MR YIU SI-WING (in Cantonese): Chairman, the Budget this year has changed the Government's long-held budgeting criterion that public expenditure should be kept at or below 20% of Gross Domestic Product. The fact that the ratio will be adjusted upward to between 21.2% and 21.8% during the five fiscal years from 2018 to 2022 reflects that the Government is willing to face the reality. Given its abundant surplus, it has ceased to insist on adhering to its so-called criterion of the past, thereby enabling public expenditure to benefit more people. Insofar as investing in the future is concerned, one of the highlights of the Budget this year is to pinpoint the pressure exerted by the ageing population on the health care system by earmarking $300 billion for tying in with the implementation of the second 10-year Hospital Development Plan. Meanwhile, $50 billion will be set aside for promoting the development of innovation and technology. 

 

I agree that the Government should invest additional resources to address future needs when an enormous fiscal surplus is recorded. Moreover, it should increase public welfare expenditure to assist the socially disadvantaged and ease their pressure of living. Furthermore, the Government should assist members of the middle class who have paid relatively more tax and made more contribution over the years, as well as small and medium enterprises, by easing their burdens, so that they can lead a better life. Certainly, the Government has to increase its reserves to cope with a spate of problems to be brought about by the ageing population in the future to avoid using up our chattels. Although the Government hopes that the Budget this year can achieve the aforementioned objectives, things have unfortunately not turned out as it wished. After the announcement of the Budget, incessant negative voices have been heard mainly because the grass roots enjoy comparatively less benefits due to uneven distribution, with some members of the public receiving no benefit at all. In the face of social pressure and after listening to views from various sides, the Financial Secretary has finally announced the launch of a Caring and Sharing Scheme to respond to social aspirations, so that recipients can receive at least $4,000 through various channels. Despite the Government's failure to make detailed consideration beforehand, its move to make rectification deserves our support. I hope that, after the passage of the Budget, the time required for the disbursement of payments can be shortened. Moreover, the administrative costs should be compressed to a reasonable level by all means, so as to enable members of the public to share the fruits of economic development expeditiously.

 

As a representative of the tourism industry, I am more concerned about the support given by the Government to the industry. The Budget this year has also manifested the Government's support for the industry. After analysing the pressure faced by the industry and listening to my suggestion, the Government decided to allocate $396 million to continued support for the tourism industry, including the provision of $226 million for the Hong Kong Tourism Board to implement the planning of the Development Blueprint for Hong Kong's Tourism Industry, the earmarking of $21 million for the Tourism Commission to assist the industry in seizing business opportunities and making planning for the opportunities brought about the Guangdong-Hong Kong-Macao Bay Area ("the Bay Area") and the development of the Belt and Road Initiative, supporting the Travel Industry Council ("TIC") of Hong Kong to organize a tourism forum, arranging for travel agents to visit the Bay Area, developing a new online platform, subsidizing the tourism industry to hold a business matching conference, and so on. I welcome the aforementioned arrangements. Given that the Bay Area and the Belt and Road Initiative are national policies, a platform has to be established among governments for communication and planning purposes. In addition, the industry must be engaged to provide expert opinions and undertake product packaging and publicity and promotion work in a pragmatic manner. This top-down arrangement that sees combined official-civil efforts is definitely more practical than the promotion efforts unilaterally made by the Government. Of course, after receiving the funding, TIC should consult the industry, including engaging members of the industry on a matching basis to give full play to the proactiveness of the industry.

 

On providing support for the tourism industry to develop information technology, the Government allocated $10 million last year to TIC for subsidizing the use of information technology by small and medium travel agents. The responses to this scheme were favourable, and 110 applications have been received and approved. This year, the Government will provide an additional $30 million and, as pointed out in its reply to my question, the Administration is considering expanding the scope of subsidy to cover hardware and the procurement of technology services and solutions. The industry welcomes the relevant adjustment and considers that the new proposal will help small and medium travel agents use information technology, enhance their competitive edge, facilitate employment and bring more tax revenue to the Government. I hope the Government can implement the adjustment expeditiously as it can only bring benefits instead of harms.

 

Chairman, the tourism industry is one of the four economic pillars in Hong Kong. However, the Commerce and Economic Development Bureau, which is in charge of the industry, is unable to focus on tourism development as it has to deal with numerous affairs. As a result, tourism-related policies and investment are now brought under the ambit of the Tourism Commission. Due to its limited power, however, the Tourism Commission is generally not too willing to take the initiative to bear the responsibility should a project require inter-bureau resources. As a result, some tourism-related facilities, such as museums, country parks, the Geopark, exhibitions, performing activities, and so on, are not fully utilized. Actually, many countries will coordinate tourism-related resources through a single policy department to prevent various policy departments from working on their own and ensure the full utilization of these valuable resources.

 

At the meetings held by the National People's Congress of the People's Republic of China and the National Committee of the Chinese People's Political Consultative Conference, the State announced government reorganization by upgrading the China National Tourism Administration to merge with the Ministry of Culture to become the Ministry of Culture and Tourism. This will convey an important message of integrating cultural and tourism resources for management, combining cultural conservation and tourism development and using the "Tourism Plus" concept to enable the deep-level integration of resources related to tourism and culture for publicity and promotion of the Chinese culture. The Special Administrative Region Government may draw reference from the Mainland's practice by establishing a Tourism Bureau or Tourism and Culture Bureau and formulating a long-term and extensive tourism development plan for Hong Kong so as to enable the industry to make greater contribution to Hong Kong economy.

 

Chairman, travel agents in Hong Kong are predominately medium, small and micro enterprises. In the face of direct competition on the Internet and from product suppliers, these travel agents find it difficult to operate their business. Many proprietors cannot even earn their own salary and can only afford several thousand dollars a month to rent a very small office. In the past two years, the budgets announced the introduction of a licence fee waiver measure for travel agents. Although the licence fee thus saved was a mere $5,800, it was very helpful to medium, small and micro enterprises. Many travel agents and I are greatly disappointed by the Government's decision not to introduce this measure this year.

 

Furthermore, the Government has not fully consulted the business sector before putting forward its preliminary idea of abolishing the offsetting mechanism of the Mandatory Provident Fund System, thus further aggravating the burden of medium, small and micro enterprises. Should the Government go ahead despite opposition, quite many travel agents will inevitably face closure or layoffs. This is why I will definitely voice objection should the Government insist on putting forward its preliminary proposal.

 

With these remarks, I support the sums for the 38 heads standing part of the Schedule.