Utilization of Resources by Trade and Industry Department (19 October 2006)

MR JAMES TIEN (in Chinese): Madam President, regarding the utilization of resources by the Trade and Industry Department (TID), will the Government inform this Council:

(a) of the number of officers who were responsible for quota administration in the TID before the lifting of quota restrictions on textiles and clothing imports in January this year, as well as the current work arrangements for these officers; and

(b) whether it will reconsider merging the Economic and Trade Offices of the TID in major cities of the world with the Hong Kong Trade Development Council (TDC)'s offices located in the same cities, so as to save resources?

SECRETARY FOR COMMERCE, INDUSTRY AND TECHNOLOGY (in Chinese): Madam President,

(a) In the light of the abolition of textiles quotas on 1 January 2005, new arrangements in respect of 251 posts in the TID responsible for the administration of textiles quotas and quota-related licensing system need to be effected. Of these posts, 75 are unfilled or the post-holders have left the Government (or are currently on pre-retirement leave) due to natural wastage or voluntary retirement. Another 52 officers have been redeployed within the TID (including
three officers who will leave the Government due to natural wastage) and the remaining 124 officers have been redeployed to various bureaux and departments under Civil Service Bureau's Central Clearing House mechanism.

(b) Hong Kong's 11 existing Economic and Trade Offices (ETOs) are located in major cities which economies are Hong Kong's key trading partners. The cities concerned are Guangzhou, Washington DC, New York, San Francisco, Toronto, Brussels, London, Geneva, Tokyo, Sydney and Singapore. With the exception of the Geneva ETO (which primary role is to represent Hong Kong at the World Trade Organization), the ETOs seek to enhance understanding of Hong Kong among local decision-makers, political and financial sectors, and opinion formers; monitor developments that might affect Hong Kong; as well as liaise closely with the business sector in the host economy. They also organize
different events to promote the overall image of Hong Kong and our favourable business environment. In addition, the ETOs (except Washington and Geneva ETOs) actively seek to attract investment into Hong Kong. Overseas ETOs are managed by the Commerce and Industry Branch of the Commerce, Industry and Technology Bureau.

The TDC is tasked to promote, assist and develop Hong Kong's trade with other places in the world and to make recommendations to the Government on measures which it considers would promote the trade of Hong Kong. It has a global network of 41 offices in major business centres around the world, mainly to help small and medium enterprises and its other customers expand markets, strengthen trade contacts, and obtain market information and
value-adding training. It also seeks to promote Hong Kong's premier position as the international trade platform in Asia. Currently, seven of the TDC's offices are located in cities where there are ETOs, namely Guangzhou, New York, Toronto, London, Tokyo, Sydney and Singapore.

The functions of ETOs and TDC are different yet complementary. They have different responsibilities and maintain close liaison with each other to enable the best utilization of resources to reap maximum results. If necessary, the Commerce and Industry Branch will co-ordinate the work of ETOs and TDC to enhance overall efficiency. We do not consider it cost-effective to merge ETOs with the TDC offices, nor may such a move be beneficial to promoting and expanding our external trade.