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)009







Question Serial No.







0176







Head :

152 Government Secretariat:

Commerce and Economic

Development Bureau (Commerce,

Industry and Tourism Branch)



Subhead (No. & title) :







Programme :

(6) Travel and Tourism




Controlling Officer :

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







Director of Bureau :

Secretary for Commerce and Economic Development








Question :
In view of the recent incidents involving Ngong Ping 360, which is a major tourist attraction in Hong Kong, will the Government allocate resources in 2012-13 to conduct a comprehensive review of its monitoring mechanism and incident notification mechanism? If yes, what are the details and schedule of the plan? If not, what are the reasons?

Asked by : Hon. CHAN Tanya

Reply :
The Government is very concerned about the recent spate of service suspension of the Ngong Ping 360 ropeway, particularly the latest incident on 25 January 2012 that led to visitors being stranded in car cabins for nearly two hours. The Government has asked the Ngong Ping 360 Limited to maintain high safety standards and reliable service as well as to be sensitive to visitors’ needs.
After conducting a preliminary investigation into the incident of 25 January, Ngong Ping 360 announced on 3 February the extension of the suspension of cable car service for two months in order to replace the bearings of all seven sets of bullwheels of the ropeway system and advance the annual examination for this year.
The design, construction, installation, operation and maintenance of the Ngong Ping 360 ropeway are under the supervision of the Electrical and Mechanical Services Department (EMSD) in compliance with the Aerial Ropeways (Safety) Ordinance (Cap. 211). During the suspension period, the EMSD will monitor closely the progress of the repair work and tests of Ngong Ping 360. Approval for the resumption of cable car service will be contingent on satisfactory test results.

Besides, the Tourism Commission (TC) is working with relevant government departments, including the EMSD, the Transport Department, the Fire Services Department and the Hong Kong Police Force etc, in monitoring and assisting the management of Ngong Ping 360 Limited in completing the review of contingency measures, the communication mechanism with the travel trade and passengers in the event of service disruptions, as well as the notification arrangements of service suspension before the resumption of operation.


The TC and EMSD will carry out the above monitoring and review work with existing resources. No additional expenses will be incurred.

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





Examination of Estimates of Expenditure 2012-13


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)010







Question Serial No.







0902




Head :

152 Government Secretariat:

Commerce and Economic

Development Bureau (Commerce,

Industry and Tourism Branch)



Subhead (No. & title) :







Programme :

(6) Travel and Tourism




Controlling Officer :

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







Director of Bureau :

Secretary for Commerce and Economic Development








Question :
(a) The paper stated that the reduced estimate for the programme concerned is mainly due to the anticipated decrease of cash flow requirement for the Mega Events Fund (MEF). Would the Administration explain the justifications for such anticipation?
(b) Has the Administration reviewed the effectiveness of the MEF and its assessment mechanism for funding approval in 2010-11? If yes, what are the findings of the review? If not, would the Administration consider conducting such a review in 2012-13? If yes, what are the work plan and estimated expenditure? If not, what are the reasons?
(c) The Administration will inject $150 million into the MEF. Would the Administration explain the reasons and justifications for this proposed capital injection?

Asked by : Hon. CHAN Tanya

Reply :
(a) The Mega Events Fund (MEF) was established in 2009, following funding approval of the Finance Committee of the Legislative Council (LegCo). Since its inception, six rounds of applications have been invited and a total sum of $51.3 million has been granted to support 16 mega events. The three-year funding approved by LegCo will expire by the end of March 2012. The estimated expenditure for the MEF in 2012-13 is $8.7 million. This amount is reserved for paying the outstanding balance in respect of those MEF supported events completed before the end of March 2012 and is therefore less than that in 2011-12.
(b) The Tourism Commission (TC) has been monitoring the operation of the MEF from time to time, having regard to the experience accumulated since the Fund’s inception. In 2011-12, the TC conducted a review on various aspects of the MEF using existing manpower and resources without incurring additional expenditure. The review findings are being considered together with the MEF Assessment Committee, with a view to studying ways to give the Fund more flexibility to facilitate its effective operation.
(c) Hosting of internationally-acclaimed mega events in Hong Kong can attract more overseas visitors, help Hong Kong remain competitive among our neighbouring destinations, and reinforce our position as an events capital of Asia. Many of the MEF supported events have been well received by the public and tourists, generated considerable opportunities in many sectors such as retail, food and beverage, hotel, travel trade, etc., and created extensive publicity for Hong Kong. Some of these MEF supported events also have potential to become a permanent feature on our major events’ calendar. In addition, the scale of some existing events has been enhanced significantly with the support of the MEF. Therefore, in his 2012-13 Budget, the Financial Secretary has proposed to allocate another $150 million to the MEF and extend its operation for five years. The MEF Assessment Committee is studying ways of giving the MEF more flexibility to facilitate its effective operation. We wish to finalise detailed modus operandi of the new scheme and consult the Economic Development Panel of LegCo on the proposal as soon as possible. Our plan is to seek funding approval from the Finance Committee within this legislative year.


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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