In response to the Japanese Government's plan to discharge nuclear-contaminated water at the Fukushima Nuclear Power Station, the Director of Food and Environmental Hygiene issued a Food Safety Order which prohibits all aquatic products, sea salt and seaweeds originating from the 10 metropolis/prefectures, namely Tokyo, Fukushima, Ibaraki, Miyagi, Chiba, Gunma, Tochigi, Niigata, Nagano and Saitama, from being imported into and supplied in Hong Kong.
 
     For other Japanese aquatic products, sea salt and seaweeds that are not prohibited from being imported into Hong Kong, the Centre for Food Safety (CFS) of the Food and Environmental Hygiene Department is conducting comprehensive radiological tests to verify that the radiation levels of these products do not exceed the guideline levels before they are allowed to be supplied in the market.
 
     As the discharge of nuclear-contaminated water is unprecedented and will continue for 30 years or more, the Government will closely monitor the situation and continue to implement the enhanced testing arrangements. Should anomalies be detected, the Government does not preclude further tightening the scope of the import ban.
 
     From noon on May 13 to noon today (May 14), the CFS conducted tests on the radiological levels of 208 food samples imported from Japan, which were of the "aquatic and related products, seaweeds and sea salt" category. No sample was found to have exceeded the safety limit. Details can be found on the CFS's thematic website titled "Control Measures on Foods Imported from Japan" (www.cfs.gov.hk/english/programme/programme_rafs/programme_rafs_fc_01_30_Nuclear_Event_and_Food_Safety.html).

     In parallel, the Agriculture, Fisheries and Conservation Department (AFCD) has also tested 50 samples of local catch for radiological levels. All the samples passed the tests. Details can be found on the AFCD's website (www.afcd.gov.hk/english/fisheries/Radiological_testing/Radiological_Test.html).
 
     The Hong Kong Observatory (HKO) has also enhanced the environmental monitoring of the local waters. No anomaly has been detected so far. For details, please refer to the HKO's website
(www.hko.gov.hk/en/radiation/monitoring/seawater.html).
 
     From August 24, 2023, to noon today, the CFS and the AFCD have conducted tests on the radiological levels of 135 882 samples of food imported from Japan (including 89 495 samples of aquatic and related products, seaweeds and sea salt) and 31 286 samples of local catch respectively. All the samples passed the tests.

     Following is a question by the Hon Shang Hailong and a reply by the Secretary for Transport and Logistics, Ms Mable Chan, in the Legislative Council today (May 14):

Question:

     The Government has implemented schemes for trials of autonomous vehicles (AVs) at locations such as the West Kowloon Cultural District since 2017, and a new regulatory regime for AVs also came into operation last year to allow wider and more flexible trials of AVs on the roads. However, there are views pointing out that the development of unmanned driving technology and the relevant laws and regulations in Hong Kong have not kept pace with the times, and that the application of commercial unmanned driving has not been subject to clear regulation. In this connection, will the Government inform this Council:

(1) whether it has assessed the effectiveness of the staged trials of various projects related to AVs and Vehicle-to-Everything technology subsidised by the Smart Traffic Fund;

(2) given that as at the end of last month, a total of two AV pilot licences have been issued by the Government to enable applicants to conduct trials on 12 AVs respectively, of the progress of such trials, and the expected time when such vehicles will be formally deployed in Hong Kong; and

(3) given that the Government will enact legislation to develop a framework for the regulation of online car hailing platforms, whether the Government will conduct a forward-looking study on the incorporation of the technical standards and safety requirements for unmanned vehicles, so as to develop a framework for the regulation of online hailing of AVs?

Reply:

President,

     The Government has been promoting the development of autonomous vehicles in Hong Kong in an active and orderly manner through a multi-pronged approach by providing policy support, regulatory backing and financial subsidy. The new regulatory regime for AVs came into operation in March last year, which allows the Transport Department (TD) to provide flexibility for AV trials while ensuring road safety, so as to foster the testing and application of more advanced AV technologies in Hong Kong. In addition to a forward-looking regulatory system, Hong Kong boasts a well-developed road network and highly standardised transport infrastructure, creating an ideal environment for the research and application of AVs. Moreover, our vibrant financial market and fertile ground for innovation have also successfully attracted numerous AV technology companies to establish research and development centres, experiment with AVs and related technologies, and raise funds through listing in Hong Kong. This not only injects vitality into the local economy, but also accelerates the realisation of the smart mobility vision.

     In consultation with the TD, my consolidated reply to the question raised by the Hon Shang Hailong is as follows:

(1) The Government subsidises enterprises or organisations conducting innovative technology research and application related to vehicles through the Smart Traffic Fund. As of last month, the fund has subsidised five and eight projects related to AVs and vehicle-to-everything (V2X) respectively, with a funding amount of approximately $170 million.

     Among these, AV projects cover multiple road scenarios in Hong Kong, such as different types of junctions, pedestrian-priority zebra crossings and public transport interchanges, steadily enhancing the capability of AVs to handle Hong Kong's complex road conditions. Regarding V2X technologies and related auxiliary projects, efforts are being made to progressively expand V2X scenario applications and enhance system compatibility. For instance, some projects have significant increased the number of application scenarios to over 20, while others enable communication between at least two AVs brands, allowing multiple AVs to operate simultaneously. These projects further enhance the road safety and operational efficiency of supporting infrastructure for AVs. 

     Through projects under the Smart Traffic Fund, the Government, the industry, and the academia have collectively accumulated experience. Coupled with cross-departmental collaboration, we have attracted multiple technology companies to invest in AVs and related technologies in Hong Kong. Current trials in Hong Kong have achieved highly autonomous driving, which is Level 4 under national and international standards, where AVs can continuously perform all dynamic driving tasks under specific operational conditions and automatically execute minimal risk strategies, a technical level comparable to that of the Mainland and other parts of the world. 

(2) Under the new regulatory regime, the testing and application of AVs in Hong Kong are enhancing speed and efficiency. The TD has issued two pilot licenses to allow 12 AVs to be tested in North Lantau and the West Kowloon Cultural District (WKCD) respectively.

     Significant progress has been made in the trial in North Lantau since its commencement from end of last year and various breakthroughs have been achieved: (1) the scale of trial has been expanded from a single vehicle to 10 vehicles operating simultaneously, in order to collect data of multiple vehicles running in parallel; (2) carrying passengers on specified routes after safety assessment; (3) conducting trial on more complex roads; current trial routes at the Airport Island have been expanded, with plans to conduct trial in Tung Chung in the future simultaneously; and (4) allowing the increase of the speed limit to 50 km per hour in accordance with the maximum speed limit of the trial route. With the TD's efficient approval process, relevant project achieves the aforementioned breakthroughs within five months. The project applicant also plans to expand the trial to Cyberport in Hong Kong South. Another project, located at the WKCD, will trial autonomous light buses equipped with autonomous driving system that follows Hong Kong's left-handed traffic rule. Upon completion of the entire system development and when the system has been proven safe to operate, trials with passengers will be carried out on public roads in the WKCD. Based on the current progress, we would expect AV application in selected communities within the next one to two years. 

     Looking forward, with safety as its guiding principle, the Government will continue to consolidate the experience gained from various projects, refine technical standards and share research outcome with the industry to promote the development of AVs keenly in a steady manner. In addition to the aforementioned projects, we are also actively advancing other initiatives in different districts, such as autonomous light buses running between the Hong Kong Science Park in Sha Tin and MTR University Station, and an autonomous transportation system connecting the SKYCITY at Hong Kong International Airport and the Hong Kong Port Island of the Hong Kong-Zhuhai-Macao Bridge.

(3) The Government has all along been committed to enhancing the quality of personalised point-to-point transport services. Regarding the regulation of online car hailing platforms, the TD is actively conducting a study on the overall demand and supply of personalised point-to-point transport services. The Government will formulate legislative proposals on the regulation of online car hailing platforms, including licensing requirements on the platforms, vehicles and drivers, within this year after it has fully considered the report of the relevant Working Group under the Transport Advisory Committee and the views and the quantitative data collected. The legislative proposals will then be presented to the Legislative Council.

     The advancement of AV technology is rapid. We note that many regions have started to apply AVs to commercial operation of passenger and goods transport, etc, and autonomous taxis are being trialed in several cities in the Mainland, demonstrating the significant potential of the integration of the two. The Government will continue to closely monitor the technological advancement and industrial development of AVs, provide appropriate guidance and support, and consider the development direction and the future relevant regulatory requirements in a forward-looking manner.

     Thank you, President.

     â€‹Following is a question by the Hon Yim Kong and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (May 14):
 
Question:
 
     Water charges in Hong Kong have not been adjusted for nearly 30 years since February 1995. The Waterworks Operating Accounts have recorded persistent deficits since 1999, and such deficits have increased substantially from less than $1 billion in the 2013-2014 financial year to about $2.4 billion in the 2022-2023 financial year. Moreover, it has been reported that the water charges in Hong Kong are among the lowest in advanced cities. While the water charges in other advanced countries or cities (such as Japan and Singapore) account for about 1 per cent to 2 per cent of the local household income, Hong Kong's average water charges represent only less than 0.2 per cent of its household income. In this connection, will the Government inform this Council:
 
(1) whether it has studied the reasons why persistent deficits have been recorded in the operation of waterworks in Hong Kong, apart from the apparently low water charges, and whether the authorities have examined the reasons for persistent deficits from the management and operation perspectives; if it has studied, of the details, and how the authorities will make improvements;
 
(2) given that according to the paper submitted by the Government to the Panel on Development of this Council on December 13, 2023, the main source of water supply for Hong Kong is Dongjiang water purchased from the Guangdong Province under the "package deal deductible sum" approach, and the annual ceiling water prices from 2024 to 2026 will be over $5 billion, whether the authorities have actively enlisted support from the relevant ministries of the Central Government and proactively discussed with the authorities of the Guangdong Province to explore ways to optimise the existing mode of water supply (especially the water prices); and
 
(3) whether it will actively consider privatising the Water Supplies Department; if so, of the specific timetable and roadmap; if not, the reasons for that?
 
Reply:
 
President,
 
     The Water Supplies Department (WSD) has all along been committing to providing the public with reliable, sufficient and quality fresh water.  Over the years, the WSD has been constructing many waterworks facilities to meet the needs of social development and the public on the one hand, while on the other hand containing fresh water demand growth through various water conservation and water loss management initiatives. The WSD is exploiting new water resources including desalinated seawater, reclaimed water (Note 1) and treated grey water (Note 2) to diversify the water supply portfolio and build resilience in fresh water supply.
 
     Besides, through adopting new technology to enhance operational cost-effectiveness and streamline business processes, the WSD effectively controls the capital cost of water supply.
 
     The Government will review the level of water tariff periodically based on the principles of "user pays" and "service cost recovery", taking into account the social and economic situations, affordability of the consumers, financial performance of waterworks operations and the views of the stakeholders, etc. Water is a daily necessity for people, and the water tariff adjustment will have significant impact on people's livelihood and the operation of various trades and industries. The Government needs to consider the factors very carefully in order to balance the public finance position and the impact on the public.
 
     The reply to the various parts of the question raised by the Hon Yim is as follows:
 
(1) The number of water accounts has increased from 2.2 million in 1998 to 3.27 million in 2024 (an increase of about 49 per cent).  To meet the new service demands, the WSD has increased the number of waterworks facilities substantially between 1998 and 2024, including an increase of 43 per cent in the length of water mains from about 5 900 km to about 8 500 km, a rise of 8 per cent in the number of service reservoirs from 215 to 232, and an increase of 8 per cent in the number of pumping stations from 177 to 191, which results in a continuous increase in the associated operational and maintenance expenses. The Composite Consumer Price Index also increased by 40 per cent over the same period. Besides, water tariff has not been adjusted since 1995 (except for the adjustment of water fees for non-local vessels in 1996). Taking all these factors into account, the Waterworks Operating Accounts (WOA) have continuously recorded a deficit since 1998-99, and the cost recovery rate also dropped to about 75 per cent.
 
     To control the cost of water supply and improve waterworks operating conditions, the WSD has been committing to improving water resources management and making good use of technology to streamline business processes, reduce water loss and save energy consumption. Meanwhile, the WSD has reduced its establishment from about 6 100 in 1998 to about 4 700 in 2024.
 
     In addition, the WSD has implemented water loss management initiatives, including the replacement and rehabilitation of about 3 000 km of aged water mains between 2000 and 2015 and the implementation of Risk-based Improvement Programme of Water Mains and Water Intelligent Network in recent years. These efforts have reduced the leakage rate of government water mains from around 25 per cent in 2000 to around 13.4 per cent at present. The WSD has also spared no efforts in promoting water conservation to defer the need for building additional waterworks facilities, thereby lowering the operational, maintenance, and depreciation expenses associated with water supply, alleviating the pressure from the rising costs and achieving better cost-effectiveness.
 
     Other measures that have been implemented to enhance the cost-effectiveness of waterworks facilities include controlling private water main leakage, installing smart water meters, and upgrading the WSD's energy management system to save the energy cost.
 
     To control the cost of water supply more effectively in the long run, the WSD is formulating an overall digital transformation roadmap to implement a series of digitalisation projects and measures in phases, including the establishment of the WSD’s Central Operation Management Centre, Internet of Things platform, cloud data centre, digital twin and hydraulic model applications, etc, with a view to improving the operational efficiency and stability of water supply, and reducing energy consumption. By implementing the aforementioned measures and making timely and suitable adjustments to water tariff, the performance of the WOA could be improved in the long run.
 
(2) The price for the Hong Kong Special Administrative Region Government to purchase Dongjiang (DJ) water includes the costs incurred by the mainland for supplying DJ water to Hong Kong, such as the costs for infrastructure, system operation and maintenance, etc, as well as the cost of measures to protect the quality of DJ water supplied to Hong Kong. The fees do not include the costs of the Mainland on ecological conservation and other aspects including the opportunity costs of the control of development in the protection zones along the basin, and the prohibition of activities such as quarrying, mining and extensive poultry farming within the protection zones, etc. The price of DJ water will be reviewed every three years upon each renewal of the DJ water supply agreement, and adjusted in a reasonable and appropriate manner based on the established mechanism which takes account of a number of objective factors including changes in the exchange rate between Renminbi and Hong Kong dollar, changes in the relevant price indices of Guangdong (GD) and Hong Kong, as well as increase in operation costs. In fact, the increase of annual ceiling water price for the 2024 to 2026 DJ water supply agreement is lower than the changes in the exchange rate and price indices mentioned above.
 
     Since 2021, DJ water supply agreement has adopted the "package deal deductible sum" approach. Hong Kong can import DJ water based on the city's need. If there is a high local yield and the amount of DJ water required is below the pre-set annual supply ceiling, a price deduction, according to the actual amount of water supplied, will be made to the annual ceiling water price. This approach provides greater flexibility in the control of water storage level, preventing wastage of DJ water resources and saving energy cost for water delivery. Also, both the GD and Hong Kong sides agreed that the "package deal deductible sum" approach should be maintained at least up to 2029.
 
(3) As mentioned above, water is a daily necessity for people. A highly reliable water supply service is extremely important and has significant impact on people's livelihood and the operation of various trades and industries. While there are examples where the water supply business is privatised, we are also aware that such operation arrangement may not necessarily bring overall benefits to the society. On the contrary, private investors may charge the public a higher water fee for the sake of profit, or be reluctant to invest resources in maintaining and repairing aging water pipes and other water facilities to control costs. The Government currently does not have plans to privatise the WSD.
 
Note 1: Reclaimed water is a water resource generated by further processing treated effluent from sewage treatment works.
 
Note 2: Water collected from bathrooms, wash basins, kitchen sinks and laundry machines etc. is known as grey water. Along with harvested rainwater, the grey water can be treated and reused for non-potable purposes such as toilet flushing.

     Following is a question by the Hon Robert Lee and a written reply by the Acting Secretary for Commerce and Economic Development, Dr Bernard Chan, in the Legislative Council today (May 14):
 
Question:
 
     In the country's Report on the Work of the Government this year, it was mentioned that Hong Kong must deepen international exchanges and co-operation. The Hong Kong Special Administrative Region Government is also actively attracting overseas companies to Hong Kong and helping Mainland companies go global to align with the overall development strategy of the country. In this connection, will the Government inform this Council:
 
(1) how it will promote alignment between Hong Kong's financial services industry and national policies to leverage Hong Kong's unique advantages, reinforce its connectivity with both the Mainland and the world, and actively promote international exchanges and co-operation; whether it will consider providing further support to financial services enterprises to expand into new markets and broaden their international networks;
 
(2) as it is learnt that many Hong Kong enterprises, business associations, non-profit organisations, and international trade organisations possess extensive overseas networks, whether the Government has compiled the relevant statistics; if so, of the details; how the Government will leverage the power and resources of non-governmental organisations to foster citizen diplomacy;
 
(3) to align with the country's overall development strategy, will the Government review and optimise the division of responsibilities and functions of different government departments or public organisations responsible for promoting trade (such as the Economic and Trade Offices, the Hong Kong Trade Development Council, Invest Hong Kong, and other overseas offices), so as to avoid overlapping structures and enable them to focus more on delivering services under existing policies;
 
(4) whether the Government will formulate specific policy measures to support and sponsor various enterprises and organisations to participate in industrial and commercial, and financial exhibitions, etc, in overseas countries in order to promote commercial co-operation with Middle East countries and Belt and Road countries, and to promote Hong Kong to such countries; if so, of the details; if not, the reasons for that; and
 
(5) whether the Government has a comprehensive plan to tell good stories of Hong Kong to the outside world through targeted publicity and promotion strategies, and to better leverage Hong Kong's international advantages to attract more international financial institutions and investors to establish presence in Hong Kong?
 
Reply:
 
President,
 
     Having consulted the Financial Services and the Treasury Bureau, the consolidated reply to the question raised by the Hon Robert Lee is as follows:
 
     The Outline of the 14th Five-Year Plan for National Economic and Social Development of the People's Republic of China and the Long-Range Objectives Through the Year 2035 (14th Five-Year Plan) supports Hong Kong to enhance its status as an international financial centre, strengthen its functions as a global offshore Renminbi (RMB) business hub, an international asset management centre and a risk management centre, as well as deepen and expand the mutual access between the financial markets of the Mainland and Hong Kong.
 
     In this regard, the Hong Kong Special Administrative Region (HKSAR) Government has been committed to deepening the interface of Hong Kong's financial services industry with national policies in accordance with the 14th Five-Year Plan. For example, in terms of mutual market access, the Stock Connect has made some breakthroughs over the past few years, including the inclusion of exchange-traded funds and the addition of eligible stocks of foreign companies primarily listed in Hong Kong. This has become the most reliable channel for international investors to access the Mainland securities market. In terms of global offshore RMB business, at present, Hong Kong has the world's largest offshore pool of RMB funds, currently processing about 80 per cent of global offshore RMB payments. On attracting Mainland enterprises to list in Hong Kong, as driven by a series of listing enhancement measures, there are currently over 1 480 Mainland enterprises listed in Hong Kong. The Hong Kong Exchanges and Clearing Limited (HKEX) has established listing avenues for new economy with weighted voting rights structures, and specialist technology companies as well as the technology enterprises channel, with a view to accurately addressing the financial service demands of Mainland's emerging innovation and technology industries and leveraging Hong Kong's strengths to serve our country's needs.
 
     We also continue to deepen exchanges and co-operation with the global financial community, actively strengthen and expand our circle of friends with the global community, organise major financial events of global significance such as the Asian Financial Forum, the Wealth for Good in Hong Kong Summit and the Global Financial Leaders' Investment Summit, in a bid to further enhance the voice and influence of our country and Hong Kong in the international financial community and showcase to the international investors the strengths and opportunities of Hong Kong as an international financial centre.
 
     In addition, the HKSAR Government, regulators and the HKEX are committed to promoting Hong Kong's financial services industry, securities market and fundraising platform to overseas and Mainland enterprises and investors (including target markets such as the Middle East and the Association of Southeast Asian Nations regions), through organising and participating in different thematic flagship summits, outreach activities, thematic roadshow events, etc, with a view to strengthening Hong Kong's linkage with overseas and Mainland markets, fostering financial market co-operation, as well as facilitating the local financial services industry to open up new markets.
 
     We will continue to deepen and step up our efforts to seize the national development opportunities, bringing more new opportunities to the industry and continuing to contribute to our country's development as a financial powerhouse.
 
     On the other hand, the HKSAR Government has been actively promoting the sustainable development of Hong Kong as an international trade centre through diversified measures. The global trade landscape and geopolitics are rapidly changing, with parts of the supply chains shifted to the Global South and Belt and Road (B&R) countries, while Mainland enterprises are also proactively establishing their presence abroad. Hong Kong's rich experience in international trade and world-class professional services will be of assistance to such Mainland enterprises in re-deploying their global supply chains. According to the 2024 Policy Address, Invest Hong Kong (InvestHK) and the Hong Kong Trade Development Council (HKTDC) set up in December 2024 a high value-added supply chain services mechanism for attracting Mainland enterprises to establish international or regional headquarters in Hong Kong for managing offshore trading and supply chain, and providing one-stop professional advisory services for enterprises in Hong Kong looking to go global. The mechanism is conducive to Hong Kong's economic development on the one hand, and facilitates the deepening of its international exchanges and co-operation on the other hand, thus responding to meet Premier Li Qiang's expectations for Hong Kong, as set out in his work report this year, integrating into the overall national development while making contribution to the country.
 
     Besides, the HKSAR Government will continue to organise a number of outbound missions to B&R markets to assist Hong Kong enterprises and professional services to further explore business opportunities and build long-lasting collaborative relationships with relevant local enterprises and organisations. We will also continue to actively organise various major events to promote Hong Kong's advantages and facilitate business matching and project participation between Hong Kong and B&R countries. In addition, the HKTDC's overseas network has already covered the major markets along the B&R, including regions of the Middle East. By leveraging its global network, the HKTDC will continue to launch diversified outreach activities, information platforms, large-scale international exhibitions and conventions, to highlight Hong Kong's opportunities and role as a two-way business and investment platform, and facilitate the co-operation among enterprises of the Mainland and Hong Kong, investors and professional service providers, as well as the project owners from B&R countries.
 
     For overseas exhibitions activities, the HKSAR Government strives to encourage and provide funding support for non-listed Hong Kong enterprises to upgrade and restructure, enhance competitiveness of enterprises as well as sectors and conduct promotional activities through various funding schemes and measures, including the Dedicated Fund on Branding, Upgrading and Domestic Sales, the SME Export Marketing Fund and the Trade and Industrial Organisation Support Fund. Enterprises/organisations could apply for funding to participate in promotional activities such as exhibitions in markets outside Hong Kong to develop their businesses. The HKTDC has also been actively leading Hong Kong companies to participate in large-scale exhibitions overseas and set up Hong Kong pavilions in selected large-scale exhibitions. In addition, the HKTDC offers preferential participation rates and a range of value-added services, including the arrangement of business matching meetings, for Hong Kong companies to grasp the opportunities to promote their products and services.
 
     Currently, the HKSAR Government has 14 overseas Hong Kong Economic and Trade Offices (ETOs). Together with the offices of the HKTDC and InvestHK worldwide, Hong Kong has set up offices in 68 cities around the world, covering 129 countries, including emerging markets. The ETOs, InvestHK's Dedicated Teams for Attracting Businesses and Talents based in the ETOs and its consultant offices in other locations, as well as the HKTDC's offices are responsible for different aspects of work, while collaborating from time to time to generate synergy. The trio promote bilateral economic and trade relations between Hong Kong and overseas economies. InvestHK and the HKTDC mainly serve the business community. InvestHK is responsible for promoting inward direct investment to Hong Kong. Through its teams based in Hong Kong, the Dedicated Teams for Attracting Businesses and Talents based in the ETOs, as well as consultant offices in other locations, the department has all along been reaching out to a wide spectrum of companies in different sectors and industries around the world to attract and assist them to set up or expand their businesses in Hong Kong, and offering one-stop customised support services, from the planning to implementation stages. As for the HKTDC, it is responsible for trade promotion as well as facilitating, assisting and developing trade in Hong Kong. Through organising international exhibitions, conferences and business missions, the HKTDC creates business opportunities in the Mainland and international markets for Hong Kong enterprises. The ETOs are committed to maintaining close communication and exchanges with the international community and overseas stakeholders in different sectors (including government officials, think tanks, media organisations, academics, cultural and business groups and other key opinion leaders in countries under their purview), promoting and explaining the HKSAR Government's important policies and Hong Kong's unique advantages under "one country, two systems", with a view to telling the good stories of Hong Kong and promoting economic and trade development between Hong Kong and overseas.
 
     Meanwhile, the ETOs will strengthen ties and co-operation with foreign chambers of commerce in Hong Kong and the local political and business sectors, and take the opportunity of the latter's overseas visits to collaborate in promoting Hong Kong's latest developments and major policy measures through different forms of activities, and jointly tell the good stories of Hong Kong from multiple perspectives.

     Following is a question by the Hon Steven Ho and a reply by the Secretary for Environment and Ecology, Mr Tse Chin-wan, in the Legislative Council today (May 14):
 
Question:
 
     It has been reported that a number of coastal provinces in the Mainland have set up inter-departmental co-ordination groups led by provincial governors to co-ordinate policies on marine economy. However, there are views pointing out that the development of marine economy in Hong Kong is taken forward in a piecemeal fashion without top-level planning. In this connection, will the Government inform this Council:
 
(1) as there are views that development of marine economy involves various portfolios and it is difficult for a single-policy bureau to co-ordinate inter-departmental resources, whether the Government will make reference to the experience of the Mainland and set up a dedicated team led by officials at the decision-making level to co-ordinate the development of marine economy; if so, of the details and the implementation timetable; if not, the reasons for that;
 
(2) as there are views that the existing policy focusing on regulation may hinder the development of marine economy, how the Government will promote the development of maritime industries, e.g. of the breakthroughs in terms of the introduction of the relevant legislative amendments and innovative policies, as well as the enhancement of cross-boundary co-operation and co-ordination; and
 
(3) apart from the three tourism projects currently being taken forward by the Development Bureau under the large-scale land-disposal approach, whether the Government will consider selecting more islands and coastal areas with potential for tourism development to implement the large-scale land-disposal approach on a trial basis, so as to bring in social capital for participation in infrastructure development and operation, thereby enhancing the competitiveness of marine tourism in Hong Kong?
 
Reply:
 
President,

     International organisations and individual economies have different definitions for "marine economy", and there is no unified global standard on which industries fall under the scope of marine economy. For Hong Kong, having made reference to the breakdown of the industry classification of the Mainland's marine economy and roughly compared the industries covered therein with those in the Hong Kong Standard Industrial Classification Version 2.0 compiled by the Hong Kong Census and Statistics Department and other known industry classifications, the Government Economist considered that the marine economy-related activities in Hong Kong can be broadly categorised into the following six categories:
 

1. maritime transport and port industry;
2. marine tourism;
3. marine utilisation, extraction, production and related manufacturing;
4. wholesale and retail of marine products;
5. marine public administration and social services; and
6. marine scientific research, technology and information services.

     One of the six categories, "maritime transportation and port industry" includes ports, shipping, and maritime commercial services. In 2022, this sector contributed 4.2 per cent to Hong Kong's Gross Domestic Product (GDP) and accounted for 2.1 per cent of total employment. Besides, "marine utilisation, extraction, production, and related manufacturing", along with "wholesale and retail of marine products", are partially related to capture fisheries and mariculture. According to data from the Agriculture, Fisheries and Conservation Department (AFCD), the local capture fisheries and mariculture production in 2023 was approximately 87 000 tonnes, with a total value of about $2.4 billion, estimated to contribute less than 0.1 per cent to GDP. As for the remaining three categories, their value-added contributions could not be estimated due to limited data.
      
     Having consulted the Deputy Financial Secretary, the Transport and Logistics Bureau (TLB), Culture, Sports and Tourism Bureau (CSTB), the Innovation, Technology and Industry Bureau (ITIB), and the Development Bureau (DEVB), my consolidated reply to the question of the Hon Steven Ho is as follows:

(1) Given the extensive scope of the marine economy, which encompasses a diverse range of industries and development models, multiple policy bureaux and departments within the Special Administrative Region (SAR) Government are responsible for related areas. Relevant bureaux and departments attach importance on these developments and have formulated and implemented strategies, action plans, or blueprints accordingly. Each policy bureau and department, in accordance with their professional functions, introduces targeted measures to advance the development of marine economy-related areas under its purview, which are in line with the overarching policy direction, strategies, and pace of development. This approach fosters synergies between marine economy development strategies and other initiatives within the respective bureaux and departments, thereby more effectively achieving their policy objectives. The Government believes that the current approach suits Hong Kong's circumstances. Bureaux and departments will continue to review the development direction and progress of their respective areas, working collectively to drive the growth of marine economy. The SAR Government will also monitor progress across all fronts and, if necessary, explore ways to optimise the development approach.

(2) The development of marine economy in Hong Kong does not only focus on regulations. For example, the TLB has all along been promoting the development of Hong Kong as an international maritime centre, and has been collaborating closely with the industry to implement various measures under the Action Plan on Maritime and Port Development Strategy, including strengthening regional collaboration and global connectivity to attract new cargo sources to Hong Kong Port, while driving the port's digitalisation, greening, and adoption of smart technologies; enhancing tax incentives for the maritime industry and introducing a half-tax concession for commodity traders; strengthening the high-quality reputation of Hong Kong ship registration; elevating the prominence of the Hong Kong Maritime Week, and attracting international organisations to host maritime events in Hong Kong.
 
     On maritime services, apart from enforcing the relevant legislation to ensure marine safety, the Marine Department (MD) also endeavours to make maritime services more convenient. For instance, allowing the use of electronic certificates instead of paper-based certificates for ship-related matters. The MD also maintains close liaison and collaboration with Mainland maritime authorities at all levels.
      
     On marine tourism, the CSTB put forward in the Development Blueprint for Hong Kong's Tourism Industry 2.0 to make more and better use of Hong Kong's rich island and coastline tourism resources. As such, the CSTB encourages the development of more diverse tourism products with characteristics, and is ready to study and foster areas where removal of statutory and regulatory barriers are required. At the same time, the CSTB actively promotes development of island tourism and large-scale integrated resort projects focusing on eco-tourism, as well as continues to consolidate Hong Kong's position as Asia's hub for international cruise thereby promoting development of cruise tourism.
      
     The ITIB has all along been dedicated to enhancing Hong Kong's innovation and technology ecosystem with a view to supporting the development of different technology industries (including marine technology) in various areas including capital, research and development, supporting tech start-ups and talent. At present, Hong Kong has one State Key Laboratory of Marine Pollution, contributing to the protection and management of the marine environment.
      
     On the fisheries front, the Environment and Ecology Bureau and the AFCD are actively taking forward the various initiatives under the Blueprint for the Sustainable Development of Agriculture and Fisheries, including designation of four new fish culture zones as well as introduction of modernised facilities to support development of mariculture, explore the streamlining of relevant legislations to promote development of leisure fisheries, and at the same time strengthen co-operation with the Mainland. To further enhance the competitiveness of local agricultural and fisheries products, the AFCD plans to establish a unified new brand for safe, low-carbon and premium local agricultural and fisheries products, and to establish production standards, farming methods as well as a certification and traceability system for these products, etc. The AFCD will continue to actively participated in the promotional activities in the Guangdong-Hong Kong-Macao Greater Bay Area to promote quality local products. In addition, the AFCD has designated three new marine parks in the past five years, and has also formulated new fishery management strategies in marine parks and implemented marine ecological enhancement measures.

(3) The DEVB is actively pursuing the three projects under large-scale land disposal located on islands or coastal destinations, and in April this year invited the market to submit expression of interest for these three development proposals.
 
     Besides, the DEVB recently has also proposed to provide marina and land supporting facilities at two waterside areas, namely the Aberdeen Typhoon Shelter expansion area and the harbourfront site in the vicinity of the Hung Hom Station.
      
     As to whether there are other suitable sites for large-scale land disposal in the future, the DEVB is willing to listen to different views, and will consider the experiences gained from taking forward the above three projects.

     Thank you, President.