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LCQ 18: Repair and maintenance works for lifts in public rental housing estates

     Following is a question by the Hon Ho Kai-ming and a written reply by the Secretary for Transport and Housing, Mr Frank Chan Fan, in the Legislative Council today (November 14):
      
Question
 
     Quite a number of households in public rental housing (PRH) estates have relayed that the lifts in the buildings in which they live have been in use for many years and are often out of service pending repairs.  On the other hand, the Electrical and Mechanical Services Department promulgated in 2011 the Guidelines for Modernising Existing Lifts (the Guidelines), introducing improvement proposals on enhancing the safety level of aged lifts and recommending the retrofitting of safety devices to aged lifts.  Regarding the repair and maintenance of lifts in PRH buildings, will the Government inform this Council:
 
(1) of the respective numbers of lifts (i) for which replacement works were carried out and (ii) to which safety devices were retrofitted according to the Guidelines, in each of the past five years (with a breakdown by name of estate);
 
(2) of the current number of aged lifts to which safety devices have yet to be retrofitted (with a breakdown by name of estate); whether it has plans to carry out the relevant works for such lifts; if so, of the anticipated completion date; and
 
(3) whether it will (i) specify a requirement on the minimum number of hours to be spent on carrying out routine repair and maintenance works for each lift by registered lift contractors (the contractors), (ii) require the contractors to regularly record the conditions of the core safety components of lifts, and (iii) engage independent third parties to review the quality of such repair and maintenance works; if so, of the details?
 
Reply
 
President,
 
     Having consulted the Electrical and Mechanical Services Department (EMSD), I set out the consolidated reply to various parts of the question raised by the Hon Ho Kai-ming as follows:
      
     According to the “Guidelines for Modernising Existing Lifts” promulgated by the EMSD, it is difficult to establish an unified minimum work time for maintenance works as the time for maintenance of each lift depends on the maintenance requirements by the lift manufacturer, its design, number of service floors, rated speed, rated load, and conditions of lift car, etc.  In 2014, the EMSD discussed with the trade about the work time for lifts/escalators maintenance.  The trade generally agreed that Registered Lift/Escalator Contractors should allow sufficient time for workers to carry out maintenance works properly.  In this regard, the EMSD also issued a notice to Registered Contractors in the same year to remind them that if they were to allocate maintenance works of more than six lifts/escalators for any worker to handle on one day, they should carefully consider the work allocation and ensure that the relevant works could be carried out safely and properly.
      
     According to the “Code of Practice for Lift Works and Escalator Works” (the Code) issued by the EMSD, Registered Lift Contractor, Registered Lift Engineer and Registered Lift Worker should record details of lift works, incident handling, emergency repairs, examinations and maintenance related matters on the logbook of the concerned lift on the day when the works are completed, including details of the replaced critical components of the lift.  The Responsible Person should also monitor the completion of works by the Registered Lift Contractor in accordance with the Code, the contractual requirements of both parties, etc., and countersign the logbook for confirmation.
      
     To enhance the safety of aged lifts and the protection of public safety, the EMSD requested the full implementation of the following two measures before February 1, 2019 through the promulgation of the new Code (2018 Edition) which was gazetted on August 10, 2018:
      
(1) Contractors shall conduct at least two special maintenance works each year for important protective components (including brakes, traction machines and landing doors) of aged lifts that have yet undergo modernisation works.  Contractors are also required to submit to the EMSD the scheduled date, time and inspection results of the special maintenance works via an online platform so as to enable the EMSD to strengthen the corresponding spot checks; and
      
(2) Contractors shall record maintenance works on logbooks with an improved format to list out the type and details of work involved in each round of maintenance works so as to facilitate more effective supervision over contractors’ maintenance works by the EMSD and the Responsible Persons for lifts.
      
     In addition, the Lifts and Escalators Ordinance (the Ordinance) stipulates that the Responsible Person for a lift must ensure that the lift and all its associated equipment or machinery are being kept in proper state of repair and in safe working order.  The Responsible Person shall engage a Registered Lift Contractor to undertake the maintenance works of the lift and ensure that periodic maintenance is carried out in respect of the lift at intervals not exceeding one month.  The Responsible Person shall also ensure that the lifts would be thoroughly examined by a Registered Lift Engineer at intervals not exceeding 12 months.  The EMSD adopts a risk-based approach and strengthens surveillance checks of those lifts with higher risk factors, such as with longer in-service years and frequent complaints or failures, so as to monitor the maintenance works and check against contraventions of the Ordinance.
      
     The EMSD also encourages Responsible Persons to appoint independent Registered Lift Engineers to review the maintenance work of their appointed contractors, and a “Sample Specifications for Engagement of Independent Registered Lift Engineer for Lift Maintenance Audit” is provided in the EMSD’s website for Responsible Persons’ reference.
      
     For the Hong Kong Housing Authority (HA), all lifts in HA’s public rental housing (PRH) estates, irrespective of their servicing ages, are maintained and repaired by Registered Lift Contractors in accordance with the Ordinance, relevant Codes of Practice and the requirements of the maintenance contracts.
      
     There are stringent requirements in HA’s maintenance contracts, for example, lift maintenance contractors have to submit a quarterly report and record the conditions of major safety devices in the lifts.  They also have to conduct routine maintenance on a weekly basis to ensure that the lifts are in safe working order.
      
     All repair and maintenance works for lifts are carried out not only under the monitoring by HA’s engineering staff, but are also regularly audited by the Lift Inspection Focus Team of the Independent Checking Unit under the Office of the Permanent Secretary for Transport and Housing (Housing).
      
     With a view to improving the service standards of the lifts, HA has been implementing the Lift Modernisation Programme which covers the installation of safety devices up to the latest standard.  In the past five years (i.e. from 2013/14 to 2017/18), HA launched the modernisation works of 309 lifts in PRH estates under the Programme.  Details are at Annex I.
      
     In coming five years, HA will continue to implement the Programme and schedule to tender for the modernisation of some 440 lifts in PRH estates in stages.  In 2018/19 and 2019/20, HA will launch lift modernisation works for 78 and 88 lifts respectively.  Details are at Annex II.
  read more

LCQ9: Import and food surveillance of hairy crabs

     Following is a question by the Hon Shiu Ka-fai and a written reply by the Secretary for Food and Health, Professor Sophia Chan, in the Legislative Council today (November 14):
 
Question:
 
     Some hairy crab sellers have relayed to me that while hairy crabs are in season each year after the Mid-Autumn Festival, this year up to early this month, no hairy crabs (save for a small batch of hairy crabs in August) were issued with approval documents by the Mainland authorities for export to Hong Kong. This has greatly affected the sellers’ business. On the other hand, the Food and Environmental Hygiene Department (FEHD) found, during sampling checks conducted on hairy crabs in 2016, that two of the samples contained an excessive level of dioxins, and hence prosecuted two hairy crab sellers by summons. The magistrate acquitted the sellers and cited an expert’s advice that only if, within four months, an ordinary person consumed 47, or one with high health risk consumed 10, hairy crabs involved in the cases which had an excessive level of dioxins, would there be adverse effects on such person’s health, not to mention that ordinary people would not consume the aforesaid quantities of hairy crabs with an excessive level of dioxins. In this connection, will the Government inform this Council:
 
(1) as I have learnt that the Mainland authorities have been issuing approval documents for export of hairy crabs to other places, whether it has gained an understanding from the Mainland authorities as to why they have not issued this year approval documents for export of hairy crabs to Hong Kong; if so, of the details; if not, the reasons for that;
 
(2) whether it has maintained good communication and negotiated with the Mainland authorities with a view to resolving, as soon as possible, the issues concerning the supply of hairy crabs to Hong Kong; if so, of the details as well as the policy bureaux and government departments responsible for such work;
 
(3) given that the action level adopted by FEHD’s Centre for Food Safety for dioxins and dioxin-like polychlorinated biphenyls in hairy crabs stands at 6.5 picograms toxic equivalent per gram of the sample, whether it knows how this action level compares with those relevant levels adopted by the Mainland and other jurisdictions (set out in a table); whether there are differences between the levels adopted by those jurisdictions for the hairy crabs cultured locally and for those imported; and
 
(4) given the aforesaid expert advice, whether the Centre for Food Safety has studied relaxing the aforesaid action level; if so, of the outcome; if not, the reasons for that?
 
Reply:
 
President,
 
     The Public Health and Municipal Services Ordinance (Cap. 132) stipulates that all food for sale in Hong Kong must be fit for human consumption. Food safety is our prime concern in the surveillance and testing of imported food.
 
     Regardless of their places of origin, hairy crabs can be imported into Hong Kong provided that they meet Hong Kong’s food safety requirements and each consignment is accompanied with a health certificate issued by the relevant authorities of the exporting economies. The source of supply of hairy crabs to Hong Kong is essentially determined by the market.
 
     In the hairy crab season of 2016, the Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department detected that the levels of dioxins and dioxin-like polychlorinated biphenyls (hereafter referred to as dioxins) of some hairy crab samples exceeded its action level. To maintain public confidence on the safety of hairy crabs available for sale in Hong Kong, CFS has implemented an arrangement since 2017 to hold up hairy crabs at import level and take samples for testing of dioxins. The importers concerned may make available the hairy crabs for sale in the market only after they are informed by CFS of satisfactory testing results. This hold-and-test arrangement is still in use by CFS.
 
     For the hairy crab season this year, the import of hairy crabs so far is as follows:
 
(a) in mid-August, a consignment of hairy crabs totalling about 100 kg imported from the Mainland and accompanied with a health certificate was released to the market after the test results on the samples were found satisfactory by CFS;
 
(b) since September, 13 consignments of hair crabs totalling about 3 100 kg imported from Japan and accompanied with health certificates were made available to the market for sale after the test results on the samples were found satisfactory by CFS; and
 
(c) since the end of October, eight consignments of hairy crabs from the Mainland totalling about 7 000 kg, which were imported from Korea and accompanied with health certificates, were made available to the market for sale after the test results on the samples were found satisfactory by CFS.
 
     Regarding the various parts of the question, our reply is as follows:
 
(1) and (2) The Mainland authorities monitor the quality of hairy crabs for supply to Hong Kong at source. They have their established approval procedures regarding the issuance of authorisation documents for the export.
 
   We understand that hairy crabs are seasonal fresh food. In this regard, the Food and Health Bureau (FHB) and CFS have been liaising closely with the relevant Mainland authorities on the import arrangements of hairy crabs from the Mainland into Hong Kong this year, with a view to striking a better balance between food safety protection and business facilitation. FHB and CFS have also been informing the trade from time to time of issues relating to the import and testing arrangements of hairy crabs this year. If there are any new arrangements, we will inform the trade immediately.
 
(3) Dioxins are highly toxic carcinogens. The Government has started testing the levels of dioxins in food since 1999 and in hairy crabs since 2014. Taking into account the regulatory arrangements of economies which had set standards on the levels of dioxins in crabs (the EU and Taiwan) and the local dietary habits on hairy crabs, CFS set an action level of 6.5 picograms (pg) toxic equivalent per gram of the food sample (wet weight) for dioxins in edible portion of hairy crabs in 2016. The standards of the EU and Taiwan are as below:
 

Economies Per gram of crab sample (wet weight) Total maximum level of dioxins and dioxin-like polychlorinated biphenyls
(pg toxic equivalent)
The EU Muscle meat from appendages 6.5
Taiwan Whole edible portion
 
(4) Food is the main source of human intake of dioxins. Dioxins are fat-soluble, not easily broken down, accumulate in fatty tissues, and may accumulate in human bodies through the food chain.
 
     CFS has assessed the health risks of consuming hairy crabs containing dioxins. The results showed that the health risks vary depending on the background exposures to dioxins of individuals and the levels of dioxins of hairy crabs consumed. In any case, the higher the levels of dioxins of hairy crabs, the less the amount that can be consumed safely. Individuals with high background exposures to dioxins are more likely to have higher health risks than those with average background exposures if the same amount of hairy crabs containing the same levels of dioxins are consumed.
 
     CFS will continue to keep in view the latest development in the regulation of dioxins in food in other economies, the local dietary habits and other factors, and constantly review its regulatory arrangements for the levels of dioxins in hairy crabs, including the action level. read more

LCQ12: Provision of breast cancer screening services

     Following is a question by the Hon Paul Tse and a written reply by the Secretary for Food and Health, Professor Sophia Chan, in the Legislative Council today (November 14):

Question:

     A statistical report on breast cancer published by an organisation has pointed out that breast cancer is the most common cancer among women in Hong Kong. Hong Kong is one of the regions in Asia with high incidence of breast cancer, with an incidence of breast cancer of one in every 16 women, which is much higher than those of cervical cancer (which is one in every 128 women) and colorectal cancer (which is one in every 34 women). Besides, the number of cases of women diagnosed with breast cancer in Hong Kong increased by about three times in the past two decades. In 2015, 3 900 women were diagnosed with breast cancer and, among them, more than 900 had reached either the advanced stage or the terminal stage when they were diagnosed. The organisation has pointed out that with early treatment, the survival rates of breast cancer patients is as high as 90 per cent. While the governments of 34 countries and regions (including those in Europe, the United States and Canada) have long implemented breast cancer screening programmes, the Hong Kong Government has for a protracted period of time not implemented such a programme. In this connection, will the Government inform this Council:

(1) whether it has compiled statistics on the number of patients diagnosed with breast cancer in each of the past two years and, among them, of the number of those who had reached Stage III and Stage IV when they were diagnosed; if it has not, of the reasons for that;

(2) given that (i) the Government implemented the cervical cancer screening and colorectal cancer screening programmes in 2004 and 2016 respectively, but both cancers have a lower incidence than breast cancer, (ii) the results of a study conducted by the Singapore Government in 1996 reportedly revealed that population-based screening effectively lowered the occurrence of advanced breast cancer, and (iii) breast cancer screening programmes have long been implemented by the governments of 34 countries and regions worldwide, whether the Government has assessed if the following conclusion reached earlier by the Cancer Expert Working Group on Cancer Prevention and Screening is still valid: there is at present insufficient evidence to support the implementation of population-based breast cancer screening;

(3) as it has been reported that a computer algorithm failure lasting 10 years since 2009 on the part of the United Kingdom authorities has resulted in 450 000 women missing out the breast cancer screening opportunity, which may have caused the deaths of hundreds of women, whether it has estimated the annual number of Hong Kong women who (i) may die from breast cancer because they have missed out the opportunity for receiving timely treatments as a result of not receiving breast cancer screening services and, and (ii) can be identified as suffering from early breast cancer through screening services; and

(4) as the findings of a survey have revealed that, among the 802 female respondents, over half of them did not know that breast cancer is the most common cancer among women, over 70 per cent of them did not receive mammography on a regular basis, and nearly 80 per cent of those respondents who were aged above 40 were willing to receive free screening, whether the Government will, in the light of the relevant situation, consider afresh the introduction of the relevant services through the public-private partnership approach, or the provision of subsidies under the Community Care Fund for women to receive such services?

Reply:

President,

     The Government attaches great importance to cancer prevention and control. The Cancer Expert Working Group on Cancer Prevention and Screening (CEWG) under the Government’s Cancer Coordinating Committee regularly reviews and discusses the latest scientific evidence, local and worldwide, with a view to making recommendations on cancer prevention and screening suitable for the local population. My reply to the various parts of the question raised by the Hon Paul Tse is as follows:

(1) The Hong Kong Cancer Registry (HKCaR) of the Hospital Authority oversees cancer surveillance and assists in compiling and analysing data on cancer cases in the local population to facilitate the planning of relevant medical services. According to the HKCaR’s statistics, there were 4 108 new cases of female breast cancer in Hong Kong in 2016. Among these cases, 659 and 345 were diagnosed at Stage III and Stage IV respectively.

     The HKCaR is collating the data for 2017 including cancer data from public and private hospitals, which involves a considerable amount of raw data. Generally speaking, the HKCaR needs to consolidate, screen and verify the data according to international standards before the number of new cases of different types of cancer each year can be released.

(2) As regards population-based mammography screening, after considering the emerging scientific evidence, the CEWG considers that it is still unclear whether population-based mammography screening does more good than harm to local asymptomatic women. Therefore, CEWG concludes that there is insufficient scientific evidence to recommend for or against population-based mammography screening for women at average risk in Hong Kong.

(3) and (4) In examining whether to introduce a population-based screening programme for a specific disease or cancer (including breast cancer), the Government shall make reference to the CEWG’s recommendations and carefully considers a number of factors, including the seriousness and prevalence of the disease locally, accuracy and safety of the screening tests for the local population, as well as effectiveness of the screening programme in reducing disease incidence and mortality. The Government shall also give due consideration to the actual circumstances such as the feasibility, equity and cost-effectiveness of the screening programme and public acceptance.

     Women at increased risk (such as carriers of certain deleterious gene mutations, those with a family history of breast or ovarian cancer, etc.) should seek doctors’ assessment and advice before deciding whether they should undergo breast cancer screening. The Department of Health provides woman health services at its three Woman Health Centres and ten Maternal and Child Health Centres for women aged 64 or below. The services include clinical breast examination and mammography for women who are identified as having high risk of developing breast cancer after medical assessment. Women identified with breast abnormalities after examination will be referred to specialist out-patient clinics for follow-up.

     As for asymptomatic women at average risk, the Government and the medical sector need to gather more research findings and data to explore whether it is appropriate to implement population-based breast cancer screening for this group of women in Hong Kong. In this regard, the Government has commissioned the University of Hong Kong to conduct a study on risk factors associated with breast cancer for local women so as to help formulate the future strategies for breast cancer screening in Hong Kong. The study is expected to be completed in the latter half of 2019. The aim of the study is to formulate a risk prediction model for breast cancer in Hong Kong using a case-control study approach under which a comparison is made between women with and without breast cancer. It also aims to find out the relations between risk factors (such as age, body mass index and other personal characteristics, physical activity, family history of breast cancer, history of benign breast disease, etc.) and breast cancer development. The Government will review and consider what type of screening is to be adopted for women of different risk profiles, having regard to the scientific evidence and outcome of the study.

     Some western countries and regions which have relatively high incidence of breast cancer have implemented population-based mammography screening programmes since the 1980s. However, studies found that there was only a slight drop or even no reduction in the mortality of breast cancer after implementation of such programmes. Some studies revealed that screening programmes have caused problems and harm such as over-diagnosis and over-treatment. As for countries and regions which have a predominantly Chinese or Asian population and have implemented population-based breast cancer screening programmes, detailed assessment data on the effectiveness (such as data on whether the programmes can effectively reduce the mortality of breast cancer among the female population, increase the long-term survival rate of such patients, etc.) and cost-effectiveness of the programmes have yet to be published by the governments concerned. Given the lack of justification from public health perspectives as supported by scientific evidence, the Government at present does not have plans to introduce a population-based mammography screening programme. Notwithstanding this, we will review the situation and formulate future strategies for breast cancer screening in the light of the findings of the aforementioned study on risk factors associated with breast cancer for local women.

     In fact, many risk factors for breast cancer are closely related to lifestyles, such as lack of physical activity, alcohol consumption, obesity after menopause, etc. The Government will enhance education and publicity on breast health. Through mass media and collaboration with community partners and service providers, the Government will actively promote the adoption of healthy lifestyles (e.g. avoiding alcohol consumption, having a balanced diet, doing regular exercise, maintaining healthy body weight and waist circumference, prolonging breastfeeding duration, etc.) as the major preventive strategy. It will also promote the awareness of breast health among women for early detection of breast abnormalities and immediate medical attention. read more

LCQ1: Suggestion on reorganising duties of Development Bureau and Transport and Housing Bureau

     Following is a question by the Hon Dennis Kwok and a reply by the Chief Secretary for Administration, Mr Matthew Cheung Kin-chung, in the Legislative Council today (November 14):

Question:

      Some members of the public have relayed that policy blunders, ineffective monitoring and perfunctory implementation on the part of the Government in the areas of transport and housing are not uncommon in recent years. For example, road transport was paralyzed on the day after the onslaught of super typhoon Mangkhut in Hong Kong, railway construction works were found to be non-compliant and have caused settlement to the buildings in the vicinity, housing and land supply were in severe shortage making it difficult for members of the public to purchase homes and the waiting time for public rental housing hitting record high time and again. Such members of the public consider that it is difficult for the Transport and Housing Bureau to handle the two major policy areas of transport and housing, and that it is unreasonable for the two closely related policy areas of housing and land to be under the charge of two bureaux. In this connection, will the Government inform this Council whether it will consider afresh reorganising the duties of the Development Bureau and the Transport and Housing Bureau?

Reply:

President,

     The Hong Kong Special Administrative Region (HKSAR) Government keeps an open mind in principle towards the reorganisation of Government structure. Over the years, in view of socio-economic changes, the Government underwent reorganisation from time to time to better support the policy objectives of the Chief Executive and enhance overall operational efficiency. 

     In fact, within more than one year after the current-term Government has taken office, we have already completed two organisational changes in the Government by transferring the Efficiency Unit to the Information and Technology Bureau and the Legal Aid Department to the Chief Secretary for Administration’s Office. In her Policy Address announced last month, the Chief Executive notes that there have been a considerable amount of views suggesting that the Transport and Housing Bureau (THB) is overburdened and should be split into two, with the establishment of a new policy bureau to co-ordinate housing and land policies. The Chief Executive generally agrees that there is such a need and will further consider how to implement the suggestion.

     In recent years, some members of the public have put forward various suggestions on the respective roles and co-operation between the THB and the Development Bureau (DEVB) with the intention of enabling the Government to focus and consolidate its resources on taking forward various policies and initiatives relating to transport, land and housing. The Government recognises that the division of responsibilities between the two policy bureaux may have attracted attention owing to public concerns on the aforesaid subjects. In this regard, ever since the current-term Government assumed office, the Government has adopted an innovative mindset in coming up with various concrete, feasible and practicable initiatives that seek to make Hong Kong a more well-connected and liveable city.

     For example, in the Policy Address announced last month, the Government has proposed exempting the tolls charged on or paying the tolls for franchised buses for using government and franchised tunnels and roads. Coupled with the non-means-tested Public Transport Fare Subsidy Scheme to be implemented from January 1, 2019, the fare burden of commuters can be relieved. We have also put forward a toll adjustment proposal for the rationalisation of traffic among the three road harbour crossings, with a view to addressing cross-harbour traffic congestion that has bothered our community for a long time. The THB had also worked very hard to take forward the smooth commissioning of the Hong Kong Section of the Guangzhou-Shenzhen-Hong Kong Express Rail Link as well as the Hong Kong-Zhuhai-Macao Bridge. These two iconic cross-boundary infrastructures were commissioned in September and October respectively, marking a new era for Hong Kong.

      The housing problem always tops the priorities of the current-term Government. We endeavour to enrich the housing ladder and provide adequate and affordable housing to families in different income brackets to enable them to have comfortable homes and improve their living environment. The Government announced the revision of the pricing mechanism for the Home Ownership Scheme (HOS) flats in June this year. The new mechanism revises the test for assessing affordability, so that the selling prices of HOS flats are no longer linked to the market prices of private flats and ensuring that at least 75 per cent of flats in every sale exercise are affordable to families with income at the median monthly household income of non-owner occupier households. The community is generally positive on this initiative. Balloting for the first batch of the HOS flats under the new pricing mechanism will be conducted this month and flat selection will commence in February next year. Regarding the affordable “Starter Homes” for Hong Kong middle-class families, the pre-sale of the first project located at Ma Tau Wai Road will be launched next month. It is evident that we are proactively responding to community aspirations, with some of these new measures and initiatives already put into practice and the rest expected to be rolled out gradually.

      With an aim of providing steady and sufficient land resources to meet various development needs of Hong Kong, the DEVB has been adopting a multi-pronged land supply strategy. Increasing land supply for housing is amongst the DEVB’s priorities. In recent years, the DEVB endeavours to rezone some 210 sites with potential for housing development. It has also been taking forward various New Development Area and New Town Extension projects at full steam, including conducting studies, statutory planning work, seeking funding for the projects, enhancing the compensation and rehousing arrangements, etc. In order to forge a greater consensus on land supply options in society, the Chief Executive appointed the Task Force on Land Supply last September to facilitate collaborative deliberation with the public through a very extensive public engagement exercise. This year’s Policy Address has also put forward a number of ideas on increasing land supply. The DEVB will continue its efforts on increasing land supply in a bid to break the current stalemate on land shortage and provide sufficient land to meet the needs of housing, community facilities and economic development.

     I would like to respond to two points made in the Hon Dennis Kwok’s question.

     First, the HKSAR Government has all along been working as a team and, with such concerted efforts, it strives to take forward its work in various policy areas in an efficient and effective manner. In addition to the regular co-ordination and collaborative mechanisms at different levels within the Government, there are also well-established communication platforms among bureaux/departments. The Government operates as a whole regardless of the organisational structure and division of responsibilities among policy bureaux. Relevant bureaux/departments shall continue to work together on specific issues through inter-departmental platforms where necessary.

     Second, in the course of public administration, it is inevitable that we encounter unexpected challenges and difficulties. In dealing with these severe situations, the Government has been responding in a swift and decisive manner. Serious follow-up actions have also been taken against any situations involving suspected irregularities. The organisation and division of responsibilities among policy bureaux do not affect the usual steadfastness and resolve of the Government in handling various problems. We will continue to listen carefully and humbly to public comments and criticisms on the performance of the Government. Nonetheless, we do not consider it necessary to suggest any causal relationship between individual controversies and proposals for the reorganisation of policy bureaux.

     The Government will continue to listen to voices from all sectors and further consider implementing the suggestion of reorganising policy bureaux in a timely manner.  read more

LCQ16: Impacts of participation in annuity and insurance schemes on the eligibility for social welfare and subsidised housing

     Following is a question by the Hon Shiu Ka-chun and a written reply by the Secretary for Labour and Welfare, Dr Law Chi-kwong, in the Legislative Council today (November 14):
 
Question:
 
     When processing applications for Old Age Living Allowance (OALA), the Social Welfare Department (SWD) regards any payout from an annuity scheme as an applicant’s income, but does not regard the one-off lump-sum premium payment for the annuity scheme as the applicant’s asset. Regarding the impacts of participation in public and private annuity schemes and insurance schemes on the eligibility for social welfare and subsidised housing, will the Government inform this Council:

(1) whether SWD, when it processes OALA applications:
(i) regards as an applicant’s asset the cash value of an insurance scheme with investment elements;
(ii) regards as the applicant’s income the bonuses and interests disbursed under the insurance scheme mentioned in (i); and
(iii) regards as an applicant’s asset the premium payments, payable by installment, for an annuity scheme; and

(2) whether the one-off lump-sum premium payment for a public or private annuity scheme is regarded as an asset of a person applying for (i) public rental housing and (ii) comprehensive social security assistance; if so, of the reasons for that?

Reply:
 
President,
 
     My reply to the Member’s question is as follows:

(1) Under the prevailing arrangement for the Old Age Living Allowance (OALA), the cash value of insurance policies is not treated as asset. This has taken into account that insurance products acquired by elderly persons with financial needs are mostly under the categories of life, medical, critical illness, etc., and the cash value concerned has to be accumulated over a long period of time for contingency use. However, if the relevant persons surrender or partially surrender the insurance policies, the surrender value (if any) will be treated as asset. Meanwhile, bonuses and interests received under insurance policies are also treated as asset.

     Separately, the premium payment under annuity schemes is not treated as asset under OALA. If the relevant persons surrender or partially surrender the annuity schemes, the surrender value (if any) will be treated as asset. As for payout disbursed under annuity schemes, the relevant amount is treated as monthly income.

(2) The Comprehensive Social Security Assistance (CSSA) Scheme provides a safety net for persons who cannot provide for themselves financially to assist them to meet their basic needs. Therefore, if CSSA recipients participate in annuity schemes (including the “HKMC Annuity Plan” of the HKMC Annuity Limited), the relevant premium payment will be treated as asset. If the recipients surrender or partially surrender the annuity schemes, the surrender value (if any) will also be treated as asset. 

     According to information provided by the Housing Department, during asset declaration, applicants for public rental housing are required to declare value of asset items like investments such as savings or investment-linked insurance schemes (including the cash value and accumulated bonuses and interests), listed shares, bonds, funds, etc. The above declaration arrangements are also applicable to annuity schemes, including the “HKMC Annuity Plan” and annuity schemes launched by private entities. The surrender value of annuity schemes is treated as asset. read more