Bond agenda is too rushed, lawmakers say
Lawmakers yesterday complained that the government's plan to move resolutions related to the proposed bond programme in about two weeks was too hasty.
The proposed bond issue was discussed at the Legislative Council's financial affairs panel yesterday, a few days after Secretary for Financial Services and the Treasury Chan Ka-keung said the administration planned to issue up to HK$100 billion in bonds in the next five to 10 years.
To launch the programme, the government needs to seek council approval for two resolutions, which aim to establish a bond fund under the Public Finance Ordinance and authorise the government to borrow up to HK$100 billion, or the equivalent, for the fund.
'We plan to move the two relevant resolutions in Legco on May 20,' Julia Leung Fung-yee, acting secretary for financial services and the treasury, told the meeting. 'If the council passes the resolutions, we are going to issue the first batch of government bonds in the third quarter.'
But many lawmakers, including Regina Ip Lau Suk-yee and Emily Lau Wai-hing, said the government's plan was too hasty, and the panel would not have enough time to discuss the matter.
Accountancy sector legislator Paul Chan Mo-po said: 'I don't see the urgency of it ... [which] makes us feel that it is reckless.
'There are two things the administration needs to do when it wants to launch some policies. First, it's the procedure. Second, whether you have Legco and the public's support,' he said, adding that the government should provide sufficient information and time for lawmakers to consider the issue.
Ronny Tong Ka-wah of the Civic Party urged the government to provide more information, such as the investment strategy for managing the bond fund, the proposed interest rates and the risk government needed to face.
Permanent Secretary for Financial Services and the Treasury Au King-chi replied: 'We want to control our time as well as possible.'
She said the government understood that lawmakers would like to discuss different aspects of the programme, but certain issues such as the bond sale arrangement with banks could only be dealt with after the resolutions were passed.
'Therefore, I have suggested boldly that we stick with the proposal schedule and set up a subcommittee to discuss the matter,' she said.
Under the proposed programme, which aims to increase the breadth, depth and liquidity of the city's debt market, Hong Kong dollar-denominated bonds would be sold as often as four times a year.
