Replies to initial written questions raised by Finance Committee Members in examining the Estimates of Expenditure 2012-13 Director of Bureau : Secretary for Commerce and Economic Development Session No. 12 File name : cedb(cit)- doc



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Examination of Estimates of Expenditure 2012-13


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)020







Question Serial No.







2106




Head :

152 Government Secretariat:

Commerce and Economic

Development Bureau (Commerce,

Industry and Tourism Branch)



Subhead (No. & title) :







Programme :

(2) Commerce and Industry




Controlling Officer :

Permanent Secretary for Commerce and Economic Development
(Commerce, Industry and Tourism)







Director of Bureau :

Secretary for Commerce and Economic Development








Question :
In regard to the growing co-operation between Hong Kong and the Mainland in recent years, please provide relevant information on Hong Kong/Mainland cross-boundary projects or programmes in which the Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch) is or has been involved.
(a) For Hong Kong/Mainland cross-boundary projects or programmes from 2009-10 to 2011-12, please provide information in the following format :


Project / Programme title

Details, objective and whether it is related to the Framework Agreement on Hong Kong /Guangdong Co-operation (the Framework Agreement)

Expenditure involved

Name of Mainland department/ organisation involved

Progress (% completed, start date, anticipated completion date)

Have the details, objective, amount involved or impact on the public, society, culture and ecology been released to the public? If yes, through which channels and what were the manpower and expenditure involved? If no, what are the reasons?




































(b) For Hong Kong/Mainland cross-boundary projects or programmes from 2012-13, please provide information in the following format :




Project / Programme title

Details, objective and whether it is related to the Framework Agreement

Expenditure involved

Name of Mainland department/ organisation involved

Progress (% completed, start date, anticipated completion date)

Will the details, objective, amount involved or impact on the public, society, culture and ecology be released to the public? If yes, through which channels and what will be the manpower and expenditure involved? If no, what are the reasons




































(c) Apart from the projects or programmes listed above, are there any other modes of cross-boundary cooperation? If yes, what are they? What were the manpower and expenditure involved in the past 3 years, and how much financial and manpower resources are earmarked in the 2012-13 Estimates.



Asked by : Hon. HO Sau-lan, Cyd

Reply :
To foster our trading ties with the Mainland is an important policy aim of the Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch). Cross-boundary co-operation / exchange with the Mainland is part of our regular work. Due to the wide scope of work, it is difficult to provide a simple breakdown by year and category.
Under Programme (2) Commerce and Industry, major Hong Kong and Mainland cross-boundary co-operation / exchange undertaken by our Bureau, departments and relevant organisations, which supports the implementation of the “Hong Kong-Guangdong Co-operation Framework Agreement”, includes the following areas –


Scope of Work

Progress

Relevant Documents issued to the LegCo by the Administration

Closer Economic Partnership Arrangement (CEPA)

Following the signing of the main text of CEPA in 2003, the two sides have reached agreement on eight Supplements. All goods of Hong Kong origin importing into the Mainland enjoy tariff free treatment, upon applications by local manufacturers and upon the relevant CEPA rules of origin being met. Moreover, Hong Kong service suppliers can enjoy preferential access in 47 service areas in the Mainland market.

The Government attaches great importance to the effective implementation of CEPA. We have been liaising closely with the Mainland authorities at central, provincial and municipal levels to work towards the effective implementation of CEPA.




The LegCo Panel paper no. CB(1)623/11-12(01)

“The Mainland and Hong Kong Closer Economic Partnership Arrangement” issued in December 2011.




To assist Hong Kong enterprises in the Mainland in upgrading and restructuring

The work under this area includes the following –


  • maintaining close dialogue with the trade through the Task Force to Support the Processing Trade and other channels, so as to understand their concerns and views; and maintaining close liaison with the Mainland authorities at various levels (including through the Hong Kong/Guangdong Expert Group on the Restructuring and Upgrading of the Processing Trade) to convey to and discuss with them the trade’s views and proposed measures;




  • disseminating information to Hong Kong enterprises by means of circulars and newsletters, and organising activities like symposiums and seminars through the Trade and Industry Department (TID) and Mainland Offices to enhance the trade’s understanding of Mainland’s new policies, legislation and the business environment. TID’s website includes a dedicated page on business information on the Mainland, with hyperlinks to the economic and trade websites of about 200 Mainland authorities. This platform facilitates Hong Kong enterprises in getting access to trade-related information on the Mainland;




  • organising promotional activities and trade fairs through the Hong Kong Trade Development Council (HKTDC), and organising delegations to visit the Mainland with a view to enhancing the trade’s understanding of Mainland policies and market development;


  • providing Hong Kong enterprises with support services on technological upgrading, management improvement, branding and market development, etc., and also Mainland market information through the HKTDC and the Hong Kong Productivity Council; and




  • with regard to financial support, assisting small and medium enterprises (SMEs) through the “SME Funding Schemes” of TID in areas such as market promotion, acquisition of equipment, upgrading of operational and technical skills, restructuring and business relocation.

To support Hong Kong enterprises, in particular SMEs, to capture the opportunities arising from the National 12th Five-Year Plan, the Chief Executive announced in the 2011-12 Policy Address a proposal to set up a dedicated fund of $1 billion to encourage them to move up the value chain and explore and develop the Mainland market through developing brands, restructuring and upgrading their operations and promoting domestic sales in the Mainland. We have consulted the trade earlier and are finalising the operation details of the fund. We plan to seek funding approval from the Finance Committee of the Legislative Council in April with a view to launching the fund by mid 2012.




The LegCo Panel paper no. CB(1)1531/10-11(05)

“Trade relations between the Mainland and Hong Kong and Hong Kong/ Guangdong Co-operation Joint Conference in relation to commerce and industry between the two places” issued in March 2011.



Investment Promotion

Invest Hong Kong (InvestHK) will proactively reach out to Mainland companies and encourage them to set up or expand their business in Hong Kong through organising promotional programmes, seminars, exhibitions, conducting investment promotion visits and receiving incoming delegations from the Mainland.
The Mainland is a priority market of InvestHK. As at end of 2011, InvestHK has completed a total of 389 projects from the Mainland. In collaboration with the Mainland provinces and cities, InvestHK has staged joint promotion seminars in overseas markets since 2002 to promote the combined advantages of Hong Kong and the Mainland, in particular the Pearl River Delta region.


The LegCo Panel paper no. CB(1)1077/11-12(03) “Promotion of inward investment” issued in February 2012. (Note: including InvestHK’s work relating to the Mainland)


Tourism

Hong Kong and the Mainland have all along maintained close contact on tourism development at government and trade levels. The Tourism Commission has established regular exchange mechanisms with the Mainland tourism authorities, such as the China National Tourism Administration and the Guangdong Provincial Tourism Administration, to discuss issues of mutual concern.

The Hong Kong Tourism Board (HKTB) will continue to co-operate with the Mainland cities (especially the cities in the Pan-Pearl River Delta region) and Macao to promote “multi-destination itineraries”.

Furthermore, the HKTB has been working with travel agents from 28 cities in the Mainland to promote “Quality and Honest Hong Kong Tour” products. At the same time, the HKTB has also been co-operating with major Mainland online travel portals to set up online counters with country-wide coverage promoting “Quality and Honest Hong Kong Tour”.


The LegCo Panel paper no. CB(1)2301/09-10(05) “Framework Agreement on Hong Kong/Guangdong Co-operation – Tourism Co-operation” issued in June 2010.

The LegCo Panel paper no. CB(1)808/11-12(03) “Hong Kong Tourism Board Work Plan for 2012-2013” issued in January 2012. (Note: including HKTB’s promotional efforts in the Mainland)


The work to promote the co-operation between the two places is on-going work, and the manpower and expenditure in relation to the relevant work have been subsumed into the establishment and provisions of the Bureau and relevant departments and organisations. It is difficult to quantify them separately.




Signature










Name in block letters

Andrew HY WONG







Post Title

Permanent Secretary for Commerce and
Economic Development
(Commerce, Industry and Tourism)







Date

29.2.2012


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