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Author Archives: hksar gov

LCQ16: Coping with fifth wave of epidemic

     Following is a question by the Hon Kennedy Wong and a written reply by the Secretary for Food and Health, Professor Sophia Chan, in the Legislative Council today (January 26):

Question:

     Earlier on, some aircrew members brought the coronavirus disease 2019 (COVID-19) into the community causing community transmission, and recently there are also cases with unknown sources of infection. Some experts have pointed out that the fifth wave of the epidemic has already commenced. In this connection, will the Government inform this Council:

(1) given that the Government will expand the “vaccine bubble” scheme on the 24th of next month to include all catering business and scheduled premises, as well as schools and some government cultural and leisure facilities, whether it has anticipated (i) the extent to which the COVID-19 vaccination rate will be raised as a result, and (ii) the situation of community infection before the implementation of the said measure; whether it will examine recovering the medical costs for providing treatments to those infected persons who are unvaccinated without medical grounds, upon implementation of the measure;

(2) of the anticipated impact that the fifth wave of the epidemic has on the resumption of normal traveller clearance between Hong Kong and the Mainland; whether it will hold meetings again with the Mainland experts group to discuss traveller clearance issues; if so, of the details; if not, the reasons for that; and

(3) as some experts have pointed out that herd immunity will be achieved only when more than 80 per cent of the population has completed the third-dose vaccination, but at present only about 70 per cent of Hong Kong’s population has completed two doses of vaccination, while less than 10 per cent has received the third-dose vaccination, whether the Government will consider implementing a mandatory vaccination policy so that Hong Kong may achieve herd immunity as soon as possible; if so, of the details; if not, the reasons for that?

Reply:

President,

     Having consulted relevant bureaux, our reply to different parts of the question raised by the Hon Kennedy Wong is as follows:

(1) The Government has continuously adjusted social distancing measures in view of the development of COVID-19 epidemic situation. Starting from the second half of December 2021, the Omicron variant has replaced the Delta variant to be the dominant mutant strain with a significant increase in Hong Kong’s imported/import-related positive cases. Transmission in the community has also occurred with three clusters originating from imported cases of the Omicron variant. On January 23 and 24, 2022, the numbers of newly reported cases of local infection were 125 and 98 respectively. In view of the higher transmissibility of the Omicron variant with Hong Kong recording cases of the Delta variant, the Government has conducted epidemiological investigations to targeted clusters in the community promptly. Close contacts are also isolated and large-scale testing operations have taken place with a view to controlling the epidemic situation.

     In response to the rapidly changing epidemic situation in January with the highly transmissible Omicron variant spreading to community, the Government has tightened social distancing measures in line with the most stringent level adopted during the third and fourth wave from January 7. Through discouraging members of the public from going out and gathering unnecessarily, it aims to curb the spread of the virus in the community. After considering the latest epidemic situation, the Chief Executive announced on January 14 that the current social distancing measures will be maintained until February 3 with a view to keeping the epidemic under control and cutting the transmission chains.

     Depending on the latest development of COVID-19 epidemic situation and subject to the epidemic situation being under control, the Government will relax the operating restrictions of catering premises and scheduled premises in a gradual and orderly manner by expanding the “vaccine bubble” measures, which requires staff of relevant premises and/or visiting members of the public to be vaccinated with a view to increasing the overall vaccination rate in Hong Kong. This serves to reduce transmission risk and safeguard public health, build a protective shield for the community and help resume normal daily lives as soon as possible.

     COVID-19 vaccination is highly effective in preventing serious illness and death and provides effective protection for recipients, avoiding serious complications or even death. A reduction in cases of serious illness due to COVID-19 would help avoid overstressing the public healthcare system with the outbreak. Therefore, the Government appeals to members of the public who have yet to receive vaccination, especially senior citizens, chronic patients and other immunocompromised persons who face a higher chance of death after COVID-19 infection, to get vaccinated as soon as possible for self-protection and for the society as a whole.

     It has been the policy of the Government to provide public healthcare services to eligible persons at highly subsidised rates to ensure that no one will be denied adequate medical care due to lack of means. At this stage, the Government has no intention to recover medical costs on a cost-recovery basis from COVID-19 patients who are unvaccinated without medical grounds. Encouraging vaccination for all under the “vaccine bubble” remains the key component in Hong Kong’s overall anti-epidemic strategy against COVID-19 which in turns protect public health and our public healthcare system.

(2) With the staunch support by the Central Government, the Hong Kong Special Administrative Region Government (HKSAR Government) has made steady progress in the resumption of quarantine-free travel between the Mainland and Hong Kong with a lot of preparatory work being done, including multiple meetings on Mainland and Hong Kong anti-epidemic work and visit by Mainland expert delegation. The HKSAR Government will continue to adopt a “preventing the importation of cases and the spreading of the virus in the community” anti-epidemic strategy and achieve dynamic “zero infection”. The HKSAR Government strives to cut the mutant strain transmission chains in the community as quickly as possible, aiming to achieve no local infection in 14 consecutive days. At the same time, through the continuous increase in vaccination rate, favourable conditions can be created for quarantine-free travel.

(3) The COVID-19 epidemic is still rampant across the globe and vaccination is the best measure and hope for Hong Kong and the world to ride out the epidemic. The COVID-19 Vaccination Programme led by the Government was launched in late February last year. As at January 24, about 5.26 million people had received the first dose vaccine, accounting for over 78.1 per cent of the population aged 12 or above. Over 810 000 people had received the third dose vaccine.

     To combat the epidemic, the Government has been strongly appealing to and encouraging the public to get vaccinated, with a view to protecting the community by increasing the vaccination rate in Hong Kong. The Government is also committed to providing a variety of vaccination channels to enable members of the public to receive vaccination conveniently. Recently, the public’s willingness to get vaccinated has increased. The Government immediately increased the vaccination capacity and provided more vaccination channels. In total, the Government currently has 14 Community Vaccination Centres; 13 COVID-19 Vaccination Stations located at public hospitals; two mobile vaccination stations shuttling between various housing estates and locations; 25 general out-patient clinics of the Hospital Authority; more than 1 000 private doctors or clinics; and 26 service locations operated by private healthcare institutions. The number of monthly doses that can be administered exceeds 1.3 million. From January 18 to 24, over 40 000 doses were administered daily on average, including an average of some 16 000 people receiving the first dose, and an average of some 20 000 people receiving the third dose.

     For elderly persons whose vaccination rate has been persistently low, the Government proactively encourages them to speed up vaccination and have introduced a basket of facilitating measures, including handing out same-day tickets at Community Vaccination Centres only to eligible persons aged 60 or above, and providing vaccination for elders at the 15 Elderly Health Centres under the Department of Health. Also, District Health Centres (DHC) and DHC Expresses at various districts strive to assist those in need, especially the elderly, in making appointments for vaccination. At the same time, they collaborate with network doctors to render outreach vaccination services. Furthermore, since October 25, 2021, the Social Welfare Department has implemented the Assess and Vaccinate Programme at residential care homes (RCHs) around Hong Kong (including residential care homes for the elderly and persons with disabilities). Arrangements are made for unvaccinated residents to have health assessments by Visiting Medical Officers (VMOs) arranged by the RCHs or vaccination teams arranged by the Government. Upon confirmation that a resident is suitable for receiving vaccination, and that his/her family members do not clearly oppose vaccination and confirmed that they understand the risks posed to the resident, other residents and staff of the RCH by the resident not being vaccinated, the Sinovac vaccine would be administered to the resident by VMOs or vaccination teams under the informed consent of the resident or his/her legal guardian, so as to give early protection to him/her and other residents as well as staff of RCHs. During the period, VMOs or vaccination teams also provide health talks/health consultation to residents and their families in need so that they can better understand the vaccine effectiveness to allay their concerns. Compared with the start of January, the vaccination rate of the elderly has increased. Close to 58 per cent of those aged 70 to 79 have received the first dose vaccine, and the vaccination rate of those aged 80 and above has also increased to close to 30 per cent. On the other hand, the Government has also expanded the eligibility age to cover children aged five to 11 so that they can also benefit from the protection of vaccines.

     To guard against the threat posed by the mutant virus strains with high transmissibility to the Hong Kong community, the Government will continue to encourage persons who have yet to receive COVID-19 vaccination to get vaccinated as early as possible for self-protection. Eligible persons should also receive a third dose vaccine as soon as possible to enhance protection and build a protective barrier in the community. As mentioned above, expanding the “vaccine bubble” measures will help spur members of the public to get vaccinated. Based on the current steadily rising vaccination rate, the Government is confident that the vaccination rate of 80 per cent or higher can be achieved in the short term. The Government will also closely monitor the development of the epidemic situation both globally and locally, the vaccination progress in Hong Kong, as well as the recommendations of the World Health Organization and overseas regulatory authorities on COVID-19 vaccines. After balancing relevant factors, the Government will consider implementing further measures to boost the vaccination rate in Hong Kong. The Government does not preclude the implementation of any possible measures. read more

LCQ18: Support for small and medium enterprises amid the epidemic

     Following is a question by the Hon Nixie Lam and a written reply by the Secretary for Commerce and Economic Development, Mr Edward Yau, in the Legislative Council today (January 26):

Question:
 
     Given the fluctuating situation of the Coronavirus Disease 2019 epidemic, the anti-epidemic measures announced by the Government are often implemented within a short period of time, affecting the conduct of quite a number of physical commercial activities. Some operators of small and medium enterprises (SMEs) have relayed to me their hope that the Government will enhance its support for them amid the epidemic. In this connection, will the Government inform this Council:
 
(1) of the measures in place to assist SMEs in expediting the sale of products by the e-commerce model; whether it will provide SMEs with tax concessions, technical support and loan schemes dedicated for assisting them in digital transformation, so as to increase the incentives for them to adopt the e-commerce model; and
 
(2) as some members of the industries have pointed out that the level of subsidy to be disbursed by the Government under the fifth round of the Anti-epidemic Fund to those business operators affected by the tightening of social distancing measures is just a drop in the bucket, whether the Government will increase the relevant subsidy amounts; whether it will provide those operators with convenience or concessions (e.g. according priority to hire government venues and rental concessions) after the epidemic has stabilised, so as to facilitate their resumption of normal business as early as possible?
 
Reply:
 
President,

     The Government strives to support small and medium enterprises (SMEs), and through a number of funding schemes encourage them to enhance their competitiveness and explore more diversified markets. In view that SMEs are severely impacted by the pandemic, the Government has also rolled out a series of relief measures under the Budget and the Anti-Epidemic Fund (AEF) to provide financial support to help SMEs weather the storm.

     Having consulted the Innovation and Technology Bureau, the Financial Services and the Treasury Bureau and the Human Resources Planning and Poverty Co‑ordination Unit, my consolidated reply to the specific question raised is as follows:

(1) The Technology Voucher Programme (TVP) under the Innovation and Technology Fund administered by the Innovation and Technology Commission (ITC) aims to support enterprises to use technological services and solutions to improve productivity, or upgrade or transform their business processes, including the introduction of sale of products by the e-commerce model. Having regard to its operational experience and views from the industry, the ITC introduced enhancement measures for the TVP in 2020. For instance, each approved project can be funded up to three-quarters of the project cost, with a cumulative funding ceiling of $600,000. The pandemic has accelerated the need for digitalisation, with the number of TVP applications increasing considerably from around 700 in 2018 to around 5 100 in 2021. As at end 2021, about 7 100 TVP applications have been approved with total funding of around $1.1 billion. In addition, the ITC launched the time-limited Distance Business Programme (D-Biz Programme) under the AEF in 2020, which covers information technology (IT) categories relating to distance business (including the development of online service platforms such as web portals and mobile apps), in order to support enterprises to adopt IT solutions to continue business and provide services during the pandemic. The D-Biz Programme was open for application from May 18 to October 31, 2020. As at January 25, 2022, projects of over 25 740 approved applications have been implemented, involving total funding of around $1.7 billion. Beneficiaries include a wide range of industries, over 95 per cent of which are SMEs.

     Hong Kong Science and Technology Parks Corporation and Cyberport have provided three rounds of rental concessions from 2019 to 2021, with the second round supported by the AEF. The three rounds of initiatives in total benefitted around 2 000 tenants in the Science Park, INNOPARKs and Cyberport, etc.

     Furthermore, to alleviate the possible cash flow pressure facing SMEs during the pandemic, on top of the existing 80 per cent and 90 per cent Guarantee Products, the Government introduced the Special 100 per cent Guarantee Product under the SME Financing Guarantee Scheme (SFGS) in April 2020 to provide low-interest concessionary loans to SMEs. Multiple rounds of enhancements have since been made, including raising the Government’s total commitment under SFGS to $218 billion, increasing the maximum loan amount, the maximum repayment period, and the maximum duration of principal moratorium, as well as extending the application period to June 30, 2022. SMEs may use the loans for digital transformation in accordance with their needs. As at end 2021, over 47 000 applications have been approved under the Special 100 per cent Guarantee Product, involving loan guarantees of approximately $81.6 billion which accounts for half of the SFGS’s total approved commitment, benefitting over 29 000 enterprises.

(2) In view of the development of the pandemic, the Government has tightened social distancing measures with effect from January 7, 2022. Having regard to the impact of this decisive tightening of measures on the business of certain sectors, the Government has swiftly deployed the uncommitted balance under the AEF to introduce the fifth-round support measures. In terms of subsidy rates, as premises were required to close for a longer period of time during the fourth-round AEF, the subsidy rates for premises and individuals under this round of AEF were pitched at half and two-third of the subsidy rates under the fourth-round AEF respectively.

     Regarding rental concessions, the Government announced the extension of the 75 per cent rental or fee concessions for eligible tenants of government premises and eligible short-term tenancies and waivers under the Lands Department on August 25, 2021. During the rental concession period, tenants of Government properties who have to close their properties at the request of the Government will continue to receive full rental waiver for the duration of the closure. These concessions remain valid until March 31, 2022.

     The Government will continue to, having regard to the development of the pandemic and the impact of the anti-epidemic and social distancing measures, consider providing support to premises and individuals directly affected by the relevant measures. The Government will also continue with the anti-epidemic work with a view to enabling premises currently required to close to resume business as soon as possible. read more

LCQ11: Supporting hotel industry

     Following is a question by the Hon Yiu Pak-leung and a written reply by the Secretary for Commerce and Economic Development, Mr Edward Yau, in the Legislative Council today (January 26):
 
Question:
 
     Due to the impacts of the riots and the coronavirus disease 2019 epidemic, the hotel industry has been hard hit as visitor arrivals to Hong Kong have plummeted and the overall hotel occupancy rate as well as room rate have dropped continuously in the past two years. Recently, in view of the spread of the Omicron mutant strain in the community, the Government announced that starting from January 8, the place-specific flight suspension mechanism would be implemented for eight countries. Some members of the industry participating in the Designated Quarantine Hotel (DQH) Scheme have pointed out that Hong Kong residents intending to return to Hong Kong and overseas visitors have cancelled their reservations at quarantine hotels, causing heavy losses to operators participating in the Scheme. In this connection, will the Government inform this Council:
 
(1) whether it will, in view of the impact of the epidemic, conduct a revaluation of the rateable values of hotel properties for the 2021-2022 financial year, refund all or a major portion of the rates paid for that year, and provide concession on the rates payable for hotel properties for the 2022-2023 financial year; if so, of the details; if not, the reasons for that;
 
(2) whether it will gain an understanding from the hotel industry of the difficulties it face amid the epidemic, such as the impact of anti-epidemic measures on “gatherings in hotels” (commonly known as staycation) and banqueting business, so as to formulate appropriate measures to support the hotel industry; and
 
(3) given that the some 40 hotels participating in the DQH Scheme have suffered losses due to the implementation of the place-specific flight suspension mechanism by the Government, whether the Government will provide them with appropriate compensation; if so, of the details; if not, the reasons for that?
 
Reply:
 
President,
 
     Having consulted the Financial Services and the Treasury Bureau and the Food and Health Bureau, our reply to the question raised by the Hon Yiu Pak-leung is as follows:
 
(1) The Commissioner of Rating and Valuation has duly prepared the 2021-22 Valuation List in accordance with the Rating Ordinance (Cap. 116). The rateable values of tenements in the 2021-22 Valuation List shall take effect from April 1, 2021, until a new valuation list comes into force.
 
     The Government has provided rates concession for all four quarters of 2021-22 in the 2021-22 Budget, with the concession for non-domestic properties capped at $5,000 per tenement per quarter for the first two quarters, and capped at $2,000 for the remaining two quarters. This concession is also applicable to hotel properties.
 
     Regarding the 2022-23 general revaluation of rateable value, the Rating and Valuation Department (RVD) is now assessing the rateable values of tenements in the valuation list based on the annual rental value of the property estimated with reference to changes in market rentals at the designated reference date (i.e. October 1, 2021). Factors affecting the rental levels of different properties can be reflected in the 2022-23 rateable values. The RVD will make available the new valuation list for public inspection upon completion of the revaluation. For changes in market rentals after the designated reference date, they would be considered in the next revaluation exercise.
 
     Through the ongoing public consultation exercise for the 2022-23 Budget, we will gather and examine opinions from all sectors of the community. When assessing any proposals, the Government will take into consideration a range of factors, including the overall economic situation, the Government’s fiscal position and the needs of the community, etc.
 
(2) The Government understands that the business of certain industries has been impacted by the tightening of social distancing measures, especially those premises that have been closed temporarily, and catering premises where dine-in service during dinnertime has been suspended. The Chief Executive has announced on January 14, 2022, that the fifth round of the Anti-epidemic Fund (AEF) would be rolled out to provide assistance to the industries directly affected by the tightened measures. Although hotels are not among the premises subject to temporary closure, premises within hotels that have to be closed temporarily (e.g. bars, pubs, etc.) and those catering premises where dine-in service during dinnertime has been suspended can benefit from the relevant measures.
 
     In fact, the Government has rolled out various measures to help the hotel industry tackle the difficult business environment. Apart from providing each eligible hotel with a one-off subsidy of $300,000 or $400,000 and introducing the Employment Support Scheme to provide assistance to employers in paying wages of their employees under the second round of the AEF, the Government announced in August 2021 the extension of waivers or concessions of various government licence fees and charges till end-September 2022. Approval was also obtained from the Finance Committee of the Legislative Council in October 2021 for injection of an additional $35 billion to the Special 100 per cent Guarantee Product under the SME Financing Guarantee Scheme to extend the application period to end-June 2022. The hotel industry can also benefit from these measures.
 
     In addition, the Hong Kong Tourism Board (HKTB) has been supporting local tourism through the “Holiday at Home” promotion platform and rolled out two rounds of “Staycation Delights” in April and September 2021 respectively to encourage locals to be a tourist in their own city. The two rounds of “Staycation Delights” had a total quota of 40 000 which translated into an injection of $20 million to the hotel industry, and were well received by the industry as well as the community.
 
     As a result of the two rounds of “Staycation Delights” and other staycation activities and coupled with the designation of some hotels for quarantine purpose, the hotel room occupancy rate in the first eleven months of 2021 was 62 per cent, representing a year-on-year surge of 17 percentage points.
 
     If the development of the epidemic situation permits, the Government will relax the social distancing measures in a gradual and orderly manner on the basis of “vaccine bubble”. The HKTB will continue to maintain close communication with the hotel industry and consider rolling out a new round of “Staycation Delights” when the epidemic situation abates so as to provide continued support for the industry.
 
(3) According to the arrangement of the Designated Quarantine Hotel Scheme, the Government will provide subsidy to designated quarantine hotels (DQHs) with average occupancy rate lower than 50 per cent. Hotels concerned can apply for the subsidy after the end of the contractual period in accordance with the established mechanism. As at January 24, 2022, the average occupancy rate of DQHs under the sixth cycle of the Scheme (covering the period from December 1, 2021, to February 28, 2022) is about 65 per cent. read more

LCQ10: District administration

     Following is a question by Dr the Hon Tik Chi-yuen and a written reply by the Acting Secretary for Home Affairs, Mr Jack Chan, in the Legislative Council today (January 26):
 
Question:
 
     In 1982, the British Hong Kong Government implemented the District Administration Scheme, aiming to strengthen ties with local communities and enable the Government to better understand real public views. In addition, the then Chief Executive announced in his Policy Address delivered in 2007 that the Government would enhance the roles of District Councils (DCs) and the District Officers, with a view to improving work at the district level and further developing district administration. However, following an upsurge of resignation of DC members and oaths of a number of DC members being ruled invalid in 2021, more than 300 of the 479 seats in the current DC term are vacant. With only a few DC members left, many DCs are unable to maintain normal operation. It has been reported that the Government even decided to terminate the Mutual Aid Committees (MACs) this month. There are comments that the district administration system in Hong Kong is on the verge of existing in name only. In this connection, will the Government inform this Council:
 
(1) whether it will conduct a review on how to continue to implement district administration effectively; if so, of the details and the timetable;
 
(2) of the factors taken into consideration in terminating MACs, and whether it conducted any consultation and considered any alternatives before making such a decision;
 
(3) whether it will consider afresh conducting by-elections for the vacancies in DCs; and
 
(4) as there are currently a large number of vacancies in DCs, of the differences in the Government’s workflow of conducting district consultation in comparison with that in the past, and how it can ensure that the views obtained through consultation truly reflect public opinions?
 
Reply:

President,
 
     After consulting the Constitutional and Mainland Affairs Bureau, my consolidated reply to the question raised by Dr the Hon Tik Chi-yuen is as follows:
 
(1) and (3) The Hong Kong Special Administrative Region Government is actively preparing for the Chief Executive Election to be held in March this year. At this stage, there is no plan to arrange for a by-election for the vacant memberships of the District Councils (DCs). As the Chief Executive responded publicly earlier, the current-term Government does not have the capacity to hold a large scale DC by-election within the remainder of its term i.e. from now until June 30. The next-term Government will conduct a comprehensive review on district administration and the way forward of DCs.
 
(2) The Mutual Aid Committee (MAC) Scheme was launched in the 1970s with a view to promoting neighbourliness and improving living environment, as well as providing a communication channel between the Government and the residents. However, neighbourhood network and modes of building management have evolved in tandem with societal development and changes over the past few decades. For instance, many buildings have already engaged property management companies to take charge of their management or have formed other residents’ organisations. In addition, with the development of information technology, there have been more direct communication channels between the Government and the residents.
 
     In fact, the number of MACs was on a continuous decline, down by nearly half to around 1 600 over the past 15 years or so. On the other hand, MAC formation remained at a low level, with an average of less than 30 MACs formed annually in recent years.
 
     Some in the community consider that MACs are playing a diminishing role in the relevant areas. After careful consideration, the Home Affairs Bureau has decided to terminate the MAC Scheme by phases.
 
     That said, the Government will continue to enhance communication at the local level by, for example, strengthening ties with the community through different district committees, including Area Committees, District Fight Crime Committees and District Fire Safety Committees. For private buildings that have not engaged property management companies or formed any residents’ organisations, the District Building Management Liaison Teams of the District Offices will assist relevant owners in forming residents’ organisations such as owners’ corporations.
 
(4) As regards local consultation, the Government will generally seek the advice of the DCs on district administration affairs and community, recreational and cultural activities, environmental improvement projects and transport issues within the districts as necessary. However, consultation with DCs is only one of the means to collect local views. As mentioned above, in order to ensure that local views are reflected effectively, bureaux and departments will also consult different district organisations as necessary, such as Area Committees, District Fight Crime Committees, District Fire Safety Committees, etc. so that local needs will be suitably addressed.
     
     In addition, a District Management Committee (DMC) chaired by the District Officer is set up in each district, comprising representatives of departments providing essential services in the district. The DMC serves as a forum for inter-departmental discussions on district matters and co-ordinates the management of public services and facilities in the districts to meet the needs of the local community. read more