The effective exchange rate index for the Hong Kong dollar on Wednesday, November 8, 2023 is 106.0 (up 0.1 against yesterday's index).

     In response to the Japanese Government's plan to discharge nuclear-contaminated water at the Fukushima Nuclear Power Station, the Director of Food and Environmental Hygiene issued a Food Safety Order which prohibits all aquatic products, sea salt and seaweeds originating from the 10 metropolis/prefectures, namely Tokyo, Fukushima, Ibaraki, Miyagi, Chiba, Gunma, Tochigi, Niigata, Nagano and Saitama, from being imported into and supplied in Hong Kong.
 
     For other Japanese aquatic products, sea salt, and seaweeds that are not prohibited from being imported into Hong Kong, the Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department will conduct comprehensive radiological tests to verify that the radiation levels of these products do not exceed the guideline levels before they are allowed to be supplied in the market.
 
     As the discharge of nuclear-contaminated water is unprecedented and will continue for 30 years or more, the Government will closely monitor and step up the testing arrangements. Should anomalies be detected, the Government does not preclude further tightening the scope of the import ban.
 
     From noon on November 7 to noon today (November 8), the CFS conducted tests on the radiological levels of 127 food samples imported from Japan, which were of the "aquatic and related products, seaweeds and sea salt" category.  No sample was found to have exceeded the safety limit. Details can be found on the CFS's thematic website titled "Control Measures on Foods Imported from Japan" (www.cfs.gov.hk/english/programme/programme_rafs/programme_rafs_fc_01_30_Nuclear_Event_and_Food_Safety.html).
 
     In parallel, the Agriculture, Fisheries and Conservation Department (AFCD) has also tested 50 samples of local catch for radiological levels. All the samples passed the tests. Details can be found on the AFCD's website (www.afcd.gov.hk/english/fisheries/Radiological_testing/Radiological_Test.html).
 
     The Hong Kong Observatory (HKO) has also enhanced the environmental monitoring of the local waters. No anomaly has been detected so far. For details, please refer to the HKO's website
(www.hko.gov.hk/en/radiation/monitoring/seawater.html).
 
     From August 24 to noon today, the CFS and the AFCD have conducted tests on the radiological levels of 12 973 samples of food imported from Japan (including 8 602 samples of aquatic and related products, seaweeds and sea salt) and 3 758 samples of local catch respectively. All the samples passed the tests.

     Following is a question by Professor the Hon William Wong and a written reply by the Acting Secretary for Innovation, Technology and Industry, Ms Lillian Cheong, in the Legislative Council today (November 8):

Question:

     The Government established five Research and Development (R&D) Centres in April 2006, namely the Automotive Platforms and Application Systems R&D Centre, Hong Kong Applied Science and Technology Research Institute, Hong Kong Research Institute of Textiles and Apparel, Logistics and Supply Chain MultiTech R&D Centre, and Nano and Advanced Materials Institute. Regarding the work of these R&D Centres, will the Government inform this Council:

(1) whether it will consider reviewing the role and positioning of the aforesaid R&D Centres, as well as the need for restructuring, so as to dovetail with the strategies set out in the Hong Kong Innovation and Technology Development Blueprint and achieve the objective of developing Hong Kong into an international innovation and technology centre;

(2) whether it has set key performance indicators for the aforesaid R&D Centres in respect of their work on enhancing social benefits; if so, of the details; if not, whether it will consider setting such indicators;

(3) of the respective numbers of new R&D projects undertaken by the aforesaid R&D Centres in each of the past five years and, among them, the number of those for which patents were granted;

(4) of the respective numbers of patents owned by the aforesaid R&D Centres, the patent maintenance costs involved and the number of patent transactions made in each of the past five years;

(5) of the respective numbers of cases of successful transformation and realisation of patents by the aforesaid R&D Centres in each of the past five years and, among them, the number of those which generated revenues for the R&D Centres concerned and the amount involved;

(6) of the respective numbers of patents of the aforesaid R&D Centres which were not renewed in each of the past five years, and the criteria and procedure for determining whether such patents should be renewed; and

(7) whether it will consider drawing up relevant guidelines on patent management for the aforesaid R&D Centres?
 
Reply:

President,

     In response to the various parts of the question raised by Professor the Hon William Wong, the reply is as follows:

(1) and (2) The Government has established five Research and Development (R&D) Centres, i.e. Hong Kong Applied Science and Technology Research Institute (ASTRI), Hong Kong Research Institute of Textiles and Apparel, Logistics and Supply Chain MultiTech R&D Centre (LSCM), Nano and Advanced Materials Institute, and Automotive Platforms and Application Systems R&D Centre (APAS), to drive and co-ordinate applied R&D in selected focus areas. The five R&D Centres have clear positioning and play an important role in driving applied R&D, conducting technology transfer and commercialising R&D outcomes, thereby offering more innovative technologies for the industry in Hong Kong and boosting the competitive edge of Hong Kong enterprises. The current positioning of the R&D Centres is at Annex I. Besides, the Chief Executive announced in the 2023 Policy Address that the Hong Kong Microelectronics Research and Development Institute (MRDI) will be established in 2024 to lead and facilitate collaboration in research and application of microelectronics, as well as industry development among universities, R&D Centres and the industry, which will include jointly exploring the third-generation semi-conductor core technology.

     The R&D Centres play an important role in creating a vibrant innovation and technology (I&T) ecosystem and act as a focal point for technology collaboration among the Government, industry, academia and research sectors, thereby complementing the implementation of the relevant development directions and strategies under the Hong Kong Innovation and Technology Development Blueprint and developing Hong Kong into an international I&T centre. In this connection, the Government has been closely monitoring the operation of the R&D Centres. To evaluate the overall work progress and performance of various aspects of the R&D Centres, the Innovation and Technology Commission (ITC) has been adopting the following six indicators since 2017-18:

(i) Level of industry income;
(ii) Number of on-going projects involving industry participation;
(iii) Number of companies participating in the on-going projects;
(iv) Number of organisations benefitting from the Public Sector Trial Scheme;
(v) Number of researchers engaged under the Research Talent Hub; and
(vi) Number of patents filed and granted.

     Regarding the aforementioned indicator (i) (i.e. level of industry income), the ITC has raised the target from 30 per cent to 35 per cent from 2023-24, and subject to steady economic growth, gradually raises the target to 50 per cent in a few years' time.

     Regarding the indicators (ii) to (vi), as the scale and focal points of the R&D Centres are different, it is difficult to devise a set of uniform quantifiable key performance indicators. However, in the regular progress report on the R&D Centres to the Panel on Commerce, Industry, Innovation and Technology of the Legislative Council, the ITC will set out the Centres' respective performances under items (ii) to (vi) of the indicators. Besides, as a standard practice, the R&D Centres are required to prepare and submit annual plan, quarterly and annual reports and annual audited accounts for approval by their respective Board and the ITC every year.

     On bringing social benefits, a number of R&D outcomes generated by the R&D Centres have been adopted by public organisations or public service providers. For example, the low-floor height e-minibus developed by APAS is supporting the Government's trial of electrification of public light buses; ASTRI and MTR Corporation Limited jointly developed a non-contact smart visual system to measure the gaps in escalators, replacing manual inspection, to ensure public safety by enhancing measurement and maintenance efficiency; LSCM has developed a combination-type wireless radio frequency identification tags for use in road tolling systems, and the technology has been applied to the HKeToll system. These R&D outcomes help Government departments and other public organisations enhance their service quality and efficiency, making people's daily living more convenient, comfortable and safe, thereby providing a greater sense of fulfilment. As such, it is difficult to quantify these benefits and devise quantifiable key performance indicators.

     In the past few years, due to the COVID-19 epidemic, different industries have been affected to different extents. Despite facing such adverse circumstances, the R&D Centres have continued to drive applied R&D in selected focus areas and closely collaborated with the industry to understand their needs and the latest technological trends. As at end-March 2023, there were 405 on-going projects, including 243 projects (around 60 per cent) involving participation from 470 companies, representing an increase of about 13 per cent over the past year. This shows that the R&D Centres' applied R&D projects can address market needs and solve industry pain-points, thereby assisting the industry in grasping the opportunity for restructuring and upgrading. The Government will continue to review and adjust the resources provided to the R&D Centres (including MRDI which will be established soon), as well as their roles, positioning and key performance indicators taking into account the needs of the industry and technological development in accordance with the aforementioned mechanism. In the meantime, the Government will continue to encourage collaboration amongst the R&D Centres to achieve synergy.

(3) to (7) The five R&D Centres bear the public mission of conducting technology transfer to the industry, and their objective for conducting applied R&D and technology transfer is not about making profits. If an industry partner contributed at least 50 per cent of the total project cost, it is entitled to the intellectual property (IP) generated from that R&D project. Besides, as it often takes years to apply for a patent, some R&D Centres will opt to directly transfer technological know-how to the industry to help them cope with the ever-changing market in time. The patent-related figures and commercialisation and other income of the five R&D Centres in the past five financial years are at Annex II. The ITC does not keep the number of patents which have been successfully commercialised and the income concerned.

     Owing to the difference in technological areas between the R&D Centres and the fast-changing technological development, the Centres devise their own strategies for managing their patents, and will decide whether they will extend their patents according to their own mechanisms. Generally speaking, the R&D Centres will consider a basket of factors when making such decision, including the commercialisation income generated by the patent, the maintenance cost, the likelihood for the patent to be a background IP for R&D projects in the future, whether there are similar patents utilising more advanced technologies in the market, and whether the patent is still relevant to the Centres' future development, etc.

     Hong Kong Customs conducted a 19-day enforcement operation codenamed "Tracer" from October 16 to November 3 to combat counterfeit and infringing goods activities involving cross-boundary transshipments and local deliveries. During the operation, Customs detected 28 related cases and seized about 77 000 items of suspected counterfeit and infringing goods and about 13 litres of suspected duty-not-paid liquor with an estimated market value of over $67 million and a duty potential of about $90,000. Three persons were arrested.

     Through risk assessment, Customs inspected seven containers arriving in Hong Kong from Nansha, Guangdong, at the Tuen Mun River Trade Terminal Customs Cargo Examination Compound from October 20 to November 2. After inspection, Customs officers seized about 15 000 suspected counterfeit goods and about 13 litres of suspected duty-not-paid liquor, with a total estimated market value of about $23 million and a duty potential of about $90,000 therein, successfully detecting seven related cases.

     Moreover, through intelligence analysis and in-depth investigations, Customs detected 21 related cases at various local logistics companies. Customs officers identified and carried out strike-and-search operations at about 30 logistics companies in Kwai Chung, Tuen Mun, Mai Po, Tsing Yi and Yuen Long. About 62 000 items of suspected counterfeit goods, including watches, mobile phone accessories, glasses, clothes and footwear, with a total estimated market value of about $44 million, were seized.

     After follow-up investigations, Customs believed that some of the suspected counterfeit goods would have been sold locally while the rest would have been re-exported to overseas destinations. Also, Customs officers organised controlled delivery operations in respect of two batches of local delivery consignments. On October 27, a 33-year-old female consignee and a 32-year-old woman were arrested in an industrial building unit in Wong Chuk Hang, and about 400 items of suspected counterfeit and infringing goods with an estimated value of about $20,000 were seized inside. Later, Customs on October 30 raided an upstairs retail shop in an industrial building in Kwun Tong, seizing about 300 items of suspected counterfeit goods with an estimated market value of about $70,000. A 35-year-old male manager was arrested.

     Investigations of the above-mentioned cases are ongoing. The three arrested persons have been released on bail pending further investigation.

     Customs appeals to consumers to purchase goods at reputable shops or websites and to check with the trademark or copyright owners or authorised agents if the authenticity of a product is in doubt to avoid buying counterfeit or infringing goods.

     Customs reminds practitioners in the logistics industry to comply with the requirements of the Trade Descriptions Ordinance (TDO) and to check with the trademark owners or authorised agents if the authenticity of a product is in doubt when handling cargoes. The department also reminds traders or online sellers not to sell counterfeit or infringing goods and to be cautious and prudent in merchandising since selling counterfeit or infringing goods is a serious crime and offenders are liable to criminal sanctions.

     Customs will continue to step up inspections and conduct intelligence-led enforcement to vigorously combat different types of counterfeit and infringing goods activities.

     Under the TDO, any person who imports or exports or sells or possesses for sale any goods to which a forged trademark is applied commits an offence. The maximum penalty upon conviction is a fine of $500,000 and imprisonment for five years. 

     Under the Dutiable Commodities Ordinance, any person who imports, possesses, sells or buys dutiable commodities without a valid licence commits an offence. The maximum penalty upon conviction is a fine of $1 million and imprisonment for two years.

     Under the Import and Export Ordinance, any person found guilty of importing or exporting unmanifested cargo is liable to a maximum fine of $2 million and imprisonment for seven years.

     Members of the public may report any suspected counterfeiting or infringing activities to Customs' 24-hour hotline 2545 6182 or its dedicated crime-reporting email account (crimereport@customs.gov.hk) or online form (eform.cefs.gov.hk/form/ced002).

            

     Following is a question by Dr the Hon Ngan Man-yu and a reply by the Secretary for Housing, Ms Winnie Ho, in the Legislative Council today (November 8):
 
Question:
 
     It has been reported that while the Subsidised Housing Committee of the Hong Kong Housing Authority endorsed in May this year the implementation of enhanced measures for the Marking Scheme for Estate Management Enforcement (the Marking Scheme), the misdeed items applicable to public rental housing flats in Tenants Purchase Scheme (TPS) estates continue to remain at 14, and the misdeeds under the Marking Scheme are still not applicable to the public areas of such estates, resulting in the management of such estates failing to improve with the implementation of the enhanced measures. In this connection, will the Government inform this Council:
 
(1) of the situation of the tenants of TPS estates being allotted penalty points in each of the past five years (with a tabulated breakdown by District Council district and misdeed); among such cases, the respective numbers of those in which the tenancies of the tenants concerned were terminated and their flats were recovered due to the allotment of 16 penalty points or more to them;
 
(2) whether it knows the number of complaints received by the authorities (including the Owners' Corporations (OCs) of TPS estates) about the hygiene and noise in public areas of TPS estates in each of the past five years, as well as the details and the follow-up situations of those complaints; and
 
(3) whether it will launch targeted actions in respect of the management of TPS estates, such as enhancing the Marking Scheme, and coordinating or taking joint actions with OCs; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     In Tenants Purchase Scheme (TPS) estates, more than 80 per cent of flats have been sold and become private properties. The general estate management is no different from that of private properties, which is undertaken by their respective Owners' Corporations (OCs) by virtue of the powers granted under the Building Management Ordinance (Cap. 344) and the Deed of Mutual Covenant (DMC). 
 
     As regards the public rental housing (PRH) flats in TPS estates, the tenants are currently subject to 14 misdeed items under the "Marking Scheme for Estate Management Enforcement" (the Marking Scheme) of the Hong Kong Housing Authority (HA). In support of the Government's measures to tackle territory-wide environmental hygiene issues, the HA approved in May 2023 the implementation of enhanced measures of the Marking Scheme. Among the enhanced measures, three are applicable in TPS estates, including "causing noise nuisance", of which the penalty points will be increased from five to seven, and "using leased premises for illegal purpose" and "damaging down/sewage pipes causing leakage to the flat below", of both the penalty points will be increased from seven to 15, while the warning system for the latter misdeed will no longer be applicable. When 16 points or above have been allotted to a tenant, the HA will also issue a notice-to-quit. The enhanced measures will take effect from mid-December 2023.
 
     Regarding the common areas of TPS estates, if a resident commits misdeed such as damaging environmental hygiene or creating nuisance, irrespective of whether he/she is an owner or a tenant, the property management company (PMC) appointed by OC can take action to regulate the misdeed in accordance with the provisions of the DMC. If OC or PMC refers any case involving PRH tenants committing misdeed in the common areas to the Housing Department (HD), the HD will take follow-up action, including conducting investigation, carrying out joint operation with PMC or other departments, and taking tenancy enforcement action, such as issuance of warning letters, against the offending tenant. For serious cases, the tenancy will be terminated to recover the PRH flat.
          
     My consolidated reply to the questions raised by Dr the Hon Ngan Man-yu is as follows:
 
     At present, there are about 30 000 PRH households in the 39 TPS estates. In the past five years (2018 to 2022), the number of points allotment cases under the Marking Scheme in TPS estates per year by 18 districts is set out in the Annex. The misdeeds mainly include not allowing the HA staff or its authorised persons to enter the premises for inspection and carrying out works, keeping animal inside the premises, accumulating a large quantity of refuse inside the premises creating hygienic nuisance. Among the cases, there was one case where the tenancy was terminated and the PRH flat was recovered after seven penalty points were allotted thrice due to accumulating a large quantity of refuse inside the premises.
 
     In the past five years, the HA received about 800 complaints and enquiries relating to hygienic and noise nuisances in the common areas of TPS estates. The HD had relayed these cases to the respective OCs and PMCs and requested them to follow up. Upon receiving reports from OC or PMC on misdeeds committed by PRH tenants in the common areas of TPS estate, the HD will interview the tenant concerned and ask him/her to rectify. Written warning will be issued to unco-operative tenants. For serious cases, the HD may consider terminating the tenancy concerned. The HD staff will also discuss with PMCs or other government departments on whether to conduct joint operations, for example, to investigate noise nuisance, water dripping from air conditioners, and throwing objects from heights. For individual tenants with special circumstances, such as having the need for medical or counselling services, upon obtaining their consent, the HD will refer their cases to relevant government departments or social welfare organisations with a view to providing appropriate assistance and counselling to them. The HA does not have information on complaints relating to the common areas received by OCs direct.

     The HA has all along been actively participating in and supporting the estate management work of TPS estates. Through participating in the management committee, the HD staff will proactively tender advice and information on property management, share the HA's management experience in particular on matters relating to building safety, public facilities, environmental hygiene and good management practices. The HA will seriously implement tenancy management policies and stop misdeeds through tenancy management and the Marking Scheme.
 
     The HA will promote the enhanced measures of the Marking Scheme to the tenants through different channels, explain the salient points of the enhanced measures to OCs and PMCs, communicate proactively with OCs to maintain close co-operation, and conduct joint operation against the misdeeds of PRH tenants.
 
     Regarding Member's suggestion of incorporating the misdeeds committed by PRH tenants in the common areas of the TPS estates into the Marking Scheme, the HA will seriously consider the proposal and will communicate with OCs and PMCs to study the details, targeting to formulate specific recommendations to the HA's Subsidised Housing Committee in the second quarter of 2024.