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
Question : It is indicated in “Matters Requiring Special Attention in 2012-13” under this Programme that the Commerce, Industry and Tourism Branch will continue to assist the trade to adjust to changes in Mainland’s policy on processing trade through industrial restructuring and upgrading, relocating their operations and opening up new markets. Please advise this Committee of the estimated provision, staff establishment and expected effectiveness of the work in 2012-13. Asked by : Hon. CHAN Mo-po, Paul Reply : In 2012-13, the Commerce and Economic Development Bureau will continue to encourage and assist Hong Kong enterprises in upgrading and restructuring, relocating their operations and opening up new markets so as to adjust to changes in the Mainland’s policy on processing trade through the following work: - maintaining close dialogue with the trade through the Task Force to Support the Processing Trade and other channels, so as to understand the trade’s 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 relay to them the trade’s views and to discuss with them the trade’s proposed measures; - disseminating information to Hong Kong enterprises by means of circulars and newsletters, and organising activities such as symposiums and seminars through the Trade and Industry Department (TID) and Mainland Offices to enhance the trade’s understanding of the Mainland’s new policies, legislation and business environment. TID’s website includes a dedicated page on economic and trade information of 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 economic and trade information of the Mainland; - organising promotional activities and trade fairs and organising delegations to visit the Mainland through the Hong Kong Trade Development Council (HKTDC), 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 Mainland market information through the HKTDC and the Hong Kong Productivity Council, etc.; and
The Mainland authorities have responded positively to many proposals of the Hong Kong Special Administrative Region Government and the trade. Various facilitation and support measures were launched in the past few years, including the implementation of “restructuring without stopping production” and “consolidated tax return for multiple domestic sales”. The Guangdong Province also organised a seminar in Hong Kong in December 2011 to introduce 30 related policy measures, with a view to further enhancing support for the restructuring and upgrading by enterprises and their tapping into the Mainland domestic market. According to the figures provided by the Guangdong Provincial Government, there were about 11 000 enterprises engaged in processing trade (which are not legal persons) as at end 2011, of which 4 450 have successfully restructured into one of the three types of foreign-funded enterprises (about 90% of them are Hong Kong enterprises). The manpower and expenditure of the above-mentioned work have been subsumed within the establishment and provision for this Bureau and relevant departments and organisations. It is difficult to quantify them separately. 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||