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LegCo to Debate Maintaining Infrastructural Investments
2.
Zhuhai link will help us break HK's logistics cartel 3.
Lack of leadership skills promotes gloomy vision
1. LegCo to Debate Maintaining Infrastructural Investments
Hong
Kong Government, 2 December 2002 The
following is issued on behalf of the Legislative Council Secretariat: The
Legislative Council will hold a meeting this Wednesday (December 4) at 2.30 pm
in the Legislative Council Chamber. During the meeting, Members will debate a
motion on maintaining infrastructural investments. The
motion, to be moved by Ir Dr Hon Raymond HO Chung-tai, says: "That, as the
local economy remains in the doldrums and the unemployment rate is high, this
Council urges the Government to adhere to its commitment to infrastructural investments,
and to invest in the coming five years an amount no less than the total funding
of about $147 billion earmarked for public works projects, i.e. an average annual
expenditure of around $29.4 billion for the period 2002-03 to 2006-07, as stated
in the Financial Secretary's letter dated 17 October 2002 to the Chairman of this
Council's Public Works Subcommittee; furthermore, in reviewing the allocation
of resources for public works projects, the Government should not only focus on
the economic benefits generated by the projects concerned, but must also take
into account their social benefits, as well as their effectiveness in stimulating
the economy and providing more employment opportunities." Hon
Albert CHAN Wai-yip will move an amendment to Ir Dr Hon Raymond HO Chung-tai's
motion. Members
will also debate a motion proposed by Dr Hon LUI Ming-wah on desalination. His
motion says: "That this Council urges the Government to expeditiously mobilize
scientific and technological personnel and provide funding for research on the
latest desalination technology and equipment, with a view to solving in the long
run the problem with the source of potable water for Hong Kong and easing the
resultant financial burden, and facilitating the development of the desalination
equipment manufacturing industry, as well as promoting economic development."
Hon Fred LI Wah-ming
will move an amendment to Dr Hon LUI Ming-wah's motion. On
bills, the Housing (Amendment) Bill 2002 and the Education (Amendment) Bill 2002
will be introduced into the Council for First and Second Readings. Second Reading
debates on these bills will be adjourned. During
the meeting, Members will ask the Government 20 questions on various policy areas,
six of which require oral replies. The
agenda of the above meeting can be obtained via the Legislative Council InfoFax
Service (Tel: 2869 9568) or the Legislative Council web site (http://www.legco.gov.hk).
Members of the
public are welcome to observe the proceedings of the meeting from the public galleries
of the Legislative Council Chamber. They may reserve seats by calling 2869 9399
during office hours. Seats will be allocated on a first-come-first-served basis.
2. Zhuhai link will help us break HK's logistics cartel
JAKE
VAN DER KAMP, SCMP 2 December 2002 It
is hill-walking season again and this year I am resolved once more to hike that
splendid trail to Fan Lau and Tai O on Lantau Island. It may be the last time
I can do it with only wind and birds around and no intrusive reminders of a big
city nearby. In
a year or two the noisy pile-drivers will be in clear evidence along half of that
trail as construction starts on the new bridge from Zhuhai to Tai O. As an enthusiast
of Hong Kong's natural splendours, I regret it. But
if I were to put on an economist's hat I would have to welcome it. I would even
welcome construction of that proposed container port northeast of Tai O. At least
there is not much on that side of Lantau but burnt-out hillside and aircraft noise.
I would have
to welcome it because the bridge and the port together could go a long way to
cracking a lucrative logistics cartel that has become a drag on the entire Pearl
River Delta's drive to become one of the world's most price-competitive manufacturing
centres. What
is the proper price for the right to build and operate a container port? You might
say that such a right in Hong Kong is worth billions. I say it should be worth
one dollar and no more. If prospective operators are willing to pay more than
one dollar then I say we should just designate some land for more container berths
until no one wants to bid for one any longer. Think
about it. Any company that bids HK$10 billion for the right will seek to recoup
that investment plus financing costs from the users and all that this will mean
is higher shipping costs; not to cover the real costs of shipping but for the
privilege of charging shippers more than the real costs warrant. If
we want to bring logistics costs down the best sort of port is one that charges
users only the cost of amortising the construction of needed facilities and a
reasonable operator's margin for getting boxes on boats. That
would be the real rock-bottom cost and we could get it by having as many berths
as are needed for competition between them to bring the fees down to a level where
the surplus value of having a right to own and operate a berth is no more than
one dollar. Any more would make the profits too slim to justify buying that right.
It is certainly
not the way things are the moment. At a rough guess, the charges at the Kwai Chung
container port are something like HK$15 billion more a year than a reasonable
cost for amortisation and operation, with that amount split between the port and
the shipping companies. Call
it less than HK$15 billion if you will - some will - but it is certainly in the
billions and, what is more, it allows the Shenzhen ports to charge similar high
fees and the Shenzhen authorities to extract money from other monopoly dodges
like cross-border goods vehicle licences. They sit on the only gateway to Hong
Kong. They can charge what they like. Which
brings up the point about the bridge. Let Zhuhai in on the game and suddenly Shenzhen
has some competition. In fact, there is no reason to leave it at Zhuhai alone.
Get every local authority in the Pearl River Delta competing for access to Hong
Kong and just watch those extortions practised at the border come tumbling down.
Then get a new
line of ports competing for the business and watch their terminal handling charges
come tumbling down too, down until they represent only the cost of putting boxes
on boats and the right to do so is worth only one dollar. That is the way to make
our logistics industries truly efficient. Please,
ye gods of the Planning Department, please keep at least South Lantau free of
these ports and I shall be willing to put up with losing some of my favourite
walking trails for the undeniable benefit it will bring us. Email
Jake van der Kamp at jakeva@scmp.com.
3. Lack of leadership skills promotes gloomy vision
Letters
to the editor, Sunday Morning Post 24 November 2002 Your
columnist Anne Forrest gave failing grades to Hong Kong’s leaders (“Time
for doomsayers to ditch dirge”, Sunday Money, November 17). In complaining
about them being prophets of doom, she quoted two recent events that are possibly
applicable to maybe 5 percent of the population of nearly seven million. Causal
observation indicates that, for instance, Chai Wan, Wah Fu, Tuen Mun, Tin Shui
Wai and Sheung Shui, among others, are not only geographically a long way from
Armani’s new mega-store and the Hong Kong Stock exchange – especially
since the penny-stocks debacle. Now
as it happens, the people in leadership positions in Hong Kong emanate either
from central selection, the monopolistic business cartels, or both. Whereas, in
times of economic adversity, political leaders with vision emerge, and in constituencies
that practice majority suffrage, they form governments. In
these cases one can expect those four leadership skills (which your columnist
identified) to be present in government leaders. Hong Kong is not in this category
so it is no surprise that not only is a positive vision not present but it is
also not talked about. Gloom and doom therefore prevail. D.
Castledine
Kowloon
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