Tag Archives: China

LCQ16: Tobacco duty

     Following is a question by the Hon Shiu Ka-fai and a written reply by the Secretary for Health, Professor Lo Chung-mau, in the Legislative Council today (February 12):
     
Question:

     It has been reported that smoking prevalence has been reduced slightly from 9.5 per cent to 9.1 per cent, following the Government’s measures to increase tobacco duty by 31.48 per cent and 31.92 per cent in 2023 and last year respectively. Some members of the community have pointed out that while an increase in tobacco duty by more than 30 per cent should have brought substantially more tax revenue since there has not been any significant decrease in the number of smokers, the revenue from tobacco duty dropped from $7.93 billion before the duty increase in 2022-2023 to $7.25 billion afterwards in 2023-2024, and the tax revenue reduced even more significantly last year after the Government drastically increased tobacco duty again. In this connection, will the Government inform this Council:
     
(1) of the monthly revenue from tobacco duty in the past three years (set out in the table below);

Month 2022 2023 2024
January      
……      
December      

(2) whether it has examined the reasons for reduction in the Government’s revenue from tobacco duty; whether it has assessed (i) the amount of revenue from tobacco duty reduced each year as a result of the increase in tobacco duty in 2023 and last year, and (ii) how much of such amount may be channelled to the market of illicit cigarettes; if it has assessed, of the details; if it has not assessed, the reasons for that;

(3) of the number of illicit cigarettes seized, the market value of such illicit cigarettes and the number of persons arrested in each month of the past three years;

(4) of the respective numbers of persons prosecuted by the Government for (i) trafficking and (ii) purchasing illicit cigarettes, as well as the penalties imposed on the convicted persons, in each of the past three years; and

(5) whether it will consider restoring the tobacco duty rate to the level prior to the duty increase last year, with a view to bringing the revenue from tobacco duty back to the previous level, thereby increasing the Government’s revenue by billions of dollars and at the same time minimising the benefits brought to lawbreakers; if so, of the details; if not, the reasons for that?

Reply:

President,

     Having consulted the Financial Services and the Treasury Bureau and the Customs and Excise Department (C&ED), the consolidated reply to the various parts of the Hon Shiu Ka-fai’s question is as follows.

     Hong Kong is facing an ageing population and a continuous rising number of chronic disease patients. Numerous scientific studies have shown that smoking is the most important and preventable risk factor leading to chronic diseases and deaths. According to the estimation of the World Health Organization (WHO), the global economic loss caused by tobacco products amounts to US$1,800 billion annually, and a research of the University of Hong Kong in 2021 also revealed that the economic loss resulting from tobacco-induced health problems was estimated to be about HK$8.2 billion every year. It is therefore beyond doubt that smoking brings harm to the economy. On the contrary, that tobacco control harms the economy is disinformation created by the tobacco companies.

     The results of the Thematic Household Survey (THS) on smoking pattern in 2023 conducted by the Census and Statistics Department showed that there are about 580 000 people in Hong Kong who are still daily smokers of conventional cigarettes, and nearly half of them are aged between 40 and 59. Smoking-induced diseases suffered by smokers who continue to smoke will pose a heavy burden on the healthcare system. In order to stop the tobacco hazards, the Government need to curb the use of tobacco and more importantly, prevent the public, especially the younger generation, from picking up smoking habit. Increasing tobacco duty is recognised internationally as the most effective means of reducing tobacco use. Through raising the costs of smoking, it provides a greater incentive for smokers to quit smoking, and dampens the eagerness of non-smokers, the youth in particular, to smoke.

     Following an increase of tobacco duty by 60 cents in 2023-24, the Government has raised the tobacco duty by another 80 cents to $3.306 per stick in 2024-25. The measure can ensure that tobacco prices are maintained at a relatively high level which help prevent a rebound in smoking prevalence upon lifting of the mask-wearing requirements after resumption of normalcy after the epidemic, conveying a clear message to the society on the Government’s commitment and determination to safeguard public health through stringent tobacco control measures. The effectiveness of tobacco duty adjustment should be evaluated by whether it can effectively control and reduce the number of smokers, rather than the amount of additional revenue it brings to the Government. 

     Past experience in increasing tobacco duty indicated that increasing tobacco duty is conducive to reducing smoking prevalence. The greater the tax hike, the greater the drop in smoking prevalence. The number of calls to the Department of Health’s Integrated Smoking Cessation Hotline (Quitline) immediately after the increase in tobacco duty is also a sensitive indicator of smokers’ response (i.e. their intention to quit smoking) to the duty increase. In the first month after the duty increase was announced in the 2023-2024 and 2024-2025 Budget, the number of calls to the Quitline increased by about three times respectively when compared to the monthly number of calls received in the previous three months, reflecting the strong intention of smokers to quit smoking as a result of the duty increase. The number of calls received by the Department of Health’s Quitline increased from about 7 400 in 2022 to about 9 300 in 2024, representing an increase of more than 20 per cent.

     The tobacco duty revenue, as well as smoking prevalence/smoking consumption and arrival passengers statistics from 2018 to 2024 are set out at Annex I. As 2020-22 was within the epidemic period, the pre-epidemic situation of 2018-19 is also presented for ease of comparison. The figures revealed that the number of duty-paid cigarettes and tobacco duty revenue in 2024 have decreased by about 39.4 per cent and 23.0 per cent respectively compared with 2023, and by 46.7 per cent and 18.5 per cent respectively when compared with 2019 (i.e. before the epidemic). 

     Tobacco duty revenue is collected from tobacco products as a dutiable commodity imported into Hong Kong, and therefore the amount of revenue generated is affected by many factors. Apart from the local sales volume of duty-paid tobacco products, it also depends on the commercial decisions of tobacco companies such as pricing strategies, timing of import and quantity, storage capacity of duty-paid tobacco products (there are no relevant figures as the commercial behaviour of tobacco companies is not transparent), as well as tobacco products purchased, by arrival passengers, outside Hong Kong or at duty-free shops at border control points and brought into Hong Kong (whether legally or illegally (Note)). Cross-boundary travel was greatly affected during the epidemic and the public were unable to bring back duty-free cigarettes through border control points. Tobacco duty was about 20 per cent higher than that before the epidemic, indicating that cross-boundary passenger travel has a great impact on tobacco duty. The number of passenger arrivals in 2024 was close to 150 million, which has fully restored to the pre-epidemic level, with the number of passenger arrivals at land boundary control points being close to 125 million exceeding the pre-epidemic level. It is estimated that the tobacco products brought into Hong Kong by inbound passengers will inevitably have a significant impact on tobacco duty revenue.

     At the same time, the local sales volume of duty-paid tobacco products is also affected by the smoking population and their average consumption, whereas the increased cost of smoking will reduce the consumption of tobacco products. The WHO pinpoints that every 10 per cent increase in cigarette price will reduce the overall tobacco consumption by four per cent in high-income regions. In aggregate, tobacco duty was raised by 73.5 per cent in 2023 and 2024. Following the increase of tobacco duty in 2023, the THS conducted from May to August in the same year revealed that smoking prevalence dropped from 10.2 per cent in 2019 and 9.5 per cent in 2021 to 9.1 per cent in 2023. The number of smokers is estimated to have decreased by 60 600 or 9.5 per cent. The number of cigarettes consumed by smokers per day also dropped from 12.7 sticks in 2019 and 2021 to 12.1 sticks in 2023, which together represented a 13.8 per cent reduction in tobacco consumption. The Government has further increased tobacco duty in 2024 and the relevant THS will be conducted at a later time. It is expected that the drop in demand for tobacco products would be reflected in the survey results.  

     On the other hand, illicit cigarettes activities have always existed and the rebound in cross-boundary freight after resumption from the epidemic might also lead to increase in illicit cigarettes activities. That said, industry statistics from international market research companies revealed that the sales of illicit cigarettes in Hong Kong did not show an upward trend. As a matter of fact, both the WHO and the World Bank have pointed out that there is no direct correlation between the increase in tobacco duty and illegal tobacco trade activities. Combatting illicit cigarette trading activities and raising tobacco duty should be regarded as complementary measures. Taking into consideration the above factors, we are of the view that the drop in tobacco duty is attributable to a number of factors. The full effect of tobacco duty in reducing tobacco use is to be ascertained subject to the availability of latest data, and at this stage, we cannot rule out the possibility that some of the revenue from tobacco duty may be lost as a result of illicit cigarettes activities, but there is no evidence to suggest that illicit cigarettes activities are the main cause of the drop in tobacco duty.

     In any case, as an important pillar under the tobacco control strategy, the Government will spare no efforts in combatting illicit cigarettes. The C&ED will continue to adopt a multi-pronged approach and take stringent enforcement actions at all levels to combat the sale of illicit cigarettes. The monthly tobacco duty revenue and the relevant enforcement figures against illicit cigarettes (including smuggling, storage and distribution as well as sale) in the past three years are set out at Annex II. The increase in the number of seizures of illicit cigarettes reflects the effectiveness of the C&ED’s stepped-up enforcement actions against illicit cigarettes and the success of its enforcement strategy does not denote an expanding scale of illicit cigarettes activities.

     The Government announced the “10 measures for tobacco control” in June last year. Stepping up enforcement against illicit cigarettes was accorded the highest priority among the 10 measures, including – 

(i) introducing a duty stamp system to distinguish duty-paid cigarettes from non-duty-paid cigarettes;
(ii) requiring tobacco products being sold at a price lower than the tobacco duty need to be proved duty-paid;
(iii) increasing the maximum penalty for handling, possessing, selling or buying duty-not-paid cigarettes; and 
(iv) listing the relevant offences under the Organised and Serious Crimes Ordinance (Cap. 455), so as to enable the C&ED to apply for freezing and confiscating illicit proceeds and assets associated with illicit cigarette activities by virtue of the Ordinance.

     On duty stamp system, taking into account factors such as enforcement effectiveness and cost-effectiveness, we propose to require the affixing of duty-paid labels on the retail packages of cigarettes at this stage. Through the application of anti-forgery features and related digital technologies, frontline officers of the C&ED would be able to distinguish duty-paid cigarettes from duty-not-paid ones in a more effective manner, thereby enhancing enforcement efficiency. The C&ED expects that a pilot scheme on the duty stamp system will be rolled out in the middle of this year to work out the practical operating requirement of the scheme, which will then be launched next year at the earliest. 

     The Government expects that the above measures will increase the deterrent effect and enhance the effectiveness of law enforcement departments in combating illicit cigarettes. The Government will continuously review the effect of tobacco control measures as a whole and the pace of future adjustments in tobacco duty. Our ultimate aim is to further lower the smoking prevalence so that the whole society and our healthcare system does not have to pay a heavy price for smoking-related diseases.

Note: Under the Dutiable Commodities Ordinance (Cap. 109), a person aged 18 or above may bring into Hong Kong 19 cigarettes duty-free for his own personal use. read more

LCQ20: Office of Former Chief Executives

     Following is a question by the Hon Michael Tien and a written reply by the Chief Secretary for Administration, Mr Chan Kwok-ki, in the Legislative Council today (February 12):
 
Question:
 
     It has been reported that the Office of Former Chief Executives of the Hong Kong Special Administrative Region (the Office) located at Pacific Place in Admiralty will be relocated to the Immigration Tower in Wan Chai upon the expiry of lease. In this connection, will the Government inform this Council:
 
(1) of the renovation costs involved in setting up the Office at Pacific Place in Admiralty; whether the relocation of the Office away from its present location will involve reinstatement costs; if so, of the estimated relevant expenditures;
 
(2) of the estimated costs associated with the relocation of the Office and the estimated renovation costs of the new Office respectively;
 
(3) as the Government announced in the 2017 Policy Address that it planned to reprovision the three government towers at the Wan Chai waterfront, including the Immigration Tower, so as to release the precious land in the Wan Chai district for convention, exhibition and commercial uses, and the Chief Executive indicated last month that the reprovisioning plan would be implemented as scheduled, whether the Government will, in the light of the prevailing economic environment, utilise the relevant sites for the more important use of promoting economic recovery; if so, of the progress and timetable of the relevant plan; and
 
(4) whether it has assessed if the Office will need to be relocated again after it has been relocated to the Immigration Tower in Wan Chai in the light of the commencement of the reprovisioning plan mentioned in (3); if it has assessed and the result is in the affirmative, whether the Government will consider a longer-term option, so as to avoid wasting public money?
 
Reply:
 
President,
 
     The reply to the question raised by the Hon Michael Tien is as follows:
 
 (1), (2) and (4) As the Office of Former Chief Executives (FCEO) of the Hong Kong Special Administrative Region (HKSAR) at 28 Kennedy Road can only accommodate three former Chief Executives (former CEs) at most, and there was no suitable and available government premises at the time, a leasable office unit was thus identified at Pacific Place as office for the fourth former CE for a tenancy period of three years starting from May 2022. The renovation works was carried out by the Architectural Services Department at a cost of about $6.55 million, funded under Subhead 3101GX of Head 703 – Buildings.
 
     The tenancy of the office will expire in May this year. The Government had liaised with the landlord who agreed to take over the office in an as-is condition and no reinstatement works will be required. The Government plans to relocate the office to 23/F, Immigration Tower in Wan Chai for continuous operation. The renovation works is in progress and the estimated renovation cost is around $2.8 million.
 
     The Government will continue to provide support to all former CEs according to the recommendations set out in the Independent Commission on Remuneration Package and Post-office Arrangements for the Chief Executive of the HKSAR’s report, including appropriate office accommodation and administrative support, to facilitate their performance of promotional and protocol-related functions for Hong Kong.
 
(3) The convention and exhibition (C&E) industry brings important contributions to Hong Kong’s economy by attracting high-spending overnight business visitors to Hong Kong, spurring economic activities and creating employment opportunities in sectors such as tourism, retail, catering, entertainment industries; while facilitating local small and medium enterprises to connect with international buyers and suppliers to develop new markets and explore business opportunities. In order to provide more C&E facilities to facilitate the long-term development of the Hong Kong C&E industry, the Government is taking forward the Wan Chai North Redevelopment project near the Hong Kong Convention and Exhibition Centre as planned. This project involves the redevelopment of the sites of the Wan Chai Government Offices Compound, Gloucester Road Garden and the Kong Wan Fire Station into C&E facilities, hotel and Grade A offices. Among others, with the funding approval of the Finance Committee of the Legislative Council, the Government has commenced the reprovisioning of Kong Wan Fire Station project to relocate the Kong Wan Fire Station to the site adjoining Fenwick Pier Street and Lung Hop Street. read more

LCQ12: Tackling smoking problems

     Following is a question by the Hon Lillian Kwok and a written reply by the Secretary for Health, Professor Lo Chung-mau, in the Legislative Council today (February 12):

Question:

     It is learnt that recent years have seen a trend of vapers getting younger, and there are even primary pupils among them, which is worrying. In this connection, will the Government inform this Council:

(1) of the number of cases reported by schools to the Government in each month of the past three years regarding students vaping or smoking at school;

(2) of the numbers of enforcement actions and prosecutions initiated by the Government in each month of the past three years against the illegal sale of tobacco products by shop operators to persons under 18 years of age;

(3) whether the Government will ramp up efforts in education and publicity about smoking bans, including educational efforts targeting such e-cigarette oils as “space oil” which contain illegal harmful substances; if so, of the details; if not, the reasons for that; and

(4) whether the Government will allocate additional resources for smoking cessation counselling services to assist smokers in smoking cessation; if so, of the details; if not, the reasons for that?

Reply:

President,

     Having consulted the Security Bureau (SB) and the Education Bureau (EDB), the consolidated reply to the various parts of the Hon Lillian Kwok’s question is as follows:

     The Government has been adopting a multi-pronged and progressive approach, including legislation, taxation, publicity, education, enforcement and promotion of smoking cessation services, in a bid to reduce the hazards caused by smoking products to the public and the society. Currently, the EDB does not require schools to report figures relating to the number of students who smoke e-cigarettes or cigarettes. The Census and Statistics Department conducts Thematic Household Surveys (THS) regularly to keep track of the local smoking situation. The THS results in 2023 showed that the percentage of daily conventional cigarette smokers among all persons aged 15 and above has dropped steadily from 11.1 per cent in 2010 to 9.1 per cent in 2023. The percentage of daily conventional cigarette smokers among teenagers aged 15 to 19 decreased continuously from 2.5 per cent in 2010 to 1.0 per cent in 2017. In the survey conducted in 2019, 2021 and 2023, the sample count for smokers aged 15 to 19 was too small to produce a representative prevalence estimate. Regarding e-cigarette use, in 2023, about 11 600 persons aged 15 and above reported daily use of e-cigarettes, accounting for 0.2 per cent of the population. The relevant sample count was also too small to produce a representative estimate of the proportion of such persons aged 15 to 19. The proportion of daily smokers from 2010 to 2023 is at Annex I. Separately, the Health Bureau (HHB) has commissioned the School of Public Health of the University of Hong Kong to conduct school-based surveys on smoking among students (school-based survey) since 2010, and the results of the last school-based survey conducted in 2023 showed that the smoking prevalence among primary and secondary school students (see Annex II) maintained at a low level.

     However, over the years, tobacco companies have been using a myriad of tactics to lure young people to smoke so as to sustain their long-term profitability. Considering the harm brought about by tobacco products to the society, especially young people, there is a need for the Government to implement more effective and targeted tobacco control measures to combat smoking hazard and to prevent smoking prevalence from rebounding. Therefore, the Government announced in June last year the introduction of 10 tobacco control measures to safeguard the health of the community.

     First, the findings of the THS showed that the younger the age group, the higher the rate of smoking flavoured cigarettes. For instance, among the conventional cigarette smokers aged from 20 to 29, over 70 per cent of them currently smoke flavoured cigarettes, while nearly 70 per cent smoked flavoured cigarettes when they first smoked. Besides, over 70 per cent of female smokers of conventional cigarettes currently smoke flavoured cigarettes; and over 60 per cent of current female smokers of conventional cigarettes smoked flavoured cigarettes when they first smoked (see Annex III). Scientific evidence shows that flavoured cigarettes, such as menthol or fruit-flavoured cigarettes, reduce the awareness of the hazard of tobacco and in turn increase the chances of non-smokers (especially teenagers) to start smoking. They also make consumers more vulnerable to getting into and continuing with the smoking habit. Flavoured cigarettes are indeed “sugar-coated poison”. Tobacco companies add flavours to conventional cigarettes to cover up the harshness of tobacco smoke, so as to lure members of the public, especially young people, to smoke and become addicted to smoking. The situation is worrying. The Government therefore proposes to prohibit adding flavours in conventional smoking products to counteract the intention of tobacco companies to use flavouring agents to disguise the toxicity of tobacco products and attract young people to smoke.

     Secondly, alternative smoking products (ASPs) have rapidly gained popularity around the world in recent years. The Government resolutely banned the import, promotion, manufacture, sale or possession for commercial purposes of ASP on April 30, 2022, so as to reduce the chance for tobacco companies to use ASPs as another means to lure the public, especially the younger generation, to become addicted to smoking.

     Recently, e-cigarette devices have even been used for drug abuse. E-liquid, mixed with drugs such as etomidate (commonly known as “space oil drugs”), a psychoactive substance, can be inserted into e-cigarette devices and heated to generate aerosol for smoking. By their appearance, “poisonous capsules” (or “zombie capsules”) containing “space oil drugs” or other regulated drugs or narcotics are no different from regular e-cigarettes capsules, and it is difficult to distinguish the ingredients by bare eye, thus largely increasing the possibilities of smokers to abuse drugs through ASPs anytime, anywhere and in a more covert manner. Young people may become addicted to drugs by smoking e-cigarettes containing “poisonous capsules” without realising it.

     The Government will strengthen the control of etomidate, which is the main active ingredient of “space oil drugs”, and planned to gazette to list etomidate as a dangerous drug (i.e. narcotic) on February 14, 2025, so as to increase deterrence and enable law enforcement agencies to effectively respond to the relevant situation.

     On publicity and education on the harmful effects of smoking and ASPs, the Department of Health (DH) and the Hong Kong Council on Smoking and Health (COSH) will strengthen their collaboration with the EDB to publicise the harmful effects of smoking and ASPs to students through seminars, dramas and mentorship programmes. The EDB has also been organising seminars and professional development programmes continuously for teachers to enhance their understanding and awareness of tobacco products, especially ASPs. On school curriculum, health education (including resistance to harmful substances) is a key component of values education. The Values Education Curriculum Framework (Pilot Version) issued in 2021 has further strengthened values education in related areas (including resistance to harmful substances including drugs, traditional tobacco products and ASPs) and outlined the expected learning outcomes for students across various key learning stages. The Whole School Health Programme launched by the DH will also step up publicity and education on tobacco hazards.

     On the other hand, the Narcotics Division (ND) of the SB has been collaborating with various government departments, the COSH and non-governmental organisations to explain the harmful effects of “space oil drug” to the public through different channels, raise self-awareness on drug prevention among the public, and seek more ways to reach out to hidden drug abusers. To target drug traffickers selling “space oil drugs”, the Government is stepping up efforts to educate students on their harmful effects. The ND and the EDB will jointly launch an “anti-space oil drug” week in schools, during which a series of activities will be held, including talks, anti-drug video broadcast, anti-drug drama shows, with a view to preventing the spread of “space oil drugs” among the younger cohort and to tie in with the legislative work. 

     The relevant ban on ASPs has been in force for nearly three years. At present, there are no legal channels to import or purchase ASPs, and ASPs purchased for personal use before the ban came into effect should have been largely consumed after a certain period of time. Yet the findings of the aforementioned school-based survey indicated that the ratio of primary and secondary school students who smoke e-cigarettes to those who smoke conventional cigarettes is nearly one to one, suggesting that e-cigarettes, among other tobacco products, are particularly popular amongst the younger generation. It is worrying that young people are still exposed to ASPs despite the implementation of the ban on their import and sale. Prevailing legislation does not prohibit the possession of ASPs for non-commercial use. To suppress the continued circulation of ASPs, which are hazardous novel tobacco products, in Hong Kong and to tackle the problem of “poisonous capsules” at its root, the HHB will further strengthen the regulation of ASPs, including banning the possession of relevant products, so as to curb the emergence of ASPs as an alternative drug abuse product. Details will be announced later.

     Thirdly, to prevent young people from smoking and suppress the harm posed by tobacco on them, the Smoking (Public Health) Ordinance (Cap. 371) stipulates that no person shall sell any conventional smoking product to any person under the age of 18. The number of complaints/referrals received, the number of inspections conducted and the number of summonses issued by the DH in relation to the restrictions on the sale or giving of conventional smoking products under the Smoking (Public Health) Ordinance (Cap. 371) from 2022 to 2024 are set out in Annex IV. For the comprehensive protection of the underaged, the Government proposes to further prohibit giving tobacco products to persons under the age of 18 such that the provider is to be held liable.

     Fourthly, the Government has been actively conducting public education programmes on multiple fronts to promote a smoke-free environment. The DH collaborates with the COSH, non-governmental organisations and healthcare professionals to promote the harms of smoking and smoking cessation, including joining with district service organisations to disseminate smoke-free messages through promotional activities, smoking cessation competitions, smoking cessation counselling, targeting at young people, women, elderly groups, etc. Promoting smoking cessation is also an important pillar under the tobacco control strategy. Since 2021, the DH has launched the Quit in June campaign to promote smoking cessation services and one-week nicotine replacement therapy (NRT) trial packs have been distributed for free at more than 250 designated community pharmacies, smoking cessation clinics and District Health Centres (DHC)/DHC Expresses with a view to encouraging smokers to attempt quitting. Last year, the DH introduced a trial programme on the use of Chinese medicine ear-point patches for smoking cessation. So far, more than 3 500 NRT trial packs and more than 300 Chinese Medicine Ear-point Patch trial packs have been distributed, and most of the smokers who have tried the ear-point patches have found them helpful in alleviating the symptoms of addiction and the response has been very positive.

     Besides, the DH has subvented two more service providers (increased from two to four) since last year to operate smoking cessation clinics focusing on counselling and pharmacotherapy, and is planning on subventing three more Chinese medicine smoking cessation service providers (increased from one to four) in the second half of this year to operate smoking cessation clinics focusing on counselling and acupuncture. It is expected that the number of service users can be increased by about 40 per cent and doubled respectively.

     The Government will continue to step up the work on smoking cessation and explore various tobacco control measures in the medium and long term in order to eliminate the hazards posed by tobacco products on the society in all aspects and protect the health of the community under a progressive and multi-pronged approach. read more

LCQ11: Work of the Joint Office for Investigation of Water Seepage Complaints

     Following is a question by the Hon Kwok Wai-keung and a written reply by the Secretary for Development, Ms Bernadette Linn, in the Legislative Council today (February 12):
     
Question:

     Some members of the public have relayed that even through complaints about water seepage problems in building units have been lodged with the Joint Office for Investigation of Water Seepage Complaints (JO) formed by the Buildings Department and the Food and Environmental Hygiene Department, the problems remain unresolved because the occupants of the units suspected of causing water leakage cannot be found, or water seepage has recurred after JO’s intervention and handling of the cases. In this connection, will the Government inform this Council:

(1) of the following statistics on cases of water seepage in buildings handled by JO in each of the past three years: the respective numbers of reports (i) received and (ii) handled, (iii) cases with consultants engaged to conduct investigation, (iv) cases with the source of water seepage successfully identified and investigation completed, (v) cases with the source of water seepage not identified but investigation terminated, (vi) cases referred to other government departments, (vii) cases with Nuisance Notices issued, cases with (viii) Warrants to Effect Entry into Premises and (ix) Nuisance Orders issued by the court, and cases with (x) prosecutions instituted and (xi) convictions secured, and set out in the table below a breakdown by District Council district and nature of cases (i.e. (a) cases handled for the first time and (b) recurring cases (i.e. those with water seepage reportedly occurring at the same address as a case previously handled));

District Council district:       
                                                      

Case category 2022 2023 2024
(a) (b) (a) (b) (a) (b)
(i)            
…            
(xi)            

(2) of the respective average costs incurred by the JO in handling cases mentioned in (1)(iii) and (iv) in the past three years;

(3) given that according to the information of the JO, for simple and straightforward cases with the co-operation of the owners/occupants concerned, the investigation and tests can normally be completed within 90 working days, whereas for cases in which the investigation cannot be completed within 90 working days, the complainants will be notified of the investigation progress in writing, (i) whether the JO has broken down the 90 working days for handling cases into work stages and drawn up performance pledges for each of them; (ii) whether the JO will inform the complainants in writing of the relevant investigation and test results; if not, of the reasons for that; and (iii) among the cases mentioned in (1)(ii) in the past three years, of the number and proportion of those in which the investigation could not be completed within 90 working days;

(4) given that in the reply to a question raised by a Member of this Council on January 10 last year, the authorities indicated that most of the cases in which the JO could not complete the investigation within 90 working days were more complicated (e.g. involving more than one source of water seepage, repeated or intermittent water seepage, requiring multiple tests to identify the source, and failure of owners or occupants to co-operate with the investigation), whether the authorities have kept a breakdown of such cases by the reasons for not being able to complete the investigation within 90 working days; if so, of the details; if not, the reasons for that;

(5) whether the authorities have compiled statistics on, among the cases referred to other government departments as mentioned in (1)(vi) in the past three years, (i) the number of cases in which the handling has been completed as well as the average time taken to handle them, and (ii) the number of cases in which the handling has yet to be completed; if so, of the details; if not, the reasons for that;

(6) as it is learnt that at present, the JO is conducting on a trial basis Stage II initial investigation and Stage III professional investigation in parallel under the General Procedures for Investigating Water Seepage in six “pilot districts” (i.e. Wong Tai Sin, North, Yuen Long, Islands, Tai Po and Kwai Tsing Districts), and has introduced new testing technologies such as infrared thermography and microwave tomography at Stage III in most districts, whether the authorities will consider standardising the relevant procedures, extending such new testing technologies across the territory, and conducting the Stage II and Stage III investigation procedures in parallel in all districts, so as to enhance investigation efficiency; if so, of the timetable; if not, the reasons for that; and

(7) as there are views that water seepage or leakage caused by defective fresh water mains, gutters or waterproofing membranes at rooftops of buildings cannot be dealt with under the existing section 12(1)(b) of the Public Health and Municipal Services Ordinance (Cap. 132), resulting in JO having no alternative but to refer relevant complaints received to other government departments, and thus prolonging the time during which members of the public are subjected to nuisances, whether the authorities will consider amending the legislation to bring the aforesaid situation under the regulation of Cap. 132 or expanding the JO’s functions, so as to save the time required for referral of cases among government departments; if so, of the timetable; if not, the reasons for that?

Reply:

President,

     If water seepage occurs in private buildings, the owners concerned may first co-operate among themselves to engage professionals/consultancy firms for carrying out water seepage investigation to identify the source of seepage and conducting necessary repair works to fulfill owners’ responsibilities of proper management, maintenance and repair of buildings. Consultancy firms or professionals are also available in the market to provide services for investigating and resolving water seepage problems. A list of consultancy firms and experts providing professional advice and services on water seepage problems has also been uploaded onto the websites of the Food and Environmental Hygiene Department (FEHD) and the Buildings Department (BD) for public reference. When the water seepage condition concerned has caused health nuisance, risk to structural safety of the building or water waste, the Government will intervene to handle the case in accordance with the Public Health and Municipal Services Ordinance (Cap. 132) (PHMSO), the Buildings Ordinance (Cap. 123) (BO) and the Waterworks Ordinance (Cap. 102) respectively.

     If owners are unable to resolve water seepage problems in consultation with their neighbours, they can seek assistance from the Joint Office (JO) jointly set up by the FEHD and the BD. Through inter-departmental co-ordination, the JO seeks to identify the source of water seepage using one-stop and systematic testing methods and require the owners concerned to carry out repair works by exercising the powers conferred by the law, leveraging the expertise of relevant departments and with co-operation of the owners or occupants concerned.

     Having consulted the Environment and Ecology Bureau and the FEHD, the replies to the various parts of the question are as follows:

(1) The investigation of water seepage cases in buildings by the JO can be divided into the following stages (Note):

     Stage I: Identify the water seepage situation;
     Stage II: Conduct initial investigation; and
     Stage III: Conduct professional investigation.

     The statistics of water seepage cases in buildings and repeated reports handled by the JO in each of the past three years are set out at Annex.  

(2) The manpower and expenses involved in handling each water seepage case by the JO vary, depending on factors such as the complexity (e.g. water seepage involving multiple sources of seepage or intermittent seepage), the investigations required for each case (e.g. not all cases will undergo Stage II or III investigations). The need to engage consultancy firms to assist in professional investigations also requires appropriate arrangements to be made in light of the actual circumstances (e.g. internal renovations of the premises affected by the water seepage), and the cost of each case also varies. Although the JO does not compile statistics of the relevant average cost, the annual cost of engaging consultancy firms for Stage III investigation is about $40 million.

(3) For cases that are simple and easy to handle (i.e. officers can access the premises for investigation, there is no difficulty in tracing the source of water seepage, multiple sources or multiple tests are not involved, and there is no need to confirm the test results of the source of water seepage with government laboratories) and where the owners/occupants concerned are willing to co-operate in the investigation, the performance indicator of the JO is to complete the investigation within 90 working days from the receipt of the report and to notify the informant of the investigation results in writing.

     Although the JO has not set specific performance pledges for each of the stages mentioned above, for such simple cases, investigation can generally be completed within 90 working days: the processing time for Stage I was six working days, 32 working days for Stage II, and 52 working days for Stage III.

     Based on statistics of reported cases received, including those simple and easy to handle as well as those relatively complicated cases, the percentage of cases in which investigation could be completed within 90 working days from the receipt of the report and the informant could be notified of the investigation result was 70 per cent, 68.5 per cent and 65.4 per cent in 2021, 2022 and 2023 respectively. The corresponding figures for cases that could not be completed or for which the informant could not be notified of the results within 90 working days were 30 per cent, 31.5 per cent and 34.6 per cent respectively. 

     In addition to the performance indicator mentioned above, the existing performance pledges of the JO include contacting the informant within six working days upon receipt of a case about water seepage to arrange for investigation at the premises concerned; and issuing a Nuisance Notice within seven working days upon verification of the investigation results on the source of the water seepage nuisance.

(4) The progress of investigation depends on multiple factors, including the complexity of cases. For example, a case may involve more than one source of water seepage, repeated or intermittent water seepage requiring multiple tests to identify the source, and co-operation of owners or occupiers with the JO’s investigation. Moreover, each case may involve more than one factor. The JO does not compile statistics on the reasons affecting the progress of investigation.

     Nevertheless, the JO will continue to optimise the workflow for handling water seepage cases to expedite investigation. In terms of regulations, the Government is working on amending the relevant legislation on environmental hygiene, which include proposals to extend the time for entering premises suspected of causing public health nuisance (including water seepage in buildings) to the evening, as well as making non-compliance with the Notice of Intended Entry issued by government officers illegal, so as to enable government officers to promptly enter the relevant premises for investigation.

     In terms of the handling process, the current procedure involves conducting Stage I and Stage II investigations first, and only proceeding to Stage III professional investigation if the water seepage source cannot be identified. The JO has implemented a pilot to carry out in parallel Stage II and Stage III investigations in six pilot districts, namely Wong Tai Sin, North District, Yuen Long, Islands, Tai Po, and Kwai Tsing. Under this arrangement, Stage III professional investigation can be carried out earlier without waiting for the results of Stage II investigation, which aims to reduce the investigation time required for most of the applicable cases by approximately 30 per cent from 90 working days to about 64 working days.  

(5) Cases are referred to the relevant departments for appropriate follow-up and enforcement actions in accordance with their respective purview. For example, cases involving building structural issues, defective exposed drain pipes in buildings, or where suspected water seepage source involves “actionable” unauthorised building works will be referred to the BD; and cases involving defective water supply pipes will be referred to the Water Supplies Department (WSD). Therefore, the JO does not compile breakdown statistics of the number of cases completed by the relevant departments or their average processing time. The JO would explore the feasibility of periodically requesting the relevant departments to provide updates on the status of case processing.

(6) The JO is implementing the pilot to carry out Stage II and Stage III investigations in parallel in the six pilot districts as mentioned in Part (4) above. The JO will review the effectiveness of the new investigation mode in the pilot districts, continuously optimise relevant workflow and technical guidelines, and assess resources, manpower arrangement, and the availability of consultancy service providers with a view to considering gradual extension of the parallel investigation mode to more districts.

     Infrared thermography and microwave tomography (advanced testing technologies) used during Stage III professional investigation are mainly for detecting the location and extent of the water seepage area and whether waterproofing facilities of floor slabs are defective. Up to December 2024, the JO has extended the use of advanced testing technologies as a preferred investigation tool in the stage of professional investigation for applicable cases in 16 districts and the relatively complicated cases in the remaining two districts. The JO will review the supply of relevant service providers in the market and extend the application of advanced testing technologies to applicable cases in the remaining two districts progressively. Nevertheless, under special circumstances where the advanced technologies cannot be applied effectively due to site conditions, such as spalling of ceiling concrete affected by water seepage, uneven surfaces or tile finishes, blockage by pipes or other facilities on the ceiling, the JO has to continue to employ the conventional testing methods (such as colour water test for drains or ponding test for floor slabs) in order to identify the source of water seepage.

(7) Upon receiving a report regarding water seepage in a building, the JO will send officers to the concerned premises to conduct inspections and tests. After confirming the source of the water seepage, if the source is a water nuisance specified in section 12 of the PHMSO, the JO would issue a Nuisance Notice to the owner(s) of the premises causing the water seepage problem. Other cases not involving nuisances under the PHMSO, including water seepage caused by water supply pipes, exposed drain pipes or rooftop issues, there is already a mechanism for referring the cases expediently in order to handle them effectively under the relevant regulations.

     For example, in respect of water seepage cases caused by water supply pipes, the JO will immediately refer relevant cases involving continuous dripping or visible seepage of water supply pipes discovered during investigation to the WSD for follow-up in parallel. The WSD will investigate whether the cases has caused water wastage due to seepage in the water supply system. If so, the WSD will issue a repair notice to the registered user concerned in accordance with the Waterworks Ordinance and require them to repair the defective pipes within a specified period. If the user fails to comply with the requirements of the repair notice and complete the repair, the WSD will consider arranging disconnection of water supply.

     In cases of water seepage caused by damaged waterproofing layers on building rooftops or rainwater pipes, if building structural safety hazards (such as spalling concrete from ceiling and rusty reinforcement) or problems with improper or defective exposed drain pipes (such as rainwater pipes or foul water pipes) are identified during the water seepage investigation, the JO will immediately refer the case to the BD for follow-up under the BO, including issuing advisory letters and/or building repair orders, investigation orders or drainage repair orders under the BO to the owners concerned. For defective buildings or drainage systems, any person who fails to comply with the statutory orders served on him under the BO for remedial works shall be liable to prosecution.

Note: Generally speaking, the JO carries out investigation on water seepage cases in three stages. Stage I investigation ascertains whether the moisture content of the water seepage areas reaches 35 per cent or above. The JO will not investigate reports of water seepage with moisture content below 35 per cent. If the moisture content reaches 35 per cent or above, Stage II investigation will be arranged. Stage I (confirmation of water seepage) and Stage II (initial investigation, including monitoring of moisture content at the water seepage areas, dye tests for drain pipes, and reversible pressure tests for water supply pipes) are carried out by JO officers. If the source of water seepage cannot be identified, Stage III professional investigation will be conducted. In Stage III, the JO will engage contract consultancy firms to assist in carrying out investigation, including monitoring of moisture content at the water seepage areas, ponding tests for floor slabs, water spray test on walls, and reversible pressure tests for water supply pipes. New testing technologies such as microwave tomography and infrared thermography will be employed for suitable cases. read more