Following is a question by the Hon Kenneth Fok and a reply by the Secretary for Culture, Sports and Tourism, Miss Rosanna Law, in the Legislative Council today (December 18):
 
Question:
 
     It has been reported that Sunbeam Theatre in North Point, an important performance venue for Cantonese opera, will close down in March next year, and by that time, the sector will face problems such as finding new performance and rehearsal venues, as well as how to rehouse and provide training for Cantonese opera practitioners, which will bring about a significant impact on the stable development of the Cantonese opera sector. In this connection, will the Government inform this Council:
 
(1) given that after the closure of Sunbeam Theatre, there will be no performance venue for Cantonese opera of comparable scale under the Leisure and Cultural Services Department in the district, whether the Government has plans to collaborate with the business sector to jointly construct a permanent performance venue for the development of Cantonese opera; if so, of the details; if not, the reasons for that;
 
(2) whether the Government will consider providing support to Cantonese opera practitioners, including further according priority to Cantonese opera troupes in arranging venues for their performance, so as to sustain the living of Cantonese opera practitioners; if so, of the details; if not, the reasons for that; and
 
(3) as it is learnt that in the light of the impending closure of Sunbeam Theatre, business operators in the neighbourhood do not renew their tenancies out of worries over the loss of patronage from opera-goers, whether the Government has plans to expeditiously identify a new venue in the district for performance by Cantonese opera troupes which originally perform at Sunbeam Theatre, so as to preserve the long-‍established "Cantonese opera economy" in the district?
 
Reply:
 
President,
 
     Cantonese opera is one of the important forms of Hong Kong's traditional arts and culture. It is also the first world-class intangible cultural heritage (ICH) item in Hong Kong. The Government attaches great importance to the development of Cantonese opera and has all along been providing active support to the transmission, study, promotion and continuous development of Cantonese opera through various ways, including (1) developing performance venues for Cantonese opera; (2) nurturing Cantonese opera professionals, promoting creative works and preserving traditions; (3) promoting Cantonese opera education, audience building and community participation; and (4) preserving the essence of Cantonese opera and showcasing the treasures of our cultural heritage.
      
     To help develop Cantonese opera as a unique local culture and art form more effectively, the Government set up the Cantonese Opera Advisory Committee in 2004 to advise the Government on matters relating to the development of Cantonese opera in Hong Kong. In 2005, the Government also established the Cantonese Opera Development Fund (CODF) to support projects and activities that facilitate the preservation, promotion and development of Cantonese opera. Since its establishment, the CODF has granted about $200 million to support over 1 200 Cantonese opera projects, providing assistance to the Cantonese opera sector in various aspects, including performances of traditional plays and new creation plays, cultural exchanges, arts education and community promotion, children/youth training and performances, professional training, research, preservation and publication projects.
      
     In the Blueprint for Arts and Culture and Creative Industries Development (the Blueprint) promulgated on November 26 this year, we have formulated four strategic directions, one of which being "promote profound traditional Chinese culture and develop cultural contents with Hong Kong character". Under this direction, the Culture, Sports and Tourism Bureau (CSTB) proposed to promote the cultural characteristics of Lingnan legacy and to foster the safeguarding and transmission of ICH. One of the concrete measures is to support high-quality development of Cantonese opera and collaborate with other cities in the Greater Bay Area to nurture a contemporary Cantonese opera culture which also inherits traditional characteristics.
      
     My consolidated reply to the questions raised by the Hon Kenneth Fok is as follows:
      
     The Sunbeam Theatre was opened in the 1970s. Apart from film screenings, the theatre stages Cantonese opera and other types of programmes such as theatre performances. Over the past few decades, the Sunbeam Theatre has provided much entertainment to people of Hong Kong and has gradually developed into an important venue for Cantonese opera performances. We understand that the Cantonese opera sector as well as members of the public are not only saddened by the impending closure of the Sunbeam Theatre early next year but also concerned about the availability of performance venues for Cantonese opera. In fact, discussions about whether the Sunbeam Theatre would continue to operate started as early as 2005. While operating the theatre or not was a commercial consideration, the Government back then was well aware of the Cantonese opera sector's concern over the shortage of suitable venues, particularly when the Sunbeam Theatre no longer exists. Hence, the Government pressed ahead with various works projects over the past decade or so. Funds were allocated to construct a number of public venues of various scales specifically for Cantonese opera and other xiqu performances. These venues, which include the Yau Ma Tei Theatre (commissioned in 2012), the Auditorium and rehearsal facilities of the Ko Shan Theatre New Wing (commissioned in 2014) and the Grand Theatre and Tea House Theatre of the Xiqu Centre at the West Kowloon Cultural District (WKCD) (commissioned in 2019), have provided additional 2 000 seats as compared with that over a decade ago, thereby easing the problem of inadequate performance venues. In addition to increasing the number of quality performance venues for Cantonese opera, these venues make more facilities available for nurturing Cantonese opera talents, rehearsing and training, building audiences and promoting education. 
      
     Meanwhile, the Government has introduced a priority venue hiring policy for Cantonese opera performances. The Leisure and Cultural Services Department (LCSD) also implements special booking arrangements for local professional Cantonese opera troupes at five of its major performance venues, reserving a total of 70 days of time slots each year for Cantonese opera performances. Cantonese opera troupes may also hire other performance venues managed by the LCSD for performances.
      
     Through the Venue Partnership Scheme, the LCSD has been fostering partnership between its performance venues and performing arts groups/organisations (including Cantonese opera organisations) with the objectives of enhancing the artistic image and characteristics of the venue and its partners, as well as enlarging the audience base. The current round of the Venue Partnership Scheme runs from April 2022 until March 2026 with four Cantonese opera organisations selected as venue partners.
      
     With the enhanced transport network in Hong Kong, these quality performance venues are all located near MTR stations and convenient to members of the public from different districts. We will collaborate with the LCSD, the WKCD and the Cantonese opera sector to step up publicity, so as to attract more people to visit these performance venues for quality Cantonese opera performances.
      
     As I mentioned just now, the Government has been supporting the development of Cantonese opera through diversified channels and means, and it is vitally important that we clearly understand the sector's present needs. Thus, starting from end 2022, the CSTB conducted an opinion survey with the two Cantonese opera-related advisory committees on the major aspects of development of Cantonese opera. Committee members in general considered that "training of playwrights", "artists", "building young audiences" and "enhancing publicity" are the most important and urgent in promoting the development of Cantonese opera. Subsequently, we set up joint subcommittees under the committees in 2023 to follow up on the discussions, so as to enable the two committees to explore further directions of strategic development and propose specific measures. Committee members and the Cantonese opera sector agreed that the future development of Cantonese opera should focus on encouraging quality performances, while tradition and innovation should go hand in hand. Building on existing foundations, the committees are now actively exploring the introduction of a new funding project in the form of a pilot scheme to tie in with and achieve the objective of supporting high-quality development of Cantonese opera as set out in the Blueprint.
      
     The Government will continue to keep an eye on the needs of the Cantonese opera sector and the general public, review the needs of the development of Cantonese opera in Hong Kong at a suitable time, and strive to provide the sector with adequate and appropriate venues. We will also maintain close communication with the Cantonese opera sector and, having regard to their needs, formulate relevant venue usage and hiring policies. The Government will support the transmission and development of Cantonese opera in various aspects, with a view to promoting Chinese culture.

     Following is a question by the Hon Dominic Lee and a reply by the Secretary for Innovation, Technology and Industry, Professor Sun Dong, in the Legislative Council today (December 18):
 
Question:

     There are views that while various places across the globe have been actively developing industries related to artificial intelligence (AI) in recent years, Hong Kong enterprises still face problems such as geographical restrictions and insufficient funds in applying AI technologies. In this connection, will the Government inform this Council:

(1) as it has been reported that in July this year, the developer of ChatGPT, an AI tool, restricted the provision of application programming interface services to regions including Hong Kong, whether the Government has discussed with the developer the lifting of the restriction; if so, of the details; if not, the reasons for that;

(2) given that the Government launched the Artificial Intelligence Subsidy Scheme (AISS) in October this year to subsidise eligible enterprises to make the best use of the computing power of the AI ‍Supercomputing Centre to achieve more breakthroughs in AI scientific research and applications, of the total number of AISS applications received so far; whether the Government will provide technical support to the funded enterprises and extend AISS to cover small and medium enterprises and associations, so as to enhance their AI application capabilities and market competitiveness; and

(3) as there are views that Mainland cities in the Guangdong-Hong Kong-Macao Greater Bay Area have advantages in AI development, whether the Government has formulated specific measures to assist Hong Kong enterprises in strengthening their cooperation with the institutions in these cities in the field of AI technologies, and to provide development opportunities for local AI start-ups; if so, of the timetable; if not, the reasons for that?

Reply:

President,

     In respect of the question raised by the Hon Dominic Lee, my reply is as follows:

(1) Hong Kong is a free market economy. We welcome enterprises from around the world to run businesses in Hong Kong and provide diversified services and products to the local market, including ChatGPT from the United States. On the other hand, we respect the marketing strategies and commercial arrangements of individual enterprises regarding their products in different markets.

     In recent years, various large language models (LLMs) emerge, with numerous enterprises in Hong Kong, the Mainland and overseas offering different generative artificial intelligence (GenAI) applications. With the support of the InnoHK research cluster, the Hong Kong Generative AI Research and Development Center (HKGAI), formed by research teams of local universities, is dedicated to the development of GenAI technologies and LLMs based on local databases. It is also in the process of devising a GenAI document processing application. Over 40 bureaux and departments are participating in the internal trial use programme.

     With the advance in artificial intelligence (AI) technology and more application scenarios, we anticipate that more AI products with competitive edges catering to the needs of the local market and different sectors will be made available in Hong Kong.

(2) The Legislative Council has approved $3 billion for the Government to put in place a three-year AI Subsidy Scheme (Scheme), mainly to subsidise local universities, research institutes and AI-related enterprises in leveraging the high-performance computing services of Cyberport's AI Supercomputing Centre (AISC).

     Since the launch of the Scheme in October this year, Cyberport has received around 10 applications. An independent committee appointed by the Government has conducted initial assessment on the first batch of applications. Upon completion of further vetting, we expect the approved projects to finalise their planning and be commenced soon.

     The organisations subsidised under the Scheme will not only receive financial support, but also benefit from the innovative platform offered by Cyberport as a technology park that pools computing power, technology and talents together. It will bridge the supply and demand sides of AI, enabling product innovations and facilitating the convergence of technology transformation and application scenarios. While ordinary enterprises or organisations are unlikely to require the high-performance computing power of the AISC or apply the LLMs so derived directly, they could take advantage of the thriving AI ecosystem and gain access to more technology products that respond to market needs.

(3) Hong Kong is highly competitive in the field of AI. Our research foundation is strong, as evident by the top global rankings in AI and data science attained by a number of local universities. The AIR@InnoHK research cluster focussing on AI and robotic technologies has established 15 research and development laboratories (including HKGAI) and attracted top-notch global talents. The Hong Kong Science Park and Cyberport are also home to more than 800 AI-related enterprises, drawing over a hundred AI enterprises to land this year, thereby fuelling Hong Kong as an AI powerhouse.

     Under "One Country, Two Systems", Hong Kong is endowed with the distinctive advantages of converging both Mainland and international data, creating a favourable environment for strengthening our AI-related collaboration with the Mainland (particularly the Guangdong-Hong Kong-Macao Greater Bay Area (GBA)). Specifically, we signed the "Co-operation Agreement on Technology and Innovation Exchange between Guangdong and Hong Kong" with the Department of Science and Technology of the Guangdong Province in March 2023 to further deepen technology and innovation exchanges as well as bolster collaborative innovation of industries, academia and research between the two places. The Guangdong-Hong Kong Technology Cooperation Funding Scheme jointly implemented by the Guangdong and Hong Kong governments has also been encouraging co-operation between universities, research institutions and technology enterprises from both places in technology areas (including AI), and promoting work on high technology and the transformation of scientific and technological achievements, with a view to enhancing the productivity and competitiveness of enterprises in both places.

     We will continue to foster collaboration on innovation and technology between Hong Kong and Mainland GBA cities, and encourage our local enterprises to tap into the opportunities in the GBA and expand into Mainland markets.

     The Government welcomed the passage of the Inland Revenue (Amendment) (Tax Deductions for Leased Premises Reinstatement and Allowances for Buildings and Structures) Bill 2024 by the Legislative Council today (December 18). The Bill gives effect to two enhancement measures for deduction of expenses under profits tax in the 2024-25 Budget, which will take effect from the year of assessment 2024/25, including:

1. introducing a tax deduction for expenses incurred for reinstating the condition of leased premises to their original condition (reinstatement cost); and

2. removing the time limit for claiming annual allowances in respect of industrial/commercial buildings or structures.

     A Government spokesman said, "Taxpayers only need to meet simple and clear conditions to claim tax deduction for the reinstatement cost. Removing the time limit for claiming annual allowances in respect of industrial/commercial buildings or structures will enable taxpayers to enjoy the same tax treatment when purchasing old buildings as when purchasing new ones. Both measures will alleviate the tax burden of taxpayers and enhance the business environment."

     The Amendment Ordinance will be published in the Gazette on December 27. Relevant information and frequently asked questions and answers have been uploaded to the Inland Revenue Department website (www.ird.gov.hk) for reference by the public.

     The Civil Service College (CSC) today (December 18) held a talk in the series on the country's foreign affairs jointly with the Office of the Commissioner of the Ministry of Foreign Affairs (OCMFA) in the Hong Kong Special Administrative Region (HKSAR). The talk, on the topic of "Telling Good Stories of China", was delivered by Deputy Director General of the Department of Press, Communication and Public Diplomacy of the Ministry of Foreign Affairs (MFA) Ms Mao Ning.

     Addressing the talk, the Secretary for the Civil Service, Mrs Ingrid Yeung, said that Hong Kong has distinctive advantages under "one country, two systems", benefitting from both strong support of the motherland and close connections to the world. Hong Kong not only has direct access to the vast Mainland market but also serves as a bridge linking the Mainland and the rest of the world, making it an international city full of opportunities. Hong Kong has numerous success stories that demonstrate its national and international connectivity. As civil servants play a crucial role in effective governance, they should align with the HKSAR Government's initiatives to leverage community support to promote Hong Kong's advantages, achievements and opportunities worldwide, thereby showcasing to the international community the successful implementation of "one country, two systems" as part of China's story.

     About 280 senior officials and civil servants in the directorate and senior ranks attended the talk at the Central Government Offices today.

     The CSC and the OCMFA have been jointly organising this series of talks on the country's foreign affairs since late 2021. The series, including thematic briefing sessions on "International Landscape and China's Foreign Relations" by the Commissioner of OCMFA, and talks by relevant officials of the MFA on various topics, aims to enhance civil servants' understanding of international affairs, awareness of national security and holistic views.

      

     Following is a question by the Hon Andrew Lam and a reply by the Acting Secretary for Environment and Ecology, Miss Diane Wong, in the Legislative Council today (December 18):
      
Question:
 
     The Audit Commission conducted in 2003 and 2008 audits on public markets managed by the Food and Environmental Hygiene Department (FEHD) and found that there was an upward trend in the vacancy rate of public markets, and the audit report in 2003 even pointed out that more than 50 per cent ‍of the vacant market stalls had been left vacant for at least two years. FEHD has been progressively implementing the Market Modernisation Programme (MMP) since 2018, which includes comprehensive refurbishment or redevelopment projects, as well as piloting a scheme on stall enhancement projects on trial. However, there are views that changes in the consumption pattern of members of the public and the current occupancy rates of market stalls have aroused doubts among the public about the overall efficacy of public markets. In this connection, will the Government inform this Council:

(1) whether it has reviewed the effectiveness of MMP; if so, of the details; and

(2) whether it has reviewed afresh the functions of and actual demand for public markets and thoroughly reviewed the way forward for their development; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,

     At present, there are 96 public markets (including cooked food centres) under the Food and Environmental Hygiene Department (FEHD). Over 60 per cent of the public markets were built before the 1990s (i.e. being in service for over 30 years). The FEHD has been striving to boost the occupancy rate and improve the hardware and management of public markets through different initiatives. 
      
     The FEHD has put up vacant stalls for leasing on numerous occasions through open auctions or other means and has adopted various measures (e.g. re-introducing the arrangement whereby long-standing vacant stalls are put up for auction at concessionary upset prices, etc) to boost the occupancy rate of markets. The FEHD has successfully leased out about 1 500 stalls since June 2021, on average 440 stalls per year.
      
     On hardware, in addition to carrying out regular repair and maintenance as well as improvement works, the FEHD has been embarking on the Market Modernisation Programme (MMP) since 2018 to carry out improvement works for public market facilities, so as to enhance the operating environment of existing public markets. 
      
     On management, the FEHD has implemented improvement measures for the management of tenancy agreements of existing public markets, and adopted a new management model and implemented improvement measures in new public markets and overhauled/redeveloped markets under the MMP, with a view to raising the management standards and improving market services, so as to make public markets more vibrant and better meet the needs of the public.
      
     Moreover, with demographic changes, new development/redevelopment projects and competition (from such examples as other fresh provision outlets nearby), the appeal of some long-time public markets has been diminishing over time with low patronage. With a view to optimising land use, the FEHD has been closely monitoring the utilisation of existing public markets and considering closing or consolidating under-utilised public markets. Since 2018, the FEHD has closed a total of seven public markets with persistently high vacancy rates, and has released the sites concerned to other bureaux/departments for other suitable uses (e.g. transitional housing operated by non-governmental organization(s), elderly services, etc) in accordance with established procedures.
      
     My reply to the two parts of the question raised by the Hon Lam is as follows:
 
(1) To improve the operating environment of existing public markets, thereby facilitating tenants’ business operation and providing market patrons with a more pleasant shopping environment, the Government has earmarked $2 billion for the implementation of the MMP, which includes overhaul or redevelopment projects, stall enhancement projects, as well as minor refurbishment or improvement works.
 
     Overhaul or redevelopment projects generally involve re-configuring the overall layout of a market, upgrading of building services installations and carrying out other improvement works. Aberdeen Market and Lai Wan Market officially re-opened in May 2023 and March 2024 respectively upon completion of overhaul works. The two markets have been operating smoothly since re-opening. The patronage of Aberdeen Market has been stable in general since its resumption of operation in May 2023, with a daily average patronage of about 12 000, an about 17 per cent rise from that before the overhaul works. Since the re-commissioning of Lai Wan Market in March 2024, its patronage has remained at an average of more than 8 000 per day, an increase of about 13 per cent as compared to that before the overhaul works.
      
     Stall enhancement projects carry out repair and beautification works based on actual needs and circumstances, as well as replace and repair simple equipment. The FEHD earlier launched a pilot stall enhancement project in Queen Street Cooked Food Market. The works commenced in February 2024 and the market resumed full operation on September 12, 2024. Up to the end of November 2024, the daily average footfall of the cooked food market is above 1 600, which has increased by about 26 per cent as compared with that before the works. Stall tenants indicated that the enhancement works have improved the operating environment of the cooked food market. Many members of the public have also expressed that the enhanced cooked food market offers a contemporary feel and a clean and comfortable dining environment. The FEHD will identify other suitable venues to carry out stall enhancement works, including the proposed works in the Cooked Food Centre of Luen Wo Hui Market which will commence within 2025.
      
     Minor refurbishment or improvement works have been carried out in 16 markets. The works in 14 markets have been completed, while those in the other two markets are expected to be completed in 2025. 
      
     In the course of embarking on the MMP, the FEHD has been continuously reviewing its implementation and effectiveness. Since September 2024, we have been in communication with major stakeholders (including Legislative Council Members) to consolidate the experience so far in taking forward MMP projects, review its implementation, the challenges and limitations faced and the various views of the community, so as to explore whether there could be room for adjustment or improvement. We are now in the process of consolidating the feedback collected.
 
(2) As indicated during the past discussion between the Government and the relevant Panel and its Subcommittee of the Legislative Council, the community in general consider that public markets have their social functions. Public markets are positioned as one of the major sources through which the public shop for fresh provisions. They should be kept clean and tidy without being unduly upmarket. 
 
     As society continues to progress, the facilities and management of public markets need to keep up with the pace of the development of the city to strive for continuous improvement. We understand that the public and various sectors of the community are paying concern to public markets. During the process of consulting the stakeholders on the MMP as mentioned above, we have also received different views on the positioning and functions of public markets and the way forward. For example, some opined that the Government should review the need to continue to invest additional public funds in the construction of public markets amidst changes in consumption patterns; while others considered that public markets also served certain social functions – not only providing choices for fresh provisions, but also serving as a gathering place for the public. In reviewing the way forward for public markets, we will carefully consider these various views.