11 July 2003 (Friday)

The newly-established Hong Kong Maritime Industry Council (MIC), chaired by the Secretary of Economic Development and Labour, Mr Stephen Ip, held its first meeting today (11 July). Members discussed initiatives to further develop Hong Kong's maritime industry.

"The implementation of the initiatives will help develop Hong Kong's maritime services and enhance Hong Kong's status as the pre-eminent international maritime centre in Asia following the establishment of the MIC," Mr Ip said.

"The maritime industry contributes significantly to Hong Kong's economy. The setting up of the MIC has reaffirmed the Government's determination to enhance the attractiveness and competitiveness of Hong Kong's maritime industry," Mr Ip said.

Members at the meeting exchanged views on the implementation of the initiatives in four categories, including institutional re-structuring to strengthen public-private sector collaboration, enhancing Hong Kong's attractiveness as a base for international maritime enterprises, strengthening the supply of skills and experience for the growth of the maritime industry, and introducing sector-specific measures to promote Hong Kong's comprehensive maritime services.

Realising that a continuous supply of well-trained human resources to deliver quality services was crucial for the development of maritime industry, the MIC agreed to set up a Human Resources Task Force to address the education, training and manpower supply issues. This Task Force will draw inputs from the industry to help develop the most suitable maritime education institutional framework for Hong Kong and to examine incentives to attract new blood to join the industry.

As the maritime cluster comprised a number of sectors with individual special needs, the MIC endorsed another proposal of establishing a Maritime Services Task Force formed by stakeholders across the sectors in the maritime industry to study each sector's specific recommendations and to formulate the implementation plans of the recommendations. The Task Force will also devise the general plan for promoting Hong Kong as an international maritime centre.

Members noted that the Government would step up efforts to make agreements with Hong Kong's shipping partners for the avoidance of double taxation (DTA) on income derived from international shipping operations to enhance Hong Kong's position as an international maritime centre. Currently, Hong Kong has double taxation relief arrangements with seven tax administrations, including New Zealand, the Republic of Korea, the United States, the United Kingdom, the Netherlands, Germany and Mainland China, and has initialled DTAs on shipping and air services incomes with Singapore, India and Sri Lanka. Hong Kong is now discussing the DTA with Greece, Malaysia and Norway.

Members supported the Government's continuous effort in promoting Hong Kong's maritime services locally and internationally by participating in various maritime events, including the Seatrade London Exhibition, the Maritime Week in Hong Kong and the Posidonia International Shipping Exhibition in Greece.

Members were also briefed on the key elements in the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) signed last month, with emphasis on its relevance to the maritime industry. They would share details of the CEPA with other related parties and reflect views collected from them to the Government.