Economic Services Bureau

In the past year, we have been working on 39 pledges, of which:

The following sets out the detailed report for each main programme area.

Aviation and Tourism

Year Pledge Present Position
Action Completed
1996 1. To meet increasing demand at Kai Tak by enlarging the size of the departure immigration hall. Works will be completed in October 1996. All works have been completed.
1995 2. To complete the negotiations on separating Hong Kong's air services agreements (ASA) from those of the UK in 1996. Hong Kong has completed the separation of Hong Kong's ASA from those of the UK.
1995 3. To strengthen noise mitigation measures to ensure that disturbance caused to residents by aircraft noise at Kai Tak is kept to a minimum. Additional noise mitigation measures have been introduced since November 1995 for aircraft landing and taking off at Kai Tak. An aircraft noise and flight track monitoring system together with an aircraft noise complaint hotline service have also been commissioned in June 1997.
1994 4. To introduce further improvements to service standards and facilities at Kai Tak so that it can cope with increased traffic until the new airport opens. All the planned improvement works, such as additional check-in counters and expanded VIP facilities, have been completed.
1994 5. To recruit and train at least 80 additional air traffic controllers over the next three years to prepare for the operation of the new airport. Recruitment completed. Training of the air traffic controllers for the commissioning of the new airport will be completed by November 1997.
Action in Progress: On Schedule
1996 6. The Airport Authority will increase the capacity of the new airport at Chek Lap Kok by proceeding with the design and construction of the second runway and associated facilities, which will be completed by late 1998. 50% of the runway earthworks have been completed.
1996 7. The Hong Kong Tourist Association will use the Tourism Development Fund to commission feasibility studies on new tourist attractions and improvement works, as recommended in the Visitor and Tourism Strategy Report. The first outline feasibility study on a Hong Kong Exposition project will commence in late 1996. Feasibility studies and improvement works are proceeding in accordance with the action plan.
1995 8. In partnership with the Hong Kong Tourist Association, to ensure that Hong Kong has the necessary infrastructure and facilities to cater for the long-term needs of the local tourist industry. We are proposing to relax plot ratio for hotels and introduce, on a trial basis, a new hotel planning zone. The plot ratio for hotel development has been relaxed and a new hotel planning zone has been introduced on a trial basis. Study on hotel demand and supply is expected to be completed by November 1997. Study on demand for performance venue is proceeding with expected completion date around end 1997.


Port Development

Year Pledge Present Position
Action Completed
1996 1. To improve the operational efficiency of Marine Department patrols by integrating services under a unified command in 1997-98. Action completed. The new Harbour Patrol Section was formed on 1 April 1997.
1995 2. To take forward the plan in 1996-97 to convert the major activities of the Marine Department into a trading fund operation to achieve greater efficiency and effectiveness. After examining the proposal in detail, we consider that it is not viable to convert Marine Department into a trading fund at this stage.
Action in Progress: On Schedule
1996 3. To enhance marine safety by implementing the High Speed Craft Code and the International Safety Management Code in 1997-98. Drafting of the Merchant Shipping (Safety) (High Speed Craft) Regulation (sub. leg. of Cap. 369) and the Merchant Shipping (Safety Management) Regulation are to be completed by mid-1998.
1996 4. To dredge the Rambler Channel in 1997-98 to enable new types of large container vessel to enter our port. The dredging of the Rambler Channel will be incorporated into the Container Terminal (CT) 9 land grant as contingent works.
1996 5. To implement in 1997-98 Phase I of the management plan to improve the operational efficiency and financial performance of public cargo working areas. We have completed first round of the tendering exercise. Returned tender bids were assessed and recommendations were made to Central Tender Board.
1996 6. To commission consultancy studies for the development of sites at Tseung Kwan O Area 131 and Northshore Lantau in late 1996 in order to satisfy the demand for mid-stream sites. We have completed the Traffic and Environmental Impact Assessment for the mid-stream sites in Tseung Kwan O Area 131. We will seek funds to proceed with the Northshore Lantau Feasibility Study later this year.
1995 7. To continue the search for land for cargo back up services to support the operation of the port, including 6.7 hectares on Stonecutters Island. Construction of the 6.7 hectares site on Stonecutters Island is in progress and on schedule for completion by end 1997.
1994 8. To invest $80 million over the next three years (1995 to 1997) to upgrade the Marine Department's vessel tracking system. Civil works are in progress. Construction of remote radar station in Mirs Bay half-completed. Equipment purchase and installation will be contracted out in September 1997.
Action in Progress: Under Review
1995 9. To conduct detailed feasibility studies on the development of CT 12 and 13 at a cost of $200 million in 1996-97. We are reviewing the timing for the new terminals. The requirement dates for CT 12 and CT 13 will be reviewed when the result of the Port Cargo Forecasts become available by the end of 1997.
On-going Commitments
1996 10. To continue our efforts to ensure the timely construction of CT 9 and proceed with the planning and development of CT 10 and 11 in due course. On CT 9, we are negotiating with the developers and we are close to reaching an agreement with the developers on the basic terms of the lease conditions.

On CT 10 and CT 11, we will update the requirement dates in the light of the next Port Cargo Forecasts exercise which will be completed later this year.

1996 11. To optimise the use of Hong Kong waters and minimise risks to shipping by developing a strategy in 1997-98 to implement the recommendations of a consultancy study on marine activities. The consultancy study was completed in January 1997. We are considering the outcome of the study with a view to developing a strategy to implement its recommendations.
1996 12. To examine in 1997-98 the marine and environmental impact of using the Tonggu Channel as an alternative route for vessels using the congested Ma Wan Channel. The consultancy study on the marine and environmental impact of the proposed Tonggu Channel commenced in October 1996 and is expected to be completed in late 1998.

The consultant is now carrying out some field surveys within the mainland waters.

1995 13. To strengthen navigational and maritime safety by providing a legislative framework for safety in navigation and construction standards as well as crew qualifications in 1996-97. Drafting of the Local Vessels Bill will be completed in early 1998.

We will introduce the Bill to Provisional Legislative Council in mid-1998.



Telecommunications and Postal Services

Year Pledge Present Position
Action Completed
1996 1. To upgrade our postal service by developing a new hybrid mail service in 1997-98 which combines printing from electronic sources, enveloping and delivery of bulk consignments of mail. Hybrid Mail Service has commenced in June 1997 for printing rates demand notes for the Rating and Valuation Department. The service will gradually be offered to other organisations in the public and private sectors.
Action in Progress: Under Review
1995 2. To grant licences to operate the new Cordless Access Services (CAS). Having re-assessed the existing market environment (including technological developments) and in the light of response by eligible bidders, it was decided that the current CAS licensing exercise should be terminated and the situation be reviewed in 1998.
On-going Commitments
1996 3. To improve Speedpost mail processing, enquiries and accounting procedures by implementing a computerised mail-tracking and tracing system in 1997-98. The system is being custom developed by Government by way of an assignment granted to Information Technology Services Department's contractor. The first phase for Speedpost tracking began trials in August 1997 and is planned for completion in October 1997. The remaining phases will be completed within two years of the completion of the first phase.
1996 4. To consider in 1997-98 auctioning off special telephone numbers for charitable purposes. A public consultation paper on special number arrangements was issued on 4 February 1997. The necessary administrative measures to implement the arrangements will be completed in 1997-98.
1996 5. To enter into a dialogue with Hong Kong Telecom International Limited on the existing arrangements for Hong Kong's international telecommunications sector and whether these are conducive to maintaining Hong Kong as the pre-eminent telecommunications hub in the Asia-Pacific region. The Government has entered into a dialogue with Hong Kong Telecom International on the arrangements for Hong Kong's international telecommunications sector.
1996 6. To facilitate the development of telecommunications service in Hong Kong and enhance competition in the market by simplifying licensing procedures and improving the regulatory environment in 1997-98. The Government has identified the measures to simplify licensing procedures and improve the regulatory environment. Such measures will be implemented following the amendment to the Telecommunication Ordinance in the 1998-99 Legislative Council (LegCo) Session.
1995 7. To review the Telecommunication Ordinance to update the regulatory framework to keep pace with the rapid technological development in telecommunications and to implement more effectively the Government's pro-competition policy. The Government has issued two public consultation papers on the draft bill to introduce necessary amendments to the Telecommunication Ordinance to update the regulatory framework. The amendment bill will be introduced in 1998.
1995 8. To review current arrangements for allocating and managing radio frequencies to ensure their optimal use. The review of the current arrangements has been completed. The recommended changes will be implemented after the necessary amendments to the Telecommunication Ordinance are enacted in 1998.


Energy Supplies

Year Pledge Present Position
Action Completed
1996 1. To arrange for greater transparency in the setting of towngas tariffs in 1997. An Information and Consultation Agreement between Government and the Hong Kong and China Gas Company was signed on 3 April 1997.
Action in Progress: On Schedule
1996 2. To encourage further measures to promote energy saving in consultation with the power companies in 1997. Discussions are continuing with China Light and Power and Hongkong Electric on implementation of demand side management.
1996 3. To consult the newly formed Energy Advisory Committee in 1997 on energy policy matters. The Energy Advisory Committee has advised Government on various on-going energy policy issues, including long-term demand for electricity, energy efficiency and competition in the energy sector.


Agriculture and Fisheries

Year Pledge Present Position
Action Completed
1996 1. To launch an "Animal Care" Programme in 1997 to enhance community awareness of animal welfare and responsible pet ownership, including the introduction of a microchip identification system for dogs and the formation of an Animal Welfare Advisory Group. A microchip identification system for dogs was implemented in December 1996. The Animal Welfare Advisory Group was established in May 1997.
Action in Progress: On Schedule
1996 2. To formulate a fisheries conservation strategy for Hong Kong following the completion in mid-1997 of a consultancy study on fisheries resources and fishing operations. The consultancy study on fisheries resources and fishing operations has been completed. The findings are under consideration.
1996 3. To introduce legislation to increase penalties for the use of poison and explosive to catch fish. A draft bill has been prepared for introduction into LegCo in 1998-99.
1995 4. To introduce measures to conserve fisheries resources and marine ecosystems by deploying artificial reefs in a five-year programme between 1996 and 2001 at a total cost of $106illion. A consultancy study has been commissioned to identify suitable sites outside marine parks for reef deployment and to draw up a reef management strategy.


Preparing for the Transition

Year Pledge Present Position
Action Completed
1995 1. To consult the Chinese side and introduce legislation to localise the UK Outer Space Act and to provide a continuing legal framework for and regulation of satellites launched by Hong Kong companies after 1997. The Outer Space Ordinance was passed by LegCo on 4 June 1997.
On-going Commitments
1995 2. To arrange exchange programmes for air traffic controllers between Hong Kong and China to strengthen communication. A proposal for five air traffic control staff from Mainland to come to Hong Kong for radar familiarisation is being worked out.
1993 3. To encourage the flow of a wider range of telecommunications services across the boundary. Liaison meetings continue to be held with Guangdong authority to co-ordinate the management and allocation of radio spectrum. Roaming between Hong Kong and neighbouring territories has been introduced for many mobile radio communications services.


Progress Report