Author Archives: hksar gov

     Following is a question by the Hon Yiu Pak-leung and a written reply by the Secretary for Commerce and Economic Development, Mr Edward Yau, in the Legislative Council today (January 26):
 
Question:
 
     Due to the impacts of the riots and the coronavirus disease 2019 epidemic, the hotel industry has been hard hit as visitor arrivals to Hong Kong have plummeted and the overall hotel occupancy rate as well as room rate have dropped continuously in the past two years. Recently, in view of the spread of the Omicron mutant strain in the community, the Government announced that starting from January 8, the place-specific flight suspension mechanism would be implemented for eight countries. Some members of the industry participating in the Designated Quarantine Hotel (DQH) Scheme have pointed out that Hong Kong residents intending to return to Hong Kong and overseas visitors have cancelled their reservations at quarantine hotels, causing heavy losses to operators participating in the Scheme. In this connection, will the Government inform this Council:
 
(1) whether it will, in view of the impact of the epidemic, conduct a revaluation of the rateable values of hotel properties for the 2021-2022 financial year, refund all or a major portion of the rates paid for that year, and provide concession on the rates payable for hotel properties for the 2022-2023 financial year; if so, of the details; if not, the reasons for that;
 
(2) whether it will gain an understanding from the hotel industry of the difficulties it face amid the epidemic, such as the impact of anti-epidemic measures on “gatherings in hotels” (commonly known as staycation) and banqueting business, so as to formulate appropriate measures to support the hotel industry; and
 
(3) given that the some 40 hotels participating in the DQH Scheme have suffered losses due to the implementation of the place-specific flight suspension mechanism by the Government, whether the Government will provide them with appropriate compensation; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     Having consulted the Financial Services and the Treasury Bureau and the Food and Health Bureau, our reply to the question raised by the Hon Yiu Pak-leung is as follows:
 
(1) The Commissioner of Rating and Valuation has duly prepared the 2021-22 Valuation List in accordance with the Rating Ordinance (Cap. 116). The rateable values of tenements in the 2021-22 Valuation List shall take effect from April 1, 2021, until a new valuation list comes into force.
 
     The Government has provided rates concession for all four quarters of 2021-22 in the 2021-22 Budget, with the concession for non-domestic properties capped at $5,000 per tenement per quarter for the first two quarters, and capped at $2,000 for the remaining two quarters. This concession is also applicable to hotel properties.
 
     Regarding the 2022-23 general revaluation of rateable value, the Rating and Valuation Department (RVD) is now assessing the rateable values of tenements in the valuation list based on the annual rental value of the property estimated with reference to changes in market rentals at the designated reference date (i.e. October 1, 2021). Factors affecting the rental levels of different properties can be reflected in the 2022-23 rateable values. The RVD will make available the new valuation list for public inspection upon completion of the revaluation. For changes in market rentals after the designated reference date, they would be considered in the next revaluation exercise.
 
     Through the ongoing public consultation exercise for the 2022-23 Budget, we will gather and examine opinions from all sectors of the community. When assessing any proposals, the Government will take into consideration a range of factors, including the overall economic situation, the Government’s fiscal position and the needs of the community, etc.
 
(2) The Government understands that the business of certain industries has been impacted by the tightening of social distancing measures, especially those premises that have been closed temporarily, and catering premises where dine-in service during dinnertime has been suspended. The Chief Executive has announced on January 14, 2022, that the fifth round of the Anti-epidemic Fund (AEF) would be rolled out to provide assistance to the industries directly affected by the tightened measures. Although hotels are not among the premises subject to temporary closure, premises within hotels that have to be closed temporarily (e.g. bars, pubs, etc.) and those catering premises where dine-in service during dinnertime has been suspended can benefit from the relevant measures.
 
     In fact, the Government has rolled out various measures to help the hotel industry tackle the difficult business environment. Apart from providing each eligible hotel with a one-off subsidy of $300,000 or $400,000 and introducing the Employment Support Scheme to provide assistance to employers in paying wages of their employees under the second round of the AEF, the Government announced in August 2021 the extension of waivers or concessions of various government licence fees and charges till end-September 2022. Approval was also obtained from the Finance Committee of the Legislative Council in October 2021 for injection of an additional $35 billion to the Special 100 per cent Guarantee Product under the SME Financing Guarantee Scheme to extend the application period to end-June 2022. The hotel industry can also benefit from these measures.
 
     In addition, the Hong Kong Tourism Board (HKTB) has been supporting local tourism through the “Holiday at Home” promotion platform and rolled out two rounds of “Staycation Delights” in April and September 2021 respectively to encourage locals to be a tourist in their own city. The two rounds of “Staycation Delights” had a total quota of 40 000 which translated into an injection of $20 million to the hotel industry, and were well received by the industry as well as the community.
 
     As a result of the two rounds of “Staycation Delights” and other staycation activities and coupled with the designation of some hotels for quarantine purpose, the hotel room occupancy rate in the first eleven months of 2021 was 62 per cent, representing a year-on-year surge of 17 percentage points.
 
     If the development of the epidemic situation permits, the Government will relax the social distancing measures in a gradual and orderly manner on the basis of “vaccine bubble”. The HKTB will continue to maintain close communication with the hotel industry and consider rolling out a new round of “Staycation Delights” when the epidemic situation abates so as to provide continued support for the industry.
 
(3) According to the arrangement of the Designated Quarantine Hotel Scheme, the Government will provide subsidy to designated quarantine hotels (DQHs) with average occupancy rate lower than 50 per cent. Hotels concerned can apply for the subsidy after the end of the contractual period in accordance with the established mechanism. As at January 24, 2022, the average occupancy rate of DQHs under the sixth cycle of the Scheme (covering the period from December 1, 2021, to February 28, 2022) is about 65 per cent. read more

     Following is a question by Dr the Hon Tik Chi-yuen and a written reply by the Acting Secretary for Home Affairs, Mr Jack Chan, in the Legislative Council today (January 26):
 
Question:
 
     In 1982, the British Hong Kong Government implemented the District Administration Scheme, aiming to strengthen ties with local communities and enable the Government to better understand real public views. In addition, the then Chief Executive announced in his Policy Address delivered in 2007 that the Government would enhance the roles of District Councils (DCs) and the District Officers, with a view to improving work at the district level and further developing district administration. However, following an upsurge of resignation of DC members and oaths of a number of DC members being ruled invalid in 2021, more than 300 of the 479 seats in the current DC term are vacant. With only a few DC members left, many DCs are unable to maintain normal operation. It has been reported that the Government even decided to terminate the Mutual Aid Committees (MACs) this month. There are comments that the district administration system in Hong Kong is on the verge of existing in name only. In this connection, will the Government inform this Council:
 
(1) whether it will conduct a review on how to continue to implement district administration effectively; if so, of the details and the timetable;
 
(2) of the factors taken into consideration in terminating MACs, and whether it conducted any consultation and considered any alternatives before making such a decision;
 
(3) whether it will consider afresh conducting by-elections for the vacancies in DCs; and
 
(4) as there are currently a large number of vacancies in DCs, of the differences in the Government’s workflow of conducting district consultation in comparison with that in the past, and how it can ensure that the views obtained through consultation truly reflect public opinions?
 
Reply:

President,
 
     After consulting the Constitutional and Mainland Affairs Bureau, my consolidated reply to the question raised by Dr the Hon Tik Chi-yuen is as follows:
 
(1) and (3) The Hong Kong Special Administrative Region Government is actively preparing for the Chief Executive Election to be held in March this year. At this stage, there is no plan to arrange for a by-election for the vacant memberships of the District Councils (DCs). As the Chief Executive responded publicly earlier, the current-term Government does not have the capacity to hold a large scale DC by-election within the remainder of its term i.e. from now until June 30. The next-term Government will conduct a comprehensive review on district administration and the way forward of DCs.
 
(2) The Mutual Aid Committee (MAC) Scheme was launched in the 1970s with a view to promoting neighbourliness and improving living environment, as well as providing a communication channel between the Government and the residents. However, neighbourhood network and modes of building management have evolved in tandem with societal development and changes over the past few decades. For instance, many buildings have already engaged property management companies to take charge of their management or have formed other residents’ organisations. In addition, with the development of information technology, there have been more direct communication channels between the Government and the residents.
 
     In fact, the number of MACs was on a continuous decline, down by nearly half to around 1 600 over the past 15 years or so. On the other hand, MAC formation remained at a low level, with an average of less than 30 MACs formed annually in recent years.
 
     Some in the community consider that MACs are playing a diminishing role in the relevant areas. After careful consideration, the Home Affairs Bureau has decided to terminate the MAC Scheme by phases.
 
     That said, the Government will continue to enhance communication at the local level by, for example, strengthening ties with the community through different district committees, including Area Committees, District Fight Crime Committees and District Fire Safety Committees. For private buildings that have not engaged property management companies or formed any residents’ organisations, the District Building Management Liaison Teams of the District Offices will assist relevant owners in forming residents’ organisations such as owners’ corporations.
 
(4) As regards local consultation, the Government will generally seek the advice of the DCs on district administration affairs and community, recreational and cultural activities, environmental improvement projects and transport issues within the districts as necessary. However, consultation with DCs is only one of the means to collect local views. As mentioned above, in order to ensure that local views are reflected effectively, bureaux and departments will also consult different district organisations as necessary, such as Area Committees, District Fight Crime Committees, District Fire Safety Committees, etc. so that local needs will be suitably addressed.
     
     In addition, a District Management Committee (DMC) chaired by the District Officer is set up in each district, comprising representatives of departments providing essential services in the district. The DMC serves as a forum for inter-departmental discussions on district matters and co-ordinates the management of public services and facilities in the districts to meet the needs of the local community. read more

     Following is a question by the Hon Chan Hak-kan and a written reply by the Secretary for Development, Mr Michael Wong, in the Legislative Council today (January 26):
 
Question:
 
     In December 2020, the Government launched an open tender exercise for disposal of Site 3 of the New Central Harbourfront. It has been reported that one of the six bidding consortia is a partnership formed between the MTR Corporation Limited (MTRCL) and two real estate developers. The fact that the Government is the majority shareholder of MTRCL has once aroused concern of the community about how the Government ensures the fair conduct of the tender exercise. In this connection, will the Government inform this Council:
 
(1) whether the four government officials who are members of the Board of MTRCL have participated in the Board’s discussion and voting on matters relating to the submission of the bid; if so, how the Government allays the community’s concern over any conflict of interest;
 
(2) as the tender document specifies that the successful bidder will be required to build an underground connection from the site to MTR Central Station, whether the Government approached MTRCL in this regard in the course of preparing the tender document; if so, how the Government ensures that the non-public information involved in any such approach will not let the consortium in which MTRCL has participated gain an advantage in the bidding process; and
 
(3) whether the Government will comprehensively review this tendering incident and avoid allowing companies in which the Government holds a majority of shares to participate in bidding for contracts awarded by the Government in the future?
 
Reply:
 
President,

     Site 3 of the New Central Harbourfront (Site 3) is a sizeable premier commercial site in the core business district in Central. Coupled with its prime harbourfront location, the integrated development will benefit Hong Kong both economically and socially. The Government’s vision is for Site 3 to become a new landmark for Hong Kong, setting a benchmark for people-centric design with emphases on sustainable and urban design considerations as well as integration with the surroundings. In this connection, the Government adopted a two-envelope tender process for Site 3 whereby tenderers’ proposals were evaluated on the basis of design merits and premium offers so that the proposal achieving the best combination of both could be selected. Equal weighting for premium and non-premium proposals, i.e. 50:50, was adopted in this two-envelope approach. Site 3’s tender period ran from December 18, 2020 to June 18, 2021. The Development Bureau (DEVB) announced the tender result on November 3, 2021, and disclosed further tender information on December 8, 2021.
 
     My reply to the question raised by the Hon Chan Hak-kan is as follows:
 
(1) According to the information provided by the Transport and Housing Bureau, neither the four government members of the MTR Corporation Limited (MTRCL) Board (namely the Secretary for Financial Services and the Treasury, the Secretary for Transport and Housing, the Permanent Secretary for Development (Works) and the Commissioner for Transport) nor their alternate directors have participated in the discussion or voting of the MTRCL Board on tendering for Site 3.
 
(2) The Government attaches great importance to the fair and impartial conduct of the tender exercise. The Planning and Lands Branch of the DEVB was responsible for tender invitation and tender assessment. A Tender Assessment Panel (TAP) was formed comprising designated public officers, who were subject to rigorous declaration of interests requirements. They were prohibited from disclosing any confidential information they came across in the TAP to any party outside the TAP. None of the four government members of the MTRCL Board mentioned above or their alternate directors was a member of the TAP.
 
     As the development of Site 3 has to complement with the land use for railways and public utilities facilities in the vicinity, when preparing the design requirements of Site 3 in the early years, the Government had to communicate with the MTRCL and relevant public utilities on the technical issues involved, including the relevant underground connection. In the report for the “Urban Design Study for the New Central Harbourfront” issued in 2011, the Government had already recommended providing an underground connection at Site 3 to MTR Central Station. A gazette under the Roads (Works, Use and Compensation) Ordinance was published in November 2017 accordingly to announce the arrangement about the connection. During the tendering process, all tender requirements and site details (including the underground connection and other issues related to railway and public utilities facilities) were also set out in the tender documents, and made known to the public. Besides, in case any potential tenderers requested further information from the Government, and where the Government agreed to provide such information, the information would be announced publicly so that they would be known to other tenderers. We consider that the relevant tender arrangements could effectively ensure that no individual tenderer has unfair advantage over the others.
 
(3) As mentioned in the previous paragraphs, an internal mechanism has been put in place to guard against conflict of interests and to effectively ensure the transparency and fairness in the provision of information to all tenderers participating in Government land sale. There is no impropriety in the tender exercise for Site 3. read more

     The Leisure and Cultural Services Department (LCSD) today (January 26) started to gradually disburse subsidies to successful applicants under the Places of Amusement Licence Holders Subsidy Scheme. The payments will be deposited directly into the specified bank accounts of the applicants today.

     Set up under the latest round of the Anti-epidemic Fund, the Scheme has been open for applications from January 17. Vetting of applications has commenced during the application period. As of January 25, more than 36 applications were received, of which 14 were approved, involving subsidies of $700,000.

     The application period for the Places of Amusement Licence Holders Subsidy Scheme, launched under the fifth round of the Government’s Anti-epidemic Fund, will end on January 31. The Scheme provides a one-off subsidy of $50,000 to billiard establishments, public bowling alleys and public skating rinks operating with a licence issued under the Places of Amusement Regulation (Cap.132BA). It aims to provide subsidies to eligible licence holders whose businesses have been directly affected by the anti-epidemic and social distancing measures imposed by the Government.

     Eligible licence holders wishing to apply for the subsidy should submit their applications as soon as possible. Application forms and guidelines can be downloaded from the LCSD’s website (www.lcsd.gov.hk/en/licensing/subsidyscheme.html).
 
     For enquiries concerning details and application procedure of the Scheme, applicants can contact the Licensing and Prosecution Unit of the department by phone at 2601 8799. read more

     Following is a question by the Hon Holden Chow and a written reply by the Secretary for Transport and Housing, Mr Frank Chan Fan, in the Legislative Council today (January 26):

Question:

     Some residents of the Yuen Long District have relayed that the traffic congestion problem is serious on Fung Cheung Road which serves as the main road for local residents to travel to Tung Yick Market and commute between the Yuen Long town centre and other districts, as well as on the adjoining roads such as Kin Lok Street and Fung Yau Street North. In addition, there are also problems with the design of the road junctions concerned, resulting in traffic accidents occurring from time to time. In this connection, will the Government inform this Council:

(1) regarding the removal of the planters in front of the Transport Plaza on Kin Lok Street for carrying out the widening works at the road junction turning from Kin Lok Street into Fung Cheung Road, of the timetable and progress of the works;

(2) given that at present, vehicles travelling to Kin Lok Street can only make a left turn into Fung Cheung Road which will easily cause traffic chaos, whether the Government will consider changing Fung Yau Street North and Fung Kam Street from the current two-lane traffic to single-lane traffic, so as to make the driving routes clearer, thereby minimizing traffic accidents; and

(3) whether, apart from the aforesaid works and proposed measures, the Government has other proposals for ameliorating the traffic congestion and chaos at the aforesaid roads?

Reply:

President,

     The Transport Department (TD) has all along been committed to improving the traffic conditions of Fung Cheung district in Yuen Long. Fung Cheung district, including Fung Cheung Road and its adjacent areas (e.g. Fung Kam Street and Fung Yau Street North), is located at the Yuen Long town centre. Fung Cheung Road is a north-south district distributor connecting Yuen Long South, Yuen Long town centre, Castle Peak Road and Pok Oi Interchange. The existing junctions along Fung Cheung Road are mainly priority junctions without the provision of traffic signals. Due to busy traffic at Fung Cheung Road together with its priority for traffic at the junctions, traffic along Fung Yau Street North westbound, for instance, often finds it difficult to make a right turn to Fung Cheung Road northbound, which causes traffic tailback.

     Having consulted the TD, our reply to the various parts of the Hon Holden Chow’s question is as follows:

     In end 2019, the TD commissioned a consultancy study which covered identification of traffic improvement measures for junctions of Fung Cheung Road, Fung Yau Street North and Kin Lok Street, as well as their adjacent areas. In March 2021, the TD introduced the improvement measures at the meeting of the Traffic and Transport Committee of Yuen Long District Council, and conducted local consultation in Q3 2021 via Yuen Long District Office. The local community in general supported the improvement measures, the details of which are as follows:

(i) Installation of traffic signals at the junctions of Fung Cheung Road, Fung Yau Street North and Kin Lok Street

     The TD will install traffic signals at the junctions of Fung Cheung Road, Fung Yau Street North and Kin Lok Street to regulate traffic and to enhance road safety. Regarding the original planned planter trimming works beside Transport Plaza at Kin Lok Street, the TD will further trim the size of the planters on top of the original scheme so as to release more space for road widening.
 
(ii) Enhancement of traffic conditions of the roads nearby through improving traffic arrangement

     The TD will convert the following roads from two-way roads into one-way roads: Fung Kwan Street, Fung Kam Street (section between Fung Kwan Street and Fung Yau Street North), Fung Yau Street North (section between Fung Kam Street and Fung Yau Street East), Fung Yau Street East and Fung Yau Street South. This arrangement can, on one hand, avoid traffic congestion arising from concurrent passing of heavy vehicles on both bounds due to inadequate space, and on the other hand, it can cater more effectively kerbside loading and unloading activities through one-way traffic. The TD has examined the feasibility of re-routing the sections of Fung Yau Street North and Fung Kam Street connecting to Fung Cheung Road as one way eastbound and one way westbound respectively in the study. However, this arrangement will increase the traffic load of Fung Kam Street, and will also divert the original traffic along Fung Kam Street northbound (those heading to the junctions of Fung Cheung Road, Fung Yau Street North and Kin Lok Street) to the already very busy Fung Cheung Road. Therefore, the proposed conversion to one-way traffic does not cover the sections of Fung Yau Street North and Fung Kam Street connecting to Fung Cheung Road. Nevertheless, the TD will install appropriate traffic signs and road markings to make the driving routes at Fung Yau Street North and Fung Kam Street clearer so as to enhance road safety.

     Regarding the implementation arrangement, the TD is reviewing the details with the Highways Department (HyD). As the works will be implemented at busy road sections and will involve installation of traffic signals as well as turning existing footpath and planter into carriageway, it is necessary to divert a number of underground utilities and implement multi-stage temporary traffic arrangements. The construction works are relatively complicated. According to the current assessment, the HyD will carry out ground investigation in Q4 2022 to facilitate diversion of underground utilities, which will in turn prepare for the commencement of the relevant works. The TD will continue to maintain close liaison with the HyD so as to complete the improvement works as soon as possible. read more