1. Appropriation Bill 2015
Some LegCo members have moved once again a large number of Committee Stage Amendments (CSAs) to the Appropriation Bill this year. The President of the LegCo has rejected 3,286 of the 3,904 proposed CSAs and ruled admissible 618 CSAs in accordance with the Rules of Procedure. Filibustering had adversely affected the passage of Appropriation Bill of 2013 and 2014. The filibustering this year would again delay passage of the Bill, disrupt the payment of Government’s recurrent expenditures and affect timely implementation of various relief measures in the Financial Budget.
The HKU Poll showed the Budget 2015 scored the highest since 2010, reflecting widespread public acceptance of this Budget. As I expressed in my speech on 22 April at the LegCo meeting, I support the Budget 2015 as it has responded to public demands, including the adoption of a number of proposals and relief measures to benefit the middle class and the grassroots, assisting local SMEs, and taking into account the social needs in short, medium and long-term.
2. LegCo members issued a joint statement backing the political reform
Forty-one pro-establishment lawmakers issued a joint statement supporting the Government’s proposal on electing the next Chief Executive by universal suffrage, as announced in the LegCo on 22 April 2015. The statement pointed out that the political reform would help Hong Kong stop endless disputes over the city’s constitutional affairs and only then would the society be able to concentrate on solving key issues it faces. The statement stressed that it would benefit the long-term development of Hong Kong if the proposal is passed. If public opinion favors the reform, we should respect the will of the people and work in accordance with the Basic Law and decisions of the National People’s Congress Standing Committee (NPCSC). Hong Kong is approaching a defining moment in its process of constitutional reform, the statement added. The statement urged the LegCo to pass the proposal, and then Hong Kong will be able to implement an election for the Chief Executive by “one person, one vote” in 2017.
The Business and Professionals Alliance for Hong Kong also stated that the proposal marked an important step in the political development of Hong Kong. The proposal will help increase the level of competitiveness in the next CE election.
On 29 and 30 April, together with some other councilors and Government officials, I visited Lai Chi Kok and Central respectively to promote the proposal.
3. Elected Chairman of Subcommittee on the Two Proposed Resolutions Relating to the Establishment of the Innovation and Technology Bureau
The Secretary for Commerce and Economic Development will move two motions respectively to repeal the resolution made and passed by LegCo on 29 October 2014 and to effect a new resolution to transfer the statutory functions under the Electronic Transactions Ordinance to the proposed establishment of the Innovation and Technology Bureau (ITB). A Subcommittee was set up with a meeting held on 20 April 2015 to scrutinize and examine the resolutions. I was elected Chairman of the Subcommittee, and the scrutiny of the proposed resolution was completed at the meeting. I will report the deliberations of the Subcommittee to the Home Committee on 8 May. If the resolutions are passed by the LegCo and the funding request of $29.7 million is passed by the Finance Committee, the ITB can be established.
4. Bills Committee on Promotion of Recycling and Proper Disposal (Electrical Equipment and Electronic Equipment) (Amendment) Bill 2015
The Bill proposes to amend the Product Eco-responsibility Ordinance and Waste Disposal Ordinance to provide for a scheme for the recycling and disposal of certain types of electrical equipment and electronic equipment and to make technical amendments to related legislation. The Bill seeks to provide for a statutory regulatory framework to implement a mandatory producer responsibility scheme (PRS) for the proper management of waste electrical and electronic equipment (WEEE) generated in Hong Kong. Furthermore, the Administration has decided to develop a new WEEE treatment and recycling facility (WEEETRF) at a reserved site at the EcoPark in Tuen Mun. A bills committee was set up and I have joined the committee in April and elected Chairman.
5. Funding proposal for Phase IIIB works of District Cooling System at the Kai Tak Development
The funding proposal, at an estimated cost of about $606.1 million for Phase IIIB works of District Cooling System (DCS) at the Kai Tak Development was supported at the legCo Development Panel meeting on 28 April 2015. The works for DCS Phase III are expected to be completed by the end of 2017. The DCS Phase IIIB project aims to extend the chilled water supply in the district. The Government will seek the endorsement from the Public Works Subcommittee and the Finance Committee in the second quarter of 2015.
6. Inland Revenue (Amendment) Bill 2015
Under the Revenue (Profits Tax Exemption for Offshore Funds) Ordinance 2006, non-resident entities are exempt from tax for profits derived from “specified transactions” carried out through or arranged by a“specified person” and “transactions incidental to the carrying out of the specified transactions”. The Inland Revenue (Amendment) Bill 2015 aims to extend profits tax exemption for offshore funds to private equity funds, and to include transactions in private companies which are incorporated or registered outside Hong Kong and do not carry out business in Hong Kong. Providing clear tax exemption to transactions conducted by offshore funds in respect of eligible overseas portfolio companies will help attract more private equity fund managers to set up or expand their business in Hong Kong, and hire local asset management, investment and advisory services, which will be conducive to the further development of the local asset management industry. This will in turn drive demand for other relevant professional services. I have joined this Bill Committee.