kenneth leung the interim accounts Ð legislative...

KENNETH LEUNG

LEGISLATIVE COUNCILLOR –ACCOUNTANCY

THEINTERIM ACCOUNTS –WORK REPORT2016–2018

KEEP GOING.

KEEP GOING.

WE NEED WILL POWER, MENTAL AND PHYSICAL STRENGTH AND, MOST IMPORTANTLY, COMMON SENSE TO KEEP OURSELVES GOING IN THE RIGHT DIRECTION.

KENNETH LEUNG

LEGISLATIVE COUNCILLOR –ACCOUNTANCY

Cover image by Kevin K Wong Studio

Designed byTomorrow DesignOffice

Printed by Synergy PrintingLimited

THE INTERIM ACCOUNTS –WORK REPORT 2016–2018

04 Letter from Kenneth06 Highlights

THE ACCOUNTANCY PROFESSION 12 Safeguarding the Profession's Interests – Professional Accountants (Amendment) Bill 201814 Audit Regulatory Reform – Financial Reporting Council (Amendment) Bill 201816 Technology and the Accountancy Profession

FINANCIAL AFFAIRS18 Tax Reform / Transfer Pricing Regime20 Fintech / Reform of Listing Rules

ECONOMIC DEVELOPMENT22 Getting Ready for Artificial Intelligence / Promoting Aircraft Leasing Activities / Hong Kong as an Aviation Hub23 Opening of Bank Accounts24 Greater Bay Area

ENVIRONMENT26 Combating Climate Change27 Improving Air Quality28 Banning Ivory Trade / Protection of Sharks / Water Quality and Plastic Pollution

HUMAN RIGHTS AND SECURITY30 Tackling Human-Trafficking31 Strengthening Nuclear Safety32 Supporting the Government Flying Service

PUBLIC ACCOUNTS COMMITTEE34 Public Accounts Committee 35 Funding of Academic Research Projects by Research Grants Council / Management of Restored Landfills36 Procurement and Maintenance of Government Vessels / Funding of Universities by University Grants Committee

THE INTERIM ACCOUNTS – WORK REPORT 2016–2018

04


LETTERFROM KENNETH

Dear friends,

By the time you are reading this interim report, my term of office has already passed the mid-point. Many of you have received my monthly newsletter, The Courier, which reports on my Council and outside-Council activities, this report provides a more in-depth analysis and insight into the work I have undertaken.

I would like to take this opportunity to say “thank you” to our profes-sional accountants and other professionals in Hong Kong whose work not only benefit and keep the business of Hong Kong running, but they are also the guardians of the core values of Hong Kong. Two examples will illustrate this.

On 26 March 2017, we saw a heavily contested election of the members of the Election Committee who are tasked with the mandate to elect the Chief Executive (“CE”). It is heartening to see that more candidates in the accountancy sector with different perspectives and ideas have been elected.

By actively participating in policy debate and formulation with the CE candidates, the Election Committee members have made a paradigm shift in the mentality of the current government which is more recep-tive to new ideas and less confrontational.

At the time of writing this letter, the MTRC is marred with various scandals concerning structural safety of the Shatin to Central Link and slack management. Could this saga have been averted if the profes-sionals within the corporation had all exercised their good judgement and diligence? I have no answer to this hypothesis, but I am aware that as professional accountants our judgement is often subject to fee, time, political and other pressures. At other times we may be facing a dilemma of divulging an unlawful act and keeping the duty of confi-dentiality to our clients or employers. Those are difficult decisions.

In the rest of my term, I will strive to propose a Member’s bill to provide legal protection to assist our profession to adhere to the highest ethical and professional standard. In addition, I will work to render our busi-ness environment more conducive for our profession to prosper.

I hope you will enjoy reading this report and I look forward to getting your views and feedback.

With kind regards,

Kenneth Leung

05


HIGHLIGHTS

99%QUESTIONS RAISED IN THE COUNCILOCTOBER 2016 — JULY 2018

74/75

ATTENDANCE AT COUNCIL MEETINGS

Formal questions provide a unique opportunity to obtain concise information on government actions or omissions on specific problems or incidents and on government policies. They also help members monitor the work of the government.

Kenneth has consistently topped the league table for number of questions raised in the Legislative Council (the “Council”).

42QUESTIONS RAISED

IN THE COUNCILAccountancy &Financial Affairs

EconomicDevelopment

Environment Security Governance

13

6

12

74

AMONGLEGCOMEMBERS

IN EXAMINING TWO ANNUAL FINANCIAL BUDGETS OF THE GOVERNMENT BETWEEN 2016 AND 2018.125QUESTIONS

06

BILLS COMMITTEES

Bills Committees are set for detailed scrutiny for each legis-lative proposal by the govern-ment. Government officials and members of the public may be invited to attend its meetings. After a Bills Committee has completed scrutiny of a bill, it reports back to the Council.

30/44JOINED

BILLS COMMITTEES FORMED IN 2016–2018

Professional

Environment

Financial Affairs

Governance

Employment

Security

Chairman

During this period Kenneth’s office has published 18 issues of the newsletter The Courier, which have been sent to all constituents to report on his work at the Legislative Council and other engagements with the profession and the community.

20 seminars have been organised on different topics which were attended by over 5,000 participants.

COMMUNICATIONS

PARTICIPANTS

SEMINARSORGANISED20 5,193

Professional & Technical Updatesx5

FinancialAffairsx5

Othersx2

SocialIssuesx3

PoliticalAffairsx1

Governancex1

Employment & Workplacex3

07


HIGHLIGHTS

PANELS & SUBCOMMITTEES

The Legislative Council has established panels and subcommittees to deliberate on issues relating to specific policy areas and subsidiary legislations. Kenneth was the Deputy Chairman of the Panel on Financial Affairs in 2016-2017 and Chairman in 2017-2018.

Kenneth has also chaired three subcommittees in relation to automatic exchange of financial account information in tax matters, privileges and immuni-ties of the New Development Bank in Hong Kong, and implementation of the United Nations Security Council's sanction orders.

PANELS JOINED

SUBCOMMITTEES JOINED

FINANCIAL AFFAIRS.ECONOMIC DEVELOPMENT. ENVIRONMENTAL AFFAIRS.SECURITY.

20

4$

Environment

Financial Affairs

EconomicDevelopment

ProfessionalOthers

7 5 33 2

08

Members of the Professionals Guild. 11 October 2017

• The levying of vacancy tax in the first-hand property market.

• The allocation of contingency funding of $500 million to the Hospital Authority to cope with the winter flu epidemic.

• The waiver of tuition fees for all local post-graduate students starting from the academic year 2018-2019.

• The publishing of circulars and guidelines and setting up of a task force by the Hong Kong Monetary Authority to address account opening issues faced by companies.

FORMATION OF THE PROFESSIONALS GUILD (“PG”) IN 2016Kenneth has formed a political caucus and has worked closely with five other colleagues from the legal, education, health services, information technology and social welfare sectors. PG has vowed to examine each and every policy and legislation based on their expertise, profession-alism and independent thinking.

A united front has been proved to be a more effective strategy in negotiating with and lobbying with other political parties and the government. PG has been successful in persuading the government to pursue a number of beneficial policies which, for example, include:

09


REFORM OF THE RULES OF PROCEDURESKenneth is the Deputy Chairman of the Committee on Rules of Procedures and he believes in trans-parent and fair proceedings for the Council. He has initiated changes in the following areas and is hopeful that these changes will come through before the end of his term.

OTHER PUBLIC APPOINTMENTSMandatory Provident Fund Schemes Advisory CommitteeKenneth was appointed by the Chief Executive as a member of the Committee for a term of two years from 30 March 2017. His role is to advise the Mandatory Provident Fund Schemes Authority (the "Authority') on the operations of the mandatory provident fund schemes and the Authority itself.

Trade and Industry Advisory BoardKenneth was appointed by the Secretary for Commerce and Economic Development (the "Secretary") as a member of the Board for a term of 2 years from 1 September 2017. His role is to advise the Secretary on policies relating to Hong Kong's trade and industry, the development of the Belt and Road initiative and matters relating to the Mainland and Hong Kong Closer Economic Part-nership Arrangement.

• To require any candidate who runs for presidency of the Council to make statutory declaration regarding nationality and residency in compliance with the Basic Law.

• To prohibit the President of the Council from taking up any directorship of any listed company during his term.

HIGHLIGHTS

10

Beyond interacting with accountants in seminars, conferences, social media and handling complaint cases, Kenneth has also concentrated on raising the reputation, integrity and technology-readiness of the profession in the past two years.

THE ACCOUNTANCY PROFESSION.

11


There have been reports of cases under which financial intermedi-aries operating under misleading names or descriptions such as “accounting firm” claim to be able to provide professional accounting services without the necessary qualifications.

It is in the public interest to enable the general public to identify whether a person or a

company is qualified to provide professional accounting services under the Professional Account-ants Ordinance (the “PAO”). Unqualified companies and individuals masquerading as certified professionals will also damage the reputation and integrity of the accountancy profession in Hong Kong.

Kenneth has been working on

a Member’s bill to amend the PAO to further limit the use of descriptions by individuals or companies which may mislead the public into believing that they are certified public account-ants or practice units registered with the Hong Kong Institute of Certified Professional Account-ants (the “Institute”).

Unqualified companies or indi-viduals will be prohibited from using descriptions such as registered accountant, profes-sional accounting, registered accounting, certified accounting or certified public accounting in his business name or in connec-tion with his trade or business.

Significant milestones have been achieved. It is expected that the Bill will be tabled for first and second reading at the Legislative Council in the last quarter of 2018.

SAFEGUARDING THE PROFESSION’S INTERESTS – PROFESSIONAL ACCOUNTANTS (AMENDMENT) BILL 2018

Members of the Hong Kong Institute of Certified Professional Accountants expressed support for the

Bill in its annual general meeting.

The Competition Commission states it does not consider the Bill to have raised any competition concerns

14 DECEMBER2017

28 AUGUST2017

DECNOVOCTSEPAUG17

Responding to media inquiries after proposing amendment to the Professional Accountants Ordinance at the Panel on Financial Affairs meeting. 5 January 2018

12

The finalized bill was presented to and approved by members of the Panel on Financial Affairs of the Legislative Council.

The Bill received the Law Drafts-man’s certificate.

The Bill should be scheduled for first and second reading at the Legislative Council in the last quarter of 2018 after consent

from the Chief Executive is sought.

5 JANUARY2018

21 MAY2018

JAN18

FEB MAR APR MAY

Members of the HKICPA expressed support for Kenneth’s legislative proposal at its 45th annual general meeting. 14 December 2017

13


The Financial Reporting Council (Amendment) Bill 2018 was tabled for first and second reading in the Legislative Council on 24 January 2018 after nearly six years of informal and formal consultations. The Bill sets up an independent regulatory regime for auditors of “public interest entities” (“PIE”) (which generally means listed companies). Kenneth is the Deputy Chairman of the Bills Committee.

Kenneth has raised four issues in relation to the funding to be borne by the profession, the sanctioning policy, the level of fine and the oversight of non-Hong Kong auditors. Some of these concerns remain unresolved, but he will be striving for a proper solution.

AUDIT REGULATORY REFORM – FINANCIAL REPORTING COUNCIL (AMENDMENT) BILL 2018

14

• The share of the funding of the Financial Reporting Council (the “FRC”) by the profession was reduced from 33% to 25% when the draft Bill was published as a result of the joint lobbying by the profession and Kenneth.

Kenneth has requested the FRC for further breakdown and the basis of assumptions behind the proposed budget which reaches a stag-gering $90 million a year.

In a letter to the Secretary for Financial Services and the Treasury dated 31 October 2017, Kenneth requested the government to provide at least $300 million as seed money to the FRC. Such amount should be used solely to defray the annual operating costs of the FRC in the first few years of its operation.

• The Bill requires the FRC to issue guidelines prior to its commence-ment to indicate the manner in which it will exercise its power to order a PIE auditor or any responsible person to pay a pecuniary penalty. Kenneth has sought the government to provide outlines of the guidelines on sanctioning during the meetings. He has asked the government to undertake to issue the full guidelines before the commencement date of the Bill.

• The level of maximum penalty stipulated by the Bill (the higher of $10 million or three times the profits of the audit engagement) could adversely affect the survival of medium and small practices. Kenneth has urged the government to critically review the level of the fine.

• Non-local auditors (which include mainland auditors and overseas auditors) should be subject to the same rigour of regulation as local auditors. Kenneth has urged the FRC to enter into a new memo-randum of understanding before the enactment of the Bill with the Ministry of Finance and China Securities Regulatory Commission to ensure that it has adequate inspection and enforcement powers; similarly, co-operative arrangements should be entered into with the relevant regulator in the jurisdiction before any overseas auditor is recognised.

15


• Fanny Law, the then chairperson of the Hong Kong Science and Technology Parks Corporation (“HKSTP”), was the keynote speaker in a seminar entitled “Unleashing the Potential of Accountants through Tech-nology” organised by Kenneth’s legislative office on 21 May 2018. She gave an account of the development of artificial intelligence and its various appli-cations in Hong Kong.

• On 28 May 2018, constitu-ents were invited to visit the HKSTP hosted by Peter Mok, Head of Incubation Programme. Tenants of the HKSTP shared their experience in the devel-opment of distributed ledger technology, artificial intelligence and mobility, and demonstrated how the technologies could be applied to accountancy work.

• A conference on Artificial Intelligence and the Account-ancy Profession was held at the Exhibition and Convention Centre on 14 July 2018, which was attended by more than 400 participants. Speakers including Hon Nicholas Yang, Secretary for Innovation and Technology, Hon Charles Mok, Legislative Councillor representing the sector of information technology, and other speakers from the academia, professional and business sector explored the development of artificial intel-ligence and its impact on the accountancy profession.

TECHNOLOGY AND THE ACCOUNTANCY PROFESSIONWith the advent of blockchain technology and artificial intelligence, some predict that some accountancy functions will be displaced but others believe that new technologies will make work more efficient, improve work-life balance and open up more opportunities for the profession. Kenneth has organised a series of activities to explore this important issue.

16

Kenneth was elected Chairman of the Panel on Financial Affairs for 2017-2018 and Deputy Chairman for 2016-2017. The Panel held 13 and 10 meetings respectively in these two years. Kenneth has strived to maintain Hong Kong’s competitiveness and innovation in order to retain our position as a leading international financial centre.

FINANCIALAFFAIRS.

17


TAX REFORMThe Panel on Financial Affairs (the “Panel”) discussed all tax-re-lated legislative proposals. Tax reform is high on the agenda of this government and the Panel plays an important role in monitoring and reviewing the proposed tax legislation. In this period, 12 tax-related bills have been tabled to amend the Inland Revenue Ordinance. Kenneth acted as the Chairman of nine of those Bills Committees. The chart on page 19 provides a summary of the bills.

TRANSFER PRICING REGIMEThe Inland Revenue (Amendment) (No.6) Bill 2017 which codifies the rules on transfer pricing was a particularly challenging tax-related amendment bill. The Bill is the most lengthy and one of the most important amendments to the Inland Revenue Ordinance since its enactment in 1947.

The Bill implements the Base Erosion and Profit Shifting agenda under the Organisation for Economic Co-operation and Development. Amongst other things, the amendments introduce a transfer pricing regime and mandatory documentation requirements in Hong Kong.

Under Kenneth’s chairmanship, the Bills Committee held 9 meetings and many other discussions with government officials and stake-holders. At the request of the Bills Committee, the government moved an unprecedented 56 committee stage amendments mainly to ease the reporting burden of the Bill. The Bill was passed on 4 July 2018.

Meeting with the Financial Services and the Treasury Bureau and the Inland Revenue Department as the Chairman of the Bills Committee. 20 February 2018

18

Tax concessions in the 2017–2018 Budget

Tax incentives to promote aircraft leasing

Extending profits tax exemption to qualifying open-ended fund companies

Implementation of a two-tiered profits tax rates regime

Tax concessions in the 2018–2019 Budget

BILLS RELATED TO TAX INCENTIVES

BILLS RELATED TO INTERNATIONAL STANDARDS

$

Expanding the scope of profits tax deductions for intellectual property rights

Enhanced tax deduction regime for qualifying research and development

New concessionary tax deduction for insurance plans in compliance with the government’s Voluntary Health Insurance Scheme

Election for personal assessment by married persons separately; accelerated tax deduction for environmental protection installations; enhancements to the Qualifying Debt Instrument Scheme

Expand the list of "reportable jurisdictions" to 74 jurisdictions for the implementation of automatic exchange of financial account information in tax matters

To empower the Chief Executive to give effect to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters

To codify rules on transfer pricing so as to meet the international standards

BILLS WHICH AMEND THE INLAND REVENUE ORDINANCE BETWEEN 2016 AND 2018

Chairman

19


FINTECHThe application of technology to financial services is an irreversible global trend. The Panel discussed the development of Fintech in the meetings of 18 April 2017 and 3 April 2018. Kenneth has raised questions in Panel meetings and other meetings with the Financial Services and Treasury Bureau and Hong Kong Monetary Authority (the “HKMA”) on the regulatory model for cryptocurrencies and the possibility of expansion of the HKMA’s sandbox initiative for the development of financial technologies. Kenneth advocated for the HKMA’s fintech supervisory sandbox to be expanded beyond financial institutions to include startups and other technology companies. The HKMA announced an expansion of its initiative in September 2017, in addition to similar initiatives launched by the Securities and Futures Commission and the Insurance Authority.

REFORM OF LISTING RULESThe public consultation on the stock exchange’s new listing regime for emerging and innovative companies ended on 23 March 2018. The reform would allow the listing of companies with weighted voting rights (“WVR”) and biotech issuers which cannot meet the financial eligibility tests in rule 8.05 of the Listing Rules. Kenneth’s office made a submission to the HKEX to reiterate the need for better protec-

tion for investors, including adding a sunset clause to the WVR, the introduction of a class action regime and enhancing the functions of independent non-executive directors. Regrettably only the sugges-tion of enhancing of independent non-executive directors is being taken up.

Commenting on HKEX's reform proposals on listing rules at LegCo's press room. 28 February 2018

20

The well-being of our profession depends on a diversified economy and sustainable economic growth. Improving the ease of doing business in Hong Kong and the provision of industry specific incentives are the key to achieve this.

ECONOMICDEVELOPMENT.

21


GETTING READY FOR ARTIFICIAL INTELLIGENCE

Artificial Intelligence (“AI”) is one of the technologies which has made significant strides in the past few years.

In light of the new development, Kenneth has raised questions to the government on the “readiness” of our economy and our education system for the more popular use of AI. He urges the government to conduct a comprehensive study on the impact of the application of AI on Hong Kong's employment, economic and industrial structures and production processes. In particular, he believes the government should invest in human capital to ensure the workforce is adequately equipped to cope with the new challenges.

In its latest global market forecast, Airbus predicts that between 2017 and 2036, air traffic will grow at 4.4 per cent annually, requiring some 35,000 new passenger and dedicated freighter aircrafts at a value of US$5.3 trillion.

Kenneth chaired the Bills Committee of the Inland Revenue (Amend-ment) (No.2) Bill 2017 which provides a concessionary profits tax

regime to qualifying aircraft lessors and qualifying aircraft leasing managers. Kenneth has been actively engaging with market participants and the government to develop a favour-able tax regime for the aircraft leasing industry.

Kenneth is supportive of enhancing Hong Kong’s role as the premier aviation hub in Asia. In particular, he supports the sustainable devel-opment of the third runway. At the Finance Committee meeting on 18 July 2018, he supported the expenditure proposal on air traffic control, weather and service facilities to support the three runway system.

PROMOTING AIRCRAFT LEASING ACTIVITIES

HONG KONG AS AN AVIATION HUB

22

OPENING OF BANK ACCOUNTS

Kenneth has been actively pursuing a solution to the protracted time required for businesses to open a bank account in Hong Kong. He raised questions at the Council meetings on 29 March 2017 and 29 May 2018. He also had discussions with the HKMA.

The HKMA has since then issued guidelines and set up a taskforce to tackle the problem. According to the government’s response to the question raised on 29 May 2018, the retail banking sector opens on average about 10,000 new business accounts each month, of which some 60 per cent to 70 per cent belong to SMEs and start-up companies.

23


GUANGDONG

HONG KONGMACAU

GUANGXI

YUNNAN

GUIZHOU

HUNANJIANGXI

FUJIAN

SICHUAN

GREATER BAY AREA The Guangdong-Hong Kong-Macao Greater Bay Area (the “GBA”) refers to the central government's blueprint to foster greater cooperation among Hong Kong, Macau, Guangzhou, Shenzhen, Zhuhai, Foshan, Zhongshan, Dongguan, Huizhou, Jiangmen and Zhaoqing.

As the Chairman of the Panel on Financial Affairs, Kenneth coor-dinated a visit with three other panels between 20 and 22 April 2018 to study the high-tech industry, infrastructure projects and start-ups in five cities in the GBA.

Kenneth believes that whatever role Hong Kong plays in the GBA, Hong Kong’s well-estab-lished legal system, freedom of expression and information and international business prac-tice should be maintained and upheld. Hong Kong’s profes-sionals will be able to assist enterprises in the GBA to build up an international reputation and to grow globally.

Kenneth has urged the central government to facilitate Hong Kong professionals to work in the GBA by providing housing and transport subsidies. He advocates a lighter income tax burden by suggesting the central government to consider a pay-first-rebate-later income tax model for professionals working in GBA.


24

A healthy and sustainable environment will not only improve our health and well-being, it is also conducive to attracting talents to reside in Hong Kong. As a world city Hong Kong also has a challenging obligation to reduce carbon emission to avert climate change.

ENVIRONMENT.

25


Climate change must be tackled using a multiple disciplinary approach. First, there should be an extension of the pilot floating photovoltaic system which was first used in a pilot trial in Shek Pik Reservoir. In addition, there should be more usage of solar panels on roofs of flyovers and rock slopes. In the policy address of 2017, the government pledged to promote renewable energy on a wider scale in both public and private sectors and will spend $200 million to install renewable energy facilities at existing government buildings. Green groups have always been promoting the use of a feed-in tariff ("FiT"). Under the post-2018 Scheme of Control Agree-ments ("SCA") between the government and the two power companies, a FiT will be intro-duced to encourage distributed

renewable energy production. Kenneth has been supporting a more favourable FiT in order to attract more public partici-pation. His view was reflected in the FiT system announced by the government on 17 April 2018 under which a rate from $3 to $5 per unit of electricity was proposed, depending on the generation capacity of the new renewable devices.

A question was raised at the Council meeting of 2 March 2016 to enquire about the effective-ness of the tax deduc-tion regime in relation to environmental

protection installations. The number of applicants under the regime was dwindling. Kenneth suggested a more progressive tax deduction regime under which environmental protec-tion installations should get complete deductions in the year in which such expenses are incurred. The government announced in the 2018–2019 Budget that the tax deduction regime will be increased from a 20% per annum to a full deduction. The change is incor-porated in the Inland Revenue Amendment (No.5) Bill 2018 of which Kenneth chairs the Bills Committee.

COMBATING CLIMATE CHANGEKenneth has been advocating for a wider use of renewable energy and a regular review of the fuel mix policy for electricity generation.

A visit to the floating photovoltaic system at Shek Pik Reservoir and meeting officials from the Water Supplies Department. 16 August 2017

Floating photovoltaic system at Plover Cove Reservoir.Source: The Government of the Hong Kong Special Administrative Region

26

IMPROVING AIR QUALITYAir pollution kills thousands and costs billions in health care annually. Air quality is one of Kenneth’s key concerns in environmental policy. His policy proposals and actions include:

• Increasing charging spaces with medium and high-speed charging facilities for electric vehicles in public car parks.

• To expedite the trial run to install high speed charging facilities in parking meter spaces.

• To review the first registration tax ("FRT") concession regime for electric vehicles which was heavily watered down in the 2017-2018 Budget. The government later launched a new One-for-One Replace-ment Scheme on 28 February 2018, granting the private car owners a higher FRT concession.

• Raising questions to and urging the government to plug the loopholes by asking the government to review the existing policy on gross floor area (“GFA”) concessions for electric vehicle charging facilities in private car parks – it has been reported that developers have benefited from GFA concessions by installing electric vehicle charging sockets without actual connection to power supply.

• Expediting the update of the Air Pollution Control Ordinance to include more progressive emission-reduction targets in compliance with ultimate targets under the World Health Organization's Air Quality Guidelines.

27


Hong Kong is the largest trade centre for ivory products. Kenneth chaired the Bills Committee on the Protection of Endangered Species of Animals and Plants (Amendment) Bill 2017.

After six committee meetings and numerous consultations with stakeholders and green groups, the Bill was passed on 31 January 2018. The Bill will put a total ban on ivory trade by 31 December 2021 in three stages. The Bill also increases penalties on smuggling and illegal trading of endangered species.

BANNING IVORY TRADE

PROTECTION OF SHARKSKenneth has urged the government to promote voluntary labelling of shark fin and related products and to enhance the enforcement action on the import of protected shark species. He has been active in collaborating with green groups to encourage consumers to abstain from shark fin consumption.

WATER QUALITY & PLASTIC POLLUTIONKenneth has urged the govern-ment to conduct regular tests on the concentration of microplas-tics in Hong Kong waters and to publish such results on a regular basis. In his policy address proposal to the Chief Executive he has suggested the banning of the sale of products containing microplastics.

Kenneth supports a total ban on ivory trade. 31 January 2018

Showing support to advocating government regulation to the shark fin trade.

26 November 2017

Visiting Greenpeace's Rainbow Warrior. Kenneth is concerned about plastic pollu-tion in the sea. 3 January 2018

28

HUMAN RIGHTS ANDSECURITY.Kenneth has vowed to make Hong Kong a safe city for our citizens. This means not only good security and emergency services but a true respect for everyone’s personal freedom and basic human rights.

29


TACKLING HUMAN-TRAFFICKINGHuman trafficking is a dire social evil which generates illegal revenue of US$150 billion every year. Hong Kong unfortunately has been placed in the Tier 2 watch list of the US Trafficking in Persons Report for three consecutive years due to its piecemeal approach in tackling the problem.

Kenneth has been working with the Hon Dennis Kwok to urge the government to step up its efforts to tackle human trafficking in Hong Kong. A Member’s bill based on the UK Modern Slavery Act has been drafted to create a comprehensive legislation to combat human trafficking and to make prevention, identification of victim and prosecution more effectively. Major milestones include:

• The government set up a high-level inter-bureau/departmental steering committee under the chair-manship of the Chief Secretary for Administration. The committee has endorsed an action plan on 21 March 2018 to cover a number of measures including victim identification, protection and support, investigation, enforcement, prosecu-tion and prevention as well as partnership with different stakeholders.

• Organising an international conference on 27 April 2018 on anti-human trafficking which attracted more than 400 participants from the NGOs, busi-ness, government and diplomatic community.

• The Member’s bill was discussed in the Security Panel meeting on 5 June 2018.

• Participating as keynote speaker in the launching of the Handbook on Initial Victim Identification and Assistance for Trafficked Persons by Civil Society Anti-Human Trafficking Task Force on 30 July 2018.

30

STRENGTHENING NUCLEARSAFETY25% of our electricity is supplied by the Daya Bay Nuclear Power Stations which is 50 km away from Hong Kong. Although we should use safer energy in the long run, our supply contract does not run out until 2034. New nuclear stations have cropped up in nearby cities recently in Guangdong. The Taishan nuclear power plant which uses the third generation pressurised water reactor technology began oper-ations in June 2018, despite safety concerns pointed out by National Nuclear Safety Administration in China and the Nuclear Safety Authority in France.

Through formal questions in the Council and in panel meetings Kenneth has requested the government to shorten the incident reporting timeframe and enhance greater cooperation with the Nuclear Emergency Committee Office of the Guangdong Province. The government has also been urged to obtain more timely informa-tion about the operation of the Taishan nuclear plant. There should be greater communal awareness and communal involvement in nuclear accident drills.

Taishan 1 nuclear power station. Source: EDF Energy

31


SUPPORTING THE GOVERNMENT FLYING SERVICE (“GFS”)GFS is a small service department which has outstanding records in search and rescue, fire-fighting and law enforce-ment. Kenneth’s attention was first drawn to the GFS due to a report in July 2015 by the Public Accounts Committee of which Kenneth was a member. The report recommends that GFS should be given more resources to cope with competition from the private sector and increasing demand on its service.

In meetings with the government and in the annual budget proposals for the past two years, Kenneth has urged the government to increase funding to GFS, provide more promotion prospect, restructure the ranks within the GFS and provide more financial subsidy.

On 9 January 2017 a motion moved by Kenneth at the meeting of Panel on Security was given wide support by the members. The motion urges the government to provide sufficient human resources to the establishment of the Kai Tak Division of the GFS. The Kai Tak division is needed due to congested airspace at Chek Lap Kok which may hamper emergency services.

GFS’s Super Puma AS332 L2 helicopter. Source: U.S. Navy Photo by Mass Communication Specialist 3rd Class Bradley J. Gee CC BY-NC 2.0 flic.kr/p/ub79

32

The Public Accounts Committee is the only standing committee which has the power to call for witness and evidence under the Legislative Council (Powers and Privileges) Ordinance.

PUBLIC ACCOUNTSCOMMITTEE.

33


Procurement and maintenance of government vessels

Administration of lump sum grants by the Social Welfare Department

Management of restored landfills

Integrated education

Sha Tin Section of Route 8

Kenneth is the Deputy Chairman of the Public Accounts Committee (“PAC”), which is a seven-member strong committee whose members are elected by all Legislative Council Members amongst themselves.

The Committee considers reports of the Director of Audit on the accounts and the results of value-for-money audits on government departments and other organizations which are within the purview of public audit. It is the only standing committee which has the power to call witness and evidence under the Legislative Council (Powers and Privileges) Ordinance.

Between October 2016 and April 2018, the Director of Audit issued four value-for-money reports containing 35 topics. Public hearings were held on 10 topics. The more controversial topics which Kenneth has led the public hearings are summarised below.

10 TOPICS STUDIED BY THE PUBLIC ACCOUNTS COMMITTEE

Funding of universities by University Grants Committee

Maintenance and safety-related improvements of public rental housing flats

Provision of District Council funds for community involvement projects

Monitoring of charitable fund raising activities

Government’s support and monitoring of charities 8

Lead member

PUBLICACCOUNTS COMMITTEE

Public Accounts Committee press conference of which Kenneth is the Deputy Chariman. 17 January 2018

34

FUNDING OF ACADEMIC RESEARCH PROJECTS BY RESEARCH GRANTS COUNCILPAC issued a report in October 2016 which focused on Research Grants Committee (“RGC”)’s govern-ance, project management, research output and performance evaluation.

The Committee has urged RGC to implement meas-ures to improve the approval process of funding applications, the management of conflicts of interest, the monitoring of funded projects and the handling of alleged misconduct cases.

MANAGEMENT OF RESTORED LANDFILLSPAC issued a report on 3 April 2018 on the

management of restored landfills.

The Committee recommended the Environment Bureau and the Environmental Protection Depart-

ment to take measures to enhance the supervision of aftercare of restored landfills, the development of recreational facilitates and in the implementa-

tion of the Restored Landfill Revitalisation Funding Scheme to expedite the development of gainful use

of restored landfills.

35


PAC issued a report in October 2016 on the Marine Department regarding the procurement and maintenance of government vessels.

PAC urged the Transport and Housing Bureau (the “THB”) to closely monitor the performance of the department to prevent further delays in the implementation of the procurement projects for major vessels and to catch up with the progress of the delay projects.

In addition, the THB is urged to provide measures to address the shortage in vessel maintenance contractors, ship surveyors and marine engineers.

PAC issued a report in October 2016 which deals with the Univer-sity Grants Committee (“UGC”)’s shortcomings in governance and administration, grant usage, and the progress on the internationali-sation of universities.

The Committee has asked UGC and the Education Bureau to take measures to rectify all irregularities identified in its internal control, improve the system for dealing with conflict of interest of members of UGC, monitor more closely the progress of internationalization of the universities, encourage more local students to pursue post-graduate programmes in Hong Kong and expedite the building of student hostels.

PROCUREMENT AND MAINTENANCE OF GOVERNMENT VESSELS

FUNDING OF UNIVERSITIES BY UNIVERSITY GRANTS COMMITTEE

36

ACKNOWLEDGMENTMany thanks to the following speakers who spoke in our conferences and seminars between October 2016 and July 2018.

Mr. Jeremy Birch Mrs. Esther Phoebe Blythe Ms. Jacqueline Chan 陳立珊女士Ms. Rachel Cheng 鄭幗欣女士Mr. Cheng Yan Chee 鄭恩賜先生Hon. Matthew Cheung 張建宗先生Ms. Yvonne Choi 蔡瑩璧女士Mr. Jeremy Choi 崔慶昭先生Ms. Eunice Chu 朱暖暉女士Dr. Andy Chun 陳漢偉博士Ms. Ada Chung 鐘麗玲女士Ms. Sara Goldsworthy Ms. Patricia Ho 何佩芝女士Hon. Regina Ip 葉劉淑儀女士Mr. Alex Kong 江慶恩先生Hon. Carrie Lam 林鄭月娥女士Ms. Anna Lam 林淑儀女士Hon. Fanny Law 羅范椒芬女士Ms. Karman Leung 梁家敏女士Mr. James Lloyd 勞瞻斯先生Ms. Maggie Lo 羅美琪女士Lord McColl of Dulwich Mr. Francis Mok 莫少堅先生Hon. Charles Peter Mok 莫乃光先生Mr. Michael Olesnicky Mr. Tony Read Mr. Eberhard Schoneburg Dr. Raymond So 蘇偉文博士Mr. George Tee 戴紹龍先生Mr. Kurt W. Tong 唐偉康先生Hon. John Tsang 曾俊華先生Ms. Anita Tsang 曾詠雅女士Mr. Desmond Wong 黃幹淘先生Mr. Roger Wong 黃恒偉先生Mr. Stanley Wong 黃遠輝先生Mr. Woo Kwok Hing 胡國興先生Hon. Nicholas Yang 楊偉雄先生Dr. Edward Yiu 姚松炎博士

KENNETHLEUNG.HK Facebook | Kenneth Leung 梁繼昌 Linkedin | kennethleunglegco Instagram | kennethleungkc

OFFICE OF THE HONKENNETH LEUNG

Room 918Legislative Council Complex1 Legislative Council RoadCentral, Hong Kong

Email [email protected] 2352 3209Fax 3020 9849

kenneth leung the interim accounts Ð legislative...

Documents