Fu Heng Market in Tai Po illegally discharged substandard wastewater. Bright Lamp Industrial Limited, which is responsible for management of the premises, was fined $8,000 by Fanling Magistrates' Courts today (January 29) for contravening the Water Pollution Control Ordinance (WPCO).

     The Environmental Protection Department (EPD) received a complaint from a member of public last July about the discharge of wastewater from Fu Heng Market. After inspection, the EPD officers found that the wastewater discharged by one of the grease traps at Fu Heng Market was turbid and greasy, and suspected that the grease trap was not operating properly. The EPD officers then collected wastewater samples for analysis and the results showed that the concentration of oil and grease exceeded the upper limits of the relevant statutory discharge standards by nearly double. After evidence gathering, the EPD prosecuted the property management company of Fu Heng Market in accordance with the WPCO.

     A spokesperson for the EPD reminded all property management companies that they should arrange regular inspection, repair and maintenance of the wastewater treatment facilities for premises under their management. They should also ensure the proper operation of these facilities and strictly adhere to the relevant discharge standards as stipulated in the licence to avoid polluting the river channel or blocking the public sewers downstream by oil and grease discharged, which may result in overflow of wastewater and adversely affect environmental hygiene.

     Under the WPCO, anyone who discharges substandard commercial or industrial wastewater into communal sewers or communal storm drainage system commits an offence. First-time offenders are liable to a maximum fine of $200,000 and six months' imprisonment. A maximum fine of $400,000 and six months' imprisonment may be imposed on second or subsequent convictions.

     The Centre for Health Protection (CHP) of the Department of Health (DH) is today (January 29) investigating a case of severe paediatric influenza A infection.

     The case involves a 2-month-old baby boy with good past health, who has presented with fever, cough and runny nose since January 24. He was brought to the Accident and Emergency Department of Prince of Wales Hospital for medical attention on January 28 and was admitted and transferred to the paediatric intensive care unit of the hospital for further management on the same day. His nasopharyngeal aspirate tested positive for influenza A virus upon laboratory testing. The clinical diagnosis was influenza A infection complicated with severe pneumonia. He is now in a serious condition.

     Initial enquiries revealed that the patient had no travel history during the incubation period. His grandparents and a male relative had upper respiratory tract infection symptoms recently, and they sought medical attention and have been in a stable condition. No hospitalisation is required. His other home contacts have remained asymptomatic so far.

     The CHP's investigations are ongoing.

    "The latest surveillance data indicated that the local seasonal influenza activity may remain at an elevated level for some time. We urge the community to continue heightening its vigilance against seasonal influenza. As young children are particularly affected in this influenza season, we appeal to parents who have not yet arranged vaccination for their children in this season to do so as soon as possible to strengthen their personal protection," a spokesman for the DH said.

     Apart from children, people aged 50 to 64 years, the elderly and those with underlying illnesses who have not yet received influenza vaccination this season are also urged to get vaccinated as early as possible to prevent seasonal influenza as it takes about two weeks for antibodies to develop in the body after vaccination. Medical advice should be sought promptly if influenza-like symptoms develop so that appropriate treatment can be initiated as early as possible to prevent potential complications. Parents and carers are reminded to render assistance in prevention, care and control for vulnerable people.

     Besides receiving seasonal influenza vaccination as early as possible for personal protection, the public should maintain good personal and environmental hygiene for protection against influenza and other respiratory illnesses. For more information, please visit the CHP's influenza page and weekly Flu Express.

The following is issued on behalf of the Hong Kong Monetary Authority:
 
    The Hong Kong Monetary Authority (HKMA) today (January 29) published the unaudited financial position of the Exchange Fund at end-December 2018.
 
     The Exchange Fund recorded an investment income of HK$13.9 billion in 2018. The main components were:
 

• gains on bonds of HK$57.4 billion;
• losses on Hong Kong equities of HK$20.7 billion;
• losses on other equities of HK$38.3 billion;
• negative currency translation effect of HK$9.0 billion on non-Hong Kong dollar assets (Note 1); and
• gains on other investments of HK$24.5 billion (Note 2).

     Fees on placements by the Fiscal Reserves and placements by HKSAR government funds and statutory bodies were HK$43.8 billion (Note 3) and HK$13.8 billion respectively in 2018 (the rate of fee payment is 4.6 per cent for 2018). After deducting all expenses and fees, the Accumulated Surplus of the Exchange Fund recorded a decrease of HK$113.7 billion (Annexes 1 and 2).
 
     The Abridged Balance Sheet shows that the total assets of the Exchange Fund increased by HK$44.1 billion, from HK$4,015.3 billion at the end of 2017 to HK$4,059.4 billion at the end of 2018. The increase was mainly attributable to increased placements by the Fiscal Reserves.
 
     The Exchange Fund recorded an investment return of 0.3 per cent in 2018 (Note 4). Specifically, the Investment Portfolio recorded a negative rate of return of 2.4 per cent, while the Backing Portfolio gained 2.1 per cent. The Long-Term Growth Portfolio (LTGP) recorded an annualised internal rate of return of about 13.8 per cent since its inception in 2009 up to the end of September 2018.
 
     Commenting on the performance of the Exchange Fund in 2018, the Chief Executive of the HKMA, Mr Norman Chan, said, "Looking back, several risk factors (including the pace of interest rate normalisation in the US, the negative impact of the US government's foreign trade policy and protectionism on global trade, and geopolitical risks), which had been under-priced by the markets, materialised one after another during the year, and there were considerable volatilities and adjustments in global financial markets. Despite a combination of falling equity prices, rising bond yields and a strong US dollar, the Exchange Fund managed to record a positive investment income of HK$13.9 billion in 2018, instead of a loss."
 
     Looking ahead, Mr Chan said, "It is very likely that the investment environment in 2019 will remain as unpredictable and difficult as in 2018. First, the global economy and financial markets will continue to be affected by the US-China trade tension. There are no winners in a trade war. The deteriorating market sentiment and slowing investment activities last year reflected to a large extent the market concerns on such a situation. Furthermore, the macroeconomic environment and financial markets in Europe will be badly hit in case of a 'hard' Brexit. Last but not least, the future direction of the US economic and monetary policies is unclear. Recently, there have been increasing market concerns about the US economy beginning to slow down. Emerging market economies including Mainland China are also facing increasing downside risks. All these risk factors will bring about greater uncertainties and potential risks to the global macroeconomic environment and asset markets.
 
     The HKMA will continue to manage the Exchange Fund prudently. We will monitor market developments closely and enhance our defensive measures as and when appropriate. We will also continue to diversify our investments so as to further strengthen the Exchange Fund's resilience against market volatilities."
 
Note 1:  This is primarily the effect of translating foreign currency assets into Hong Kong dollar after deducting the portion for currency hedging.
Note 2:  This is the valuation change of investments held by investment holding subsidiaries of the Exchange Fund.  This figure represents valuation changes up to the end of September 2018.  Valuations of these investments from October to December are not yet available.
Note 3:  This does not include the 2018 fee payment to the Future Fund because such amount will only be disclosed when the composite rate for 2018 is available.
Note 4:  This return excludes the performance of the Strategic Portfolio and only includes the performance of LTGP up to the end of September 2018. The audited full year return will be disclosed in the 2018 annual report to be released later this year.

     YCHANG (HK) Limited illegally imported and stored waste printed circuit boards (PCBs), which are classified as chemical waste. The company was convicted and fined a total of $21,000 at Fanling Magistrates' Courts today (January 29) for contravening the Waste Disposal Ordinance (WDO) and the Waste Disposal (Chemical Waste) (General) Regulation (the Regulation).

     With the assistance of the Customs and Excise Department, enforcement officers of the Environmental Protection Department (EPD) intercepted an imported container from Shanghai at the Kwai Chung Container Terminals in July last year. The container was claimed to contain computer parts, but upon inspection was found to be loaded with a batch of hazardous electronic waste (e-waste) comprising waste PCBs. The EPD immediately sent back the intercepted container to its place of origin and notified the relevant Mainland authority to follow up. The department also instigated prosecution against the importer in accordance with the WDO.

     During the investigation of the above case, the EPD also successfully traced a recycling site in Fanling operated by that company. It was found that the site illegally stored waste PCBs, which are classified as chemical waste. The total weight of the waste PCBs was about 2 tonnes, with a market value of about $200,000. After evidence gathering, the EPD also laid additional relevant charges against the importer concerned in accordance with the Regulation.

     An EPD spokesman stressed that waste PCBs, LCD monitors and cathode ray tubes are hazardous e-waste, containing heavy metals and other toxic chemical substances. They are classified as chemical waste and must be properly handled. Otherwise, they will pollute the environment and pose a risk to the health of relevant trade practitioners and the general public. The EPD will continue to combat the illegal collection, storage, disposal or import of hazardous e-waste by recycling sites. First-time offenders are liable to a maximum fine of $200,000 and six months' imprisonment. For subsequent offences, offenders are liable to a maximum fine of $500,000 and two years' imprisonment.

     Members of the public may visit the EPD's website for more information about the control of chemical waste: www.epd.gov.hk/epd/english/environmentinhk/waste/guide_ref/guide_cwc.html.

    

     Following is the transcript of remarks by the Chief Executive, Mrs Carrie Lam, at a media session before the Executive Council meeting this morning (January 29):
 
Reporter: Mrs Lam, on the extra funding to the Hospital Authority, how is that going to effectively help the frontline staff during the flu peak season? And secondly, there's been repeated calls to scrap the change on the elderly CSSA payment. Does that show that the Government hasn't been really listening to the opinions of the public?
 
Chief Executive: First of all, about the extreme workload at the public hospitals, let me first express again my deepest gratitude to all the medical, nursing, allied health and supporting staff in the public hospitals in Hong Kong. They have been shouldering extreme pressure and workload on a continuous basis and particularly so during this winter flu season, as you can see, and I have seen it because I went to visit Tuen Mun Hospital earlier this month. So, my first comment and response is I wish to thank them, every one of them.

     Secondly, during the course of this extreme workload I have heard a lot of views and comments and I think most of them are very valid. For example, instead of keeping on increasing hardware hospitals and manpower, we should have a fundamental change in Hong Kong's health system to put more emphasis on primary health care and health prevention and screening so that the hospitals need not be overloaded. And there are also views that we should increase medical manpower through more training and education. I endorse all these views, but they are medium to long-term measures and they could not happen overnight, for example, changing people's culture, that you should keep yourself healthy, do more exercise, better diet and do more screening, instead of leaving until you get sick. It is a cultural and behavioural change that will take time, but we will take the lead as the Government to promote primary health care in Hong Kong.

     Let's come back to the immediate measures because the pressure is very acute. I met with the Chairman of the Hospital Authority two days ago, on Sunday, after I came back from Davos. I have a better understanding of the immediate and short-term measures that the Hospital Authority is rolling out, such as expediting the procedure to recruit part-time doctors and nurses including some retirees, including streamlining the procedures, reducing the clerical and administrative work, putting in more money into the hospitals and also using what they call the special honorarium scheme in order to engage more staff. All these are valid measures which the Hospital Authority will undertake and which the Government supports. In order to ensure that all these short-term measures could be implemented more smoothly and effectively, I am announcing now, that like last year, the Government has reserved a one-off allocation of $500 million that the Hospital Authority can come back any time to apply for the use of funding in order to effect those measures.

     The second subject you raised about the Comprehensive Social Security Assistance Scheme, the change that we have introduced this time is the result of extensive discussions back in 2014, resulting in a report in 2015 about Hong Kong's population policy. As a result of those recommendations in the Population Policy report, with support from the community, we have introduced a lot of measures to extend people's working life. For example, newly recruited civil servants will retire at 65, existing civil servants recruited after the year 2000 can opt to work till 65, and we extended the retirement age of a type of security guards by law from 65 to 70. All these are measures in line with that policy direction, that because of longevity, life expectancy and a shortage in Hong Kong's labour force, we should help people to extend their working lives so that they can be kept in the labour force for a longer period of time. Similarly, for enhancing the protection of retirees, that is those who are no longer able to work, we have introduced the Old Age Living Allowance, and last year we introduced the enhanced Old Age Living Allowance, which is now received by some 480,000 elders over 65.

     So this is almost the final measure in that package, that is about the CSSA system, which still classifies people aged 60 to 64 who are able-bodied – I must stress they are able-bodied, they are not disabled, they are not ill health, but they are able-bodied people aged 60 to 65 – as non-able bodied, not able to work. The then working party felt that this was not in line with the policy direction so a change should be introduced at a suitable time. The change was announced to take place on February 1 this year after it has gone into the January 2017 Policy Address and into the Budget for 2018-19. I hope that people understand the policy rationale behind this measure. It is not about cutting the expenditure of CSSA. It is not about not helping ageing people. It is quite the opposite – we want to help these able-bodied, 60 to 64, to be able to remain in the labour force for as long as possible.

     But I would confess that in the actual implementation we could have done better in terms of making sure that all the necessary support measures are in place, the financial assistance would not be too different from what they are receiving if they were under an ageing recipient category. So over the last two weeks we have been introducing additional measures, and during my meeting with seven members of the Legislative Council yesterday afternoon, I reiterated our intention to continue to improve these measures. I have outlined three areas which we will do within this year, and if they want us to do it faster, I would work with the Secretary for Labour and Welfare to expedite the review. One is if we said that we want to encourage people to work, then we need to review the existing Integrated Employment Assistance Programme for Self-reliance to see whether they – there are 41 teams run by non-governmental organisations – whether they are effective in providing that employment support. We have extended their contract till the end of March next year, so we have a period that we will review, but meanwhile they will continue to provide the support to the 60 to 64 CSSA recipients.

     The second measure is to provide incentive for people to work while on CSSA. Without cutting back CSSA rates we have what we call disregarded earnings, in other words, they could keep what they earn up to $2,500 under certain formula while still on CSSA. But this amount was set maybe 20 years ago, so it's also time to review the maximum ceiling of disregarded earnings and how disregarded earnings are to be calculated.

     The third very specific measure is we promise that in the review we will look at each and every of the special grants and supplements to see whether some of these should be provided to the 60 to 64, or not only to the 60 to 64 because now that they become able-bodied adults. I promise, and I thought some members at the meeting were quite pleased, that once we have looked at these special grants and supplements, they may be extended to all able-bodied. So, it's not just 60 and 64, maybe 55 or 58. An able-bodied person on CSSA should also be eligible for that extra supplement or special grant.

     All in all, we are very committed to providing help to the elderly, and what we call able-bodied, capable-to-work people on CSSAs. As you know the unemployment rate now is 2.8 per cent which is the lowest in the last 20 years, this is, in a way, good timing to introduce a policy change or measures to encourage and support people to go back to the labour force, but of course we are not forcing or coercing. If the 60 to 64 recipient has other factors which could not be catered for by a policy, then they will be looked after individually by case workers on a discretionary basis.
 
(Please also refer to the Chinese portion of the transcript.)