20131213 Harbour Times

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Chris Lusher

The Bottom Line2017 CE Election

December 13th 2013 January 9th 2014Issue 14, volume 2Retail price HK$50www.harbourtimes.com

INSIDE HONG KONG POLITICS, GOVERNMENTAND INTERNATIONAL AFFAIRS

Harbour Times | December 13th 2013

Politics

The consultation for 2017 CE election and 2016 LegCo election has finally come forward after a year of debate. Harbour Times has spoken to many players to identify the bottom line of the people - no screening, genuine choice and public participation. The devil is in the details. Harbour Times looks at the key elements for moving things forward in the constitutional reform. www.harbourtimes.com

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Index

PeopleAdrian Cheng ......................... 5Alan Lai ................................... 11Alan Leong..........................7, 11Albert Chan .......................... 10Ambrose Ho .......................... 11Andrew F. Quinlan ...............12Andrew Fung Hau-chung ... 5Andrew Fung Wai-kung ...... 5Andrew Quinlan .................. 13Andrew Robb ........................ 13Andy Lau ................................. 5Ann Chiang ........................... 11Anne Teng Yu-yan ................ 5Anthony Nightingale ........... 5Barry Cheung ......................... 7Benny Tai ................................. 7Brian Garst ............................12Cameron Boardman ........... 13Carrie Lam ..........................7, 11Chan Hak-kan ........................ 7Charles Mok ...................... 4, 11Cheng Yan-kee....................... 5Cheung Man-yee .................. 7Christopher Chung ............... 7Chris Yeung ............................ 7Chung Kwok-pan ................. 11Claudia Mo ............................ 11Cyd Ho ......................... 10, 11, 12David ORear ..........................6Douglas Woo ......................... 5Dr Lau Ka-hin ......................... 7Eddie Ng .................................. 7Emily Lau ...................... 7, 10, 11Erica Yuen ............................. 10Fernando Cheung ................ 11Forever Sze ............................. 7Frederick Fung ...................... 11Gregory So ........................ 11, 15Helena Wong ......................... 7Henry Tang ............................. 7Ian McFarlane ....................... 13Jake van der Kamp ............... 4James To ................................ 11Joe Ng ...................................... 5John Lee ................................. 11John Size ................................ 13John Tsang.............................. 7Jos Manuel Barosso ..........14Julia Gillard ........................... 13Julie Bishop ..................... 13, 14Kenneth Chan....................7, 11Kirsty Boazman .................... 13Kitty Yan .................................. 7Ko Wing-man ........................ 7Kwok-him .............................. 11Kwok Ka-ki.............................. 7Lai Tung-kwok ...................... 11Lam Tai-fai .............................. 7Lau Wong-fat ........................ 11Lawrence Ho ......................... 13Lee Cheuk-yan ..................... 10Leung Chun-ying .................. 7Leung Yiu-chung ...............7, 11Li Fei ......................................... 7Longhair ................................. 11Mable Chan ........................... 11Margaret Leung Ko May-yee .................................. 5Martin Liao ............................ 11Michael Wong ....................... 5Mok Wai-chuen ..................... 7Nelson Chow ........................ 11Patrick Ma Ching-hang ....... 5Paul Chan ................................ 7Paul Tighe ........................ 13, 14President Benigno Aquino . 7Qiao Xiaoyang ....................... 7Rafael Hui ............................... 7Raj Sital Motwanti...............14Raymond Chan ................10, 11Raymond Wong .................. 10Richard Li ................................ 5Richard Tsoi .......................... 10Ricky Wong............................ 11Roland Chin ........................... 11Roy Tang .................................. 7Sin Chung-kai ........................ 7Sital Motwani .......................14Starry Lee ................................ 7Stephen Lee Hoi-yin ............. 5Thomas Yan .......................... 10Timothy Tong .....................7, 8Tony Abbott .......................... 13Tsang Tak-sing ...................... 11Tye Angland .......................... 13Valdas Adamkus ..................14Vincent Lo ............................... 5Wong Ching .......................... 11Wu Chi-wai ........................7, 11Xi Jinping ................................ 7Zac Purton ............................. 13Zhang Xiaoming ................... 7

GovernmentAirport Authority .................. 5Communications Authority ............................... 11Constitutional and Mainland Affairs ................... 5Environmental Protection Department ........................... 7Hong Kong International Airport ..................................... 5Hospital Authority Board ... 5Housing Department ......7, 11IICAC ................................7, 8, 11Marine Department............. 5Registration and Electoral Office ...................................... 11The Ombudsmans Office .. 11Treasury Bureau .............. 11, 12

Organisations Alliance for True Democracy ........................... 10APEC ......................................... 5Australian Chamber of Commerce in Hong Kong ...................... 13, 14Automatic Exchange of Information (AEOI) Group ......................................12Board of Airline Representatives .................... 5Business and Professionals Alliance for Hong Kong ...... 11Civic Party ........................... 7, 11DAB.......................................7, 11Democratic Party ............ 5, 10Fraser Institute .....................12Heritage Foundation ..........12Heung Yee Kuk ..................... 11HKU ......................................... 11Hong Kong College of Psychiatrists ........................... 7Hong Kong General Chamber of Commerce .......6Hong Kong Jockey Club ..... 13Hong Kong Mercantile Exchange ................................ 7House of Lords....................... 4Indian Chamber of Commerce in Hong Kong ..14Invest Hong Kong ................ 13Labour Party .....................10, 11League of Social Democrats ............................ 10Liberal Party .......................... 11Macau Jockey Club .............. 13National Peoples Congress 7Neighbourhood and Workers Service Centre..7, 11Occupy Central .................7, 10Organization for Economic Cooperation and Development ........................12Oxford Economics ................ 5People Power ...................10, 11Power Voters ....................... 10Professional Commons ...... 11Progressive Democratic Alliance.................................. 10Proletariat Political Institute ................................ 10RTHK ....................................7, 11The Frontier.......................... 10United Nations ...................5, 7University of Hong Kong .7, 8Victorian Racing Club ......... 13Tung Wah Hospital .............. 5

CompaniesAirbus ...................................... 5Asia Television Limited ...... 11Boeing ..................................... 5Cathay Pacific ........................ 5Hang Seng Bank ................... 5Hong Kong Television Network .................................. 7Jardine Matheson ................. 5KPMG ....................................... 5New World Development .. 5NOW TV................................... 7Pacific Century Group .......... 5Shui On Group ....................... 5Taisang Bank .......................... 5Television Broadcasts Limited ................................... 11Wharf Cable ........................... 7Wheelock ................................ 5

Cities and Countries Australia.......................4, 13, 14Beijing ............................... 4, 14Canada .................................... 4Canberra ................................ 13China............................... 7, 8, 13Czech Republic ..................... 11Jakarta ....................................12Japan ....................................... 13Korea...................................9, 13Lithuania ................................14London ......................... 5, 14, 15Melbourne ............................. 13Somalia ................................... 7UK ............................................. 4United States ......................... 4US ............................................ 13


Politics

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Asia


Harbour View

Functional constituency survival: keep your head down

Hong Kong is gripped with con-stitutional reform fever and the Chief Executive selection process is all the rage. One feels for the neglected Functional

Constituencies (FCs), once the regular tar-get of constitutional reformers. For the an-glophone crowd, Jake van der Kamp leads the literary way, coining the term rotten boroughs for his ofttime targets of derision.

Lately, they have received scant mention - only a passing mention that the govern-ment sees reform of the CE selection process as a precursor to Functional Constituency reform. There were some grumbles, quickly dissipating, but all eyes are on the prize and trying to cram a Legislative Council reform in before 2016 would surely distract from reforming the real power, the Chief Executive.

Fair enough. The Functional Constituen-cies will live to fight another day. If huge efforts and political capital are expended right up to the close of 2017, there will hardly be time and energy to set about reforming the Functional Constituencies for 2020. But once the big prize is won, reformers may lose their zeal and public appeal to wage the wars needed to dispose of the func-tional constituencies. Livelihood issues to the fore; functional constituencies a bore.

Yes mLordKeeping in mind FCs have colonial ante-cedents, looking to their legislative cousins may give clues to their future. Britain has its House of Lords, Canada its Senate. Neither are properly elected by anything pretend-ing to be universal suffrage. By contrast, the United States and Australias two houses are elected and expected to exercise their power. America adds the President as a separate branch. Three parties need to negotiate their way through every legislation, with party

affiliation being little guide to how politi-cal actors may align from branch to branch.

Checks and balances become gridlock if not managed carefully. Without checks, tyr-anny occurs. Even a genuinely elected, uni-cameral government could easily descend into despotic rule if there were no oppos-ing branches of government, an independ-ent judiciary or free press to oppose them.

Where non-elected branches of govern-ment persist in democratic countries, com-posed of the supposedly wise and learned, they are wise - to keep their heads down. Nor-mally well-paid with considerable perks, they draw attention to themselves at their peril. If they exercise their power or abuse perks (as has happened recently in Britain and Canada), they generate calls for genuine democratisa-tion or abolition. Rubber-stamping legislation from the popularly elected house is almost always their best course of conduct. Almost.

Unelected, usefulRebellions do happen from time to time. The appointment of these grandees usu-ally is made by popularly elected pols, but their removal is usually mandated by age or a more final retirement. Once in place, they can act their conscience, free of polling numbers, fundraising pressures or patron-age temptations (theyve already cashed in their patronage chips). Like tenured profes-sors, they can choose their research topics, hobby horses and speak their minds. Very ill-considered behaviour could result in them losing everything, post and perks, so actions to oppose a sitting government must be judicious, principled and popular.

Our current Functional Constituency place holders would do well to consider their example. Legislators in constituen-cies expanded beyond Michael Degolyers magic number of voters (~4,500), over which

results become difficult for powers that be to manipulate, have some legitimacy. Think Charles Mok in IT. However, those that reg-ularly run unopposed in constituencies of scant voter base could be next in line for the full sustained street protest treatment once the CE elections are reasonably and acceptably, to most voters, democratic.

If FCs continue to block the will of Geo-graphical Constituency (GC) members and then a genuinely democratically elected Chief Executive, they will come under constant fire and will not stand. If they keep their heads down and make a worthy contribution from time to time, they just might survive.

Change is hard to doIn places that have such bodies, reform to make them more directly elected is often mooted and rarely elected. Reform of the House of Lords in Britain has been discussed for over 100 years. The Prime Minister of nine years in Canada was a rabid reform proponent in opposition and would get support even from his enemies in Parliament for action to make the Sen-ate electable. Likelihood of reform? Zero.

Such legislators usually have powers and position rooted in constitutions that are only altered after passing fairly high legislative bars. Unless there is a high dudgeon about some flagrant abuse, there are always big-ger fish for elected, vote-chasing politicians to fry. Occasionally, the appointees even do something popular that makes people think they might be worth keeping. For example, many Canadians believe legalisation of mar-ijuana is a good idea; treating it should be a health issue rather than a criminal issue. In 2002, a 600 page Senate report made recommendations to do exactly that. The report was generated by a bipartisan panel of Senators. Elected politicians, fearing the

wrath of a minority of voters in key ridings and deep pocketed donors, have dodged the topic. Senators were able to use their research budgets and authority to exam-ine the issue carefully and act, as intended, as a Chamber of sober second thought.

Sober second thoughtIn Hong Kong, FCs may serve another func-tion. An anxious Beijing, mindful of keeping its own checks, might like to have such a body as insurance. Like insurance, every-one would be happier if it was never used. It could be argued that a Beijing influenced FC cohort could have a chilling effect. Or it might just have a mentor advisor role - like in other places. A placebo that makes those nervous about real democracy feel better. On consideration, a Hong Kong strong enough to demand, and get, an elected CE and GC, could likely reform the FC when it was deter-mined to do so; in other words, if provoked.

In fact, most people would prefer to abol-ish the smallest FCs or make them so dem-ocratic they cease to be rotten boroughs. If they block the will of the peoples popu-lar representatives, they will certainly go that way. If they keep their heads down and do their best to play a constructive role, they may survive. Either way, once Hong Kong has a popularly elected CE, they will have to get with the program and represent the people of Hong Kong, not their tiny constituencies, or perish.

Special thanks to Andrew Shuen Pak-man for the germ that flowered into this Op/Ed. He begins most of our conversations with You know what you should write about?! This time I did. Thanks and Merry Christmas!

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Elevating political discourse

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Comment & Debate

Letter to the editor

The current discussion around the proposed three runway system at Hong Kong International Airport (hkia) is focused on the potential impacts on the environment. The environmental lobby and those living near to the airport have raised valid concerns in terms of potential impacts on local ecology, noise disturbance and air quality. But so too is the validity of the overall need for a third runway at hkia.

Not only is hkia a major air transport hub, it is also vital to Hong Kongs continued prosperity as an economic powerhouse. This brings benefits to everyone in Hong Kong, not just airline passengers or shippers of cargo. It also generates vital benefits through connections created between cities and markets that enable foreign direct investment, business development and other spill-over benefits that help Hong Kong thrive as a place to do business and to live. Currently, aviation is worth hkd 88.9 billion to Hong Kong, representing 5.5 per cent of gdp, rising to 8.2 per cent when including the sectors contribution to tourism.

UK-based Oxford Economics recently estimated that a 10 per cent improvement in air transport connectivity relative

to GDP would see a HKD 1 billion per annum increase in long-run GDP for the Hong Kong economy.

But, at what price do these vital benefits come at the expense of the environment? Undoubtedly, aviation, like every other industry, has an environmental impact and currently accounts for 2 per cent of global manmade greenhouse gas emissions. But it is also an industry which is fully committed to reducing this impact. Airlines are investing heavily in the very latest technology the Airbus A380, already serving Hong Kong, is one of the worlds quietest large aircraft. New designs including the Boeing 787 and Airbus A350-XWB utilise advanced materials such as carbon fibre, making them lighter, reducing fuel consumption and CO2 emissions by up to 28 per cent compared to their predecessors. Overall, aircraft are now 70 per cent more fuel efficient than the early jets, with lower emissions. New aircraft are also progressively quieter than those in service even a decade ago. Indeed, through technology advancements, the industry has managed to reduce overall noise by 75 per cent since the early 1960s.

In October 2013, aviation became the first global sector to have its post-2020 CO2 emissions regulated by the United

Nations something the industry had been calling for since 2008 and had pledged to carbon neutral growth from 2020 back in 2009. Airlines have been preparing for this fundamental change to their business, setting C02 reduction targets. Hong Kongs Cathay Pacific has one of the most aggressive a 31 per cent reduction in CO2/Revenue Tonne Kilometre (rtk), or a 2 per cent average year on year fuel efficiency improvement, in line with UN recommendations. Far from being the pariah that some have suggested, sustainability has become central to the industrys future and is playing its part in addressing one of the most pressing challenges of our time, global climate change.

For Hong Kong, there is much to consider. The airport eia will soon be published and the public debate will rightly focus on the importance of preserving our environment. The Airport Authority Hong Kong (aahk) must take the necessary steps required to ensure that any expansion should be undertaken in a way that minimises overall environmental impacts. The key is mitigation and the Authority must follow the recommendations of the report in terms of addressing the major environmental issues.

But we must also ensure that we seize the opportunity to provide for a sustainable future for Hong Kong and recognise the vital importance that aviation plays in our economy and society. Without a thriving aviation hub, our city will suffer. Without trade and investment, we will be unable to support initiatives that promote biodiversity, conservation and the environment, as Hong Kong loses out to growing competition from emerging markets.

Rather than growth at any price, as some environmentalists believe to be the case regarding the third runway, we need responsible and sustainable growth that respects the environment and mitigates any potential adverse impacts. Expanding hkia now will help to provide the necessary foundations to guarantee our future success and strengthen our position in the world economy and that will ultimately be of benefit to us all.

Mr Joe Ng is the vice-chairman, Board of Airline Representatives (bar) Hong Kong

3rd runway key to a sustainable future for Hong Kong

Harbour Crossings

Harbour Crossings real Names this week: Hong Kong (patriot!), Man Bun (yummy), Yan-kee (American?), Wai-ling (think Munchs The Scream). 2 Andrew Fungs, 2 Michael Wongs. We added an Andy Lau to have two of those. Plus two Andrew Quinlans between HT and Diplomat. Dont mix them up!

On a serious note, get ready for a new PR face for the government in 2014. A new information coordinator, aka spin doctor, takes the reins in the CEs office. ISD gets a new head. Image makeover for the government next year?

New Information coordinator Andrew Fung Wai-kung, ex-Democratic Party member, seemed to be the choice of neither pro-dem (traitor!) nor pro-establishment camps (one of them!) upon his announced ascension to the role of Secretary of Spin. Someone who knows the inside of the democratic camp, but considered a traitor, doesnt seem like a building bridges move. So why then? He knows their weaknesses? Maybe. The choice is hard to fathom given how the CEs base feels about it (not happy at not having one of their own take the position). Maybe he qualifies on the basis of Harbour Times checklist and has the skills. Dont have it the May article at hand? Check the online archives under Special on the CEs next head of media relations It is hard to imagine anyone who would please both camps, unless Andy Lau (Tak-wah, not the one below) took over.

New propaganda chief: Director of Information Services DepartmentMr Patrick Nip Tak-kuen is taking over the ISD. In the old days, other administrative officers distrusted the ISD with its emphasis on journalistic skills over administrative exams. Administrators are back in charge. Mr. Nip has a long history with the government, most recently as the head of welfare. Expenditure rose 40% over his three years at the head to over $54.7 billion. Apparently, he can spend money. To good effect in his new role, we hope.

Michael Wong leaves ISD for the marine departmentMarine department management deficiencies have been deduced from the decision to put Michael Wong Wai-

lun in the captains chair at the Marine Department. Coming out of the ISD, he has also been around. He is a former Deputy Secretary of Education and has previously been associated with Open University. Like most good PR chiefs, he has kept his image in the shadows during his time at ISD. He is probably hoping he can improve management to keep the Marine Department out of the spotlight its been in the past couple of years.

New District Officer for Eastern districtFrom Causeway Bay to Chai Wan, the new queen of the Eastern district castle is Anne Teng Yu-yan. Shes been with The Firm since 1998. A linguist by training, she won some heavy duty scholarships back in the day to travel to London for a year at taxpayer expense to produce a 25 page paper outlining her thoughts on the word saai (). While her new job will probably be a little more high pressure than that, shell be glad to be out of the line of fire at Constitutional and Mainland Affairs, where things are about to heat up! She may lose one of the Hong Kong hotspots as LegCo is currently discussing moving Tin Hau and Victoria Park into Wanchai (along with 2 District Council seats).

apec Business Advisory Council: Who reps Hong Kong?No change-ups, but interesting to see who is on the job as Hong Kong will host the apec Finance Ministers meeting in September 2014 at a cost of $63.6m hkd, courtesy Joe Taxpayer. Our men (theyre all men) at abac are Jardine Mathesons, Mr Anthony Nightingale; the Chairman and Chief Executive of Pacific Century Group, Mr Richard Li and the Chairman of Shui On Group, Mr Vincent Lo. The Government appointed back-ups Adrian Cheng of New World Development (until the end of 2015) and Douglas Woo, Managing Director of Wheelock (until the end of 2014).

swac-a-doo: appointments to social welfare advisory committee

Your new members are.... Mr Ip Wai-ming (Staffs and Workers

Union of Hong Kong Civil Airlines, + MPF Advisory Board),

Dr Annissa Lui Wai-ling (Church lady - Lutheran Social Services),

Mr Daryl Ng Win-kong (Sino Land dauphin and mini-turbine enthusiast),

Professor Steven Ngai Sek-yum (cuhk philosophy of social work prof); and

Dr Loretta Yam Yin-chun(medical

doctor and board junkie, Bronze Bauhinia Star).

Back again: The five re-appointed members are Mr Hansen Lee Hong-kong (great real name! disabled equestrian athlete), Mr Edmond Lee Man-bun (also real name! listed as Courtier for Lignan University on webb-site), Mr Jovy Suen Leung-kwong (welfare panelist), Dr Sandra Tsang Kit-man (hku prof on substance abuse) and Mr Michael Wong Yick-kam (shk big gun).

Is there a doctor in the house? Hospital authority appointeesMr Andrew Fung Hau-chung (the 2nd Andrew Fung in hc this week) and Mr Stephen Lee Hoi-yin join the board as the HA gears up for reform and people are being appointed to new posts left right and centre. Andrew Fung is a Hang Seng Bank Executive Director and super board-of-everything junkie. Mr. Lee is ex-kpmg (retired) and racing enthusiast - hopefully the ha will be cheering for his horse, Mizzen Grey, this season! Mizzen Grey won one last year.

Returning: Mr Cheng Yan-kee (not American, engineer), Mrs Margaret Leung Ko May-yee (famous banker) and Mr Patrick Ma Ching-hang (Taisang Bank/Land and former Tung Wah Hospital Chairman).

Mr Andy Lau Kwok-fai, garment and manufacturing magnate, is back again. Odd - hes also on the Working Group on Regulation of Private Hospitals. Is there a conflict in sitting on the Hospital Authority Board as well as regulating their competitors?

More online at www.harbourtimes.com

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City of Commerce

Hong Kong needs to strengthen both competitiveness and social solidarity in the coming year if we are to manage the challenges ahead. The Chief Executives pending Policy Address, to be followed by the Financial Secretarys 2014-15 Budget, offers the opportunity to do so.

Economics 2014

DAVID OREAR Hong Kong General Chamber of Commerces Chief Economist

Where are we going from here? Are we fated to muddle through, patch-ing over problems while avoiding the tough decisions that need to be made? Or, are we going to garner sufficient sup-port not a consensus, but enough to move forward to deal with issues that can no longer be ignored? We need a vision of who and what we want to be, and a clear road-map for getting to our objective.

We thrived under a basic governing ide-ology encapsulated in the concept of posi-tive non-interventionism. This does not pre-clude acting to make things better, but it does demand a rigorous examination of the impact of the choices we make, and a thor-ough understanding of the price of policy.

The Government undertakes environ-mental impact assessments, and occasion-ally economic impact assessments. Both are important in ensuring that the results of policy choices are deliberate, and not inadvertent. But, neither goes far enough. What we need is a comprehensive regula-tory impact assessment when significant policy choices are under consideration.

In recent years, major pieces of legislation have, in our opinion, been enacted without adequate assessment of the pros and cons, costs and benefits and the alternatives to leg-islation. As new proposals such as Standard Working Hours and Class Actions work their way through the system, our unease grows. We do not see an overwhelming need to leg-islate in either case, nor do we see a credible understanding of the benefits that might be gained. We cannot point to the costs of failing to introduce such programmes. We should be ready, when examining propos-als where the evidence in inconclusive, to clearly say, No, that wont solve the problem.

The key challenges facing Hong Kong are discussed below, and solutions for each proposed.

ManpowerThe labour supply situation is driving up costs, curtailing economic growth and frustrating both workers and employers. The retail, construction, accommodation and food services, information technology and elderly care sectors are all reaching critical levels of staffing shortages. Unfilled jobs as a percent of the employed work-force are at their highest level in 20 years.

The immediate need is to fill unfilled jobs, and that means labour importation on a scale significant enough to make a real difference. Yes, there are political issues to be managed, but we are unwilling to admit that nothing can be done. The Government can, and must take the lead, most notably by reviewing the Supplementary Labour Scheme and import-ing people to work on infrastructure projects.

If there are not enough hands, less quali-fied people will be hired, and asked to work longer hours. Tired and inexperienced work-ers make mistakes, and we have already seen an increase in work-related injuries. In the construction industry, labour shortage not only impacts work quality and worker safety, but also leads to substantial increases in the cost of infrastructure and residential con-struction. We do not accept that a strident, politically motivated objection to labour

importation trumps the need to protect work-ers lives. It is time to break this impasse.

Over the medium term, we need to keep the workers we have and attract more peo-ple to take up employment. Flexible employ-ment options and extending the retirement age will help. We also need to create an apprenticeship system that shares the cost of enhancing the skills of school-leavers. Vocational training and retraining must be the foundations of our pillar industries.

In the longer term, our labour force will begin to shrink. The situation will only get worse as global growth gets back onto an even footing. We are not going to find solutions by limiting working hours, rais-ing pay or otherwise adding to the cost of doing business. Our 130,000 unemployed people are either unwilling or unquali-fied to take up the more than 77,000 jobs on offer. We need to deal with this reality.

Staying competitiveHong Kong will never be an inexpensive place to do business, but it is and must remain a top choice for those who can afford to be here. That means we need to pay greater attention to why companies locate or relocate else-where. The most often cited reasons are the cost of doing business and the quality of life.

We need to raise our game. By manipu-lating the breadth of taxes and introducing fiscal incentives, our key competitors can often match or even beat our low tax rates. Through paperwork cutting, one-stop shops and customer-oriented approval processes, they further reduce the cost of complying with necessary regulation. At the same time, they recognize that first-class cities must offer a quality living environment and interna-tionally recognized educational curricula.

We have work to do. Our headline profits tax rate looks good on paper, but numer-ous studies have shown that we are rap-idly losing ground. We proposes a reduc-tion in the tax rate on the first $2 million of assessable profits to 10% for the pur-pose of boosting our international com-petitiveness. This two-tiered structure will primarily benefits SMEs. The change is simple, effective, inexpensive and fair.

It will not complicate our simple tax system;

It benefits all businesses but is especially helpful to the more than 70,000 companies with taxable profits of less than $2 million;

It is conducive to Hong Kongs tax competitiveness;

It does not result in significant revenue loss or narrowing of the tax base;

It avoids distorting incentives; and It discourages shifting small business

profits to personal income taxable at 15%.

What would it cost in terms of lost reve-nues? Combining the long-delayed return of the profits tax rate to 15% and introducing 10% rate for the first tranche would reduce the cumulative budget balance over the past eight years by about one-quarter. Instead of the estimated $515 billion surplus in the 2005-06 to 2012-13 period, the total would be around $385 billion and our fiscal reserves would remain well over $600 billion. The solution we propose would bring our budget closer to a balance, retain very large fiscal reserves, leave more money in the economy and do so without narrowing the tax base at all.

Land supply and usageLand has always been a scarce commodity in Hong Kong and likely always will be. One of the more pressing needs arises from the inadequate space available for residential development, which has fuelled deep con-cerns in society. To address this shortfall, we recommend developing brownfield sites and rezoning and relocating existing facili-ties, before considering new reclamation.

Demand for commercial space is being slowly satisfied through development of new business districts, although the market may remain distorted by the double stamp duties imposed on non-residential proper-ties in the medium term. Over the longer

term, flatted factories and other underuti-lized space should be consolidated for com-bined office and retail use. Much of the space recovered would be suitable for a variety of uses. However, a few areas are specifically required for more focused uses. In particu-lar, the harbour front is primarily attractive for developing tourist, recreation and dining facilities. Similarly, it should be a priority to consolidate some of the wider port facilities, and remove or relocate facilities currently in close proximity to the port but which may be adequately located further away.

Caring for the environmentA clean and sustainable environment is cru-cial for the city to maintain its attractive-ness to both domestic residents and foreign investors, and hence its competitiveness compared to neighbouring economies. Per-sonally, we want clean air as much as any-one. From an international perspective, the quality of what we breathe can be a com-petitive advantage, or a stark disadvantage.

The Government is taking steps to tackle our poor air quality, most particularly by getting heavy polluting vehicles off the road, implementing bus route rationalization and reducing pollution from ocean-going vessels in Hong Kong waters. Where appropriate, we should maintain a balance between the environmental objectives and their conse-quences, such as the cost impact and reliabil-ity of services. More importantly though, any sustainable and significant improvement in air quality requires regional cooperation, and should be made more visible to the public.

Being a true believer of the polluter-pays principle, we are a strong advocate of developing a comprehensive package of waste management measures. Such proac-tive measures include incentives for waste reduction at source, landfill and waste charg-ing, facilitation of the development of the environmental and recycling industries, consideration of a producer responsibility scheme, development of a circular economy, and construction of a large-scale waste-to-energy integrated waste management facil-ity. Overseas experience confirms that fiscal support is necessary if private sector recy-cling efforts are to reach a financially sus-tainable critical mass. Therefore, we urge the Government to review its current sup-port for the recycling industry to see if additional resources should be allocated.

Recycling is one of the primary tools to treat municipal solid waste. Yet, we remain over-reliant on landfill, and this must be addressed. The Governments proposal to expand the landfills was defeated in LegCo during the past legislative year, but this cannot be the final word. We support the expansion of the landfills as the only cur-rently viable option. In the long run, while the Government should continue to promote waste reduction at source and recycling, there is an urgent need to develop large-scale waste-to-energy facilities to treat massive volume of residential waste in Hong Kong.

Positioning Hong KongOur vision of Hong Kong, which we be-lieve to be shared by many, is of Hong Kong as an international city deeply in-tegrated with a thriving hinterland and competing with the very best in the world in terms of governance, regulation, qual-ity of life and respect for the environment. We have many of the foundations firmly in place, but further work needs to be done.

Our economy outperformed most global business and financial centres over the past five highly tumultuous years. While we will continue to see our overall growth rate dictated by the ebb and flow of exter-nal demand, the opportunities stand-ing on our doorstep are the envy of less well-positioned competitors. Our capital markets, tourism flows and value-added logistics all depend on maintaining and enhancing our international character.

Since the conceptualization of the Pan-Pearl River Delta Region in 2003, and the establishment of the Pan-Pearl River Delta Regional Co-operation Framework Agreement a year later, the business opportunities avail-able to us have blossomed. After investing heavily to explore, investigate and invest, the low hanging fruit has largely been har-vested. Today, the challenges are not identify-ing opportunities but managing government regulations, and the systemic differences in legal, accounting, cultural and other prac-tices. Government to government discussion and cooperation to overcome these barriers to future prosperity for all sides are both warmly welcomed and strongly supported.

Areas such as the environment, educa-tion, infrastructure, logistics, tourism and even elderly care can best be addressed with regional solutions and cooperation. Blending the strengths of each place with the needs of the others creates synergies and scale economies that cannot be achieved alone.

Many of the recommendations made above are specifically focused on supporting our SMEs, and we believe that the time has come for the Government to make a strategic investment in ensuring that these backbone companies are able to afford the high cost of operating in Hong Kong. Among our sug-gestions are measures that might also ben-efit larger companies, but we do not believe this should prevent action to shore up the cash flow and sustainability of smaller firms.

What needs to be done in 2014

2014 www.harbourtimes.com

Chris Lusher

6


Politics talk

Uncertainty rules 2013Chris Yeung, in his first column with Harbour Times, brings his political acumen to sum up 2013 in succinct fashion. Westerners beleive 13 is an unlucky number. It was for some of our political class this year.

Politics 2013

CHRIS YEUNG

This time last year, Hong Kong was gripped with disappointment, frustra-tion and anger at the administration of Chief Executive Leung Chun-ying just six months into office.

Leung and two key ministers, Paul Chan (development) and Eddie Ng (education), faced angry calls for their resignation Leung for alleged lack of integrity over ille-gal structures on his property, Chan for his controversial ownership of rural land and policy blunders and Ng over a widely criticized national education curriculum.

This isnt quite the worst. There is worse yet to come, to paraphrase former RTHK chief Cheung Man-yee, comment-ing on an unrelated but curiously famil-iar situation the Roy Tang Forever Sze RTHK editorial independence controversy.

As Hong Kong bids farewell to 2013, a familiar gloom has washed over the city. There are signs aplenty.

At a Dec. 8 public forum on next years Policy Address and Budget, Financial Secretary John Tsang was hit on the head with an egg thrown by a protester while Leung was speaking.

Given that protests in the city have been largely restrained, the rare attack on a government official got prominent media coverage. It speaks to the depth of public anger toward Leung and his government and reflects the growing schism between anti- and pro-government forces which has been shown in Leungs district visits.

It flies in the face of Leungs own efforts to bridge the divide between his camp and that of former election rival Henry Tang. There is only one camp from now on: Hong Kong camp, Leung famously said in his victory speech.

Already confronted with a fiercer and more hostile pan-democratic opposition, Leungs administration has been rocked by infighting within the unsteady, disunited pro-establishment camp. This has come at

a cost to Leungs government in pushing policies through during the past 18 months.

A controversial decision to deny Hong Kong Television Network a free-to-air license at the same time as the gov-ernment gave the go-ahead to NOW TV and Wharf Cable, did not help matters.

The governments failure to present a convincing argument sparked a storm of protests.

The popular uproar resembled angry demonstrations against the national education policy in July last year.

Repeated attempts by the pan-democrats to force the government to disclose confidential papers relating to the license decision by the Executive Council have failed, but cracks in the pro-establishment camp over the whole saga have weakened Leungs support base.

Results of a tracking poll conducted by the University of Hong Kong shows Leungs approval rating fell to 40 points out of 100 in November, the lowest since he took office last year. Only 22 percent said they sup-port Leung. Sixty-one percent are opposed.

The deteriorating sentiment toward Leung and his government has been aggravated by bad publicity surrounding his cabinet and, fairly or not, the previous administration. It includes the resignation of close Leung aide Barry Cheung from Exco after the collapse of the Hong Kong Mercantile Exchange.

A handful of deputy ministers and political assistants also quit for various reasons. Reve-lations of alleged corruption involving former chief secretary Rafael Hui and misuse of pub-lic money by the former head of Independent Commission Against Corruption, Timothy Tong, tarnished the image of the anti-graft watchdog and the government as a whole.

Leung also faced ridicule for his per-ceived failure to act tough during a meet-ing with Philippine President Benigno Aquino over the Manila bus hostage trag-

edy on the sidelines of a regional conference.Leungs governance woes have been com-

pounded by his failure to deliver promptly on such burning issues as housing and poverty.

Despite a series of policy initiatives includ-ing a punitive stamp duty and long-term housing strategy consultations, public griev-ances against his housing program persist, particularly among the young middle class.

Leungs stepped-up efforts to ease the pain of low-income families through a top-level poverty-alleviation body headed by Chief Secretary Carrie Lam are making slow progress.

Leung is coming under increasing pres-sure to improve peoples livelihood in the run-up to a tougher battle over political reform, specifically universal suffrage for the 2016 Legislative Council elections and the 2017 chief executive election.

December 4 marked the begin-ning of the reform process with the release of a 55-page paper, Lets talk and achieve universal suffrage, for a five-month, first-round consultation.

It came one year after University of Hong Kong law professor Benny Tai floated the idea of a civil disobedience movement, known as Occupy Central, as a last resort to oppose an undemocratic electoral blueprint.

With the movement gaining more pub-licity and support, Beijing outlined its election criteria in no uncertain terms.

In March, a senior National Peoples Con-gress (NPC) official, Qiao Xiaoyang, said the future chief executive should love China, love Hong Kong and should not be con-frontational toward the central authorities.

During a November visit to Hong Kong, NPC Basic Law Committee chairman Li Fei set out more conditions in the electoral arrangements including so-called institutional nomination.

Beijings tough stance on universal suf-frage in Hong Kong toes an increasingly aggressive line of the Chinese leadership under President Xi Jinping on Hong Kong issues as well as international affairs.

Under its new director, Zhang Xiaoming, the central governments Liaison Office in Hong Kong has been active in local issues, even weighing in on the TV license con-troversy. Not surprisingly, concern has been raised over this kind of involvement by the central government and its impli-cations on Hong Kongs promised high degree autonomy from the mainland.

With lingering cross-border tensions over such basic issues as infant milk sup-ply and increasing mainland visitor arriv-als, a looming showdown over univer-sal suffrage is set to make 2014 another uncertain year. [email protected]

Chris Yeung, formerly editor-at-large at the South China Morning Post, is deputy chief editor of the Hong Kong Economic Journal. He writes on Greater China issues.

LegCo highlightsThursday 28th NovemberMeeting of joint subcommittee on long-term care policyPublic hearing on the Governments measures to support persons with dementia and their carers. Different deputations. Dr Lau Ka-hin, representative of the Hong Kong College of Psychiatrists was concerned with the long waiting time of the patients and that the doctors can only spend a few minutes to examine a case. Mr Leung Yiu-chung (GC- New Territories West, Neighbourhood and Workers Service Centre) criticised the administration for providing old information.

Public hearing of the public accounts committeeDiscussion on the allocation and utilisation of public rental housing flats. Mr Chan Hak-kan (GC-New Territories East, DAB) mentioned that only a quarter of cases passed to the prosecution section were successfully prosecuted and the prosecution rates dropped from 50% in 2008 to 15% last year. As the administration has deployed more people to deal with false declarations, Mr Chan wondered why the prosecution rate dropped to that low level. Mrs. Kitty Yan, Assistant Director (Legal Service) of Housing Department replied that there were three major reasons leading to the drop: Firstly, a guideline issued in 2010 saying that the prosecution must not lead the investigation, and prosecution section can no longer help setting up questions for investigation colleagues. Secondly, the changes in types of false declarations have added difficulties in proving the falsity of declarations, and the lack of witnesses was the last major reason.

Meeting of subcommittee on air pollution control (Air pollutant emission) (controlled vehicles) regulationClause-by-clause examination was made. Dr Kenneth Chan (GC- Hong Kong Island, Civic Party) said that part of the Regulation which proposed to have some controlled vehicles to

be exempted from the Regulation was unclear and asked if there were any mechanisms to decide which type of vehicles can be exempted. Mr Mok Wai-chuen, Assistant Director (Air Policy) of Environmental Protection Department replied they did not have a specific mechanism. Members agreed that the administration had to provide more information related to the unclear part. Examination will continue next time.

Friday 29th NovemberMeeting of joint subcommittee to monitor the implementation of the west Kowloon cultural district projectFirst meeting to discuss and monitor the West Kowloon Cultural District Projects, precisely the Xiqu Centre and the M+. Mr Christopher Chung (GC- Hong Kong Island, DAB) was elected as the Chairman and Mr Alan Leong (GC- Kowloon East, Civic Party) as the Deputy Chairman. Xiqu Centre is a theatre and the estimated construction cost has doubled from $1.3 billion in 2006 to $2.7 billion this year. M+ is a museum for arts and estimated costs stood at $5 billion. Ms. Emily Lau (GC- New Territories East, DP) and Mr Alan Leong were concerned with the constant overspending of Governments projects and the Government responded that they will be accountable for building the basement [Ed note: thats taxpayers money].

Meeting of subcommittee to examine the implementation in Hong Kong of resolutions of the United Nations security council in relation to sanctionsThe Subcommittee finished examining the amendment to implement the United Nations Sanctions on Somalia with an instruction from the Ministry of Foreign Affairs of the prc.

Meeting of bills committee on product eco-responsibility (amendment) bill 2013Discussion continued on the second phase of the plastic bag levy. In response to the proposal

of Mr Wu Chi-wai (GC - Kowloon East, DP) to charge different retailers differently, the administration feared an infringement of laws on discrimination grounds. Dr Helena Wong (GC- Kowloon West, DP) questioned the reason of setting the fine at $2000 for retailers not complying with the levy and said that the fine of illegal parking was only around $400. The administration will respond to Dr Wongs concern later. The Committee will continue clause-by-clause examination in next meeting.

Meeting of house committee1. The Chairman of the Committee has reflected

to the Chief Secretary for Administration that members were upset for not being permitted to attend the luncheon with Mr Li Fei, Basic Law Committee Chairman and also members from the pan-democratic camp demanded the Chief Secretary kickstart the consultation on constitutional development in LegCo. Mrs. Carrie Lam has not responded to both concerns but said she was aware of the demands.

2. A Subcommittee was established to study the Antiquities and Monuments (Declaration of Historical Buildings) Notice 2013. The notice was to declare the Cenotaph and its adjoining land in Central and the Bethanie at 139 Pok Fu Lam Road as monument.

Monday 2nd DecemberMeeting of panel on financial affairs1. Financial Secretary Mr John Tsang briefed

members of the overall economic situation in Hong Kong. The real GDP growth stood at a 2.9% in the third quarter. Mr Lam Tai-fai (FC- Industrial 2nd) intimated the stamp duties will not solve real problems but Mr Tsang said the administration has successfully cooled down the property markets. Mr Tsang also agreed to enlarge the tax base to meet with the increasing construction cost for infrastructures and health care expenditures.

2. Members discussed the Budget consultation for 2014-15. Mr Sin Chung-kai (GC- Hong Kong Island, DP) criticised the lack of a clear outline on Government spending Mr Tsang replied that the outline corresponded with the administration policies.

3. Legislative proposal to enhance the issuance of Islamic bonds. The Shariah prohibits the creation of a purely debt-based saleable security and laws in Hong Kong will have to be amended to comply with Shariah. The administration will look into the practises in other countries and will provide a clear framework for operation and regulation to minimise confusion.

4. Plan for the 2016 Population By-census. The administration was considering enlarging the relationship status in the census, such as allowing people to choose cohabitation and same sex marriage. Ms. Starry Lee (FC- District Council 2nd, DAB) urged the administration to conduct an investigation on the number of sub-division units in Hong Kong.

Special meeting of panel on health servicesMembers looked into the measures for the prevention and control of invasive pneumococcal disease. Dr Kwok Ka-ki (GC- New Territories West, Civic Party) criticised the lack of a clear message from the administration on the new vaccination for children since experts held different views. Dr Ko Wing-man, Secretary for Food and Health replied that children will still face the risk after receiving the vaccination and the administration can not guarantee the vaccination was fool-proof.

Continued on page 11

132013 www.harbourtimes.com

WELCOMING CHRIS YEUNG. Chris makes his Harbour Times debut with the best 2013 political wrap up in HK. The whole year, right here.

7


Agenda fourteen days 8

CULTURECOMMUNITYNETWORKINGSEMINARGOVERNMENTLEGCO NATIONALDAY

complex. www.legco.gov.hk

LEGCOMeeting of panel on transportP 10:45Conference room 3, LegCo complex. www.legco.gov.hk

LEGCOMeeting of finance committeeP 14:30Conference room 1, LegCo complex. www.legco.gov.hk

SEMINARHKGCC: transfer pricing in China P 16:00Speaker: Mr Su Xiao Lu, also known as the Father of transfer pricing in China will share his experiences on how the Chinese tax authorities view transfer pricing as a tool for tax planning. www.chamber.org.hk

GOVERNMENTCensus and statistics departmentP 16:30Press release: balance of payments and international investment position statistics for 3rd quarter 2013. www.censtatd.gov.hk

Saturday

21CULTURE Asia Society: family tourP 14:00Designed to encourage communication and foster an appreciation of visual arts in younger children aged 4 - 12, this family-oriented tour incorporates conversations and creative hands-on gallery activities to investigate. www.asiasociety.org

Sunday

22Monday

23LEGCOSpecial meeting of panel on health servicesP 09:00Conference room 1, LegCo complex. www.legco.gov.hk

GOVERNMENTCensus and statistics departmentP 16:30Press release: consumer price index for November 2013 www.censtatd.gov.hk

CULTURE Exhibition of Doris Choy (chinese painting and calligraphy exhibition)P 19:00Exhibition gallery of Hong Kong cultural centre. www.hkculturalcentre.gov.hk

Tuesday

24Wednesday

25Christmas Day

Thursday

26Public holiday

SEMINARAmCham: key Tools for managing arbitral proceedings the 2013 hkiac administered arbitration rulesP 12:00Speaker: Chiann Bao, Secretary-General, Hong Kong International Arbitration Centre. Ms. Chiann Bao will discuss recent developments at the most established and long standing institution in the region, the Hong Kong International Arbitration Centre (hkiac), taking a closer look at how the hkiac is developing to meet the increased demand for arbitration in Asia and the evolving needs of its users. www.amcham.org.hk

NATIONAL DAYNigerQatar

Thursday

19SEMINARAmCham: analytics, the real-world use of big data how innovative enterprises extract value from uncertain dataP 12:00Speaker: Jason Bowers, big data communications sector lead, growth markets, IBM. IBMs newest research finds that organisations are using big data to target customer-centric outcomes, tap into internal data and build a better information ecosystem. www.amcham.org.hk

CULTURE Imagery by miniature cameras P 15:00Members are required to present their works in a portfolio on one subject matter or theme, and the images are first displayed to the public. It aims to enhance the members observation power and creativity in the art of photography. www.hkculturalcentre.gov.hk

GOVERNMENTCensus and statistics departmentP 16:30Press releases: chain volume measures of gross domestic product by economic activity for 3rd quarter 2013; employment and vacancies statistics for September 2013; statistics on trade involving outward processing in the mainland of China for 3rd quarter 2013; volume and price statistics of external merchandise trade for October 2013. www.censtatd.gov.hk

Friday

20LEGCOMeeting of bills committee on securities and futures (amendment) bill 2013P 08:30Conference room 3, LegCo complex. www.legco.gov.hk

GOVERNMENT1048th Town Planning Board meetingP 09:001/F North Point Government Offices, 333 Java Road, North Point. www.info.gov.hk/tpb/

LEGCOMeeting of panel on developmentP 09:00Conference room 1, LegCo complex. www.legco.gov.hk

LEGCOMeeting of bills committee on stamp duty (amendment) bill 2012P 10:45Conference room 2, LegCo

SEMINARAmCham: counterfeiting trends in Hong Kong and ChinaP 12:00In this luncheon talk, Mayank Vaid, Chairman of the European Brands Protection Committee and Alan Chiu, Partner of Mayer Brown JSM will talk about the latest counterfeiting trends in Hong Kong and China as they impact the luxury goods industry and other sectors. www.amcham.org.hk

LEGCOMeeting of bills committee on air pollution control (amendment) (No.2) bill 2013P 14:30Conference room 2B, LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on commerce and industryP 14:30Conference room 3, LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on manpowerP 15:30Conference room 1, LegCo complex. www.legco.gov.hk

LEGCOMeeting of bills committee on product eco-responsibility (amendment) bill 2013P 15:30Conference room 2A, LegCo complex. www.legco.gov.hk

GOVERNMENTCensus and statistics departmentP 16:30Unemployment and underemployment statistics for Sep Nov 2013 www.censtatd.gov.hk

NETWORKINGNew Zealand Cham: NZCCHKonnectP 18:30Lobby, Renaissance Harbour View Hotel, Wan Chai. www.nzcchk.com

CULTURE Hong Kong visual arts society 40th anniversary exhibitionP 18:30Exhibition Hall, Low Block, Hong Kong City Hall, 5 Edinburgh Plaza, Central. www.museums.gov.hk

NETWORKINGItalianCham: Italian design nights 2013 open studio cocktail partyP 19:003/F, 37 Staunton Street, SoHo, Central. www.icc.org.hk

NATIONAL DAYBhutan

Wednesday

18LEGCOMeeting of public works subcommitteeP 08:30Conference room 1, LegCo complex. www.legco.gov.hk

LEGCOCase conference with the administration (closed)P 09:30Public complaints office, LegCo complex. www.legco.gov.hk

LEGCOCouncil meetingP 11:00Chamber, LegCo complex. www.legco.gov.hk

Monday

16LEGCOMeeting of panel on environmental affairsP 08:30Conference room 1, LegCo complex. www.legco.gov.hk

LEGCOMeeting of joint subcommittee on long-term care policyP 08:30Conference room 2, LegCo complex. www.legco.gov.hk

LEGCOSpecial meeting of panel on economic developmentP 10:45Conference room 2, LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on public serviceP 10:45Conference room 2, LegCo complex. www.legco.gov.hk

SEMINARAmCham: district energy system, sustainable solutions for citiesP 12:00District energy and cogeneration was identified by International Energy Agency (iea) as a proven, cost-effective and clean solution for delivering electricity, heating and cooling. The talk will discuss the various reasons why these systems can help some regions to meet broader energy and environmental objectives. Cases studies would be used to illustrate benefits and critical successful factors of district energy system. www.amcham.org.hk

LEGCOLunch with former membersP 10:45Dining Hall,LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on constitutional affairsP 14:30Conference Room 1, LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on administration of justice and legal servicesP 16:30Conference Room 2, LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on health servicesP 16:30Conference Room 3, LegCo complex. www.legco.gov.hk

NATIONAL DAYBahrainBangladesh

Tuesday

17LEGCOMeeting of subcommittee on povertyP 08:30Conference room 1, LegCo complex. www.legco.gov.hk

LEGCOMeeting of bills committee on child abduction legislation (miscellaneous amendments) bill 2013P 10:45Conference room 2A, LegCo complex. www.legco.gov.hk

LEGCOCase conference with the administration (closed)P 11:00Conference room 2A, LegCo complex. www.legco.gov.hk

Saturday

14SEMINARScience laureates Nobel prize winning scientific research 2013: 2013 Nobel prize in chemistryP 14:30Speaker: Professor G H Chen (head of department, department of chemistry, the University of Hong Kong). www.museums.gov.hk

SEMINARScience laureates Nobel prize winning scientific research 2013: 2013 Nobel prize in medicineP 15:30Speaker: Dr Karen W Y Yuen (assistant professor, school of biological sciences, The University of Hong Kong). www.museums.gov.hk

COMMUNITYA very Christmas concertP 15:30Take your seats under the stars and lights of the Hong Kong skyline for a spectacular night of amazing entertainment with fabulous bands, musical performances and festive entertainment. Bring your picnic basket and find the perfect spot under the starlit sky to enjoy an enchanting evening of music, festivities and celebration. www.veryhk.org

Sunday

15COMMUNITYFriends of the earth: fun hiking for water conservationP 09:30Route length around 6 km. Walking time around 3 hours. A low difficulty route was deliberately chosen to allow parents to bring along their children. Aberdeen country park. www.foe.org.hk

CULTURE Asia Society: themed family workshop, super hero factoryP 14:00The afternoon begins with a theme-specific interactive gallery tour. Children will get to explore different heroic figures in the gallery. Drawing inspirations from artists representation of figures, the workshop encourages children to create their own superhero with their families. Do your kids want to be a superhero? It will surely be a dream-come-true for them (and may be to parents, too) in the interactive photo taking session. All participants are welcomed to dress up as their favorite superhero. www.asiasociety.org

CULTURE The Christmas charity concert 2013, by music for the growing mindP 16:00Concert hall, Hong Kong academy for performing arts. www.musicgrowingmind.org

Contributions to the agenda are welcome

Email: [email protected]

Friday

13SEMINARBritCham: Hong Kong a regional hub for port and logistics, and an international maritime centreP 08:00Speaker: Prof Anthony Cheung Bing-Leung GBS, JP, Secretary for Transport and Housing. www.britcham.com

LEGCOMeeting of subcommittee on integrated educationP 08:30Conference room 2, LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on home affairsP 08:30Conference room 3, LegCo complex. www.legco.gov.hk

LEGCOMeeting of select committee to inquire into matters relating to Mr Timothy Tongs duty visits, entertainment, and bestowing and receipt of gifts during his tenure as commissioner of the Independent Commission Against Corruption (closed)P 08:30Conference room 4, LegCo complex. www.legco.gov.hk

GOVERNMENT502nd Metro Planning Committee meetingP 09:001/F North Point Government Offices, 333 Java Road, North Point. www.info.gov.hk/tpb/

LEGCOCase conference with the administration (closed)P 10:45Public complaints office conference room, LegCo complex. www.legco.gov.hk

LEGCOMeeting of bills committee on stamp duty (amendment) bill 2013P 10:45Conference room 2, LegCo complex. www.legco.gov.hk

LEGCOMeeting of joint subcommittee to monitor the implementation of the west Kowloon cultural district project (closed)P 11:45Conference room 4, LegCo complex. www.legco.gov.hk

SEMINARHKGCC: new dawn for Taiwan opportunities post ECFA P 12:30The latest economic situation in Taiwan and co-operation opportunities for Hong Kong, Taiwan and the mainland. www.chamber.org.hk

LEGCOMeeting of house committeeP 14:30Conference room 1, LegCo complex. www.legco.gov.hk

LEGCOMeeting of finance committeeP 15:00Conference room 1, LegCo complex. www.legco.gov.hk

GOVERNMENTCensus and statistics departmentP 16:30Press release: gross national income and external primary income flows for 3rd quarter 2013. www.censtatd.gov.hk

SEMINARHKGCC: town hall forum series P 12:30The Honourable K C Chan Secretary for Financial Services and the Treasury www.chamber.org.hk

NETWORKINGItalianCham: Christmas cocktailP 19:00Ferrari showroom, 60 Repulse Bay Road, Repulse Bay www.icc.org.hk

December


Agenda twenty eight days 9

Sunday

5CULTURE SAR Philharmonic charitable foundation fundraising concert P 12:00The Hong Kong anti-cancer society celebration of life charity concert. Concert hall, Hong Kong cultural centre www.hkculturalcentre.gov.hk

Monday

6LEGCOMeeting of panel on financial affairsP 09:00Conference room 1, LegCo complex. www.legco.gov.hk

LEGCOMeeting of panel on housingP 14:30Conference room 3, LegCo complex. www.legco.gov.hk

SEMINARBritcham: the art of persuasion: selling services, concepts and ideasP 14:30Speaker: Mr Anthony Behan, founder and managing director of The Communication Group. www.britcham.com

Tuesday

7LEGCOCase conference with the administration (closed)P 11:00Public Complaints Office, LegCo complex. www.legco.gov.hk

SEMINARFHKI: workshop on toy distribution channels for domestic sales in the mainland retail chainsP 14:30Meeting room N104-105,Hong Kong convention and exhibition centre, 1 Harbour Road, Wan Chai, Hong Kong. www.industryhk.org

LEGCOMeeting of panel on securityP 14:30Conference Room 3, LegCo complex. www.legco.gov.hk

NETWORKINGAustroCham monthly informal gathering: the stammtischP 18:30Bar 6IX, 6/F, Parekh House, 63 Wyndham Street. www.austrocham.com

Wednesday

8LEGCOMeeting of establishment subcommitteeP 08:30Conference Room 1, LegCo complex. www.legco.gov.hk

LEGCOCouncil meetingP 11:00Chamber, LegCo complex. www.legco.gov.hk

Thursday

9NATIONAL DAYSerbia

Wednesday

1Public holiday

CULTUREDragon and lion dance extravaganza 2014P 13:30Parade starts from Canton road along Hong Kong cultural centre and Avenue of Stars and finishes at UC centenary garden, East Tsim Sha Tsui. www.dragonlion.hk

NATIONAL DAYCubaHaiti Sudan

Thursday

2GOVERNMENTCensus and statistics departmentP 16:30Press release: retail sales statistics for November 2013 www.censtatd.gov.hk

Friday

3GOVERNMENT503rd Metro Planning Committee meetingP 09:001/F North Point Government Offices, 333 Java Road, North Point. www.info.gov.hk/tpb/

LEGCOMeeting of subcommittee on matters relating to railwaysP 10:45Conference room 3, LegCo complex. www.legco.gov.hk

GOVERNMENT502nd Rural and New Town Planning Committee meetingP 14:301/F North Point Government Offices, 333 Java Road, North Point. www.info.gov.hk/tpb/

LEGCOMeeting of house committeeP 14:30Conference room 1, LegCo complex. www.legco.gov.hk

Saturday

4SEMINARDoes Hong Kong have fossils? An introduction to the ancient creatures and environment of Hong Kong P 14:30Speaker Dr Yeung Ka-ming (senior geopark officer, Agriculture, Fisheries and Conservation Department) Lecture Hall, Hong Kong Science Museum www.museums.gov.hk

Friday

27CULTURE Solo exhibition of Chinese paintings by Mak Sik-chungP 12:00Exhibition gallery of Hong Kong cultural centre www.hkculturalcentre.gov.hk

GOVERNMENTCensus and statistics departmentP 16:30Press release: wage and payroll statistics for September 2013 www.censtatd.gov.hk

Saturday

28COMMUNITYThe 11th Central and Western district festival HK our home variety showP 15:30Dance, sign language and musical performance will be staged by local organisations and the Shunde Little Golden Phoenix Art Troupe. www.hkourhome.gov.hk

GOVERNMENTCensus and statistics departmentP 16:30Press release: external merchandise trade statistics for November 2013

Sunday

29Monday

30CULTURE 3rd Korea Hong Kong and Macau joint art exhibitionP 14:00Hong Kong Central Library www2.lcsd.gov.hk

CULTURE The Macallan bravo series: new years eve Viennese treatsP 20:00Concert hall, Hong Kong cultural centre. www.hkphil.org

Tuesday

31NETWORKINGThe FCCs new years eve party 2013 2014P 19:00The Foreign Correspondents Club. www.fcchk.org

CULTURE2013 New years eve countdown carnivalP 20:30Sha Tin Park, Sha Tin Town Hall Plaza and City Art Square. www.lcsd.gov.hk

January2014

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Issue 15 published January 10th 2014Infrastructure, German CG

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Party Watch

The democratic trinity: People Powers 3 in 1Chair Erica Yuen and LegCo member Albert Chan give the lowdown on the People Power coalition.

People Power came into play in April 2011 during hectic days: Seven months to the District Council election and around a year and a half to the LegCo election. And now, the organisation is entangled in the same debate on constitutional reform which led to its own formation.

Politcal Parties

CALVIN LAM

The fraction inside the League of So-cial Democrats (lsd) in 2011 saw the departures of legislators Albert Big Guy Chan (GC- New Territories West), Ray-mond Mad Dog Wong (GC- Kowloon West) and some party members. The schism arose from their discontent with democratic par-ties that approved the 2012 Constitutional Reform. In their minds, it was an act of treachery and this has drove their plan to deliberately antagonise several democratic parties in the upcoming elections at that time. The internal conflicts and the fact that some members from lsd did not agree with the plan to attack politically few democratic parties in elections, resulted in a split.

3 for 1 Special! One alliance, three organisationsPeople Power was established in the form of alliance and this political coalition has survived two and a half years. The organisa-tion currently consists of the Frontier, Power Voters and Progressive Democratic Alliance.

No.1 The Frontiers failed merger with the Dem-ocratic Party, on paper, took part through people as members of the Frontier left to join the Democratic Party in 2008. This in-cluded top democratic camp leaders like Ms. Emily Lau (GC- New Territories East) and Mr. Richard Tsoi, now the Chairperson and Deputy Chairperson of the DP, respec-tively. Other leaders like Lee Cheuk-yan (GC- New Territories West) and Cyd Ho (GC- Hong Kong Island) formed the Labour Party.

After the dust settled, the leftover members of the Frontier were then led by Thomas Yan out of the wilderness into the alliance that is People Power.

No.2Power Voters consists of several members, the most prominent among them, Mr. Ray-mond Chan (GC- New Territories East) is now sitting in the LegCo. Erica Yuen, the current People Power leader, hails from this camp.

Old No.3 Proletariat Political Institute was the 3rd party. But in May of this year, Raymond Wong left, taking the PPI out of People Power, over People Powers agreement to the proposals of Alliance for True Democracy (atd) and the reunion of the pan-democratic forces in Hong Kong (see Habour Times Vol. 1 Issue 1).

New No.3 Progressive Democrat ic A l l iance (pda) was co-founded by LegCo mem-ber Albert Chan to fill the void left by Mr. Wongs departure with the PPI.

In July of 2013, Ms. Erica Yuen took charge of the People Power through election within the Executive Council.

Finally F + PV + PDA = PPSpeaking to Harbour Times, Ms. Yuen revealed her ambition to unify the three groups into one single political party. This resonates with as many as 70% of the supporters of her

party, People Power, who favour the unifica-tion, she says. Currently, the organisation is focusing its time and effort on constitu-tional reform and will address the issue of unification once the reform is achieved. Mr. Albert Chan believes the group will formally unify the coalition into one politi-cal party subject to the maturity of the or-ganisation and opinions across the groups.

Work-in-progressThe Executive Committee and the LegCo caucus make up the simple structure of People Power. 2 LegCo members and 15 representatives in total from all the three groups sit in the Executive Committee. All policy and voting decisions are discussed in the weekly meeting between the 2 LegCo members and members from the Committee.

Membership is one core item that is absent in People Power due to the nature of coali-tion. There are no other official members except the 17 members in the Executive Committee but volunteers are abundant.

Registered volunteers number more than 3,000 and they are often deployed to organ-ise activities and promote the organisation. Their strident street actions have caught the attention of the press. This group of support-ers have significant portions of young peo-ple that are the propelling force lending to the high public profile of People Power. An official programme will begin to recognise fans of People Power in the coming January as an effort to attract more supporters and prepare for a future membership intake. The organisation welcomes all classes of people to join but personally, Ms. Yuen hopes to have more intellectuals and peo-ple from the middle-class in People Power.

Standing toughPeople Power is perceived or labeled as radical and they are the few who protest inside LegCo.

If we compromise, Hong Kong will never have democracy. So we need to fight in a way that others might see radical, including civil disobedience, violating laws and facing the risk of prosecutionAlbert Chan Ms. Yuen too, acknowledges the radi-cal line People Power is adopting.In her eyes, the Government is responsible for the unrest in the society and People Power has to resort to aggressive means to evoke change.

They are not alone and she says even Demo-cratic Party and Civic Party are talking about Occupy Central. We are normal citizens but the Government has driven us over the edge.

Traditional democrats have compromised so many years and achieved so littleErica Yuen

Co-founding both the lsd and People Power, Mr. Albert Chan admits that the ideology and political belief are very simi-lar between the two. The hard line People Power has taken against democratic parties has marked the differences and points of dissention between the two. It is this dis-tinct message, renouncing democratic par-ties perceived as weak and compromising, that has drawn these three political groups bearing the same grudge, to join forces. How-

ever, this was part of their election strategy. People Power marked the end of this tac-tic after the LegCo election in 2012. How-ever, Mr. Chan vows to remain vigilant to backsliding by Democratic allies, and could resume the divisive tactics if he deems his sometime partners not worthy of holding the flame of democracy to his standards.

Ms. Yuen makes it clear that People Powers intent is not to follow, but to lead the electorate. She hopes her groups firm conviction will persuade and influence the public to follow their aims: Our pri-mary concern is to do the right thing electoral support is only the by-product.

Words from the chiefMs. Yuen stepped up to lead People Power half a year ago and she laid out a few goals to accomplish during her presidency and one of them is to spread the partys message.

I believe that our messages sometimes failed to get across to the people because of the perceived image of our organisation. To galvanise more support for People Power, she hopes people can pay more attention to the policy stance and listen to how the organisation expound their stand, backed up by theories and research. I believe we will receive more support if people listen to us more carefully. She seems to have faith that will happen, even as she recog-nises their radical actions work counter to their being thought of as having serious policy. This seems like a potential flash-point for conflict between message focused moderates and action demanding radicals an old story for radical political players.

People Power bears similarities with lsd and certainly shares the same goal of attaining genuine democracy in Hong Kong with other pan-democrats. Ms Yuen draws distinctions between her organisation and the rest, claiming People Power possesses a more advanced mindset and having more guts to defend for what they see is right. For example, she believes that compensa-tion for victims in the Philippines hostage incident is back on the negotiation table due to People Power and claims that no politi-cal party dared to raise the proposal of eco-nomic sanctions, fearing that will provoke the electorate. However, she regrets that the media and Hong Kong people have not given them enough credit for forcing this position.

At the end of the day, members are the sustaining force of an organisation. With a membership split between three organi-sations and potential conflict over radical action vs. thoughtful positioning, the rela-tively young Ms. Yuen has a challenge that has been rarely managed successfully by much more experienced players. Still, suc-cess never comes from lack of trying and Ms. Yuen may possess talents and moti-vation that eluded her forbears. She has been put at the head of this fractious group with a clear target in mind universal suf-frage by 2017. If she can make three into one, People Power may become a viable force to advance that goal. [email protected]

Executive committee of People Powerchi name eng name Post

Erica Yuen Chairman

Thomas Yan Vice chairman

Yim Tat-ming Vice chairman

Raymond Chan Vice chairman and LegCo caucus

Albert Chan LegCo caucus

Christopher Lau Treasurer

Johnny Fok Secretary general

Tong Siu-lan Representative from the Frontier

Mandy Tam Representative from the Frontier

Virginia Yue Representative from the Frontier

Julius Leung Representative from the Frontier

Anthony So Representative from the Power Voters

Tam Tak-chi Representative from the Power Voters

Everest Kwok Representative from the Progressive Democratic Alliance

Law Ka-ki Representative from the Progressive Democratic Alliance

Chan Kin-cheung Representative from the Progressive Democratic Alliance

Johnny Ng Representative from the Progressive Democratic Alliance

www.harbourtimes.com

STREET ACTION. Erica Yuen in the middle and Albert Chan on the right. Photo: People Power

10


LegCo highlights

From p7

Meeting of bills committee on air pollution control (amendment) (No. 2) bill 2013Deputations attended the hearing and gave opinions on the amendments made to the Air Pollution Control Ordinance to prohibit the use, supply, import and transhipment of asbestos or asbestos containing material. Deputations generally agreed to the amendments so as to protect the construction workers and on the fact that asbestos will lead to cancer.

Public hearing of the public accounts committeeThe Committee discussed the management of roadside skips. The Audit Commission has issued a report recently and pointed out that 470 skips have failed to meet with the regulations. The administration admitted to the management difficulties and will establish a task force across different bureaux and departments to handle the issue.

Meeting of panel on housing1. Members discussed the Public Housing

Construction Programme from 2013/14 to 2017/18. Administration reported that 13,000 public housing units were built this year and from next year onwards to 2017/18, 82,000 more will be built.

2. Proposal to construct a Community Hall adjoining the public housing development at Sau Ming Road, Kwun Tong. Members approved the proposal and will discuss again in the Public Work Subcommittee. Dr Fernando Cheung (GC- New Territories East, Labour Party) suggested the new Community Hall provide some space for NGOs to operate.

3. Proposal to create an Administrative Officer position in the Strategy Division of Housing Department commences from 1 April 2014 for two years to cope with the increased workload relating to the implementation of the recommendations arising from the Long Term Housing Strategy review. Members demanded more information on this proposal and will continue discussing it in next meeting

Special meeting of panel on information technology and broadcasting1. Discussion continued on the applications for

domestic free television programme service licences. Regarding the fact the consultant hired by the Government spoke against the Government, Secretary for Commerce and Economic Development Mr Gregory So replied that the consultant has confused the public with her personal views and the final decision always rests in the Executive Council.

2. Communications Authoritys findings of the investigation into the alleged violations of the competition provisions of the Broadcasting Ordinance by Television Broadcasts Limited. The Authority concluded 4 allegations filed by Asia Television Limited were substantiated, such as exclusive occasional use artiste and singer contracts with harsh and unreasonable terms.

3. Communications Authoritys findings of the investigation into the control and management of Asia Television Limited. The Authority reached the conclusion that Mr Wong Ching had unduly interfered with the day-to-day management and operations of ATV and imposed a financial penalty of $1m on ATV for breaching ATVs licence. ATV has appealed to the Executive Council on all conclusions drawn by the Authority.

Tuesday 3rd DecemberMembers meeting with the OmbudsmanThe Ombudsman briefed members on the work of The Ombudsmans Office in the previous year. Mr Martin Liao pointed out that some healthcare professional bodies allow registrations without professional qualifications and there is no system to monitor them. As The Ombudsmans Office has suggested regulation to Department of Health. Liao asked if The Ombudsman has any plan to make sure the Department of Health implements certain regulations on the issue. Mr Alan Lai, the Ombudsman, replied that Department of Health has adopted their suggestion and he will follow up with the department in a few months time.

Meeting of panel on security1. The administration briefed members on

results of a study of matters raised in the Annual Report 2012 to the Chief Executive by the Commissioner on Interception of Communications and Surveillance. Mr James To (FC- District Council 2nd, DP), mentioned a case in which an officer, who has left his post due to misbehaviour, kept some documents which were supposed to be destroyed years before. To suspected unlawful intention of the officer and asked if the Security Bureau should set better regulations to monitor officers. Mr Lai Tung-kwok, Secretary for Security, replied that the case was handled by the Commissioner. As the officer has left the place, no disciplinary action was taken. However, the relevant law enforcement agencies has stated clearly what actions should have been taken if the officer had not left.

2. The administration reported on the latest progress on the electronic exit-entry permit (EEP) for travelling to and from Hong Kong and Macao. There will be an increase in the electronic exit-entry. Mr Chung Kwok-pan (FC- Textiles and Garment, Liberal Party) asked whether it will increase the trafficking problem in the North district. Mr John Lee, Under Secretary for Security, emphasised that

parallel goods traders would still be regulated. And Lee stated that there are already parallel goods trader blacklists, the new EEP will not affect the control measures.

Meeting of bills committee on stamp duty (amendment) bill 2012Discussion continued on the Buyers Stamp Duty and Special Stamp Duty. Mr James To raised the most questions and considering the BSD exemption and the definition of closely knit family. To argued about why a couple, plus a parent of either one member of the couple, can not also be count as close family. Ms. Mable Chan, Deputy Secretary for Financial Services and the Treasury (Treasury) 2 replied that it may open the door for abuse. Chan added as the discussion was about the definition of joint ownership, and the same standard is also applied to special stamp duty scheme, so it will follow the standard.

Meeting of bills committee on rural representative election legislation (amendment) bill 2013Mr Ip

Documents

20131213 Harbour Times