KENNETH LEUNG WORK REPORT 2020 · Assistance in Criminal Matters Legislation (Amendment) Ordinance 2019 (the "Extradition Bill"). One million, then two million Hongkongers took to

KENNETHLEUNGWORK REPORT 2020

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figHt!the g0oD

Do your best, do what is morally right.

Someone who is fighting the good fight is working tirelessly to try and make good choices and help others.

KENNETH LEUNGWORK REPORT 2020

02 Letter from Kenneth04 Highlights

ACCOUNTANCY PROFESSION 08 Take a Stride for "One Member, One Vote"09 Supporting the Trade Unions09 Upholding Professionalism and Standards10 Actions Against the Coronavirus Pandemic 11 Tackling Face Mask Shortage during the Pandemic12 Distribution of Masks to Accountants

EXTRADITION BILL14 Thousands of Protesters Took the Streets16 Fighting with the People of Hong Kong17 Professional Accountants with One Voice18 US-Hong Kong Dialogue

POLICE USE OF FORCE AND TEAR GAS21 Tear Gas as a Public Health Concern22 Research Initiatives on Less Lethal Weapons24 Monitoring Police Conduct at the Legislative Council 24 Strengthening the IPCC

PUBLIC ACCOUNTS COMMITTEE27 Centre for Food Safety: Management of Food Safety27 Employment Services Provided by the Labour Department28 Provision of Consultancy, Research and Development and Training Services by the Hong Kong Productivity Council

PANELS30 Financial Affairs32 Economic Development33 Environmental Affairs35 Security Affairs

07

13

25

19

29

CONTENTS

FROM KENNeTH

02 / 03 WORK REPORT 2020

Dear friends,

It had been a difficult and tumultuous year for Hong Kong in 2019, and 2020 is turning out to be even more formidable. I hope this report will serve as a reminder that whether we are faced with a piece of local legislation, a pandemic, or various pressures and temptations that may undermine our accounting ethics, we must always fight the good fight.

In Hong Kong, for months on end, we have fought a courageous fight against the Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Ordinance 2019 (the "Extradition Bill"). One million, then two million Hongkongers took to the streets in June 2019 to voice our demands loud and clear to the Government - that the Bill is unacceptable, unconscionable and detrimental to the core values of our beloved city.

FROM KENNeTH

More than 5,000 of you were undeterred by various pressures and joined me in a silent noontime march in August 2019 to urge our Government to listen to the people’s demands. While the Government finally withdrew the Bill in October 2019, it was at a substantial cost, with many of our fellow Hongkongers arrested and charged.

At the time of writing, an extremely virulent novel coronavirus, COVID-19, has spread to every corner of the world. In a crucial race against time, governments around the world are scrambling to contain the spread and flatten the curve. Worldwide travel bans, countries in lockdown, empty shelves and empty streets...these used to be scenes from a dystopian movie. Yet as we witness the virus striking the young and old, the rich and poor, and people of all nationalities, we realise that this is a fight faced by every global citizen and we must all do our part. Civic responsibility and personal hygiene are our most powerful tools in this fight. I believe that as long as we all come together with the common goal to stop the spread of this virus, we will persevere.

Let us not forget that as professional accountants, we are also fighting a constant fight against temptations in our line of work. The public entrusts us with the duty, amongst other things, to fairly and truly report financial information, and there are countless factors that may jeopardise our ability to uphold our duties to the highest professional standards. We must always remember to stay vigilant when facing threats to our independence and integrity.

No matter how difficult the circumstances may be, there will always be light at the end of the tunnel. I will continue to fight the good fight with you on every front.

FRO

M K

ENN

ETH

LET teR

30 April 2020

Formal questioning is an effective way to monitor the work of the Government. These sessions take place every Wednesday at the start of every Council meeting. Secretaries are expected to give comprehensive and direct answers on questions about government policies, government actions and current affairs.

This report contains work and activities of Kenneth up to 30 April 2020.

HIGHLIGHTS 2016-2020

ATTENDANCE AT COUNCIL MEETINGS

QUESTIONS RAISED IN COUNCIL MEETINGSOCTOBER 2016 – APRIL 2020

RAISED IN COUNCIL

3 rdAMONGSTALL LAWMAKERS

QUESTIONS Accountancy & Financial Affairs

19

Economic Development

13

Environment

22

Governance

07

Security

11


97%

72

126/130

BILLS COMMITTEES

Bills Committees are set up for detailed scrutiny of bills proposed by the Government. Government officials and members of the public are invited to attend committee meetings. After a Bills Committee has completed scrutiny of a bill, it reports back to the Council. Resumption of second and third readings of the Bill will soon follow.

1 stAMONGSTALL LAWMAKERS

Environment 3

Legal and Other Matters 7

Security 4

Governance 3

Financial Affairs

25

42/63PARTICIPATED IN

BILLS COMMITTEES

Chairman

29

PANELS & SUBCOMMITTEES

PUBLICATIONS AND SEMINARS

During this period Kenneth’s office published 41 issues of “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.

35 seminars have been organised on different topics and were attended by nearly 9,000 participants.

Joined

Joined

4 PANELSECONOMIC DEVELOPMENT

ECONOMIC DEVELOPMENT

FINANCIAL AFFAIRS

FINANCIAL AFFAIRS(Chaired 4 subcommittees)

SECURITY(Chaired 1 subcommittees)

ENVIRONMENTAL AFFAIRS


SECURITY

PROFESSIONAL BUSINESS AND OTHERS

$

$

8,911NO. OF PARTICIPANTS

12 14 6 3

EMPLOYMENT

GOVERNANCE AND GOVERNMENT

POLICIES

FINANCIAL AFFAIRS

ACCOUNTANCY, TAX AND

LEGAL MATTERS

SUBCOMMITTEES

The Legislative Council has established panels and subcommittees to deliberate on issues relating to specific policy area and subsidiary legislation. Kenneth chaired the Panel on Financial Affairs in 2017-2018 and has been the Deputy Chairman for the rest of the term.

He chaired the standing subcommittee for the implementation of the United Nations Security Council’s sanction orders. He also chaired five subsidiary legislation subcommittees.

x3

x11

x4

x4

x7


ACCOUNTANCY PROFESSION

ONE VOTE

TAKE A STRIDE FOR “ONE MEMBER, ONE VOTE”

At the Extraordinary General Meeting on 2 March 2018, more than 60% of the members of the Hong Kong Institute of Certified Public Accountants (“HKICPA”) attending the meeting voted in favour of the resolution to elect the President and Vice Presidents of HKICPA by “one member, one vote”. However, Kenneth is deeply concerned that after more than two years of deliberation, there is still no timetable or framework for the implementation of this resolution.

It is nothing new to elect a President of a professional body by “one member one vote”. The Hong Kong Bar Association, for example, has been following this model for years. Since the implementation of the resolution requires amendments to the Professional Accountants Ordinance and it takes time, Kenneth proposed an election model (see next page) in November 2019 which was put forward for consultation in December 2019.

In April 2020, Kenneth joined as a member of the task force focusing on the “one member one vote” issue set up by HKICPA.


Kenneth spoke on the panel of the HKICPA's Budget

Commentary Forum.

ONE VOTE

Summary of Kenneth's Proposal

· The President will be elected by direct election via “one-member-one-vote” within 31 days of the AGM of HKICPA.

· The candidate for President shall be nominated by 10 certified public accountants.

·

· An eligible candidate for President shall be an elected member of the current Council who has served a full term as elected member of the Council in the past.

· The President shall appoint two vice-presidents from the current elected Council members. The appointment shall be endorsed by the Council in Council meeting.

· The two vice-presidents must be certified public accountants; one practising, the other non-practising.

UPHOLDING PROFESSIONALISM AND STANDARDS

Kenneth introduced a bill to amend the Professional Accountants Ordinance to tighten up restrictions on the use of descriptions by individuals or companies which may mislead the public into believing that they are certified public accountants or practice units registered with the HKICPA, for example, the descriptions of “registered accountant”, “professional accounting”, “registered accounting”, “certified public accounting”, or “certified accounting”. The Legislative Council will resume its Second Reading debate on this Bill during this legislative year. If the Bill is passed, this new law will come into force on 1 January 2022.

SUPPORTING THE TRADE UNIONS

Two trade unions for employees in the accountancy profession, Accounting Bro’Sis Labour Union (香港會計手足工會 ) and Hong Kong Alliance of Accounting Professionals (香港會計專業人員協會 ), were formed in early 2020 with a view to protect the rights of employees and to further other social and political causes. Kenneth has been instrumental in providing advice for the setting up of these trade unions. He also continues to support their work by facilitating their annual general meetings, attending joint press conferences and taking up complaints from trade union members and offering to speak at CPD seminars.

ACTIONS AGAINST THE CORONAVIRUS PANDEMIC

Since the outbreak of cases in Wuhan in early January 2020, Kenneth has been in constant communication with the Secretary for Food and Health and the Secretary for Financial Services and the Treasury to advise the Government on possible courses of action for the general public and the accountancy profession.

In January this year, at a press conference organised by Accounting Bro’Sis Labour Union, Kenneth expressed the view that all private practices and commercial organisations should stop sending accounting staff to work in Mainland China.

Since early February this year, he has communicated frequently with the Financial Services and the Treasury Bureau (the “Bureau”), the Hong Kong Stock Exchanges and the Securities and Futures Commission (together the “Regulators”) to voice his concern on the practical difficulties for listed companies with a 31 December year end and operations in the Mainland to have their published financial results agreed by auditors by 31 March 2020. Several rounds of written communications resulted in a meeting with the Bureau

and the Regulators on 13 March 2020 in which Kenneth expressed grave concern on the risks faced by reporting auditors should a company decide not to publish a set of agreed financial statements or, if the published results deviate greatly from the final results. On 16 March 2020, the Regulators published a guideline, which, amongst other things, includes an extension of the reporting deadline of 60 days from 16 March.

On 4 April 2020, Kenneth and the members of the Professionals Guild published a proposal containing 35 measures to provide economic relief to various sectors during the pandemic. Kenneth’s proposals include direct monetary subsidies to SMEs, enhanced unemployment benefits, relaxing the eligibility criteria for the HKICPA Trust Fund, and government participation in funding subscription and practising fees for the accountancy profession.

Regarding the Distance Business Program (“D-Biz”) launched under the Anti-epidemic Fund 2.0, Kenneth is collating accountants’ views and needs on developing remote business, for instance, technological products and IT

solutions for remote document management, remote team management and virtual meeting etc. This is important as the funding support will only be given to those enterprises who use the technologies and IT solutions stated on the pre-approved list. Kenneth has conveyed the accountants' preference to the Government.

In mid-April, as the overall transmission has slowed down, the Government offers quarantine exemptions for professionals entering from Mainland China. This exemption is of great importance to accountants who need to travel cross-border to perform their duties. When Kenneth pressed on this issue with the Secretary for Financial Services and the Treasury and the Secretary for Food and Health, he emphasised that employers should bear in mind the health and safety of their employees when requesting employees to travel to Mainland China. He also emphasised that the registration system for professionals under this exemption must be simple and easy to administrate and time is of the essence when granting this exemption.


In early February 2020, Hong Kong experienced a strong surge in demand for masks leading to a spiralling in prices and shortage of supply for health workers in the public sector and the general public.

Kenneth facilitated the set up of a professional team of accountants and bankers who worked round-the-clock to help various government agencies in the global sourcing of masks and other personal protection equipment.

Kenneth urged the Government and the Hospital Authority to be more transparent and up-to-date in providing stock figures for masks and other personal protection equipment.

On 10 February 2020, a letter was sent to request the Director of Audit to conduct an audit on the manufacturing, supply and distribution of face masks by the Correctional Service Industries

(“CSI”) after reports alleging that the masks, supposedly for the sole use of government departments, have surfaced in other commercial channels. The letter also requested the Director of Audit to conduct an audit of the government’s epidemic prevention work, including whether the Government has implemented the policies and measures recommended in the report “SARS in Hong Kong: from Experience to Action” published in 2003.

The Director of Audit replied that he was highly concerned with the government’s epidemic prevention work and would consider the suggestions when planning future audit work. On 5 March 2020, the Ombudsman announced an investigation into the arrangements for the production, distribution and stock control of the masks produced by CSI.

TACKLING FACE MASK SHORTAGE DURING THE PANDEMIC

Kenneth discussed the quarantine exemptions arrangement with Christopher

Hui Ching-yu, the Secretary for Financial Services and the Treasury, and LegCo

member Christopher Cheung.

DISRIBUTION OFMASKS

DISTRIBUTION OF MASKS TO ACCOUNTANTS

During the outbreak, Kenneth sourced 10,000 surgical masks from local and overseas suppliers. The masks were distributed to HKICPA members. 3,000 of them were given in priority to accountants who have urgent needs and those not allowed to work from home.

Kenneth helped to pack the surgical mask kits.


DISRIBUTION OF

EXTRADITIONBILL

MILLIONS OF PROTESTERS TOOK THE STREETS

The controversial Extradition Bill triggered off months of protests in 2019 and 2020.

The Government’s mishandling of the legislative process and ignorance of the strong opposition from the citizens of Hong Kong caused the strongest political storm in Hong Kong since the 1967 riot. Protests against the Extradition Bill, attended by tens of thousands of professionals, students, academics, businessmen and ordinary citizens, have transformed the campaign into a socio-political movement with different dimensions and perspectives. Demands were voiced for a more accountable government and police force, economic autonomy of the city as well as the speeding up of the implementation of the dual universal suffrage.

Although the Extradition Bill was formally withdrawn at a Legislative Council meeting on 23 October 2019, the resulting political divisions and deep wounds have yet to be addressed by the Government. Without a swift political solution and conciliation, the rift between citizens and the Government will widen.


eXTRA

DITION

BILL

Extradition Bill may put accountants at risk

The Extradition Bill provides for the transfer of fugitives and suspects on a case-by-case basis to jurisdictions without an extradition agreement with Hong Kong, including Mainland China, Macau and Taiwan.

The Extradition Bill will affect anyone living in or passing through Hong Kong. There are a number of extraditable offences which may put accountants at risk due to the sensitive nature of their work and the difference in the legal systems, the concept of the rule of law, corporate governance, and human rights protection between Mainland China and Hong Kong.

These offenses may include: · Conspiracy to commit fraud or to defraud. · False accounting; any other offence in respect of property or fiscal matters involving fraud; any offence against the law relating to unlawful deprivation of property.

· Offences against the law relating to bribery, corruption, secret commissions and breach of trust.

2 million people marched for the future on 16 June 2020.

Source: Studio Incendo CC BY 4.0www.facebook.com/studioincendo/photos/2333312746916801/

THe PEOpLe

Kenneth opposed the Extradition Bill when it was first discussed at the Panel on Security on 15 February 2019. In the ensuing months, he worked incessantly with legislators in the democratic camp to oppose the Bill; on the other hand, alternative solutions to contain the impact of the Bill were suggested to the Government including introducing a sunset clause to the Bill, imposing a geographical limit to the Bill to Taiwan only and raising the procedural and human rights safeguards.

Kenneth, together with the legislators from the Professionals Guild, met with the Secretary for Security on 7 March 2019 to voice the citizens’ strong opposition to the Bill.

The Government, despite strong opposition from the public, tabled the Bill for its First and Second Readings on 3 April 2019. Kenneth later tabled 10 amendments to the Bill as a last effort to minimise its undesirable impact.

Kenneth also met with the Secretary for Security again in May and early June to alert him to the concerns of the accountancy profession and the business community. He suggested the Government to shelve the Bill. There was a serious clash between the Police and the protestors on 12 June 2019, the date on which the Bill had been scheduled to resume in First and Second Readings at the Legislative Council, and no Council meeting took place. On 15 June 2019, the Chief Executive announced the suspension of the Bill.

FIGHTING WITH THE PEOPLE OF HONG KONG

The Professionals Guild had a booth at the annual 1 July

pro-democracy march.


THe PEOpLeA noontime silent march led by Kenneth.

PROFESSIONAL ACCOUNTANTS WITH ONE VOICE

Professionals are amongst the millions of Hong Kong people who took to the street to protest against the Extradition Bill. The Bill has profound and undesirable effects for professionals who need to travel frequently cross-border to mainland China to work. Professional accountants who have always been prudent and objective have voiced out in unison against this piece of legislation. This social incident has raised the political and social awareness of accountants and together we will fight a good fight for Hong Kong.

Petition to the Government

Kenneth initiated a petition signed by 4,637 accountants to urge the Government to establish a Commission of Inquiry to expedite the introduction of universal suffrage and to reform the Executive Council and other advisory and consultative committees.

Accountants protested against the Extradition Bill

5,000 accountants attended a march organised by Kenneth during lunchtime on 23 August 2019 to demand the Government to provide a comprehensive political solution (including responding to the “five demands”) to the Anti-Extradition Bill campaign. It is believed that this is the largest protest attended solely by accountants in the history of Hong Kong.

5,000 accountants joined the march calling for

government response.

Kenneth attended the “US-Hong Kong Dialogue” organised by the World Affairs Council in California from 5 to 8March 2020 together with two other democratic lawmakers, and lawmakers and

Executive Council members from the pro-establishment camp. Attendees from the US side include Jonathan Fritz (Deputy Assistant Secretary of State), Hanscom Smith (US Consul General in Hong Kong), Dr. Thomas Fingar (former chairman of National Security Council) and other senior staff of the State Council.

This is the first dialogue amongst different political camps in Hong Kong and US officials after the passage of the Hong Kong Human Rights and Democracy Act (the “Act”) by the US Congress in November 2019. The sanction mechanism under the Act and its impact on Hong Kong were discussed as well as US-Hong Kong trade, economic and educational ties and China-US relations. Kenneth very much hopes that Hong Kong will remain important and relevant as a world city despite any bumpy rides in China-US relations.

Trip to the US for the "US-Hong Kong Dialogue.

US-HONG KONG DIALOGUE

DIALOGUE


POLICE USE OF FORCEAND

TEAR GAS

TEAR GAS

Since the anti-extradition movement in June 2019, the public is alerted to the excessive use of police force which results in a disregard for basic human rights protection and international guidelines on the use of force. Kenneth has been pro-active in monitoring the use of force by the Police. He has incessantly asked the Government to review the Police guideline on use-of-force and to enforce strict compliance. In addition, Kenneth supports and has been lobbying for the setting up of an independent inquiry to look into police enforcement actions.

Over 16,000 canisters of tear gas have been fired since the start of the movement. As a densely populated city, it is natural for one to worry about the steady accumulation of chemical residues which may become a community health hazard. Kenneth notes that there have been unconfirmed reports about dioxin poisoning and the spotting of dead birds and animals in the vicinity where tear gas has been used. In order to allay public fear, he consistently requested the Government to reveal the toxic substance of the tear gas used.



TEAR GAS AS A PUBLIC HEALTH CONCERN

Kenneth raised a question at the Legislative Council meeting on 20 November 2019 to request the Government to provide health and environmental data collected between June and November 2019, including the number of hospital admissions associated with tear gas exposure and the record of air quality objectives. The Government was unable to provide comprehensive and relevant data at the meeting and replied that there were no acute cases and abnormal data observed during the period.

Furthermore, due to Government’s refusal to disclose the composition of the tear gas used, citing “operational concerns”, Kenneth moved a legally binding motion to order the Commissioner of Police to disclose the composition of tear gas rounds and tear gas grenades used in Hong Kong and the toxicity of the tear gas and its by-products.

Composition of Tear Gas

Tear gas mixture contains various chemical irritants and 2-chlorobenzalmalononitrile (“CS”) significantly accounts for more than 80% of the ingredients. CS gases could cause serious allergic reaction, skin and respiratory irritation. A high CS background concentration can be vital.

Submunitions

CS smoke agent

Each submunition

has the CS smoke agent

inside


RESEARCH INITIATIVES ON LESS LETHAL WEAPONS

During the height of the social movement, injuries caused by police baton strikes and projectile shots were often reported in media, leading to a public perception that the Police retain excessive force when dealing with the protestors.

In order to obtain a clearer picture, Kenneth has made use of a research project awarded to members of the Legislative Council to require the Secretariat to conduct research

on the regulation on the use of less-lethal weapons. The research focused on the physical effects on the human body arising from the use of tear gas and related chemical irritants, crowd-control projectiles and police baton. The report, published in January 2020, contained detailed guidelines on the use of less-lethal-weapons in the United Kingdom, the United States and Australia.



POLICE USE OF

FORCE

International Guidelines

International Guidelines

Tear Gas

Rubber Projectiles

Suspected Case of Misconduct

Suspected Case of Misconduct

· Should not be directly fired at individuals

· Should not be used in enclosed spaces

· Should only be used after giving sufficient warning and evacuation route

· Should be fired at the lower abdomen or legs of individual aggressors

· Should not be fired at close range (past at least 1 metre in the UK)

· Shot projectile at the right eye of an Indonesian journalist

· At least two protesters were shot by bean bags or rubber bullets in their eyes which resulted in severe injury

· Directly firing tear gas into the Kwai Fong MTR station without providing any evacuation routes in advance

Highlights of the report about guidelines on the use of less-lethal police weapons

Six principles regarding less-lethal weapons usage:

ACCOUNTABILITY

LEGALITY

PRECAUTIONPROPORTION-

ALITY

NON-DISCRIMI-NATION

NECESSITY

12

35

6

4

STRENGTHENING THE IPCC

As an ex-member of the Independent Police Complaints Council (the “IPCC”), Kenneth has been advocating reform of the IPCC. Firstly, more resources should be provided to the secretariat of the IPCC; secondly, the Chief Executive should appoint more independent professionals to be its members; Thirdly, the Independent Police Complaint Council Ordinance should be amended in order to enable the IPCC to start its own investigation on serious cases, to provide an effective mechanism to resolve differences in the findings between IPCC and the Complaint Against Police Office and to recommend sanctions against police officers who are found guilty of a complaint.

MONITORING POLICE CONDUCT AT THE LEGISLATIVE COUNCIL

Legislators from the democratic camp have been working collectively to monitor police actions. Over 20 motions and 50 questions concerning the Police’s use of force and tear gas were raised. Kenneth moved multiple motions to call for the setting up of an independent inquiry and to urge the Government to disclose the chemical composition of the tear gas. He also prepared a Member’s bill, the Public Inquiry (2019 Public Order) Bill. The proposed bill provides for the Government to set up a Commission of Inquiry to investigate the public order events in Hong Kong during the period between June and October 2019.

IPCC hosted a media briefing to update the public on the progress of its work.



PUBLIC ACCOUNTS COMMITTEE

The Public Accounts Committee (“PAC”) considers reports of the Director of Audit on the accounts and the results of value-for-money audits of the Government and other organistations which are within the purview of public audit. It consists of 7 members elected by all members of the Council. Kenneth is the Deputy Chairman of PAC.

PAC is the only standing committee which has the power to call witnesses and evidence under the Legislative Council (Powers and Privileges) Ordinance. PAC may invite officials and other relevant people to attend hearings and give evidence before it compiles committee reports.

Between October 2016 and May 2020, the Director of Audit issued 8 value-for-money reports containing 71 chapters. Public hearings were held on 18 topics. Selected important chapters between 2018-20 which Kenneth led the public hearings are highlighted next page.

PUBLIC ACCOUNT

Public Accounts Committee press conference at LegCo held

after the issue of its report.

2016–2020


8 18 13

Number of

REPORTS ISSUED by Director of Audit:

Number of chapters selected for

PUBLIC HEARINGS:

Number of chapters Kenneth who acted as

LEAD MEMBER:

CENTRE FOR FOOD SAFETY: MANAGEMENT OF FOOD SAFETY

PAC issued Report No.71 in February 2019 which focused on the management and control of food safety by the Centre for Food Safety (“CFS”) covering issues including the assessment of food safety risks, food surveillance, management of food incidents and complaints, and communicating with the public on food safety risks.

The Government accepted the views and recommendations made by the Director of Audit and the PAC. CFS set up a task group and commenced comprehensive reviews on its own operational manuals and guidelines, staff management and supervision arrangements, manpower and resource requirements, and training requirements.

EMPLOYMENT SERVICES PROVIDED BY THE LABOUR DEPARTMENT

PAC issued Report No. 72 in July 2019 on the employment services provided by the Labour Department (“LD”) covering issues including the general employment services for all job seekers and dedicated employment services for job seekers with special needs.

In response to the Director of Audit and PAC’s recommendations, LD introduced various improvement measures with a view to providing more effective and convenient employment and recruitment services for job seekers and employers. LD also improved the dedicated employment services for job seekers with special needs to enhance their employment opportunities, including young job seekers, elderly and middle-aged job seekers, ethnic minority job seekers and job seekers with disabilities.

PUBLIC ACCOUNTManagement of funding for sports development through the Arts and Sport Development Fund (Sport Portion)

Monitoring of charitable fund-raising activities

Management of restored landfills

Employment services provided by the Labour Department

Funding for academic research projects by Research Grants Council

Provision of government office accommodation and utilisation of government sites

Trade and Industry Department’s work in supporting small and medium enterprises

Harbour Area Treatment Scheme Stage 2A

Funding of universities by the University Grants Committee

Procurement and maintenance of government vessels

Consumer protection against unfair trade practices, unsafe goods, and short weights and measures

Centre for Food Safety: Management of food safety

Provision of consultancy, research and development and training services by the Hong Kong Productivity Council

TOPICS KENNETH WHO ACTED AS LEAD MEMBER

COMM

ITTEE

PROVISION OF CONSULTANCY, RESEARCH AND DEVELOPMENT AND TRAINING SERVICES BY THE HONG KONG PRODUCTIVITY COUNCIL

PAC issued Report No.73 in February 2019 on the provision of consultancy, research and development and training services by the Hong Kong Productivity Council (“HKPC”) including matters relating to performance measurement and reporting, project budgeting and contract governance, and way forward of HKPC.

PAC recommended that the HKPC should invite the Independent Commission Against Corruption to review its practices and procedures. PAC also suggested that the HKPC should enhance its internal control, organise training courses to strengthen business ethics and integrity of its staff and enhance its internal monitoring or supervision of its staff who undertake independent projects and workshops. At the time of this writing, the Government has not given its reply yet.

PAC issued supplemental report on Report No. 70 of the Director of Audit

on the Results of Value for Money Audit.


PANELS

PANEL ON

The rule of law, freedom of information and innovation are the keys to maintaining Hong Kong’s status as an international financial centre. The Panel on Financial Affairs held 43 meetings during this term of office (up to the end of April 2020). Kenneth was the Chairman of the Panel for 2017/2018 and Deputy Chairman for the rest of the term. The following are highlights of the more important topics promulgated by Kenneth.

FINANCIAL AFFAIRS

FINAnCiALAFFAIRS

FINTECH

Fintech is a topic frequently brought up by Kenneth in his quarterly meetings with the Hong Kong Monetary Authority (“HKMA”). The Government has also undertaken to brief the Panel on the development of Fintech in Hong Kong annually upon the request of Kenneth and other members. Questions have been raised in the Panel by Kenneth concerning the conservative regulatory approach taken by the HKMA on the development of Fintech by financial institutions (“FI”). Greater collaboration amongst Government, FIs and fintech start-ups is essential for Hong Kong to become a global fintech centre. A conference on Artificial Intelligence Fintech and the Accounting Profession was organised by Kenneth’s office on 14 July 2018.

FINANCIAL REPORTING COUNCIL (“FRC”)

FRC is the regulator for listed company auditors and Kenneth has been diligently monitoring the progress of the bill to reform the power and functions of the FRC through his work on the Panel and the Bills Committee. The Third Reading of the Financial Reporting Council (Amendment) Bill 2018 was passed on 30 January 2019. Kenneth also monitored the progress of the collaboration between the FRC and the Ministry of Finance in China (“MoF”) regarding cross-border collaboration in audit regulation (Question was raised in panel on 6 May 2019). On 22 May 2019, the FRC and the Supervision and Evaluation Bureau of the MoF finally signed a memorandum of understanding to enhance co-operation.


FINAnCiALAFFAIRS

TAXATION

All tax-related bills are first introduced into the Panel in which their policy implications are discussed and evaluated before their first and second readings in Council. During this term, 18 bills to amend the Inland Revenue Ordinance were introduced. Kenneth participated in all the bills committees and was Chairman of 13 (out of the 18) bills committees.

REGULATION OF MONEY LENDERS AND FINANCIAL INTERMEDIARIES

This topic attracts cross-party attention and was discussed on the Panel for more than once during this term. At the Council meeting on 8 February 2017, the motion “Urging the Government to step up the regulation of money lenders and financial intermediaries” amended by Kenneth was passed. The amended motion urged all lending businesses to increase their transparency and to prohibit intermediaries from adopting bad practices in their business. As a result of the passage of the Bill, the Government briefed the Panel on 6 May 2019 of the latest measures adopted to prevent malpractices in the money lending business.

Meeting with the Financial Services and the Treasury Bureau.

ECONOMIC

PANEL ON

To achieve sustainable economic growth, Hong Kong must have a diversified economy. This not only means having a diversified industrial/business base but also diversified markets and trading partners. Some pertinent issues concerning the work of the Panel raised by Kenneth during 2018-2020 are highlighted below.

ECONOMIC DEVELOPMENT

HONG KONG’S PARTICIPATION IN INTERNATIONAL TRADE AND ECONOMIC ORGANISATIONS

As one of the world’s most open economies, Kenneth believes Hong Kong will benefit from actively participating in regional and international economic organisations. The issue has been brought up several times during formal and informal meetings with the Secretary for Commerce and Economic Development. On 27 February 2019 a question was raised in Council on the decision-making mechanism concerning Hong Kong’s participation in international economic organisations and whether there was any feasibility study for Hong Kong to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

SUSPECTED CARTEL BEHAVIOUR ON AUTO-FUEL PRICES

Competition is good for a free market economy. There is a widely reported phenomenon that the upward and downward adjustments of auto-fuel prices in Hong Kong follow different tempo with price increases taking place more swiftly than price decreases. At the Panel meeting on 29 April 2019, Kenneth pointed out that the phenomenon may imply the existence of cartel behaviour amongst the oil companies. As a result, the Panel passed a motion to urge the Competition Commission to launch an investigation into the local auto-fuel market.


ENVIRON

MENTA

LPANEL ON

Hong Kong is a densely populated metropolis, so a healthy and sustainable environment is essential to the well-being of our citizens.


CLIMATE CHANGE AND ENERGY POLICY

Primary energy generation is the major source of carbon emission in Hong Kong. In order to achieve long-term decarbonisation goals, Kenneth has been:

· Actively engaging with the two power companies, green groups and the Environment Bureau to map out a clean energy policy for Hong Kong.

· Advising the Government to reassess the feasibility of developing offshore wind power to increase the proportion of local clean energy generation and also maintain the energy independence of Hong Kong.

AIR QUALITY

Air pollution kills thousands and costs billions in healthcare annually in Hong Kong. Kenneth’s policy proposals and actions include:

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

· Participating in committees to scrutinise legislative amendments of phasing-out diesel commercial vehicles, lowering smoke emission from vessels and setting new emission standards for the two power companies.

· 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.

SeCURITY AFFAIRS

Kenneth supports a total ban on ivory trade.

WASTE MANAGEMENT

To reduce plastic waste, Kenneth has been consistently urging the Government to adopt measures for regulating the use of plastic packaging and to expedite the introduction of legislative bans on microbead-containing products as well as plastic shopping bags.

PROTECTION OF ENDANGERED ANIMALS

Kenneth chaired the Bills Committee on the Protection of Endangered Species of Animals and Plant (Amendment) Bill 2017. After six committee meetings and numerous consultations with stakeholders, the Bill was passed on 31 January 2018 and will put an end to ivory trade by 31 December 2021.

Kenneth visited the leachate treatment facilities at

the Gin Drinkers Bay Landfill.


SeCURITY AFFAIRS

SECURITY AFFAIRSPANEL ON

USE OF WATER CANNON VEHICLES FOR DISPERSING PUBLIC ASSEMBLIES

Kenneth expressed grave concern about the use of water cannons in dispersing public assemblies and the possibility that protestors might be injured by the ejection of high-powered water jets. He is calling for the government to disclose the operating guidelines and safeguards on the use of water cannons.

ANTI-HUMAN TRAFFICKING

Kenneth has been scrutinizing the government’s measures to combat human trafficking. In 2019, due to the Hong Kong government’s overall efforts in combating human trafficking, Hong Kong was removed from the U.S. government’s tier 2 watch list, previously having been considered as not fully compliant with minimum standards required by the U.S. Trafficking Victims Protection Act. Kenneth is of the view that the Hong Kong government’s commitment to defend human rights and to comply with international standards is essential for the city to retain its status as an international financial hub.

The government must tackle issues of public concern relating to security, public order and safety with a respect for the rule of law, personal freedom, and fundamental human rights. These fundamental safeguards are important for Hong Kong as a vibrant international metropolis.

ACKNOWLEDGEMENT

My sincere thanks to the following speakers and facilitators who spoke in our seminars and workshops between 2016-2020.

Ms Esther Blythe

Ms Florence Chan 陳碧霞女士Ms Jacqueline Chan 陳立珊女士Ms Rachael Cheng 鄭幗欣女士Ms Rosita Cheng 鄭潔宜女士Mr Yan Chee Cheng 鄭恩賜先生Mr Danny Cho 蔡偉傑先生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Mr Paul Ho 何耀波先生Hon Regina Ip 葉劉淑儀議員Mr Alex Kong 江慶恩先生Dr Andy Kwan 關焯照博士Ms Anna Lam 林淑儀女士Ms Carrie Lam 林鄭月娥女士Mr Clement Lau 劉中健先生Ms Fanny Law 羅范椒芬女士Mr Derek Lee 李志忠先生Mr Howard Lee 李達志先生Hon Joseph Lee 李國麟議員

Ms Lily Lee 李利敏女士Ms Karman Leung 梁家敏女士Mr James Lloyd 勞瞻斯先生Ms Maggie Lo 羅美琪女士Hon Charles Mok 莫乃光議員Mr Francis Mok 莫少堅先生Ms Margaret Ng 吳靄儀女士Mr Michael Olesnicky

Ms Eberhard Schoneburg

Dr Simon Shen 沈旭暉博士Dr Raymond So 蘇偉文博士Mr George Tee 戴紹龍先生Ms Anita Tsang 曾詠雅女士Mr John Tsang 曾俊華先生Mr Dedmond Wong 黃幹淘先生Dr Kelvin Wong 黃天祐博士Mr Roger Wong 黃恒偉先生Mr Stanley Wong 黃遠輝先生Mr Kwok-hing Woo 胡國興先生Mr Kevin Yam 任建峰先生Mr Nicholas Yang 楊偉雄先生Dr Edward Yiu 姚松炎博士Mr Tse Chin Wan 謝展寰先生


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Documents

KENNETH LEUNG WORK REPORT 2020 · Assistance in Criminal Matters Legislation (Amendment) Ordinance 2019 (the "Extradition Bill"). One million, then two million Hongkongers took to