Speech by Mr K C Kwong, Secretary for Information Technology and Broadcasting at the Legislative Council Meeting on 12 January 2000 - Proposed Resolution to be moved pursuant to the Trading Funds Ordinance to amend the Post Office Trading Fund Resolution

12 January 2000

President,

I move the motion which has been printed on the Agenda.

2. The Electronic Transactions Ordinance passed by the Legislative Council last Wednesday establishes a clear legal framework for electronic transactions. It also introduces a voluntary recognition scheme for certification authorities (CAs). Under the scheme, Government will grant recognition to those CAs that offer trustworthy certification services. This will enhance the quality of local CAs, which in turn will strengthen the public's confidence in conducting electronic transactions over open networks.

3. In order to provide safe and secure certification services as soon as possible so as to promote the development of electronic commerce, Government will take the lead in establishing a CA through the Hongkong Post. However, I would emphasize that the Hongkong Post, as a recognised CA, does not have any exclusive rights. Other bodies are welcome to set up CAs in accordance with market needs and to seek recognition from Government.

4. The Hongkong Post is a recognised CA under the Electronic Transactions Ordinance. The objective in moving the motion standing in my name today is to amend, pursuant to the Trading Funds Ordinance, the Post Office Trading Fund Resolution in order to allow the Post Office Trading Fund to provide CA services and other services that are incidental or related to such services. If the motion is passed by the Legislative Council today, the Hongkong Post will start providing certification services to both individuals and businesses at the end of this month.

5. The Hongkong Post, like other recognised CAs, will have to comply with the code of practice issued by the Director of Information Technology Services under the Electronic Transactions Ordinance so as to ensure that the quality of its services will be up to standard. As a trading fund department, the Hongkong Post will provide its certification services on a self-sustaining basis. In order to give Members a clear report of its financial status in operating as a recognised CA, the Hongkong Post will maintain in its overall Post Office Trading Fund account, as well as in the certified statements for the Post Office Trading Fund to be tabled in the Legislative Council annually, a specific part in respect of its operation as a recognised CA.

6. The Legislative Council Bills Committee on the Electronic Transactions Bill supported the motion that I move today when the Bills Committee examined the Bill earlier. I hope that Members will support the motion.

7. Madam President, I beg to move.

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