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 : In the past, the Hong Kong Trade Development Council (HKTDC) has been frequently criticised as “competing with the private sector for profit” on an unfair basis of receiving direct subsidy from the Government. It is also very likely that the HKTDC will be excluded from the scope of the Competition Bill under scrutiny. What policy will the Commerce and Economic Development Bureau adopt in the new financial year to avoid launching promotional programmes that will “compete with the private sector for profit” so as not to hamper the development of private enterprises and distort market operation? Asked by : Hon. TSE Wai-chun, Paul Reply : The main functions of Hong Kong Trade Development Council (TDC) are to promote, assist and develop Hong Kong’s trade with places outside Hong Kong, with particular reference to exports; and to make such recommendations to the Government as it sees fit in relation to any measures which it considers would achieve an increase in Hong Kong’s trade. TDC’s activities are crucial for promoting the trade of Hong Kong and assisting small and medium enterprises (SMEs) to explore new markets. TDC operates differently from private companies in the market. Since private companies are profit-driven, they would normally save costs and organise less activities such as trade fairs in response to the decline in demand during an economic downturn. In other words, SMEs may not be able to get any service from them when they are in most need of it. On the other hand, since it is TDC’s statutory duty to promote and develop Hong Kong’s export and trade, TDC would respond positively to Government’s request to maintain or even increase the number of its trade promotion activities such as trade fairs in unfavorable economic situation to provide assistance for SMEs in Hong Kong. Even though running such fairs would lead to losses for TDC, it would fulfill its statutory duties to support Government’s policies and maintain the overall competitiveness of Hong Kong. TDC, a statutory body, is exempted from the core provisions of the Competition Bill by virtue of clause 3(1). Although exempted, TDC will be required to adhere to the competition rules. The Administration would seek to ensure that TDC would not engage in anti-competitive conduct.
Question : Last year, the wine industry’s promotional programmes and the Hong Kong Tourism Board’s (HKTB) Hong Kong Wine and Dine Festival were organised at about the same time and were of a similar nature. Will the Commerce and Economic Development Bureau (CEDB) organise any promotional programmes in the new financial year? What is the expenditure in this regard? How does the CEDB avoid overlapping its promotional efforts with those of the HKTB? Asked by : Hon. TSE Wai-chun, Paul Reply : In recent years, various wine promotional activities were held in the months of October and November in the interest of creating synergy. The main promotion projects under the coordination of the Commerce and Economic Development Bureau include the Hong Kong International Wine and Spirits Fair (organised by the Hong Kong Trade Development Council (TDC)), and the Hong Kong Wine and Dine Festival (staged by the Hong Kong Tourism Board (HKTB)). We will continue to organise these two events in 2012. The above two promotional events differ in terms of objectives, nature and target participants. TDC's Wine and Spirits Fair is an event for traders. It provides a platform for companies from wine-producing countries and regions all over the world to showcase their wines to buyers and traders in Hong Kong and other Asian economies for the purpose of business matching. Through successful transactions, this helps fortify Hong Kong's position as a regional wine trading and distribution hub. HKTB's Wine and Dine Festival, on the other hand, aims to cultivate in Hong Kong a wine appreciation culture and enhance the knowledge related to wine appreciation among local residents, restaurant practitioners and tourists. Besides drawing visitors’ participation in the Festival, it also helps project in the long run Hong Kong’s image and brand as a wine and gourmet centre in Asia, thereby attracting more overseas and Mainland consumers to come to Hong Kong for gastronomic experience with fine wines and enhancing our city's appeal as a travel destination with diverse attractions. Moreover, HKTB is planning to attend a number of large-scale international food and wine events in various long-haul markets, such as France, the United States, Australia and the United Kingdom, to showcase Hong Kong’s wine and dine excellence, and promote our “Wine and Dine Month” in November 2012. In particular, the Bordeaux Wine Festival in June 2012 will feature Hong Kong as the City of Honour. HKTB will leverage on this opportunity to promote Hong Kong to visitors and gourmets from around the world. In brief, TDC focuses on the promotion of the wine trade, while HKTB carries out the function of tourism branding and enriching Hong Kong’s tourism offerings. The positioning and objectives of these two organisations are distinct from each other, and yet complementary at the same time. Both contribute to the economic development of Hong Kong. We coped with the above work through re-deployment of existing resources. The costs of the two promotional events were recovered through government subvention, charging of fees or commercial sponsorship.
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