainland; whether ill the Commission will be forced to become a political tool of those in power in the Mainland to harbour the privileged comrades or a political tool for the Beijing Government to clamp down on dissidents in Hong Kong are left unanswered. The rule of law and a corruption-free environment are the important foundation for the prosperity of Hong Kong over the past two decades or so. If Hong Kong becomes a community which defies all laws and perverts justice for a bribe, Hong Kong will only take the road back to its former position after the handover. I venture to urge the Chief Executive to place anti-corruption work on the top priority so as to maintain the prosperity of the SAR. Mr President, having talked about the issue of fighting corruption, I would like to talk about representative government. Firstly, Sir Jack CATER, the first Commissioner of the ICAC, recently disclosed in a newspaper interview that it was the then UMELCO Members appointed by the British Government (including Baroness Lydia DUNN and Sir CHUNG Sze-yuen) instead of the traditional Administrative Officers in this British colony, who hindered the development of representative government in Hong Kong in the 1960s and 1970s. They offered advice to the Government at that time, emphasizing that Hong Kong people did not have the required intelligence to accept a democratic system. Mr President, many people believe that it is a plot of Britain to introduce democracy to Hong Kong a few years before the handover so as to render the SAR out of control. No matter whether this conspiratorial theory is true or not, I am of the view that democratization is an international trend. With technological advancement and information flowing freely around, only totalitarian government would be able to stifle the freedom of the people. I think it was the continuous effort of Hong Kong people and the irresistible international trend that brought about the democratic development in Hong Kong in the past decade or so. Mr President, I hope those in power in the future SAR will consider views put forward by the public. They should not only give thought to their own interests and act against the trend of the times. There are rumours saying that quite a few villains whom Chief Executive TUNG hangs around hold sway. In the past, people like Sir CHUNG Sze-yuen worked for the colonial government and hindered the development of democracy. Today, Sir CHUNG Sze-yuen paves the way for the SAR Government and again hinders the development of LEGISLATIVE COUNCIL ─ 27 June 1997 1605 democracy. Before we can see the benefits of "Hong Kong people ruling Hong Kong", we see the harm of "Hong Kong traitors ruling Hong Kong". Mr President, a century ago, Chinese people "hated to leave but they had to do so". A century later, the Chinese today "wish to stay but they choose to leave". This is a sorrowful phenomenon. The Chief Executive of the SAR must have the courage to say "no" to the Beijing Government and be steadfast in his stand to protect the rights and interests of Hong Kong people so that Hong Kong people will stay and be committed to contributing to the SAR. Only then will Hong Kong people no longer "wish to stay but choose to leave". They will "stay if they wish" and work for the new Hong Kong. The Honourable Miss CHAN Yuen-han earlier on said that she would definitely take part in the 1998 election. I believe she will stand a higher chance of winning in the election than I do. It is, however, a well-known fact that I am younger than she is. If I lose in the first Legislative Council election, I will make a comeback in the second one. If I lose again, I will stand for the third one. I will do so until I return to this Council. Mr President, these are my remarks. MR CHAN WING-CHAN (in Cantonese): Good morning, Mr President. I have joined the Legislative Council for nearly two years. The time I shared with my colleagues in this Council valuable memories and deep feelings of mine. Mr President, thank you for presiding over this meeting for some 20 hours with impartiality. From yesterday evening to this morning, our female Members have no time to revitalize their beautiful faces with touches of make-up; our handsome guys are too busy to shave away their stubble. Speaking of stubble, hair is naturally the next thing I have to talk about. Actually, I only have a few foreign friends. They inquired about my age through an interpreter. When I replied that I was over 60, they asked if I was kidding and how come I still had so much hair. So I told them that my hair was real though the colour was not. (Laughter) Let us return to our motion. I am over 60. Under the colonial rule, the British Administration in Hong Kong has been running for some 150 years. That means I have witnessed more than a third of the days of colonial rule in 1606 LEGISLATIVE COUNCIL ─ 27 June 1997 Hong Kong. During the 1950's and 1960's, the economy, politics and culture of Hong Kong were extremely backward. The general public were living in poverty and the community had more hands than needed. Though we say that unemployment rate is high these days, back then, the problem was even more serious. In order to get a job, you had to ask your elders, relatives and friends to recommend you to an employer, then you might get a very hard job. Needless to say, labour rights were ignored. Workers had to work for more than 10 hours a day without a single day of rest in a year. There was no statutory holiday, either. The situation has slightly improved over the years through the continuous efforts of the labour sector to strive for labour rights. Up to the present, labour rights are still not adequate. We have to fight for labour rights with the Government and the employers bit by bit, little by little. Compared with the advanced countries, we are merely a laughingstock. With the end of colonial rule and the British Administration in Hong Kong, we will go on with our struggle against the Government of the Special Administrative Region of Hong Kong (SAR). We should not assume that crossing the threshold of 1997, workers will stand up and free themselves. This day will never come unless we continue with our struggle. Mr President, the signing of the Sino-British Joint Declaration unfurls a long transitional period. Unfortunately, China and Britain are in dispute during the transition. The non-cooperative and unfriendly relationship is actually resulted from the change of its China policy on the part of Britain. In addition, some people refer to 1997 as the deadline of Hong Kong, claiming that democracy, freedom and human rights will no longer be found in Hong Kong after 1997. Some people even make a stormy sea stormier by passing absurd remarks, predicting that with the approaching of 1997, a wave of emigration will arise and lots of people will have to brave the rough sea to seek refuge. It seems that at the dawn of 1997, the situation in Hong Kong will be just like the collapse of the Nguyen Van Thieu Administration in Saigon; scenes of Government officials and civilians crawling and squeezing into helicopters to flee for their lives will revive in the Hong Kong airport. Mr President, with just three more days to go, Hong Kong will be reunified with the motherland. Fortunately, the above scenes do not appear in Hong Kong. I do hope that they will not appear in Hong Kong. We all know that it is already 1997 right now and it will be 1 July in a few days' time. In other words, the SAR will soon be established on the basis of "Hong Kong people ruling Hong Kong with a high degree of autonomy", marking the end of colonial LEGISLATIVE COUNCIL ─ 27 June 1997 1607 rule. I am so glad that I can witness one third of the days of colonial rule. Just now, the Honourable Edward HO said that he was deeply touched by the national anthem. In brief, this is how I feel about the reunification: Born at this time, live at this moment, how happy I am, how meaningful it is! Thank you Mr President, these are my remarks. MR TSANG KIN-SHING (in Cantonese): Thank you, Mr President. Let us celebrate the restoration of sovereignty and mourn for the encroachment of Diaoyu Islands. In the past, I was regarded by many people as a trouble-maker. But in fact, I just wanted to make known my love for my country and Hong Kong. I had been to Taiwan, where I was regarded as a communist bandit. Still, I planted the Five-Starred Flag in a bid to preserve the territorial integrity of my country. Among the three places in the world with very large Chinese community, Mainland China is governed by one-party dictatorship with no election ever held. The direct election of the President of Taiwan on 18 March 1996 was a day of honour for the Chinese. Yet the election had its corrupt practice: black money politics. On the contrary, elections in Hong Kong are more honest because Hong Kong is under the colonial rule. I think that we, the Chinese, should have self-examination and find out why we feel happy only when we are not in mainland China. Since PATTEN came to Hong Kong, he has brought in new parliamentary and political cultures. He has adopted a friendly attitude towards members of the public which I hope his successor will carry forward. With PATTEN at the helm, all policy secretaries have to stand up to public pressure and for this, he deserves our commendation. Many people asked me why I did not join the Provisional Legislative Council (PLC). Let me tell you a story about my son. One day, my son's teacher said to him, "TSANG Check-kit, you shall be the class monitor". "This is the age of direct elections, I will not accept this appointment," my son said to his teacher and his teacher told me about this over the phone immediately. I believed that my son had done nothing wrong. Eventually, my son asked for a direct election of class monitor and a consultative meeting was convened afterwards. The class monitor was finally returned by election but my son lost in the end. Similarly, if we did not accept the PLC, there would not be any 1608 LEGISLATIVE COUNCIL ─ 27 June 1997 PLC. Why did you accept it? To put it bluntly, it is because of your infatuation with power and wealth. As for the composition of the PLC, I will simply sing you a Japanese song to sum up the whole thing and that is "losers will soon be appointed". Those who have lost in the election will be appointed later. I used to be a radical. I have repeatedly criticized the Hong Kong Association for Democracy and People's Livelihood (ADPL), the Democratic Alliance for the Betterment of Hong Kong and the Hong Kong Federation of Trade Unions (FTU). Why did I not criticize the Liberal Party and the Hong Kong Progressive Alliance? It is because we had work together for the rights and interests of the labour and the grassroots. But the votes cast in the past 20 months or so showed that they betrayed us. Still, I only focused on the matter itself and any criticism made was not intended to be personal. If I offended any of you, such as the Honourable Frederick FUNG and the Honourable Bruce LIU of the ADPL, the Honourable CHAN Yuen-han and the Honourable CHENG Yiu-tong of the FTU, at Council meetings during the past two years, please forgive me for I only focused on the matter itself and did not intend to make any personal remark about any of you. Mr President, with two more days to go, you can open your mouth and speak again. I think you should give your copy of Erskine May to Mrs Rita FAN. It is a very useful book. One does not have to make the ruling himself and just let the dead to make it for him. Indeed, this dead person had done a very good job. The factors contributing to the prosperity enjoyed by Hong Kong in the past are manifold: Hong Kong is a society of rule of law, integrity, free flow of information and freedom of expression. There are no riots in Hong Kong. Even if there have been hundreds of demonstrations every day since 1989, these demonstrations have neither led to riots nor caused any damage to public properties. So, why does the legislation need to be tightened? Why is the colonial legislation enforced during the riots in 1967 reinstated? Do not do to others what you do not wish yourself. Regarding the setting up of the Provisional Legislative Council and the Government of the SAR, this is how I feel: "Today public opinion is buried under the ground, the ruling dictatorship will have the same fate in future". Many people asked me, "TSANG Kin-shing, you will be alighting from the train very soon, what are you going to do?" The answer is simple, as I will no longer be a Member, I will be a street-fighter again. I will go back to the grassroots from where I have come, keep on monitoring the LEGISLATIVE COUNCIL ─ 27 June 1997 1609 operation of the SAR Government and defending the people of Hong Kong against any injustice. Mr President, parliamentary culture has been changing from 1991 to 1997. It is no longer honourable. I think the word "Honourable" will not be used by the SAR Government to address Members. I believe that as long as the people of Hong Kong are willing to make an effort and speak out for themselves, nothing cannot be achieved. In a word, we have to speak out whenever there is an injustice. I still have one minute to speak and I would like to recite a poem with which the Honourable SZETO Wah practises calligraphy very often: "In the sky, there are clouds and sunshine, full moon and new moon; in life, there are joys and sorrows, partings and reunions. From ancient times, the ways of the world have never turned out as we wish. If only we could be together forever, admiring the moon from miles and miles afar". Perhaps you are falling asleep, so I want to "crack a joke". My son wrote me a sentence in English. Now I try to read it to you: "A good beginning, a good ending". Thank you, Mr President. MR LEE KAI-MING (in Cantonese): Thank you, Mr President. In fact, I wrote a poem last night, but now the time has changed. Besides, I want to make the shortest speech as far as possible. The Honourable CHAN Kam-lam said that his speech would be shorter than mine, but I think that this speech of mine will still be shorter than his. Mr President, as Britain ends its rule in Hong Kong, this Council which is formed under the constitution of British administration will have to go as well. This is the reality of history. Now, I would like to say farewell to you all with a poem, wishing you all the best in the days ahead and an even more prosperous future for Hong Kong. Firstly, I would like to read to you the poem that I wrote last night, then I will make some minor amendments to it. Anyway, they are almost the same. As the setting moon shines into this Chamber, We speak in turns to uphold justice; 1610 LEGISLATIVE COUNCIL ─ 27 June 1997 Let us drink a toast tonight before we part, There is no need to sigh emotionally over the past. I have to change it slightly because the sun has risen: As the rising sun shines into this Chamber, We speak in turns to uphold justice; Let us drink a toast today before we part, There is no need to sigh emotionally over the past. Thank you, Mr President. MR SIN CHUNG-KAI (in Cantonese): Mr President, we have actually sobered up and awaken. 150 years has passed. While we are thinking of the legacy the British left behind for us, what should be our most treasured possession? Is it a prosperous city, a clean Government, a robust economy, or an community of good order under the rule of law? Many colleagues have already spoken on this subject. But the case of Hong Kong is very different from other former British colonies. Britain, upon her departure, is not going to give Hong Kong a democratic Government. We learn from history that when other places gained their independence, their nationals would be very happy with their independent status and there would be nation-wide rejoicing at their breaking away from a colonial society. If you happen to be in Central these days, you will see many lanterns and coloured streamers. They are the most beautiful decorative lighting I have ever seen, creating a jubilant atmosphere. One day, when the Honourable Miss Emily LAU and I were walking to the car park, she said that the decorations were really disgusting. In fact, this has not been the first time I heard of such comments. Other colleagues have made the same comments at chats over meals. Instead of revealing our joy, why do we feel this way at the time of reunification? Perhaps it is because this meeting, which spans five days and five nights, has deprived us of the opportunity to breathe in the air of jubilation. Last night, my family went to Lautau Island to spend the holidays. I really wish I could have gone with them. I should have spent these few days' holiday happily with my family. But even if we had gone to Lantau Island to enjoy the sunshine and the beach, we might not have felt the joy of the LEGISLATIVE COUNCIL ─ 27 June 1997 1611 reunification. Supposedly, this should be the time for us to rejoice, but why do we not feel the joy? Although I have thought it over and over again, I cannot figure it out. Is it because we await the reunification with fear? Is it because we are afraid of being reunified with China, a country with no respect for the rule of law, no freedom, human rights and democracy? We are in a dilemma. Do the some 6 million Hong Kong people feel the way as I do? If we are really happy, even if there are no lanterns or coloured streamers, we will still be happy. But do lanterns and coloured streamers really stand for happiness? Ever since the signing of the Sino-British Joint Declaration in 1984, Hong Kong has gradually departed from her secluded past, striding forward towards an open society. In comparison with the old days, today we enjoy some freedom, more human rights and, albeit very little, democracy. Looking back at the past decade or so, we often talked about progressing in an orderly way. Does an orderly way mean a snail's pace? Taiwan began her journey towards democracy in 1987 and within 10 years' time, it has a directly-elected President. Hong Kong, on the other hand, has begun her journey towards democracy much earlier than Taiwan. Yet under the present circumstances, perhaps even in another 10 years' time, democracy will not make much progress in Hong Kong. The Honourable CHIM Pui-chung said that I was a boring person. I think it has something to do with my feeling about the reunification. Dr the Honourable LAW Cheung-kwok has just said that the "3-violation" political reform package enabled him to obtain the 26 votes he needed to win a seat in the Legislative Council. Both he and I were elected under the same reform package. The only difference is that I obtained 26 000 votes. As I received my education in this colony, I may not have the sense of nationalism as possessed by the patriots who also love Hong Kong. Recalling the June 4 Incident in 1989, I could actually feel the patriotic feelings expressed by the people around me in demonstration parades. Of course, with the changes in political climate, the ways to express patriotic feelings may also change. No matter how hard I think about the future, the questions of when we will have a directly-elected Chief Executive here in Hong Kong and when the concepts of one country, two systems and Hong Kong people ruling Hong Kong will be put into practice remain unanswered. At last, I would like to spare a few minutes to talk about some of my colleagues as a complement to the awards given out by the Honourable Martin LEGISLATIVE COUNCIL ─ 27 June 1997 1612 LEE. I wonder if it has ever come to your notice that the Honourable Miss CHAN Yuen-han, who is sitting in front of me, very often walked out of this Chamber when it comes to voting. I believe I can give her another award for casting the fewest votes. She did attend the meetings, but why did she not vote? You can give it a thought. Secondly, it comes to Dr LAW Cheung-kwok. Here I have to say this for my colleagues. All of us have serious doubts about his doctorate degree. The third person I would like to talk about is the Honourable Bruce LIU. When I first met him, he was the personal assistant of the Urban Councillor Frederick FUNG. He and my wife were also schoolmates. In the past 10 years or so, seeing that Mr Bruce LIU has done so many things, I have lots of thoughts and feelings. I just want to tell him that as politicians, we must always bear in mind our purpose in entering into politics. I hope that Mr LIU will think thoroughly if we have to do something , or if we have to do something just for ourselves. Must we do these things by ourselves? As long as we have done a good job, things are considered to be successful. If you keep on asking yourself whether you can climb to a certain position or whether you should take part in the election of the National People's Congress or something, you have, in fact, forgotten what you have wanted to achieve in these positions. Over the last couple of days, we have lots of opportunities to accomplish our intended purpose. The pity is that we lost them all. We do not mean to step forward swearing at the others. I just hope that we are given a chance to reflect on ourselves. Given that our age and background are more or less the same, why is there such a big difference between us? Thank you, Mr President. MR YUM SIN-LING (in Cantonese): Thank you, Mr President. Hong Kong was once known as "a borrowed place at a borrowed time". Now, the borrowed time is nearly over; this borrowed place will soon have to be returned. In the past 150 years or so, there was, in fact, nothing worth taking note of in the first 100 years. It was only in the past 50 years that the combination of various factors led to the success of Hong Kong. I think there are seven basic factors: (1) During 1949 to 1950, nearly all industrial and business elite flocked to Hong Kong from China. Most of them were Shanghainese and they came with wealth, knowledge and skills. LEGISLATIVE COUNCIL ─ 27 June 1997 1613 (2) From 1949 up to the present, there have been the influx of people and talents to Hong Kong from time to time providing cheap labour, skilled workmen and intellectuals. (3) People from Guangdong Province were diligent and frugal. With relatives and friends living abroad, they had an international perspective. In the early days, Hong Kong economy was largely depended on labour intensive industries. "Diligence" brought about rapid economic development. "Frugality" meant effective operation of all trades and professions and by saving a large portion of income in the bank, it became the source of huge capital for re-investment. Having an international perspective and with the assistance of the Britons, Hong Kong people had the opportunity to develop trade with countries all over the world. (4) We have inherited from Britain the rule of law and a system under which individual freedom and rights are respected. These institutions have provided a favourable political and business environment for us to bring our ability into play and attracting foreign investors; (5) With the establishment of a civil service, including the administrative officers system and a regular redeployment system to train generalists, and by drawing on their own solid experience, Britain has indeed adopted a very desirable administrative strategy in ruling Hong Kong; (6) Owing to the belief that "the less one does, the fewer mistakes one makes", the colonial government engaged a lot of consultants and set up various advisory committees. The adoption of "positive non-intervention" in certain areas has inadvertently brought about the most successful free economy system in the world. (7) For decades, Hong Kong people have enjoyed freedom in many aspects. Over the past decade or so, democracy has been gradually developed in Hong Kong to enable this international city to be broadly in line with the international trend. Many people therefore have chosen to stay in Hong Kong. There was a continual inflow 1614 LEGISLATIVE COUNCIL ─ 27 June 1997 of overseas talents and Hong Kong was a place where the Chinese and Western culture met. Furthermore, the opening up of Mainland China and democratic development in Taiwan in the past decade or so brought about a substantial increase in re-export trade of Hong Kong. More and more Mainlanders visited Taiwan via Hong Kong and vice versa. All these brought about substantial political, economic and cultural development of Hong Kong. Judging from the above basic factors, both the Chinese and the Britons have more or less made equal contributions to the success of Hong Kong. Up to this day, the whole world focuses its attention on Hong Kong to see whether the factors leading to the success of Hong Kong can be maintained. Unfortunately, the way in which the Beijing authority handled Hong Kong affairs in the past two years left us with an impression that the Chinese Government would only like to implement "one country, two systems" on economic matters and would like to implement "one country, one system" on political matters. For example, there have been "small circle elections" behind the scene, the emphasis on the rule of man and so on. Economy and politics, however, can never be separated. Retrogression on political matters will definitely have adverse effects on the economy. The implementation of "one country, two systems" on one aspect but not the other makes Hong Kong people worry about the future. It also adversely affects the unification of China and Taiwan. Governor PATTEN will be departing soon. Apart from promoting democracy in Hong Kong, he enhanced the efficiency of the government departments through the implementation of "performance pledges" so as to provide better services to Hong Kong people. He therefore can signify the honourable retreat of Britain. Looking back at our past achievements, this Council should bid farewell to Britain on behalf of Hong Kong people. Having regard to the worries lying ahead, we have to send our best wishes to the Special Administrative Region of Hong Kong. I look forward to the early implementation of "one country, two systems" and "Hong Kong people ruling Hong Kong". With these remarks, I support the motion. Thank you. LEGISLATIVE COUNCIL ─ 27 June 1997 1615 DR HUANG CHEN-YA (in Cantonese): Mr President, I believe everyone of us has been looking forward to this moment for a long time. All Chinese may say that they have waited for 150 years or so. We look forward to today ─ the last sitting of the Legislative Council when Hong Kong is under colonial rule ─ to bid farewell to the British Empire. When today is over, there will not be a colonial Legislative Council anymore. How should we describe our history under British rule for the past 150 years or so? We know that the colonial era began with disgrace. Hong Kong was not only a shame for China, but also a shame for Britain because at that time, Britain resorted to violence to promote the sale of opium in China and it was followed by the usurpation of Hong Kong. Now, we of course know that over the past few decades, the Britons has indeed transformed Hong Kong from an insignificant island into a well-known city. Furthermore, we have also inherited from the Britons a fine legal system, an efficient civil service and a well-regulated free market which operates well. Yet we cannot forget after all that Hong Kong is a flawed city. The Britons have never given up the right of administration. They all along tightly grasped the right of administration and forbade Hong Kong people to become the masters of their own house. Mr President, had Hong Kong people not started to strive for democracy and human rights in the 1970s, there would not have been the element of democracy, albeit just a tiny bit, in this Council today. This is, in fact, the achievement of Hong Kong people through struggles over the past two decades and has nothing to do with the bestowal of the Britons. Britain has all along used Chinese to subjugate their own races so as to have local elites at its service. Britain not only failed to promote democracy in Hong Kong, but has all along hindered the pace of democratization. Had there been an early adoption of decolonization by Britain so that Hong Kong people were allowed to run their own affairs and had there been an introduction of directly-elected seats in the Legislative Council, there would not have been so much conservative voice to oppose democracy in the early 1980s. Had Britain conformed to the wishes of the Hong Kong people at that time by introducing direct election in 1988, we would have had practical experience to prove that direct election not only did no harm to Hong Kong, but also enabled government policies to be drawn up in a way that would better suit the need of the community. The Basic Law might also have not been drafted in such a conservative way. Beijing officials who belonged to the conservative camp might not shorten the lawful tenure of the Legislative Council or deprive us of 1616 LEGISLATIVE COUNCIL ─ 27 June 1997 our democratic power on the excuse of Mr PATTEN's political reform package which was alleged to be in violation of the Basic Law. We must remember that Mr PATTEN's package was after all only a very tiny step towards the democracy of Hong Kong. We knew from the Legislative Council debate at the time that the package was still a long, long way from the demand of the Hong Kong people for democracy and a comprehensive direct election system. The truth is, therefore, it was not the case that Britain introduced democracy to Hong Kong on the eve of departure, it was the selfish way of Britain ruling Hong Kong that posed a lot of difficulties in the democratization of Hong Kong. The handover marks the end of our national humiliation which has lasted over a century. Yet the humiliation of the Hong Kong people still persists. A century ago, Hong Kong people, who were originally the humble subjects of the Qing Dynasty, became the humble subjects of a British colony. After the return of Hong Kong to China, Hong Kong people will most likely be ruled by the Chinese instead of being freedman. We cannot be the masters of our own house yet after 1 July. We will not be able to elect our own government, councils or the most suitable representatives to serve the community. The establishment of the Provisional Legislative Council and the amendment made to the Public Order Ordinance are a reflection of retrogression. When Hong Kong ceases to be a colony, we even enjoy lesser democracy, freedom and human rights than we used to under colonial rule. When more and more people of countries all over the world enjoy democracy, the Basic Law continues to deprive us by stipulating that we can only enjoy second-rate democracy. Furthermore, those provisions cannot be amended within years. The fate of Hong Kong and its people are still not determined by us. We still have to put up with the humiliation of being ruled. The words of our national anthem read, "Stand up, those who are not willing to be slaves ......". Let us continue to strive for wiping out the humiliation of our generation and be slaves no more. Let us have a fully directly elected government and councils. The tenure of this Legislative Council can be cut; yet I hope Hong Kong people will never cease to strive for democracy. I have served the Legislative Council as an Australian Chinese for six years. My grandfather, my father and I have done something for China over the past century. We are all along overseas Chinese and believe that one should have the right to choose one's nationality and then serve the land one loves. I LEGISLATIVE COUNCIL ─ 27 June 1997 1617 hope I can still serve this piece of land and help Hong Kong people as well as the Chinese to strive for the rights they entitle after 1 July. MR MOK YING-FAN (in Cantonese): Thank you, Mr President. As China has been a nation of propriety and righteousness since ancient times, I am not going to comment on the British rule in Hong Kong during the past 150 years or so for "people can tell in their hearts". Instead, I will thank Britain for looking after such a naughty child for China over these years. In two days' time, Hong Kong will be handed over to China. I have to illustrate my speech with props. I love travel very much and anywhere will be just fine to me. Sometimes I returned to China and sometimes I went overseas. Wherever I went, I always brought back souvenirs and the things I liked. Travel is good because, in addition to widening my horizons, I can take this opportunity to get to know the conditions and customs of different places. Shopping, of course, is another good thing about travel. The first prop I have to use is a statue of LU Xun, which is made of the fine porcelain of Jingdezhen, Jiangxi. LU Xun compares his own writings to daggers and spears. I think that the motions, debates and voting of the Legislative Councillors are the daggers and spears of modern days. Actually, they are more than daggers and spears. They are the shields and city walls to defend the people of Hong Kong. I hope that each and every Member of the legislature of the future Government of the Hong Kong Special Administrative Region (SAR) will be LU Xun of modern days, using our motions, debates and voting as the spears, shields and city walls of the SAR, defending the freedom and democracy enjoyed by the people of Hong Kong. My second prop is a crystal globe. I have already forgotten where I bought it. Our Earth is a very beautiful planet. I hope that we can conserve the beauty of our Earth, making it last forever, free from any pollution. People say that we are living in a place borrowed from the future. But if we want our future generations to have a clean environment to live, from now on, we have to make every effort to conserve the Earth on which we are now living. This crystal globe is transparent, too. A transparent globe looks even more beautiful. I also hope that our future SAR Government will have a very 1618 LEGISLATIVE COUNCIL ─ 27 June 1997 high degree of transparency, so that members of the public can see clearly the operation of the Government. My last prop is a model of the Parthenon I bought during my trip to Greece. I think all of you recognize the Parthenon. When I was in Greece and arrived in the mountain top where the Parthenon was situated, the majesty of the Parthenon overwhelmed me, reminding me of the golden days of the Greek city states. The feeling of remoteness and vastness aroused by the landscape and monuments I saw in Mainland China was a similar experience. Two different places stirred the same feelings in me and this is where the subtlety lies. The Parthenon reminds me of another thing and that is the spirits of democracy and liberty evolved in Greece. These spirits have made a great impact on the political development in the West over the past thousand years. I really hope that our future SAR Government will carry forward the spirits of democracy and liberty cultivated by our Legislative Council in the past eight or 10 years, calling into play the concept of "Hong Kong people ruling Hong Kong with a high degree of autonomy". Thank you, Mr President. MR LEE WING-TAT (in Cantonese): Good morning, Members. Mr President, very few speeches I made in this term were accompanied with scripts. As this is the last speech I am going to make, I have prepared a decent script. Mr President, the colonial rule is drawing near to a close. But, making any impartial comments on the colonial rule is not at all easy. If I, just like the columnists Pai Yang or Li Ao of Taiwan, praise the British imperial rule in Hong Kong over the past hundred years or so, people will definitely say that I am too attached to the colonial rule, or even call me a traitor. Hong Kong has made every endeavour to progress. After more than a hundred years of changes, the British has introduced to Hong Kong the rule of law, a civil service and a clean Government. Coupled with the efforts of the LEGISLATIVE COUNCIL ─ 27 June 1997 1619 Chinese, a miracle was created in Hong Kong. Among the countries and regions in the world, such as Taiwan, China, Singapore, Hong Kong and Macau, of which the majority of the population is Chinese, which one is the best? Mainland China still lacks freedom and the rule of law. Though her economy has taken off, there is a long way to the utopia the Chinese always want. As for Taiwan, it has a strong economy but the concept of the rule of law has yet to take root. Elections are corrupted and press freedom has not been allowed full play. Despite full-scale direct elections, Taiwan is still very far from an ideal modern society. Singapore, on the other hand, can be compared to a hospital run by an autocratic father. Staying there for just two weeks has already made me sick. Even though there are general elections, signs of freedom are nowhere to be found. Among these five places, Hong Kong is the place I love most. When you drink water, you should think of its source. No matter how many privileges and benefits the British have obtained from Hong Kong, their contributions to Hong Kong are undeniable. Over the past 10 years or so, in a bid to atone their crime by good deeds, the British and the British Administration in Hong Kong have been doing their best to promote freedom and democracy in Hong Kong. The Portuguese Administration in Macau, on the contrary, has all along been commended by the Chinese Government for their co-operation. So, how can we make a comparison between the two? It seems that co-operating with China will earn high praise but such a phenomenon has ignored the truth. Let us take a look at Macau. Has she implemented the civil service localization policy smoothly? Does her economy develop well? Does she provide a pluralistic political environment? Can she uphold the rule of law? Judging from these angles, only a Government, be it the current Hong Kong Government or the future Hong Kong Special Administrative Region (SAR) Government, which does not agree to everything China says can build up its own authority in administering Hong Kong. Today, many colleagues have said that the absence of a through train is a pity, but I do not think so. The one-year derailment is so brief that it cannot stop the train of democracy from advancing at full speed in 1998. If we had had a feeble Governor in 1992, we could, of course, have ridden the through train but it is for sure that there would have been a selection process and there would have been non-democratic direct elections in 1995. Undeniably, the five-year political training proves to be a valuable lesson to the people of Hong Kong. 1620 LEGISLATIVE COUNCIL ─ 27 June 1997 The Governor, Mr PATTEN, has awakened the people of Hong Kong to the demand of democracy. Such a concept has taken a firm root in the minds of the people of Hong Kong and this intrinsic value will never be diminished. I have to thank Mr PATTEN for laying a foundation for a more open and more accountable Government. This change will carry forward to the SAR Government and benefit the people of Hong Kong all their lives. Hence apart from he himself and the Executive Council, Mr TUNG Chee-hwa indeed inherits a Government system and culture bequeathed by Mr PATTEN. Mr President, as a Hong Kong Chinese who was born after the war and have never been living in China, I find the motherland so close yet so far away. In the 1970s, when I was a university student, I participated in student movements, unveiling the mysterious side of China little by little. Being much impressed by the positive propaganda, I attached high hopes for socialism. With aroused patriotic sentiments, I asked myself to trace back the history of my own country. During the Sino-British negotiations in 1984, I was fascinated by the high promises of "one country, two systems", "a high degree of autonomy" and "Hong Kong people ruling Hong Kong". The Joint Declaration prompted me to resolve to be a politician. Mr President, I have never been regretful for the choice I made. No matter whether we have an ameliorated colonial government or an autocratic government run by the Hong Kong people, I still have the same mission and this mission is written in the lyrics of the song The Dream of China we often sing: "My heart, my dream and your dream, the Yellow River is the source of every dream of ours. In the past five thousand years, the countless dreams of China have but only one theme." Mr President, I am very confident that before making my last breath, my fellow countrymen will live in plenty in the land of happiness and our motherland will be a prosperous and powerful country. Thank you, Mr President. MR LEE CHEUK-YAN (in Cantonese): Thank you, Mr President. I would like to tell the Honourable LEE Wing-tat that it is better for him to do without a text. I indeed very much appreciate the patience of our friends sitting in the public gallery. To tell the truth, this is the most boring debate I ever have since I joined this Council. Yet in spite of its boring nature, the debate has to be continued. I have to speak my mind and sincerely voice my innermost thoughts. It, however, may not be something interesting. LEGISLATIVE COUNCIL ─ 27 June 1997 1621 I do not want to say much about this motion, that is, Hong Kong under British colonial rule for 150 years. I think Hong Kong people are very gentle and kind in that they neither bear grudges nor feel hatred towards somebody they should. We should regret the British Government's failure to introduce democracy to Hong Kong. I have already indicated my regret in the Motion of Thanks on the Governor's policy address. I, therefore, will not repeat here. In relation to labour rights and interests, this Legislative Council is a unique one. Throughout the past 150 years, it was not until the past two years that there was the opportunity to pass certain bills which were closely related to the rights and interests of the grass roots and the labour but they were not welcomed by the Government. Unfortunately, this channel will be shut off from us after we get off the train or after the handover in 1997. There will no longer be any opportunity to put forward Members' Bills. Members of the future Legislative Council will only have the right to speak but not the chance to put their words into practice. Fewer members of the future Legislative Council will be returned through election. As a result, there will be fewer Members who strive for labour rights and interests. Of this Council, I would like to mention the Honourable James TIEN for he was the one who most frequently had verbal exchanges with me. I would, in fact, like to tell him how much I admired him in the past two years. When I was with him, I realized how good a trade union educator he was, probably the best one in Hong Kong. I believed after workers had listened to what he said, they would understand why there was the need for trade unions. I, therefore, owed him a tremendous vote of thanks for the educational work done for me. It is a pity that he kept on calling for the abrogation of labour legislation today. As for the industrial and commercial sectors, they are, in fact, too dependent on the Government to do everything for them. This is not a healthy phenomenon in the long run. Hong Kong will finally become a democratic society. When that day comes, the representatives of the industrial and commercial sectors can compete for the seats of this Council if they wish as they have a galaxy of talent. The ruling parties of the capitalist societies in the world are, very often, political parties formed by the industrial and commercial sectors. They should, therefore, ponder how to win people's support in the election instead of relying on the Government to do everything for them or securing seats in the councils through pull. I hope we can compete for the seats of this Council on equal footing one day. 1622 LEGISLATIVE COUNCIL ─ 27 June 1997 Another issue which I would like to talk about is that in the past two years, reference was made to the Hong Kong Confederation of Trade Unions (CTU) and the Hong Kong Federation of Trade Unions (FTU) on many occasions. I think their relationship in this Council over the past two years was like taking part in a three-legged race. They would sometimes move together but on some occasions, one of them was lagged behind the other or even stumbled over. CTU and FTU have been playing this game for two years and I hope they will work together in the days to come. The Honourable Miss CHAN Yuen-han mentioned earlier on that very often, the situation changed abruptly. This is something which I least wish to see. As for the Democratic Party, Mr James TIEN yesterday labelled them a Labour Party. I do not know whether he was saying that I could be their party chief. I hope that is what he meant. If there is a Labour Party, the number of votes will be 19 plus two. There will be a total of 21 votes. The Honourable Martin LEE said earlier on that the Democratic Alliance for the Betterment of Hong Kong was the most improved party. I would also say that they probably ascend most quickly. This refers to the ascension of their class stand. As for the Association for Democracy and People's Livelihood, much was said by other colleagues and I do not want to say much about them. They, however, never had it so good. Their performance was so superb that within these two weeks, this Council, the SAR Chief Executive's Office and the Hong Kong British Government became their playthings. I have to pay a tribute to them. Lastly, all I have to say is that it is indeed exhausting for us to sit up working tonight. Thank you. MR ALBERT HO (in Cantonese): Mr President, it was quite interesting at the beginning to hear a few colleagues such as the Honourable Allen LEE and the Honourable Edward HO talk about their personal experiences. Finally, there are of course some words from the bottom of their hearts. But as pointed out by the Honourable LEE Cheuk-yan, true feelings come with a touch of sadness and one should not use the word "boring" to describe such feelings. I would also like to talk about some personal experience, or to borrow words from Mr Allen LEE, "the experience of bearing witness to something important". My participation in elections dates back to 1985. In the next 10 years since then, I took part in three elections in three different constituencies but all ended up in failure. My efforts were finally paid off in 1995. But I will be forced to leave this Council after just two years as a Member. I am really LEGISLATIVE COUNCIL ─ 27 June 1997 1623 unlucky to the utmost. (Laughter) Nevertheless, I totally agree with what the Honourable Michael HO has said: we have no regret about what we have done. I am happy to leave this Council on grounds of principle. I do not have any idea as to whether I will return in 1998 and whether it will sound as confident as the Honourable Miss CHAN Yuen-han has said, because the election system will be extremely troublesome by then. Someone said that it did not matter as we could bide our time. I am not worried either. I think maybe I am someone whose success will come late in his life. (Laughter) Some people say that there will surely be chances in 2007, but by then I may be running for a provincial governor or even the Premier on the mainland. (Laughter) The year 2007 is really too far away. Talking about bearing witness to an era, it has been more than 20 years since I first took part in social activities in 1971. There are broadly five stages during this period. The early 1970s was dominated by student movements, when people in Hong Kong began to express the voice of their conscience and students took to the street to demand for justice; we were part of this group of people who took part in such activities as the anti-corruption movement, the official Chinese language movement, the Diaoyu Island movement, the protest against the increase in telephone tariff and the protest against the Queen's visit to Hong Kong (that is the protest against colonialism). From the mid 1970s to the early 1980s, we entered an era when pressure groups were in the process of conception, during which we saw the gradual establishment of various organizations one by one, such as the Society for Community Organization, Hong Kong People's Council on Public Housing Policy, Association of the Rights of the Elderly and so on, which pulled forces together to fight for social justice in Hong Kong. In the early 1980s, as the public was generally concerned about problems in Hong Kong, various organizations were established for participating in politics. I founded the Hong Kong Affairs Society Limited together with the Honourable HUANG Chen-ya and other people. The Association for Democracy and Justice and the Meeting Point were also set up during this period. In the mid 1980s, political organizations began to be represented in the Legislative Council, fought for democracy and took part in the Basic Law movement. Various political parties such as the Liberal Party, the United Democrats of Hong Kong, the Association for Democracy and People's Livelihood and so on, began to emerge in the 1990s. What should be the next step in the mid 1990s? The normal course of development should be for political parties to become the ruling party through elections for the legislature. It is a pity that this movement has faltered and no one knows for how long it will continue. I believe that we all feel regret about 1624 LEGISLATIVE COUNCIL ─ 27 June 1997 this. However, as we are in such a difficult situation, we must continue with our struggle. As for the feelings deep in my heart just before the reunion of Hong Kong with the motherland, as far as I or many of my colleagues from the liberal camp are concerned, the reunion with the motherland has never been a problem. In the early 1970s, we always chanted a few lines in which we truly believed. I think that you may also remember how to recite them. That is: "Caring for the community, bearing in mind the motherland and broadening one's vision of the world". We often read books about China and talked about the development of China. We went from rational understanding to sentimental affirmation. We were of the same mind and sincere. The thought of Hong Kong returning to the motherland did not trouble us at all. Unlike many people who have said that as the good old days are numbered and the Joint Declaration has been proclaimed, one has to be gradually instilled zeal for the motherland and be educated in how to foster a sense of love for it, or even contract a passion for it. I do not think that we need to do these. When the Sino-British talks on Hong Kong reached a deadlock in 1982, Hong Kong was thrown into a doomsday panic. Heavy buying of the US dollar made the Hong Kong dollar plunge to a record low of one US dollar against 10 Hong Kong dollars and shelves in supermarkets throughout the territory were emptied. Some people sought an emergency exit while others wanted Britain to keep a certain form of its administration. Nevertheless, we actually stood up in 1982 in unconditional support of the reunion of Hong Kong with the motherland. But one point in which we believe is that we must implement the "one country, two systems" and "Hong Kong people ruling Hong Kong" concepts. The continued prosperity and stability of Hong Kong depend on democracy, without which Hong Kong will not be a success story. This is our firm conviction up to now. Therefore, we are still fighting on today. We do not need any language to express our love and feeling for China, but we want to stress that we love our country as well as its history, culture, the land and its people. When the government represents the interests of its people, we will love and support it. But we cannot love and support a government just because it is in power, or we only love and support leaders who are in power. Mr President, finally, I would like to talk about confidence. I want to stress that for me confidence means commitment rather than just a question of confidence. Even if our confidence is at its lowest point or we have totally lost LEGISLATIVE COUNCIL ─ 27 June 1997 1625 it, we should also be committed to this place as this is our home. China is our homeland. We therefore must take on this responsibility in the same way as we are responsible for our family members. No matter how naughty and bad our children are in our eyes, they are after all our children and we ought to do our best to help and teach them. Therefore, no matter how pessimistic or optimistic we are, we ought to be active, fully committed, participating and fighting. Finally, on the one hand, we are waiting for the reunion of Hong Kong with the motherland with enthusiasm; on the other hand, we will never forget our fight for democracy. MR LAW CHI-KWONG (in Cantonese): Mr President, unlike the Honourable LEE Wing-tat, nearly all of my speeches since joining this Council were prepared in advance. But I have not prepared my speech this time. One of the most special things for me since joining this Council was the President's approval for me to sing a song. Earlier, the Honourable TSANG Kin-shing said that I should be consistent and therefore should sing a song tonight. But I think that singing a song in the morning sounds like the crowing of a cock. So please allow me to sing later. The subject of this motion debate is to bid farewell to the British Government. I think that if we see off the Crown Prince and the Governor who are leaving on a vessel, we are saying good-bye to the colonial identity imposed upon us by the British, rather than just the British themselves. Therefore, we are saying good-bye to an identity instead of just a group of people. Looking from another angle, will our Chinese identity automatically come into being on 1 July after we have said good-bye to our colonial identity? For me I have yet to apply for a Hong Kong Special Administrative Region (SAR) passport. I think I must join the queue as soon as possible. Earlier on, I saw a lot of people join the queue to submit their applications. So it may be quicker to get one if I submit my application later. Moreover, after saying good-bye to the colonial identity, another thought has occurred to me: the making of Hong Kong was the result of the Opium War; it is the Opium War which has separated Hong Kong from the rest of China for a short period of time; it is also because of the Opium War which has made Hong Kong such a place for some Chinese people to take refuge from the wars and from the unstable situation before the liberation of China. It sounds 1626 LEGISLATIVE COUNCIL ─ 27 June 1997 contradictory. On the one hand, it is like a stigma, but on the other hand, it has also set aside a place on the map where our ancestors and parents could establish their homes. The British are leaving! We have also heard something related to opium, and that is the "spiritual opium" mentioned by a colleague sitting in front of me with the nickname "Dr IQ", Dr the Honourable Philip WONG Yu-hong. Will social welfare bring about "spiritual opium"? Many colleagues have mentioned the pace of democratization in their speeches today. Some considered it too fast while other said it was too slow. For the Democratic Party, democracy has come to Hong Kong too late. As the representative from the social welfare sector, I want to present another point of view that welfare service made a late start in Hong Kong, which has nothing to do with opium. As it made a late start, the initial pace was too slow. Therefore now is time to catch up from behind. But the acceleration was criticized and likened to "a car speeding out of control before crashing and killing its passengers"! By the same token, as democracy has come too late, when the pace of democratization is accelerated, it is criticized for being too fast. Welfare service has encountered the same situation. For more than a century, the British did too little and too late in this area. It wanted to accelerate the pace of improvement in the final days of its administration, which had naturally attracted criticism. In my opinion, apart from democracy, the British Government should also feel regret about the provision of welfare service when it withdrew from Hong Kong. The British are leaving! But a lot of problems remain to be solved. Many people have to bear exorbitant rents, the rent for a bed-space is as much as $1,500; 18 000 elderly persons are waiting for places in care and attention homes; a few hundred thousand people are living in abject poverty and eking a living in Hong Kong. No one knows when these problems will be solved. Many people ask why there are still so many problems. I just want to sing a line of a song: "The answer, my friend, is blowing in the wind". I have been consistent in that I have always sung the same song. I would like to invite all of you to mix with members of the public to see and hear more and then you will get the answer. I do not want to talk more about this answer. I just hope that, instead of holding discussions in the Chamber only and working in the office only, we should go out and see more. LEGISLATIVE COUNCIL ─ 27 June 1997 1627 Many colleagues have extended thanks to a lot of people in their speeches today and I do not want to repeat them. I will extend my thanks to all those to whom all colleagues have extended their thanks. Moreover, I would like to express thanks to some people who had helped me a lot with my work over the past two years. They are groups of new immigrants, elderly persons, single parents and their children, and many family members and parents of our clients. They have conveyed many views to me in the past two years. It is not an overstatement to say that they have supervised and guided my work. Therefore, if in these two years I have made any achievements, they should be given the credit. Mr President, these are my remarks. DR PHILIP WONG (in Cantonese): Mr President, I know from this list that, of those Members who joined this Council along with me in 1991, 15 are still serving in this Council. I have heard quite a number of classic remarks during the six years in which we have been working together. The most unforgettable one was made by the Honourable Martin LEE. At that time, we were discussing about whether smoking should be allowed during a meeting. He said, "I am not against smoking. You can smoke but you cannot puff smoke." I think that this is the biggest difference between us. Neither of us is a smoker. He allows other people to smoke but doesn't allow them to puff smoke. I won't forbid other people to puff smoke. When they puff smoke, I will only turn away from them. After all, this is a free society. Moreover, I believe that all 60 Members have 60 independent minds but we can still make friends among us. Some issues may prompt heated debates even within a political party, and opinions can be poles apart among party members. Even a political party can be like this, let alone this Council. Therefore, I am of the view that the fact that it does not matter whether we hold different political opinions, we can still make friends. I am very glad today that the Honourable CHEUNG Man-kwong asked me just now whether he could ring me and invite me to a meal some time in future. I told him that would be a wonderful idea. This has proved that different political opinions will not prevent us from making friends. I have no hard feelings towards any of the other Members. Although we do not see eye to eye on quite a number of issues, LEGISLATIVE COUNCIL ─ 27 June 1997 1628 I respect them all. I believe that our society will really be full of hopes if we continue to act like this. Thank you, Mr President. DR JOHN TSE (in Cantonese): Mr President, I knew that when it was my turn to speak, all kinds of views would have been expressed by other people and I do not want to pick up what other people have said by repeating views expressed by other Members. Therefore, My President, I will express my views in the following way. DR JOHN TSE : Welcome to the morning news. Here are the main headlines: - One-person-one-vote direct election to take place soon; - Housing speculation under control; and - Illegal immigration to China on the rise. ‧ An unidentified spokesperson from the Office of the Chief Executive admitted late last night that the proportional representation election held in 1998 was a mistake. The landslide victory of the democrats was a major embarrassment for the Special Administrative Region (SAR) Government. In order to prevent the democrats from winning again, the next election will be in the form of 60 directly elected seats in the Legislative Council. Sources close to China confirmed that the election of the Chief Executive will also be on a one-person-one-vote basis. New electoral registration will soon be required. Reliable information suggests that eleven million people in Hong Kong will be required to register. ‧ The cost of real estate went up again by another 10% last month. However, the Secretary for Housing claimed that there was no LEGISLATIVE COUNCIL ─ 27 June 1997 1629 speculation in Hong Kong. He says the market is expected to be stable in the range of $2,000 to $3,000 per sq ft. ‧ Still on the housing issue. Vacancies in public housing have increased in recent months. Spokesperson from the SAR Government suggests that this may be a direct consequence of an over-supply of land. Reliable sources urge residents to apply early. Immediate occupancy is guaranteed. ‧ After the setting up of the Human Rights Commission in 2003, our station carried out an opinion poll. Results indicate that residents have become more positive toward the SAR Government. The Hong Kong Freedom and Human Rights Index has gone up 88 points. The recent emigration rate has dropped by another 2%. ‧ A group of 800 people were caught in Guangzhou last night after being smuggled into the city from Hong Kong. The use of aircraft for illegal immigration purposes is on the rise. The Chief Executive is worried and has agreed to set up a committee to investigate the situation. ‧ The United States was granted permanent Most Favoured Nation (MFN) trading status by China. Professor S. K. LAU of the Chinese University speculated that it was in return for the United States Consulate's attendance at the inaugural ceremony of the now deceased Provisional Legislature. We now turn to business news: Shares in Diaoyu Islands' business are expected to increase again. According to the Wall Street Journal, the fishing and tourist trades will grow by 66% in the coming year. The Hang Seng Index was up another 138 points today and stayed at an all time high ─ 108 000 points. 1630 LEGISLATIVE COUNCIL ─ 27 June 1997 Now, the sports news: Veteran tennis star Michael CHANG, who recently retired, revisited Hong Kong and played at the centre court in the Minzhu (民 主 )Sports Stadium. He won the game 8-9, 6-4, 6-4. The fifth annual football match between the Legislative Council (1996-97) team and Provisional Legislative Council team was held earlier. Final score 3-0. Winning the game, the Honourable Albert CHAN scored twice. While Andrew WONG scored once in the first half when he played in the Legislative Council team, after switching sides, he failed to score in the second half. (Laughter) The weather report is sponsored by the Chinese Commercial Party: According to the Hong Kong Observatory, a heavy rain signal is expected to be hoisted later this evening. Education Department has already announced that "All schools will be closed tomorrow." Social Welfare Department, undaunted by the weather warning, announced that "Individualized Home Help Services will continue tomorrow." So, senior citizens need not worry about the impending storm front. Fellow Council Members, the above news announcement was only a dream. Let us hope it portends good things to come. Let us protect human rights, fight for democracy, maintain the rule of law and make Hong Kong a free, just and peaceful society. Farewell London! Welcome Beijing! DR JOHN TSE (in Cantonese): Mr President, we now switch to "the Chinese Channel"! Here is a dialogue between a man and a woman: "Hey, property prices went down at once after I had suggested that taxes be imposed on property speculation. That's remarkable, is it not?" LEGISLATIVE COUNCIL ─ 27 June 1997 1631 "No, that is nothing. Property prices went up at once after I had bought a flat specially for my son to take a rest after school. Is that not more remarkable?" Two persons are talking to each other in the prison: "I was given a remission after I had done something to appease the Superintendent of the prison a little bit. Is that not remarkable?" "No, that is nothing. I was released from the prison right after I had beaten someone. Is that not remarkable?" Two students are having a dialogue: "Hello, more than 90% of my classmates voted for me to become the monitor. That is remarkable, is it not?" "No, that is nothing. I can still be the monitor even though I did not win in the election because the form master said that each class must appoint one more monitor from now on. Am I terrific?" (Laughter) Fellow Council Members, you should not laugh at the above dialogues because all of them are facts, ridiculous facts. It is a shame to democracy for someone to use power for personal gains; it is a shame to the rule of law for someone to act in total disregard of law and order; it is a shame to mankind that those who were defeated in the election were appointed while whose who had won in the election would be forced to step down. Such a shame will be a headache not just for the Hong Kong Special Administrative Region, but also for China. To erase such a shame, they must do better than the colonial government by letting the people enjoy human rights, the rule of law, democracy and freedom to which they are entitled. The people of Hong Kong should no longer be infatuated with the expectations that a wise leader would come to our rescue to lead us to a shining path. In fact, what Hong Kong needs most is a democratic, fair, just and open electoral system so that the public can monitor the performance of both the Executive and the Legislature. As pointed out by many fellow Members, Britain has not brought us enough democracy. My fellow citizens, as the British will withdraw and Hong Kong will soon be returned to the motherland, we must continue our fight for democracy. 1632 LEGISLATIVE COUNCIL ─ 27 June 1997 These are my remarks. (Clapping of hands) MR WONG WAI-YIN (in Cantonese): Mr President, after the exquisite grand finale delivered by Dr the Honourable John TSE, I should not stand to speak any more. And in fact, I have not prepared to speak. But having heard the Honourable MOK Ying-fan's story based on a painting of the Parthenon, I also wish to say a few words. He said that the Parthenon he saw was magnificent. In fact, he should say that it once had its moments of magnificence and glory. Today, nevertheless, it has fallen into ruins. This has reminded me of my trip to mainland China during which I saw a couplet. It is a pity that I can remember the second line only, which goes like this: "How many cycles of vicissitude temples and palaces here have witnessed". A prosperous society, no matter how magnificent and glorious it may have been, will eventually fall into nothing more than a ruin if it gives up certain principles which are like some of the finest pillars it owns. Mr President, today's valedictory motion is for us to bid farewell to Britain and to wish the Hong Kong Special Administrative Region (SAR) continued stability and prosperity. Hong Kong has been ruled for more than 150 years by 28 "butlers" sent by Britain whose rights and wrongs in more than a century remain to be judged fairly. I do not want to go into details on this. Nevertheless, the fact is that the British Government has established a very good and efficient system for Hong Kong. We also have civil servants of high calibre and the people here are industrious. All of these have made Hong Kong an economic miracle in just a few decades, which is marvelled not only by Asia but also by the rest of the world. Of course, we very much hope that the stability and prosperity of the SAR will continue well after 1 July. However, economy alone will not guarantee continued stability and prosperity. Why is the economy of Hong Kong so robust? The answer lies in a good system, hard-working people, high-calibre civil servants, and it is of paramount importance that we must maintain our four pillars, that is, democracy, freedom, human rights and the rule of law. I believe that every Member in this Council understands the importance of the above-mentioned four factors. LEGISLATIVE COUNCIL ─ 27 June 1997 1633 For democracy, as pointed out earlier on by many colleagues, the extent of democracy brought to Hong Kong by Britain has been very limited. We must keep on fighting for it. It is a pity that just as we have gained a little bit of democracy, Hong Kong will backpedal on the process of democratization after its reunification with China. It is impossible for us to expect a great degree of democracy under the British colonial rule. But what is unexpected is that our hopes for greater democracy also appear to be dashed. The development of our democratic political system after 1997 is worrying and the electoral system by then is especially framed in such a way as to put members from the liberal camp at a disadvantage. What on earth are they afraid of? Regarding freedom, I believe that our colleagues, our friends working in the media and even the Governor himself, have openly expressed concern about the freedoms of expression and of the press after 1997. These two freedoms are fundamental to an open society. It will be tragic if every one shuts up and, the media in particular, is made to shut up. Human rights are something we mentioned on Monday in the motion debate on the system to handle complaints against the police. We often chant a slogan: "Unchecked police power will give no protection for human rights ". It is true that Hong Kong has an outstanding police force. But the police must come under supervision in one form or another. For no matter how outstanding a police force may be, a few undesirables, if not dealt with, will be more than enough to tarnish its reputation. The rule of law is of course the most important element. All international investors hope to do business in a safe and corruption-free environment in which they can compete on an equal footing. If corruption is rampant and fair competition has disappeared in our society, then we will no longer be able to attract consortia or investors to continue to invest in such a prosperous place as Hong Kong. Hong Kong people's confidence in the reunification of Hong Kong with China cannot be boosted simply by playing a lot of fanfare. I think that the future SAR Government must put its trust in the people of Hong Kong. The word "trust" is most treasured among the Chinese people and all deals are done on this word. This word is therefore very important. We must trust each other when we work together. If Mr TUNG Chee-hwa, the Chief Executive of the 1634 LEGISLATIVE COUNCIL ─ 27 June 1997 SAR, does not establish a relationship which is based on mutual trust with the Branch Secretaries and other civil servants, I believe that the implementation of many policies will meet with huge obstacles. Secondly, the SAR Government should also "trust" its people. It should "match its deeds with its words" and trust us. If the Government does not trust its people, it will impose various safeguards and restrictions, which will deal a serious blow to the atmosphere and the openness of the entire community. There are some words which I am going to say for the third time, and they are that I am not worried about our democracy, freedom, human rights and the rule of law being affected or destroyed by forces from the outside. What I am really worried about is that some people in Hong Kong who have a vested interest will destroy the limited democracy, freedom, human rights and the rule of law in Hong Kong for the sake of their own interests. What we are more worried about is that these people will snuff out democracy, freedom, human rights and the rule of law in Hong Kong. I hope that we will be able to continue to defend our democracy, freedom, human rights and the rule of law. Thank you, Mr President. MR BRUCE LIU (in Cantonese): Mr President, the British Government has exercised 150 years of administration in Hong Kong, and it has been colonial rule. The current session of the Legislative Council is the last and the most representative one in the history of British rule. And so, in this motion debate when we bid farewell to Britain, I think it is more meaningful and fitting to talk about the Legislative Council than anything else. In these few days we have been preoccupied with debates and there is no time for us to think carefully. I myself have just waken up. Many reporters have been asking us a very simple question and I would like to make use of this opportunity to answer them all in one go. Their question is: who is the Member you admire most? I think that each party or group has some outstanding Members. And I would like to pick one Member from each party or group whom I think is the best and deserve my admiration. LEGISLATIVE COUNCIL ─ 27 June 1997 1635 The first one is the Honourable James TO of the Democratic Party, for I think he is the most hardworking legislator. I have the privilege to serve with him in the Security Panel and numerous bills committees. He was much better prepared for the meetings than I, and the questions he raised showed greater depth of thought. This is what I need to learn from him. As for the Frontier, I would choose the Honourable LEUNG Yiu-chung. The reason is not because he sits next to me and so I can often talk to him. It is because I think he is a very sincere person. Though I may disagree with what he said last time, after all, these were words from his heart. Among Members from the Democratic Alliance for the Betterment of Hong Kong, the Honourable CHAN Kam-lam, who is dubbed "hot stuff", is certainly my choice. Whenever he rises to speak, he would be bombarded on all sides by many Members. But he would fight to the end. He will make a smooth transition beyond 1997. Being a staunch believer of his own views, he can always state his views clearly. As for the Hong Kong Federations of Trade Unions, I would choose the Honourable Miss CHAN Yuen-han. Even before she joined this Council, I already knew her to be very hardworking and wholly committed to labour matters. For the Liberal Party, I would choose the Honourable Mrs Miriam LAU. Every time she speaks, I would listen attentively, for her speeches are always based on well-researched materials. I would listen carefully to her as if I were in a class. I always find myself learning a lot from her. She would always give her best performance. Her speeches are always very detailed and her position is always clearly spelled out. For the Hong Kong Progressive Alliance, I would pick the Honourable David CHU. Whenever I think of him, the following lines from a song would come to my mind: "Forever forging ahead and always on the go, in search for a dream and will eventually make it come true". He is much older than some of our younger Members, but he always gives himself all kinds of challenges and he is "forever forging ahead and always on the go". 1636 LEGISLATIVE COUNCIL ─ 27 June 1997 As for the 123 Democratic Alliance, I would choose their only representative in the Council, the Honourable YUM Sin-ling. He was returned uncontested, and yet he did stand for election anyway. He obviously has genuine affections for China. This can be seen when he joined the Council. In fact, he had quite a tough time on the political front, but he worked hard to meet the goals of the 123 Democratic Alliance as far as possible. For the Citizens Party, the Honourable Miss Christine LOH is my choice. She was also returned uncontested. When I attended the founding ceremony of the Citizens Party, she said something which greatly impressed me. She said that she was standing alone as the only member of the party in the Council at that time, but given time, the Citizens Party would become the ruling party in Hong Kong. That is her goal and ideal. The road from a one-man band to the ruling party of Hong Kong is a long and winding one. To raise commendable proposals and to compete with the others is as hard as going on another Long March. I wish her every success, though I know the times ahead will be very difficult for her. As for the Federation of Hong Kong and Kowloon Labour Unions, I would choose the Honourable LEE Kai-ming. He was also returned uncontested. As he sits next to me, he is my adviser on labour matters. I would consult him in labour policies. He would explain to me in detail how the matters should be handled. In fact I was under his influence in many policy issues, for he gave me a lot of data on those issues. For the "Breakfast Club" I would choose Dr the Honourable LEONG Che-hung. His even-parted hairstyle is the closest image of the impartial spirit of the Hong Kong Association for Democracy & People's Livelihood (ADPL). We feel that one of the characteristics of the spirit of the ADPL is independent thinking and autonomy in decision-making. The Honourable Frederick FUNG also mentioned some of the views of the Association last night. Among independent Members, I would pick the Honourable Miss Margaret NG. I read a lot of her books and articles, especially those articles she wrote for the Ming Pao because I do not have much time to do research myself. While I agree with her views in many legal issues, I deviate from her in making judgement on political issues because I have to think independently and arrive at my own conclusion. LEGISLATIVE COUNCIL ─ 27 June 1997 1637 As for the ADPL, to which I belong, I would choose the Honourable MOK Ying-fan. I do not choose the Honourable Frederick FUNG or the Honourable Dr LAW Cheung-kwok, for I think that Mr MOK Ying-fan is very much like a Zhuang Zi of the modern times. He does not like to compete with others and can be regarded as an entirely non-political person. He is philosophical about the nature of things and he acts on his own intuition in making a judgement. That makes life easier and happier for him. Lastly, I wish to say a few words on the President of the Council. The greatest regret I have is that you had already been elected as the President when I joined this Council (Laughter). You are really a good referee, but I am not so sure if you are also a good player. For in these two years, I have never had a chance to hear you make a speech in a debate, and so I could not learn from you. That is regrettable. I hope I can learn more from you later on. Last night the Honourable SIN Chung-kai asked me to make an introspection. I have known him for quite a long time. He raised a thought-provoking question: why did you go for politics? I thought for a long time and in the end I came up with a clear conscience. Though in the past we had different views in many matters, I am sure that every judgement I made was the result of clear and independent thinking. I fully support the party-line of promoting democracy for the grassroots advocated by the ADPL. Lastly, I would like to say why I went for politics. The lyrics of a song has been my inspiration all through these years. As a conclusion to my speech, I would like to read it out for you: "Our two hands are bare and holding nothing, We take on a road that never seems to end, Let us strive to go on though the way is rough, Let our hearts be touched by every need we see, Let us bear our heavy burden on our shoulders, While we are still young let us lose no time, Together we stand and move ahead, So, farewell my friend and take good care." Mr President, these are my remarks. 1638 LEGISLATIVE COUNCIL ─ 27 June 1997 PRESIDENT (in Cantonese): Dr LEONG Che-hung, do you wish to give a reply? You have four minutes. DR LEONG CHE-HUNG: Can I first say that I am a bit disappointed, and I am sure that goes for most of us in this Council, that the Government, the Administration, is not around at this valedictory motion. Not only are a lot of our remarks on them, our praises on them, have been wasted, but we have not been able to hear their views on us at this very last session of the legislature under British rule. Personally, I am very grateful that so many Members have spoken so eloquently, starting with the small hours to late hours of this morning. They have expressed areas of their interests, their vision, their thoughts, their frustrations, and also brought back enriching memories of not just this Session but Sessions in the past, which to me symbolises and signifies the beauty and the bondage of this established institution of over a hundred years, this Hong Kong Legislative Council. Let us hope that the culture of this institution can continue into the future for it is in this institution that the cradle, which is the cradle that the basis of the rule of law, is originated. It is for this reason that I think the 33 of us who will still be working in this Chamber for the next year or so should carry this particular culture forward for our new-comers. Some of us in our speeches exhibit a sense of doom and gloom. This is understandable for the scepticism of the one country, two systems is not going to vanish with the fireworks of 1 July. Yet the feeling of doom and gloom will not disappear on its own. We have to work for it. Martin LUTHER KING once said, and this is something he usually says, "I have a dream". I think all of us around in this Council have a dream. If we do not have a dream we would have not joined this particular trade. But if we want this dream to come true, if we want to move one step forward towards the dream, then we have to start working for it. And can I quote John KENNEDY in saying that "let us begin". There are a couple of legislators who, I think, might have gone home or left before the motion started, and did not actually speak in this motion debate. LEGISLATIVE COUNCIL ─ 27 June 1997 1639 Now, it does not mean to say they are not participating. It does not mean to say they are not taking an active part in this institution, as like all sessions in the Legislative Council, not all Members speak. To them, let me offer a word which John MILTON said (John MILTON is an English poet, of course), and he said, "they also serve those who stand and wait". Mr President, Winston CHURCHILL was asked on the closing days of the Second World War whether Hong Kong should be returned to China. "Over my dead body", he said. Well, Winston CHURCHILL is something of the past, but Hong Kong's reunification with China is imminent. Mr President, for the last few days we have been more or less impounded in this building, like the gladiators of Rome in the Coliseum fighting for our beliefs. We have fought, we have perhaps even torn each other apart, but as the first light of the morning starts to shine in, in the dome of this building, let us all leave, go our different ways, but with one aim in mind, which is for the betterment of Hong Kong and its people. Thank you, Mr President. But before I close, could I ask all Members to, or could I ask you, Mr President, to suspend Standing Orders to allow me to move a motion to let you, as the President, speak? PRESIDENT: You do not have to, I also have this question. You do not have to worry about it, I will certainly speak to you. Question on the motion put and agreed to. DR YEUNG SUM (in Cantonese): Mr President, may I suggest that all Members rap on the table to show our appreciation for the work you have done. END OF SESSION PRESIDENT (in Cantonese): Today is Saturday, 28 June 1997. It is now nearly eight o'clock in the morning. We have been working for over five days. The last session of the Legislative Council is about to come to an end. As the 1640 LEGISLATIVE COUNCIL ─ 27 June 1997 President of the Legislative Council, I would like to take this opportunity to say good-bye to every Council Member. Looking back on the past two years, the Legislative Council has handled numerous matters and had a hectic schedule of Council business, particularly during the last two weeks. Although Legislative Council sittings have not been particularly frequent, Legislative Council panels and bills committees have had a very tight schedule. The political environment in Hong Kong has undergone significant transformation during the same period, with some having far-reaching effects and others highly controversial. I am not going to go into details on them as I cannot be involved in politics yet. Anyway, what is encouraging is that parliamentary affairs in Hong Kong, that is, the way in which the Legislative Council conducts business and the mode of political operation, have gradually become more mature. For example, during this session, especially last night and this morning, the filibustering was fantastic. Such clever moves have never been seen before. It has become possible for people to make a deal within just three minutes after the ringing of the division bell, swinging from a tie to a landslide. This has demonstrated that consensus politics is not necessarily a goal to work at in confrontational politics; cooperation and division are also possible options to take. Consensus means that, after confrontation, both sides still regard each other as friends because what they have played was nothing more than parliamentary politics. You should not treat it as a game because it is a very serious matter. I therefore think that we are becoming more mature and will continue to grow in maturity. The departure of 27 Members among us should not pose a serious problem. Whether they will return to the council at this level or otherwise, they can still play their role in councils at other levels. If they become members of pressure groups outside this Council, they can also play their part because political power is not rested in Legislative Council Members alone. The power also lies in lobbying and in what pressure you can exert. I hope that you will not draw a line between being within the establishment and outside it. We should understand that confrontation is inevitable but it must be expressed in a peaceful manner and opposing sides should not regard each other as feuds. For me, as the President of the Legislative Council, there is one thing which is worth mentioning. With a lot of support from the Legislative Council Secretariat, I have put a great deal of efforts in translating once again into faithful, fluent and elegant Chinese the English terms regularly used in Council LEGISLATIVE COUNCIL ─ 27 June 1997 1641 and the Standing Orders of the Legislative Council, whose original Chinese translation was rather stilted. However, Mrs FAN seems to be a bit unhappy with the new translation because she considers some of the terms too old fashioned. The Chinese version of the Standing Orders was finally authenticated at the Legislative Council Sitting on 5 July 1996. When I was elected President, that is, in the first session, I used English to conduct Council sittings. Starting from the 1996-97 session, I began to use Cantonese to preside at Council sittings. But I sometimes switched to English in order to save time. I hope that the situation will improve when Cantonese is widely used at Council sittings. In fact, at recent Council sittings, Cantonese was widely used among Members and officials alike. During this session, I have made a large number of rulings on Council business, such as Council procedures, bills, the order of speeches and so on. These rulings are different from those made in the past because I have given grounds and detailed explanations to each of them. I hope that such information, after being systematically collated, may be used as reference by the future legislature. Two years is a very brief period. Most of my memories have been pleasant except the loss of Dr the Honourable Samuel WONG, my dear friend and colleague. Of course, you have referred to a longer period of six years, during which we have lost three colleagues. But for me I have already lost one colleague in two years. In the past two years, it has been a great privilege for me to have served together with my colleagues towards a better Hong Kong. Despite our difference in views on Council business and politics, Members have worked hard in the interests of the people of Hong Kong. Your excellent performance has enriched my experience in parliamentary affairs. As one is never too old to learn, I have learned more about the rules for conducting sittings and the ever-changing situation has further enriched my experience. I would like to pay special tribute to Dr LEONG Che-hung, the Chairman of the House Committee and my Deputy, for his impartiality and dedication to Council business. 1642 LEGISLATIVE COUNCIL ─ 27 June 1997 There are so many people indeed whom I wish to thank. They of course include every Member in this Council. Finally, I wish to pay tribute to all staff of the Legislative Council Secretariat, whose unfailing efforts will be indispensable to the continuity and the efficient operation of the legislature. I have planned to say something more, for example, to recite a few lines from the Moral Sutra. But I am afraid that will leave everyone of you with no time to enjoy your breakfast. As Hong Kong will open a new chapter, everyone of us should face various situations with a peaceful mind. I wish everyone of you best of luck in future. In accordance with the Standing Orders of the Legislative Council, I now adjourn the Council, sine die. Adjourned accordingly at Eight o'clock on 28 June 1997.