The following is issued on behalf of the Hong Kong Monetary Authority:

     This press release is issued jointly by the Insurance Authority (IA) and the Hong Kong Monetary Authority (HKMA) today (January 10):
      
     The IA has taken disciplinary action against Cheung Tak On, a current technical representative (agent) appointed by an Authorized Institution at the material times, by suspending his licence for two months and ordering him to pay a pecuniary fine of HK$2,900, on the grounds of him not being fit and proper. The disciplinary action is decided on the basis of all relevant information, including the information gathered by the HKMA in its investigation into Cheung's conduct.
      
     The HKMA's investigation found that, between January to February 2021, Cheung took a total of 20 gift vouchers with a total value of HK$2,900 from an Authorized Institution by which he was employed at the material time without its knowledge or authorization. The gift vouchers were intended to be given by the Authorized Institution to its clients as gifts. Certain clients did not however claim their gift vouchers and Cheung decided to keep these for himself without letting his employer know.
      
     On being discovered, Cheung admitted his wrongdoing. At the time he had only used one of the coupons with a value of HK$50 for his personal use and he returned the remaining coupons he had taken.
      
     The IA is of the opinion that Cheung's conduct crossed the ethical line between right and wrong and, in this respect, he demonstrated a lack of fitness and properness to be a technical representative (agent) during the period in which he was serving in that capacity. Disciplinary action at an appropriate level is therefore merited. In deciding the disciplinary sanction to be imposed under section 84 of the Insurance Ordinance, the IA weighed all relevant circumstances in balance, including that:
 

1. Cheung admitted to his wrongdoing;
2. Cheung used one of the gift vouchers with a value of HK$50;
3. Cheung returned the unused gift vouchers to the Authorized Institution, including the coupons that the Authorized Institution had yet to discover to be missing at the material time;
4. Cheung's personal circumstances;
5. Cheung's otherwise clear disciplinary record; and
6. the need to send a message to deter similar conduct.

 
     The Head of Market Conduct of the IA, Mr Peter Gregoire, said, "Once you cross the line between right and wrong in your professional life, that line can begin to blur until one day, if you are not careful, it is eroded altogether. The consequences of this type of ethical fading can be devastating. That's why it is vital to call it out right at the start and hold individuals accountable for their actions when they let their ethics slip. Disciplinary action calibrated and deployed at the appropriate level not only penalises wrongdoing, but can help force a course correction at the right moment. That's what we are aiming for in this case. In doing so, we also seek to reinforce the necessity of underpinning the insurance industry with a strong ethical culture."
      
     The Executive Director (Enforcement and AML) of the HKMA, Ms Carmen Chu, said, "This enforcement outcome illustrates the result of close collaboration between the HKMA and the IA, with the key objective of sending a strong deterrent message to the industry and practitioners that dishonest conduct will not be tolerated. Banking and insurance professionals are reminded to ensure good understanding of conduct standards and internalise the learning from this and other relevant cases and thus contributing collectively to market integrity and consumer protection."
 
     The IA acknowledges Cheung's co-operation in accepting the disciplinary actions which has resulted in prompt resolution of this matter (Note).
      
     For further information on the IA's enforcement work, please see the "Enforcement News" section of the IA's website. Public disciplinary actions against licensed insurance intermediaries may also be searched on the "Register of Licensed Insurance Intermediaries" on the IA's website. For further information on the HKMA's enforcement work, please see the "Enforcement Actions" section on the HKMA's website.

Note: Pursuant to section 84(1) of the IO, at any time when the IA is contemplating exercising a power under section 81, it may, if it considers it appropriate to do so in the interests of policy holders or potential policy holders or the public interest, by agreement with the person concerned (a) exercise a power that the IA may exercise in respect of the person under section 81; and (b) take an additional action that the IA consider appropriate in the circumstances of the case.

     The Secretary for Commerce and Economic Development, Mr Algernon Yau, began his visit programme to Beijing today (January 10) and called on the Director of the Hong Kong and Macao Affairs Office of the State Council, Mr Xia Baolong.

     Mr Yau gave Mr Xia an overview of the latest situation and the way forward in key areas of work of the Commerce and Economic Development Bureau (CEDB), including attracting enterprises and investment, expanding global economic and trade network, exploring emerging markets, developing Hong Kong into a regional intellectual property trading centre as well as assisting enterprises in better integrating into the national development. Mr Xia fully recognised the work of the CEDB. 

     Mr Yau expressed his gratitude to Mr Xia for his encouragement and support. The Hong Kong Special Administrative Region (HKSAR) Government will press ahead in building a vibrant economy to enhance competitiveness and give full play to Hong Kong's distinctive advantages of enjoying strong support of the motherland and being closely connected to the world under "one country, two systems". The CEDB will continue to assist local and overseas enterprises in tapping the opportunities of the Guangdong-Hong Kong-Macao Greater Bay Area and participating in the Belt and Road Initiative, thereby contributing to the high-quality development of the country.

     In the afternoon, Mr Yau visited the ark space lab of Yinhe Hangtian (Beijing) Internet Technology Co Ltd (GalaxySpace) to learn about the company's developments in satellite technologies. 

     He also visited the Office of the Government of the HKSAR in Beijing and attended a dinner with Hong Kong residents and businessmen in Beijing to understand their developments on the Mainland.

     Mr Yau will continue his visit to Beijing tomorrow (January 11).

    

     The Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department announced today (January 10) that in view of a notification from the Swedish Board of Agriculture about an outbreak of highly pathogenic H5N1 avian influenza in the Municipality of Sjöbo in Skåne County in Sweden, the CFS has instructed the trade to suspend the import of poultry meat and products (including poultry eggs) from the area with immediate effect to protect public health in Hong Kong.

     A CFS spokesman said that according to the Census and Statistics Department, Hong Kong imported about 50 tonnes of frozen poultry meat from Sweden in the first nine months of last year.

     "The CFS has contacted the Swedish authority over the issue and will closely monitor information issued by the World Organisation for Animal Health and the relevant authorities on the avian influenza outbreak. Appropriate action will be taken in response to the development of the situation," the spokesman said.

     Following is a question by the Hon Yang Wing-kit and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (January 10):
 
Question:
 
     It is learnt that incidents of water mains burst occur from time to time in Hong Kong, causing serious traffic impact and inconvenience to passers-by, and many members of the public are worried about the hidden dangers of water mains bursts. In this connection, will the Government inform this Council:
 
(1) of the number of water mains burst incidents in each of the 18 districts in Hong Kong in each of the past three years, and the following information in relation to such incidents: (i) the locations, (ii) the causes of the incidents, (iii) the year in which the relevant water mains were installed, (iv) the burst record of the water mains prior to the incidents, (v) the year in which the water mains were last replaced or repaired, and (vi) whether the water mains have been included in the District Metering Areas (DMAs) of the Water Intelligent Network (WIN);
 
(2) of the current coverage of DMAs of WIN and the progress of the works, and whether it has assessed the effectiveness of WIN in monitoring water mains bursts; if so, of the details; if not, the reasons for that;
 
(3) of the list and timetable of works projects included in the Risk-based Improvement Programme of Water Mains, with a breakdown by District Council district and project progress (i.e. (i) those for which replacement or rehabilitation works have been completed, (ii) those for which the relevant improvement works have commenced, and (iii) those under planning);
 
(4) of the follow-up situation of the "main burst hot spots" (i.e. locations with repeated water main bursts) in each of the 18 districts in Hong Kong in each of the past three years, and the longest, shortest and average time taken to complete the improvement works at such main burst hot spots; and
 
(5) as it is learnt that the Drainage Services Department has introduced a remotely operated pipeline inspection robot to assist in the investigation of the condition of underground drains, whether the authorities have used pipeline inspection robots to investigate the condition of water mains, and introduced other latest leak detection technologies to strengthen water pressure management; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     The Water Supplies Department (WSD) has all along been committed to providing the public with reliable, sufficient and quality water supply. Through continuous improvement in asset management and making good use of technology, the WSD strives to ensure the effective operation of the water supply networks.
 
     From 2000 to 2015, the WSD carried out a territory-wide replacement and rehabilitation of water mains programme to replace and rehabilitate about 3,000-kilometre long aged water mains (including fresh and salt water mains), thereby raising the healthiness of the water supply networks.
      
     Since 2015, the WSD has implemented multi-pronged measures, including adopting a "risk-based asset management programme for water mains" by introducing factors such as age of use, materials, past records of bursts or leaks, surrounding environment and consequence resulting from bursts or leaks, for assessing the risk of water mains so as to replace or rehabilitate specific sections of water mains with higher risk progressively with a view to continuously maintaining the healthiness of the water supply networks and reducing the risks of water main bursts or leaks.
      
     Besides, the WSD is establishing approximately 2 400 Water Intelligent Network (WIN) district metering areas (DMAs) within the fresh water distribution networks in the territory. In addition to monitoring leakage in the networks to timely carry out maintenance works for damaged mains, the risks of main bursts or leaks can be reduced by detecting and adjusting water pressure through the pressure management devices installed in the WIN.
      
     The WSD has also established a "main burst hotspot" mechanism. If more than one main burst (with diameter of 150 millimetres or above) occurs within a 400-metre long road section in two years, the WSD will designate the location as a "main burst hotspot" and arrange for expedited replacement or rehabilitation of the concerned water main so as to reduce the risk of recurrent main bursts.
      
     The above measures can effectively manage the condition of water supply networks and facilitate targeted measures (such as replacement, rehabilitation, pressure reduction) for high-risk water mains so as to reduce the risks of main bursts or leaks. In fact, the situation of main bursts and leakage has been continuously improved in recent years.
      
     Through the abovementioned multi-pronged measures and with efforts over the years, the number of annual main burst cases has been greatly reduced from around 2 500 in 2000 to 30 cases in 2023 (as of November 30). In the same period, the leakage rate of fresh water mains has also dropped from over 25 per cent to around 14 per cent.
 
     The replies to various parts of the Hon Yang’s question are as follows:
 
(1) In the past three years, the WSD recorded a total of 95 main burst incidents, and their distribution is tabulated in Annex 1. Most of the water mains involved were aged ones laid in the 1990s or earlier without any previous burst records. The remaining main burst incidents were mainly caused by accidents during excavation works. At present, the concerned water mains have been included in the monitoring scope of the "risk-based asset management programme for water mains" and/or the WIN.
 
(2) By end-2023, the WSD has established around 1 960 DMAs (out of around 2 400 DMAs) covering all districts across Hong Kong. Their distribution is tabulated in Annex 2. The remaining DMAs are expected to be completed in around 2025.
 
(3) As of 2023, a total of approximately 490km long water mains has been included in the "risk-based asset management programme for water mains". Amongst them, approximately 185km long water mains have been replaced or rehabilitated while the improvement works for the rest are underway or will be progressively carried out. The relevant figures by district are tabulated in Annex 3.
 
(4) Currently, "main burst hotspot" water mains improvement works are being carried out in various districts. During the period of 2021 to 2023 (as of November 30), the WSD has completed a total of 21 "main burst hotspot" improvement projects. The number of hotspots and the distribution of improvement works by district are tabulated in Annex 4. Regarding the construction period, some hotspots located at busy road sections and in the vicinity of residential areas involve relatively complex temporary traffic arrangements and different construction constraints (e.g. time window for construction and arrangements for water supply suspension), hence requiring longer time for planning and construction. Based on past records, the shortest time for planning and construction was around two years, the longest was around seven years, with an average of some four years.
 
(5) The WSD has all along been making reference to and adopting globally prevailing advanced leakage detection measures and technologies for continuous monitoring of the situation of water main leakage, including the application of acoustic investigation for leakage detection, installing noise loggers, at busy road sections and important water mains.
 
     Besides, the WSD has conducted on-site tests at specific locations on in-line inspection robot, utilising image processing algorithms and ultrasonic probes to inspect the interior water main surfaces for assessing the health conditions of the water mains. In addition, the WSD is collaborating with the research team of local university to explore feasible ways to enhance the robotic technologies for inspection of water mains, including a more convenient and efficient approach for enabling robots to enter water mains, as well as incorporating artificial intelligence for automating the inspection of the water main surfaces, so as to enhance the efficiency of leakage detection.

     Following is a question by the Hon Rock Chen and a reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (January 10):

Question:

     It has been reported that after the Government amended the legislation in April last year to increase the maximum penalties for occupational safety and health (OSH) offences, there have still been a number of industrial accidents in Hong Kong. In this connection, will the Government inform this Council:

(1) given that the construction industry has been adopting the subcontracting system all along, whether it has compiled statistics on the respective numbers of principal contractors and subcontractors (including sub-subcontractors) among the companies or individuals convicted of breaching OSH-related legislation in the past five years; if not, whether it will consider compiling the relevant statistics, so as to facilitate the authorities to formulate policies on preventing industrial accidents;

(2) as some members of the public have queried the deterrent effect of OSH-related legislation, whether the Government has stepped up law enforcement as well as publicity and education efforts, so as to promote a culture of occupational safety in the construction industry; if so, of the details; if not, the reasons for that; and

(3) given that imported workers under the Labour Importation Scheme for the Construction Sector are gradually arriving to work in Hong Kong, of the measures introduced by the Government to enhance their skills and awareness of occupational safety, and whether it has assessed if the relevant occupational safety courses and equipment operation training are sufficient to enable imported workers, who are unfamiliar with the local working environment, to carry out their work safely?

Reply:

President,
 
     Having consulted the Development Bureau, my consolidated reply to the questions is as follows:

(1) The numbers of convicted summonses in the past five years on breaching the occupational safety and health (OSH) legislation by construction contractors (including "companies" and "individuals") are tabled in Annex. Among them, the number of such summonses in 2023 (as at the end of November) is 1 352.

     Regardless of being a "company" or an "individual", one could undertake different works projects in the capacity as a principal contractor or a subcontractor. As their capacities may vary in different projects, the Labour Department (LD) does not keep statistics of companies or individuals convicted of breaching OSH-related legislation by categorising them as a principal contractor or a subcontractor. 

(2) Pursuant to the risk-based principle and keeping close tabs on the OSH risk levels of various industries and their changes, the LD formulates and adjusts the three-pronged approach including inspection and enforcement, publicity and promotion, as well as education and training in a timely manner to promote OSH culture and prevent accidents from happening. The legislative amendment last year to increase the penalties of OSH offences is one of the strategies to improve the OSH performance of Hong Kong.

     In order to achieve the aforesaid goal of improving OSH, apart from routine inspections, the LD has also committed to improving the OSH performance of the construction industry through a series of targeted measures. These include conducting four special enforcement operations targeting the construction industry since April last year to curb unsafe practices; 31 in-depth surprise inspections targeting construction sites with poor safety performance and possible deficiencies in their safe systems of work; as well as area patrols targeting minor Renovation, Maintenance, Alteration and Addition works sites (especially those involving truss-out scaffolding).

     To further strengthen inspection and enforcement efforts, the LD also set up a number of Special Task Forces in November 2023 to continue targeting construction sites, in particular sites of new works and sites involving high-risk work processes for carrying out rigorous inspections and enforcement actions.
 
     On publicity and promotion, since the increase in the penalties for OSH offences in April 2023, the LD has rolled out comprehensive publicity campaigns, including launching a set of newly-produced television announcements in the public interest (API), radio APIs and a poster to strengthen the promotion of the new penalties. At the same time, the LD also issued press releases, provided the latest information on the new penalties on the LD's website and the "Work Safety Alert" mobile application, jointly organised talks with the industry, sent emails to the duty holders concerned to brief them on the legislation etc., so as to alert the industry and members of the public on the new penalties for OSH offences. At the end of last year, the LD launched a new round of publicity on public transport, main road tunnel portals and screens on external walls of shopping malls.

     On the other hand, the LD launched a set of promotional videos with the themes of "truss-out bamboo scaffolds", "OSH Star Enterprise Scheme", "electrical work", "the revised OSH legislation" and "general potential work hazards in construction sites", etc. in collaboration with the Occupational Safety and Health Council (OSHC) in mid-December 2023. In order to further enhance publicity, a TV programme of five two-minute episodes has also been produced by the LD and the OSHC for the promotion of OSH messages. The programme has commenced to broadcast on television and multimedia platform from this Monday (January 8).
 
     In respect of education and training, the LD has recently updated the contents of the mandatory basic safety training course for the construction industry (i.e. the Green Card course for construction sector) and mandatory safety training courses of confined spaces operation, so as to enhance safety awareness of workers and their ability to prevent accident. At the same time, workers who completed the Green Card course are required to attend the revalidation course three years later before they can renew their "Green Cards". Workers can also revisit the main contents of the courses on the LD's website at any time to refresh their knowledge.

     Concurrently, the LD organises a number of free training courses on a regular basis on work safety in the construction industry and the requirements of the law, and co-organises OSH talks and online seminars of different themes with individual organisations from time to time and arranges staff to serve as speakers. The Occupational Safety and Health Training Centre of the LD organised 813 courses and talks last year, 592 of which were related to work safety in the construction industry.

(3) To address the manpower shortage of the construction sector, the Government has been adopting multi-pronged measures including enhancing training of local workers, recruiting new blood and promoting the application of technologies for uplifting productivity across the sector, and implementing the Labour Importation Scheme for the Construction Sector (the Scheme).
 
     Under the Scheme, imported workers must be workers with relevant skills who have the relevant site works experience and safety knowledge. They must abide by Hong Kong's regulations in relation to construction safety, including the following:

(i) imported workers must complete the Green Card course for construction sector;

(ii) imported workers must comply with the "designated workers for designated skills" requirement where they work under the instruction and supervision of semi-skilled or skilled workers unless they have passed the tests and registered as semi-skilled or skilled workers; and

(iii) if the imported labour need to carry out the work procedures which, in accordance with the law, must be performed by a competent person (such as operation of an excavator), they must have passed the tests recognised by relevant local authorities or obtained equivalent qualifications before carrying out such work procedures.

     In addition, the Smart Site Safety System must be adopted at all sites engaged with imported workers. Principal contractors under the Scheme are also required to assign a designated safety officer to be in charge of the safety briefing and arrangement for training related measures for their imported labour, and give on-site explanation of site operation in Hong Kong and the requirements with which they should comply, including those on site safety. The policy bureaux, departments and contractors responsible for the relevant works contracts approved under the Scheme have advised that the above requirements have been duly implemented and they will continue to ensure their compliance at work sites as part of their ongoing monitoring of the performance of contractors.