Issue 145 - The Australian Chamber of Commerce in Hong Kong.

THE SMALL BUSINESS EDITION
THE GREEN EDITION
"River runs red, black rain falls,
on my bleeding land"
-Midnight Oil 1990
According to local folklore, Australian
media mogul Rupert Murdoch got
so sick of being unable to see
anything from his multi-milliondollar
view on The Peak that he sold up and
never went back. Michael Wray writes.
At the time, Murdoch was attempting
to cash in on China’s economic miracle by
creating a cable-television network that
would have potentially made him the world’s
greatest media baron.
China was still in the early stages of
opening up and, the legend goes, on the
days when he could see Victoria Harbour,
Murdoch liked to count container ships on
the water as a crude barometer of how the
economy was traveling.
Eventually though Murdoch was forced
to walk away from both the view and his
television dreams. China’s dream, however,
continued unabated, ships kept filling
the harbour and eventually the mainland
economy overtook Japan to become the
world’s second largest, behind the US.
Hong Kong’s proximity to China and
close political ties with Beijing during that
period mean it has reaped huge financial
gains from the mainland’s success. But Hong
Kong’s geographic position has also led it
to import many of China’s environmental
problems, including even more days of
the thick pollution that blocked Murdoch’s
view.
For years Hong Kong has blamed heavy
industrialisation and coal-fired power
stations in the Pearl River Delta across the
border for the heavy smog that descends
on the city.
Last year the BBC reported that Hong
Kong’s high levels of pollution were
making it harder for businesses to retain
and hire international staff, eroding Hong
Kong's appeal as a place to live and work.
It also said that one in four Hong Kong
residents was considering emigrating
because of air pollution.
Each Hong Kong person
still threw away about
6kg of waste from their
homes every week
According to Hong Kong Observatory
data, there has been a “dramatic rise in
the frequency of reduced visibility” in the
city since the late 1980s, when China’s
industrialisation began to ramp up. In
the 1960s and ‘70s, visibility had been
consistently much clearer.
AUSTCHAM NEWS
ISSUE 145 - 2012
www.austcham.com.hk
A 2020 Climate Strategy that's rapidly
running short of gas
The Observatory’s data removes
days when there is fog, mist, rain or high
relative humidity, so it is effectively a
measure of smog and pollution.
To help counter the growing problem,
the Hong Kong government in 2009
released its Climate Strategy, which set
an ambitious target of reducing carbon
intensity per unit of GDP by 50-60 per
cent in 2020 compared with 2005 levels.
The strategy relied on four initiatives:
1. Maximising energy efficiency;
2. Greening road transport and promoting
electric vehicles;
3. Turning waste into energy;
4. Revamping the fuel mix for electricity
generation.
Although Hong Kong is a modern city,
a quick look around at the number of
ancient wall-style air conditioners sticking
out of buildings shows that policies
promoting energy efficiency have the
potential for large emission reductions.
Similarly cleaning up the transport
industry, which contributes 18 per cent of
Hong Kong’s greenhouse emissions, and
waste management has strong potential
for positive reductions.
But electricity generation is far away
cont. P3
COPYRIGHT © 2012 THE AUSTRALIAN CHAMBER OF COMMERCE IN HONG KONG AND MACAU

the largest contributor to the problem,
accounting for 69 per cent of total
emissions in 2008. And even if all other
initiatives work perfectly, Hong Kong would
still be unable to meet its greenhouse goals
unless it can reduce its reliance on thermalcoal
for electricity production.
The government has set a target of
reducing coal-fired power from the current
54 per cent of the fuel mix to just 6 per cent
by 2020 and for it to be totally eliminated
by 2030.
Filling the gap, natural gas use is slated
to rise from its current 23 per cent to 40
per cent in 2020. Use of nuclear power
should rise from 23 per cent to 50 per cent
in that period and wind energy grow from
its current 1-2 per cent to 3-4 per cent.
China has also set ambitious targets
for reductions in greenhouse emissions
that, if met, would significantly clear up the
air drifting over Hong Kong from the Pearl
River Delta.
Like Hong Kong, China is relying
on large increases in nuclear power for
electricity generation to meet its goals.
But these plans have been thrown into
disarray since the earthquake and tsunami
in Japan last year decimated the Fukishima
nuclear plant and forced governments
around the world, including in China, to
reconsider their use of nuclear power.
According to a report prepared for
Civic Exchange, a think tank, the Hong
Kong Government has been caught out by
the freeze on nuclear expansion and this
threatens to derail its efforts to meet the
emission reduction goals.
“Hong Kong officials have not come to
a decision on how to go forward, and they
are monitoring international debate on
nuclear energy,” the report says.
According to the report China is
expected to quickly return to its nuclear
program because it simply has few other
short-term options to produce huge
amounts of energy using low emissions.
In Hong Kong though the decision is made
more difficult as citizens have seen what
happened in Japan and will expect more of
a voice on the final decision.
COVER STORY | 3
“Hong Kong would not meet its carbon
intensity target in 2020 even if it decreased
coal use as proposed, kept nuclear import
at the same level as today (23%), added
wind power as planned, and made up the
difference by importing much more natural
gas,” the report says.
“Whether Hong Kong could increase
natural gas supply by a large margin and
whether Hong Kong would be prepared to
keep a higher level of coal usage are issues
that will have to be discussed should it wish
not to increase nuclear electricity imports.”
In a report on the city’s environment
for the period 1986 to 2011, Environment
Secretary Edward Yau said Hong Kong had
made “remarkable progress’’ over 25 years
and residents lived in a “healthier and more
pleasant city”.
He said the two greatest challenges
to the environment were climate change
and waste management. Further to that,
each Hong Kong person still threw away
about 6kg of waste from their homes
every week, which put enormous strain on
landfills. He admitted governments had an
important role in overcoming environmental
problems but the first responsibility lay with
individuals, who had to contribute to the
effort.
Michael Wray is a former News Ltd
journalist now based in Hong Kong.
CORPORATENEWS
Watch all TV news
on your phone
Australia Network has
announced their first app for
iPhone is now available on
the App Store. The app offers
direct access to Australia Network news
and sport, TV guide, English language
learning resources and other Australia
Network video content as well as
streaming Radio Australia. The app also
provides emergency consular alert Push
Notifications with important information
from the Australian Government.
“The Australia Network App is a
first step in meeting the needs of our
audience whose media consumption
habits are rapidly evolving in an
environment where mobile, tablets
and new digital platforms provide
an opportunity to deliver news and
information on demand - anytime and
anywhere” said Bruce Dover, Chief
Executive, Australia Network. “The app
delivers an integrated offering of video,
audio and text news and information
unrivalled in the Asia Pacific."
AustCham donations help needy Hong Kong Children
The money you donated through our charity auction with Variety at the March Rugby 7s lunch
is being put to good cause – helping children from low-income Hong Kong families get
the best start to the new school year with a donation of HKD150,000 to buy new uniforms
and text books for 150 students.
Variety has partnered with the Society for Community Organisation (SoCO) for funding children
and families in challenging conditions in Hong Kong. With the donation, SoCO will continue to
provide every-day life training, as well as psychological support and basic school equipment.
The Chamber chose an education focus for this fund-raising initiative to reflect the strong
educational links between Australia and Hong Kong. With your donation we are giving these young
students the basics to provide a foundation from which they can build much greater dreams and
ambitions.
The cheque was presented to Variety at SoCO children’s centre in Sham Shui Po. To know more
about SoCO, turn the page - they are our feature NGO.
Sze Lai Shan of SoCO receives a gift
from AustCham Chief Executive Kirsty
Boazman, the artwork was done by
AustCham staff.
AustCham Chairman Andrew Steadson
presents the $150,000 cheque to Chairman of
Variety Phil Neilson.

4 | CHAMBER CHATTER
Hello all,
The Australian Chamber of Commerce
in Hong Kong and Macau has almost 1200
members, representing more than 700 Australian
and local companies in a community of about
80,000. In August 2012 AustCham will turn 25.
It is the largest Australian business grouping
outside the country and the second largest of
27 International Chambers in Hong Kong.
EVENTSUPDATE
AUGUST AT A GLANCE …
Tue, 7 August 2012
‘Small Business – Start Me Up’ Series:
Coming to grips with numbers:
Understanding balance sheets, P&L,
and cash flow
12:30 – 2:00pm
KPMG, 8/F, Prince's Building, 10 Chater
Road, Central
Thu, 16 August 2012
Mix at Six: Networking for SMEs
6:00 – 9:00pm
Nico’s, G/F, 49 Elgin Street,
SoHo, Central
Fri, 17 August 2012
Macau Mingler
6:00 – 9:00pm
Morton’s Steakhouse, The Venetian, Taipa,
Macau
Fri, 17 August 2012
Macau’s Development Landscape luncheon
with Paolo Azevedo, Founder of Macau
Business Magazine
1:00 – 2:30pm
The Westin Resort, Coloane, Macau
Tue, 21 August 2012
‘Small Business – Start Me Up’ Series:
Marketing basics: How, when & where to
sell your message
12:30 – 2:00pm
Compass Offices, 20/F Infinitus Plaza,
Sheung Wan
Tue, 21 August 2012
The 50th InterCham YP Cocktail
6.30 – 9.30pm
Hard Rock Café, LKF Tower,
55 D’Aguilar Street, LKF, Central
Late August 2012
Shenzhen business delegation
An AustCham one day mission to learn
more about development & opportunity in
Shenzhen.
Details to come
August is such a difficult month in which
to engage the brain. Blame it on the heat
or because most of the city is in holiday
mode or maybe all that wake boarding and
dragon boating has just left water in cranial
nooks which don’t like moisture. Anyway, as
we sit here hoping for a number 8 signal,
the Secretariat has just a couple of quick
messages about your Chamber membership:
1. Renewal
2011-12 AustCham memberships expire
at the end of August & member benefits
will cease then. So if you haven’t already
renewed, please do contact Andrew or
Vicentia to have a chat about how the
Chamber will be providing more for your
membership in our 25th year.
2. Non-member prices
As part of our goal to deliver greater
value for members, we will be
significantly increasing the difference
between member and non-member
pricing for most of our events, including
Mix at Six. This will start in September.
3. Member cards
We won’t be issuing the hard-copy, credit
card-like membership cards this year
but introducing a membership e-card
which you will be able to download
on any smart phone and have with
you at all times. The individual links to
your member e-card will be emailed in
September also.
Lastly, please mark the evening of Thursday
6 September in your diaries when we
begin our 25th Anniversary celebrations,
and we’re doing it with the Brits – as the
British Chamber is also celebrating its Silver
Anniversary in HK.
That’s enough work for this summer day.
Enjoy our Green Issue of austcham news.
Cheers,
Kirsty
Take a seat Latte please What do you get?
The Brunch
Club
70 Peel St, SoHo
French
American
Bistro
G/F, 30 Hollywood
Road, SoHo
Café X Salon
86 Wellington
Street, Central
A Word from Wellington
The Bean Counter
Greetings bean counters. Thank you to those members who have taken
the time to write a couple of lines about their favourite coffee shops. This
month is a mix of the old, new and re-branded outlets as we take the city’s
economic pulse according to the barometer of the bean.
$34
$35
$36
A perennial fave. It's like pulling your lounge chair into
a coffee shop & plonking down. They serve fairtrade
coffee & yummy pancakes with syrup but no service
charge. Free wireless of course & bet you feel like
putting your feet on the table.
A breezy open-dining area of this “bistro” is the main
attraction here, resembling a pub more than a place for
fine dining. A pub is the last place you’d go for coffee so,
French moniker aside, stick to the asparagus & parmesan
risotto. Far more rewarding than the nespresso cuppa.
How do you judge this innovative fusion of a café and
salon - by the coffee or the haircut? One sip says ‘you’ve
had this before’, Pacific Coffee brews all the coffee albeit
under a different name. While the taste is predictable,
it’s a nifty shelter from the busy Central flow –
you might got for a haircut too.
To include your favourite coffee haunt (no major chains) email a short
evaluation to communications@austcham.com.hk

CHAIRMAN'SCOLUMNCOLUMN
Dear members and
friends,
It was Kermit the
Frog who crooned the
tune “Its not easy being
Green” and whilst this
was a reference to Kermit
being an “amphibian of
colour” rather than an environmentalist the
phrase does sum up the challenges of taking
a sustainable approach to living in our city of
seven million people.
There are of course many dedicated people
in Hong Kong working on this challenge and
I continue to be impressed with the work
of AustCham’s Sustainable Development
committee. I’m pleased that this month’s
edition of AustCham news is devoted to their
cause and the broader issues of sustainability
and a cleaner environment for our great
city of Hong Kong. If you’re interested in
getting involved with the “Susdev” committee
please get in touch with Veronique Liu in the
Secretariat.
Last month I was invited to speak on behalf
of AustCham on a panel at the 2nd Australia
China Media forum in Conghua, Guangdong.
COMMUNITYCORNERCORNER
The media forum was a two-day event that
bought together people from the key media
outlets and government agencies in Australia
and the mainland. The focus of the forum
was to explore ways in which the media could
be used to develop the very board bilateral
relationship that exists between Australia and
greater China.
In recognition of 40 years of diplomatic
relations with China, much was made of the
need to find more of the “good news stories”
that will add to the very healthy trade and
investment relationship. It was generally
agreed that whilst Australian companies did
not have the brand penetration that some of
the large US companies have in China, the
“Brand Australia” is very well respected in the
mainland. Importantly, I also spoke publicly
and privately with a number of delegates
about the important roles that Hong Kong,
and our Chamber can play in being a bridge
to much of the cross border trade and
investment opportunity in the future.
Have a great month ahead
Society for Community Organization (SoCO)
Andrew Steadson
Society for Community Organization (SoCO) was founded in 1972 and is a
registered non-profit making non-governmental human rights organisation for the
underprivileged.
SoCO is active in lobbying for an improvement in the lives of the 1.2 million
Hong Kong people who live below the poverty line - predominantly comprising the cage
and cubicle dwellers, the single elderly, new immigrant women, children, street-sleepers,
people with mental illnesses, low-paid workers, refugees and ethnic minorities. SoCO
also undertakes original social policy research, lobbies Hong Kong decision-making
bodies and organises direct action events.
SoCO safeguards poor children’s rights and equal development opportunities through
policy advocacy, service provision, and social involvement while helping them to improve
their living conditions and developmental opportunities through a Child Mentorship
scheme, a community
learning centre, and a
children’s poverty fund.
If you are interested
in helping, please visit
SoCO website: www.soco.
org.hk or contact SoCO at
27139165 /
soco@pacific.net.hk .
AustCham is a non-profit organisation and provides this space free of
charge to other, selected non-profits or charities in Hong Kong.
CHAMBER CHATTER | 5
The AustCham
Membership Card
The offers and the AustCham Qantas
Membership Card are valid from 1 July
2011 until 30 June 2012 and can be
claimed upon presentation of a valid
card. Please visit our website www.
austcham.com.hk for a full listing of
benefits, updates and special offers.
Providers who are also AustCham
members are listed at the beginning
of each section and marked with this
symbol .
These benefits and discounts have
been compiled with care and are
current at the time of printing. The
Chamber holds no responsibility for
changes or non-delivery of benefits
listed, we would like to know of any
difficulties that you might experience
so we can improve the benefits offered
in the future.
Qantas Holidays Products:
• Exclusive discounts of HK$100 for
adults and HK$100 for children on
the Qantas Holidays products to
Australia or London sold by Holiday
Tours and Travel.
(Discount does not apply on special
promotion packages)
For reservations in Hong Kong call
+852 2737 6798.
Payment must be made by cash or
cheque only.
ACCOUNTING/CONSULTING
Holistic Business Consulting
Intertrust (Hong Kong) Ltd
CATERING SERVICE
City Kitchen
Meatmarket.hk
HOTELS IN HONG KONG
Novotel Citygate
RESTAURANTS
Dot Cod
Grand Hyatt
Hyatt Regency Hong Kong, Tsim Sha Tsui
Lan Kwai Fong Entertainments
Renaissance Harbour View Hotel Hong
Kong
The Langham, Hong Kong
Wooloomooloo Steak House Group
TRAINING/ BUSINESS CENTRE
Jumpstart Offices
Servcorp
Time Technology
EDUCATIONS
Kids’ Gallery Macau
TRAVEL & LEISURE
Flight Centre
Grand Lapa, Macau
The Peninsula
WINES/BEVERAGES
Natural Springs Australia (HK) Ltd
Ponti food & Wine Cellar Ltd.
FITNESS
FLOW

6 | AUSTRALIA FOCUS
Inhale now: Australia puts its price on fresh air
On July 1, Australia became the
world’s most expensive place to
emit greenhouse gases after a tax
of AU$23 tax per tonne was placed
on carbon.
Although only 300 companies will be
forced to pay, the burden of the tax will flow
through the entire economy as businesses
pass on any increased costs. The most
visible effect is likely to be on domestic
power bills after energy companies jack up
prices to offset ballooning tax exposures.
Among others, the mining, transport and
steel industries will be affected.
The Government is facing a massive
scare campaign from the Opposition but has
told low and middle-income earners not to
worry because tax receipts will be used to
compensate them for any higher costs.
Prime Minister Julia Gillard has argued
the carbon tax is necessary if Australia,
which is the world’s largest greenhouse
polluter per head, is to meet its obligations
on greenhouse omissions.
Opposition Leader Tony Abbot has
called it a “toxic tax” and has promised to
repeal the legislation should he win the next
election.
If opinion polls can be believed, this is a
very real possibility. According to a Nielsen
poll taken in early July, just after the tax
was introduced, Labor’s Primary vote was
just 28 per cent, compared with 48 per cent
for the Coalition.
Speaking to an AustCham business
lunch in Hong Kong recently, Treasurer
Wayne Swan admitted that the introduction
of the tax along with the Mineral Resources
Rent Tax (MRRT) had contributed to Labor’s
dismal position in the polls.
“We came back in as a minority
government and proceeded to put in
place some big significant reforms like
carbon pricing and then you get a negative
opposition… they’ve run negative and
they’ve run hard and they’ve done it in that
environment, and I think they’ve had a fair
bit of impact,” he said.
A Nielsen poll taken in the days after
the tax was introduced found support for
it had dropped to an all-time low of just 33
per cent.
Projections for the total impact on daily
living costs range from benign to significant.
Treasury has estimated that an average
family will pay $9.90 more per week in the
first year of the scheme’s introduction.
It is still much too early to work out
the real costs however opponents and the
media have been searching for any signs of
rising prices.
The Managing Director of Brumby’s
bakery was forced to resign after being
caught urging his employees to blame price
rises on the carbon tax.
Then about two weeks after the tax
was introduced, the Australian Competition
and Consumer Commission (ACCC) released
figures on the number of complaints it had
received during that period. More than 600
complaints or enquiries directly related to
the tax were received in the first 10 days
after it was introduced. In total the ACCC
received more than 8000 general complaints
for that period.
Deputy Chairman of the ACCC Michael
Schaper told the ABC that out of the 600-
odd carbon tax complaints, it was actively
investigating 20.
“I can't give details about any of those
specific investigations,” he said.
“I will point out though that of the
complaints more generally that we've
received, clearly the biggest group have
been about energy retailers and in addition
to that a number of other sectors such
as construction, land fill and refrigerant
gases.”
Reserve Your Seat Now!
600 complaints or
enquiries directly related to
the tax were received in the
first 10 days
In a recent editorial The Economist
magazine said that despite “birth defects”
in implementing the carbon tax and
the MRRT there were “merits in their
conception”.
“(It will allow) the government to lower
taxes on work, by raising the threshold for
income tax,” the magazine said.
It added: “Other governments would do
To enquire about
advertising, submit an
article, comment or
respond to austcham news,
please contact Karen at
communications@austcham.com.hk
or call +852 2522 5054.

well to emulate and improve upon Australia’s
efforts to shift the tax burden from hardearned
wages and profits to unearned rents
and uncompensated harms”.
That view is in the minority in Australia
right now and unless Gillard can change
that, she and her colleagues could well
find themselves in a minority in the next
parliament.
The obsession from both sides for
finding statistics to back their case
is likely to continue right up to the
election campaign - where the issue will
be a significant factor because of the
Opposition’s promise to scrap the tax.
There are doubts in some quarters that
the Opposition would actually go through
with the promise however senior Liberal
Christopher Pyne insisted to Sky News that
they were serious and that the next election
would be a referendum on the carbon tax.
“We are telling the Australian public
right up front, we will abolish the carbon
tax... you couldn't be any clearer than that,”
he said.
In the weeks after the tax was
introduced both government and opposition
MPs fanned out across the country to spread
their message.
Climate Change Minister Greg Combet
summed up the government’s message to the
ABC.
"This is a reform that is perfectly
manageable, one that is a responsible thing
to do," he said.
While the Opposition arguments seem to
be gaining most traction there are glimmers
of hope that with the right strategy, Gillard
might be able to turn public opinion her way.
- Michael Wray
AUSTRALIA FOCUS | 7
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8 | HONGKONG FOCUS
WHO’S WHO IN THE NEW HONG KONG GOVERNMENT
HONGKONG FOCUS | 9
Mr John Tsang Chun-wah,
Financial Secretary
Mr Rimsky Yuen Kwok-keung,
Secretary for Justice
Mrs Carrie Lam Cheng Yuet-ngor,
Chief Secretary for Administration
Chief Executive of the Hong Kong Special
Administrative Region
Finished school in NYC & studied architecture then
education before returning to HK with a Masters in
Public Admin from Harvard. Was Private Secretary
to Governor Chris Patten then Head of the HK trade
office in London. Made Housing Secretary in 2001,
Secretary for Commerce in 2003, took a pay cut to
run the office for friend & former CE Donald Tsang,
& became Finance Secretary in 2007.
A civil lawyer who specialised in commercial
disputes & international mitigation, he was made
Senior Counsel (equivalent to Queen’s Counsel) in
2003, & was Chair of the HK Bar Association. Has
been a non-official member of ICAC & is one of six
Recorders of the High Court. At 48, he and Dr Ko
are the youngest members of the new Government
line-up.
Joined the government after graduating from HKU
but went on to do a year at Cambridge & be
awarded a Fullbright scholarship during which she
was attached to a “US Federal Agency”. Toughed
out 3 years as Director of Social Welfare, rewarded
with Trade position in London & went onto become
Permanent Secretary for Home Affairs in 2004 then
Secretary for Development in 2007.
The son of police officer, he graduated from
Polytech in surveying, studied property
valuation & management in the UK & became
Chairman of Jones Lang Wootton in HK at age
30. Established his own surveying company
in 1993, merged with a Singapore company to
create DTZ Debenham & became Chair of the
HK Institute of Surveyors in 1995. Advised the
governments of Shenzhen, Tianjiian & Shanghai
on land reform & DTZ became one of the first
HK real estate companies allowed to open its
doors on the mainland without a local partner.
Was awarded the Gold Bauhinia Star in 1999 &
appointed Convenor of the Executive Council
(the body the CE consults before making major
decisions), a role he kept until 2011. And he’s a
Leo – turning 59 on August 12.
Professor Anthony
Cheung Bingleung,
Secretary
for Transport and
Housing
Armed with a PhD
from London School
of Economics, he has
founding involvement with the HK Policy
Research Institute & SynergyNet (a think
tank). Previously Head of Public & Social
Administration at City Uni & President
of the HK Institute of Education, also
a Legco Councillor from 1995-97. A
consummate public administrator who
has served on medical, housing, HR,
consumer issue & mortgage committees.
Mr Lai Tung-kwok,
Secretary for Security
A 34-year career in the
one Department has
given him experience
in all aspects of
immigration, under
British and HK rule. Appointed Director
of Immigration in 2002, he retired in
2008 only to be enticed back as Under-
Secretary for Security in 2009. In his new
role he oversees the police, correctional
and fire services as well as customs,
immigration and the government flying
service (2 fixed wing & 2 helicopters).
Mr Eddie Ng Hakkim,
Secretary for
Education
Has held senior HR
roles with multinationals
including
Macquarie, Citibank,
Jardine Flemings,
& Lucent Technologies. Has been an
adjunct professor at HK Baptist Uni & was
appointed Chair of the HK Examinations
and Assessment Authority in 2009. Has
been a member of the Housing Authority,
the Independent Police Complaints Council
&, more recently, Chair of a private HR
consultancy.
Dr Ko Wing-man,
Secretary for Food
and Health
An orthopaedic surgeon
with an MBA in Hospital
Administration from
NSW University, he
moved from medical practice in the mid-
1990s to join the Hospital Authority as a
Director but returned to clinical practice
in 2004 as Director of the Hong Kong
Red Cross (during which he operated on
earthquake victims in Sichuan) and Chair
of the Anti-Cancer Society. Has a Bronze
Bauhinia Star.
Professor
K C Chan,
Secretary
for Financial
Services and
the Treasury
With a PhD in
Finance from Boston University,
he taught at Ohio University for
9 years before returning to HK
to take up the post of Dean of
Business and Management at
HK University in 1993. Has been
a Director of the HK Futures
Exchange & Chairman of the
Consumer Council. Has held the
Financial Services and Treasury
portfolio since 2007. Why KC? His
first names are Ka-keung Ceajer.
Mr Gregory
So Kam-leung,
Secretary for
Commerce
and Economic
Development
Married and
raised his family in Canada
where he gained a law degree
from Ottawa University. A senior
partner in a solicitor’s firm, he
had to renounce his Canadian
citizenship to be appointed
Under Secretary for Commerce
and Economic Development in
2008. Was a previous Chairman
of the Democratic Alliance for the
Betterment & Progress of HK,
and sat on the Hospital Authority
Board.
Mr Paul
Chan Mo-po,
Secretary for
Development
The initial
appointee fell
on his sword,
just two weeks after anointment,
for being creative with his public
service housing allowance.
The replacement is the Legco
Councillor from the Accountancy
sector. A graduate of the Chinese
University of HK, he has been
an Adjunct Professor at City Uni
& Honorary Professor at Shue
Yan Uni. Previously President of
HK Institute of Certified Public
Accountants & Board Member of
West Kowloon Cultural District
Authority.
Mr Paul
Tang Kwok-wai,
Secretary for
the Civil Service
A career public
servant who
rose to Dep Sec
level in a number of departments
including Environment & Food,
and Transport before becoming the
Director for Social Welfare. Has also
worked with the former New Airport
Projects Co-ordination Office, and
the former Chief Secretary's Office
Administration Wing. Has a testing
indoctrination ahead.
Mr Wong Kamsing,
Secretary
for the
Environment
An architect
with strong
green building
credentials, he has been the
Vice Chair of the HK Green
Building Council, Chair of the
Professional Green Building
Council & particularly active in
the HK Institute of Architects.
An Associate Professor, lecturer
and tutor at CUHK, City and
PolyTech Universities and regular
contributor to government
advisory bodies, including
the Council of Sustainable
Development.
Mr Matthew
Cheung
Kin-chung,
Secretary for
Labour and
Welfare
Also a career
bureaucrat who started in
the Administrative Services
Department, served in the
HK office in London and was
the Assistant Principal Private
Secretary to Governor Sir Edward
Youde. Became Director of
Education in 2000 and, until
this appointment, was the
Permanent Secretary for Economic
Development.
Mr Tsang Taksing,
Secretary
for Home
Affairs
Arrested at
his school for
distributing
anti-government material, he
served time in Stanley prison and
became a journalist upon release,
rising to Chief Editor at Ta Kung
Pao (pro-Beijing). Formerly an
adviser to the Central Policy Unit,
he has been a HK appointment to
the National People’s Congress, &
was the first senior HK official to
visit Taiwan post-handover.
Mr Raymond
Tam Chi-yuen,
Secretary for
Constitutional
and Mainland
Affairs
A keen golfer with
an engineering degree, he joined
the bureaucracy 25 years ago and
has had appointments across a
number of departments including
time in the HK office in Geneva, the
CE’s office, the Financial Secretary’s
office & the Central Policy Unit.
Is a continuing member of the
government, having been appointed
to this role by the previous CE
Donald Tang.

10 | COMMITTEE COMMENT
Your Business and the Carbon Pricing Mechanism
Bree Miechel, a member of AustCham’s Sustainable Development Committee,
is a Managing Associate at Simmons & Simmons. Here she outlines what your
business should aware of under the new Australian Carbon Tax system.
The contentious Carbon Pricing
Mechanism (“CPM”) came into effect
in Australia on 1 July. Over the next
3 years, emissions units are to be
issued by the Government (the “fixed price
period”), and from 2015 onwards a ‘capand-trade’
scheme is to be introduced (the
“flexible price period”).
1. Will the CPM affect my business?
Large emitters of greenhouse gases
(referred to as “liable entities”) will
need to obtain carbon permits in
exchange for every tonne of CO2
equivalent produced. Whilst these
are to be obtained by direct emitters,
the impact of the carbon price will
inevitably trickle down the supply chain
and affect the prices of goods and
services market-wide. The most obvious
sectors that will be directly impacted
are:
• Mining
• Manufacturing
• Natural gas suppliers
• Industrial processes (cement,
chemicals, metal processing)
• Waste disposal
2. What are the different types of
emissions units under the CPM?
Three types of carbon permits can
be used at different times under the
scheme: Carbon Units, Australian
Carbon Credit Units (“ACCUs”) and
Eligible International Emissions Units
(“EIEUs”).
3. How can my business satisfy its liability
during the “fixed price period”?
From 1 July 2012 to 1 July 2015, Carbon
Units will be sold by the Clean Energy
Regulator at a fixed-price. Trading will
be minimal as the units will expire on 1
February of the following year and can
be resold to the Regulator.
ACCUs are emission units generated by
land-based sequestration and offset
projects and may be used to offset up
to 5% of a liable entity’s obligations
during the fixed price period.
4. How can my business satisfy its liability
during the “flexible price period”?
From 2015 onwards, a ‘cap-and-trade’
scheme will operate. For the first 3
years until 2018, to minimise price
volatility the price of carbon permits
must fall between pre-set floor and
ceiling prices. After this, pricing will
be flexible and determined by market
forces. The cap will be set every 5
years to reflect Australia’s commitment
to greenhouse gas reduction targets
and international climate change
obligations.
Unlike the fixed price period,
businesses will not be restricted to
using Carbon Units and ACCUs to meet
their compliance obligations. EIEUs may
also be used to meet up to 50% of a
business’ liability. EIEUs include units
issued in accordance with the Kyoto
Protocol such as Certified Emission
Reductions generated by Clean
Development Mechanism projects.
5. What restrictions apply to trading
emissions units?
Carbon Units, ACCUs and EIEUs are
considered financial products under
the Corporations Act 2001. Accordingly,
entities dealing in, creating a market
for or advising on such products may
need to obtain an Australian Financial
Services Licence (“AFSL”) or seek a
variation to an existing AFSL from the
Australian Securities and Investments
Commission. Certain limited exceptions
apply including for (1) individual
traders, (2) entities providing services
to a related body within a corporate
structure (excluding joint ventures)
for the purposes of financial risk
management, and (3) entities acquiring
emissions units for their own use
(excluding OTC derivatives).
6. Does the CPM create any opportunities
for non-liable entities and foreign
investors?
Yes. The Australian Government has
established the Clean Energy Finance
Corporation (“CEFC”) with AUD10 billion
funding to assist with the development
of renewable energy resources and
clean energy projects. Provided that
a business is primarily located in
Australia, it may apply for assistance
through the CEFC. It is anticipated
that the CEFC could unlock over AUD50
billion in private capital.
7. What should my business do to prepare
for the CPM?
Even if your business is not a liable
entity, it is important to mitigate the
potential impact of the CPM by making
appropriate management decisions.
You may consider the following:
• Assessing the
potential impact of the CPM on
current and future investments
• Examining eligibility for Government
grants and funds
• Considering the impact of the carbon
price when negotiating contracts
• Preparing for international trading
opportunities in the future with the
EU, New Zealand and other Asian
markets
Whether or not the scope of the CPM
appropriately balances Australia’s
environmental and economic
considerations, the pricing of carbon
emissions is a step in the right
direction. It is important for the
sustainable development of the
Australian economy and our standing
as international citizens.
CORPORATENEWS
NEWS
Cundall wins HK Green
Building Grand Award
Hong Kong Science Park Phase 3
has won the Hong Kong Green
Building 2012 Grand Award
in the building under design
category. The project is aiming to
achieve one of Hong Kong's first LEED
v2009 Platinum ratings and a HK BEAM
Plus Platinum rating.
The Green Building Awards aim to
provide recognition to building-related
projects with outstanding performance
and contributions in sustainability and
the built environment.
Cundall provided sustainable design
consultancy, supporting the design
team, project manager and Hong Kong
Science Park in this award winning
design.
Established since 1976, Cundall has
evolved from a UK-based company to a
worldwide organisation with 22 offices
in 11 countries offering sustainability
advice over the past 35 years. Their
major projects include: The Royal
Children’s Hospital in Melbourne, South
Australian Health Medical Research
Institute and South Australia Water
House.

Deacons
14/F, Alexandra House
18 Chater Road, Central
Hong Kong
Tel.: +852 28265353
www.deacons.com.hk
Chamber Representatives:
Jane McBride, Partner
Cynthia Chung, Partner
What are the main skills of your job?
My practice specialises in advising clients,
particularly financial services clients, on
compliance and regulatory issues. This is a very
interesting area to be involved in especially
now because things are always changing! This
ie because of increased regulatory scrutiny,
continuous regulatory developments and
the differences between global and Asian
markets. The increasing level of personal
liability for senior management for certain
compliance breaches add a further level of
compliance risk for management and the other
stakeholders of regulated entities.
What does your company do really well?
As a Hong Kong firm, Deacons has a very stable
team of partners, many of whom joined the
firm as trainees. Clients value the continuity,
certainty and experience of a stable team of
Hong Kong lawyers who know the market and
business conditions in which they operate and
have many years of experience operating in
this market.
How would you describe your workplace and
colleagues?
Deacons has a very collegiate working
environment in which partners, lawyers and
staff work closely together in a mutually
supportive way which I haven't seen so well
developed in other firms.
MEMBER PROFILES | 11
What’s something most people don’t know
about your company?
Established in 1861, only 10 years after the
British colonised Hong Kong, Deacons is Hong
Kong's oldest, and now largest, legal firm.
What’s your company’s connection to
Australia?
Deacons was affiliated for many years with a
leading Australian law firm which shared our
Hong Kong firm's brand. It recently merged
with the UK firm, Norton Rose.
Why do you live in Hong Kong?
Hong Kong is an exciting and challenging
business environment in which to work and
an enjoyable and convenient city in which
to live.
What’s your favourite place to go on the weekend
in Hong Kong?
The pool at the Football Club after a hike in the
New Territories or over one of the many Hong
Kong mountains or maybe my dining room for
a meal prepared by my marvellous husband
resident chef, with a group of friends!
What’s your favourite place to eat lunch?
Our partners' dining room!
Lyndon
Arthurson
Marc Geary
Harris Fraser
Rm 901-903 , Tai Tung Building,
8 Fleming Road, Wanchai, Hong Kong
Tel: +852 2827 2278
www.harris-fraserpwm.com
Haydon
Loxton
Chamber Representatives:
Lyndon Arthurson, Director, Private Wealth
Management
Marc Geary, Head of Private Wealth
Management
Hayden Loxton, Vice President, Private
Wealth Management
What are the main skills of your job?
Our responsibilities require that we are
problem-solving oriented and analytical. At
the same time we must always be on top
of both market/economic and legislative
changes. We thoroughly enjoy the journey
of incorporating these skills to match
our client’s financial goals and personal
preferences.
What’s the most unusual thing you have had
to do as part of your job?
One of our clients wanted to buy a
property in Perth during the tail of the
2007 WA property boom. I arranged for an
‘intervention’ using family members, the
lawyer and accountant. Good investment
advice is hard won sometimes.
What does your company do really well?
Whilst Harris Fraser has been operating
and growing in HK for the last 21 years, the
establishment of our expat division required
that we build a comprehensive service to
compete in the market. We are very proud
of being able to provide sophisticated
services spanning professional investment
management, multi-bank private banking,
cross border tax structuring, superannuation
advice and direct market access.
What’s something most people don’t know
about your company?
As an Independent Financial Advisory firm
and active member on a number of key
advisory bodies in HK, we are considered a
good choice for clients who wish to avoid
conflicted advice. What isn’t well understood
is that for several years we have had in place
relationships with a number of well-known
global banks in HK to provide our clients
with direct access to wholesale services and
platforms. We directly provide clients with
banking and advisory services of a truly
global capacity whilst eliminating the costly
front-end part of a bank’s private banking
service.
What’s your company’s connection
to Australia?
Harris Fraser has offices in Australia, Hong
Kong, Singapore, Taiwan and China. Our firm's
footprint in Australia is through a wholly
owned subsidiary of Harris Fraser Group.
This is a licensed advisory firm providing
advice to both Australian families and high
net worth individuals. Our expat team are all
Australian. Our advisers each have greater
than a decade’s industry experience. Our
capabilities across the Hong Kong financial
regime only serve to complement the skills
required to appropriately service Australian
expats in Hong Kong.
Why do you live in Hong Kong/Macau?
It is not a new concept that the future of the
global economy rests with Asia. We believe
that living and working on the doorstep of
China, arguably the centre of influence of
Asia, is one of the most exciting journeys
of a lifetime. Of course we also don’t mind
the dynamism here, the Saturday morning
Dim Sum and full mobile reception – it puts
Sydney and Melbourne to shame.
What’s your favorite place to go on the
weekend in Hong Kong/Macau?
We are beach lovers, so when we manage
to drag ourselves out of the office, Big
Wave Bay is the closest thing we can get
to a real Australian beach. Yes of course on
the occasional ‘off day’ you must assume
that the plastic bags floating about are an
advanced species of jelly fish. Think no evil,
see no evil.

12 | COMMITTEES IN ACTION
AUSSIES MINGLE AT THE MANDARIN ORIENTAL MACAU
The futuristic Vida Rica Bar at the Mandarin Oriental
was the venue for the fourth Macau Mingler.
There was another great mix of guests who enjoyed
the wonderful hospitality of the Mandarin Oriental who
were also the main sponsor for the evening. It was good
to see so many there who came across from HK and
made the most of the opportunity to have a night out in
Macau.
Thank you to the Mandarin Oriental as the venue
sponsor, Aristocrat as part sponsor of the evening and to
Fine Beverage Limited (FBL) for donating the wine for the
lucky draw.
Save the date for the next Mingler - Friday 17 August at
Morton's Steakhouse!
- Jenny Lonergan, AustCham Macau
Craig Hughes, Rosemary Bowie and
Fran Thomas.
Andrew Quinlan, Chris Penny and Jonas
Tam of NAB.
Karen Chan of CPA Australia, Mandarin
Oriental GM Martin Schneider and
AustCham CE Kirsty Boazman.
AustCham Hong Kong and Macau
Room 301-302, 3/F, Lucky Building
39 Wellington Street, Central., Hong Kong
Tel: +852 2522 5054
Email: austcham@austcham.com.hk
Editorial Committee:
Kirsty Boazman, Karen Wu
Nathan Drane and Michael Hitchcock.
NEWMEMBERS
Corporate Member
Thomas Hoeborn
General Manager
Gina Ho
Director of Sales & Marketing
Conrad Hong Kong
Tel: 852 2521 3838
www.conradhotels.com
Jane McBride
Partner
Cynthia Chung
Partner
Deacons
Tel: 852 2826 5353
www.deacons.com.hk
Lyndon Arthurson
Director
Marc Geary
Head of Private Wealth
Management
Harris Fraser
Tel: 852 2827 2278
harris-fraserpwm.com
Tom Gunnersen
Equity Sales
Canaccord BGF
Tel: 852 2110 3400
www.canaccordbgf.com
Macy Chan, Sam McElhone and Sandy Wong.
Cindy Lam
Director of Sales
Harbour Plaza 8 Degrees
Tel: 852 2126 1988
www.harbour-plaza.com/hp8d
Danielle Jervis
Associate Director, Marketing
APAC
Jason Lawrence
Associate Director, School
Services-Asia Pacific
GMAC – Graduate Management
Admission Council
Tel: 852 28510020
www.gmac.com
Corporate Patron
Additional Members
Hannah Chan
Chief Financial Officer
Belinda Au
Chief Agency Officer
Jeremy Young
Vice President, Independent Sale
Sun Life Hong Kong Limited
Tel: 852 2103 8888
www.sunlife.com.hk
Theresa Chan
Partner
PwC
Tel: 852 2289 8888
pwcias.com
Anthony Lepere
Legal Manager
Allens Arthur Robinson
Tel: 852 2840 1202
www.aar.com.au
Corporate Additional Members
Melissa Lo
Partner
Henry Wai & Co., Solicitors
Tel: 852 3970 2300
www.hwco.com.hk
James Walkden
Director of Operations
W Hong Kong
Tel: 852 3717 2222
www.w-hongkong.com
Angela Li
Associate
Latham & Watkins
Tel: 852 2912 2500
www.lw.com
Printing: Colour Max Comm Printing Co Ltd
Flat 12, 8/F, Shing Yip Industrial Building
19-21 Shing Yip Street, Kwun Tong
Kowloon, Hong Kong
Tel: +852 2891 7917
Website: www.colourmax.com
Danny Howell
Director of Wealth
Management, Asia
Towers Watson
Tel: 852 2827 8833
www.towerswatson.com
Jessica Schubert
Sales Director Hong Kong and
Japan
Compass Offices
Tel: 852 3796 7188
www.compassoffices.com
Individual Members
Helen Galloway
Vice President
Sands China Ltd
Tel: 853 2882 8881
www.sandschinaltd.com
Vincent Boender
General Manager
Hypsos
Tel: 852 2195 1424
www.hypsos.com
Craig Hewat
Manager, Occupational Health
Hong Kong/China Industrial
Health
Tel: 852 59149926

Business Technology Committee:
Virtual office
A
revolution
is quietly occurring in the workplace, as the
shift to alternative workplace solutions is rapidly gaining
traction within enlightened organisations.
A research firm, International Data Corporation, recently
reported that as of end 2011, more than 1 billion people or 18%
of the global workforce are now operating as Mobile Workers,
meaning that they spend at least 2 days of every week working
outside of the traditional office. This figure is expected to double
to 2 billion workers by the end of this decade.
At a recent AustCham breakfast seminar held on the
topic of Virtual Office & Workplace Solutions, Alex Guthrie
from HSBC explained that whilst the corporate benefits
of an Alternative Workplace Strategy (AWS) are often well
understood, companies need to also invest the effort in
selling the benefits of an AWS to their employees and
help them understand that this is a journey that they are
embarking on and not a destination to begin with. From his
experience, if the change management process is handled
effectively, then more than 60% of the workforce will
enthusiastically embrace a flexible working arrangement
and give up entitlements such as a permanent desk at their
primary place of work.
As Neil Salton from Woods Bagot elaborated,
“If you ask employees whether they would prefer to own
and drive a Ford or share in driving a Ferrari, then most will
choose the latter alternative”.
“Advances in mobile and networking technologies,
together with the development of sophisticated collaboration
tools, is now enabling distributed teams to operate effectively
across multiple different locations and varying time zones”
explained Peter Smith from Wavelength Consulting.
The benefits of an effectively executed Alternative
Workplace Strategy are certainly compelling, where a 20-50
percent improvement in asset performance and cost savings
for office real estate is achievable. Greater productivity and
collaborative work efforts, along with higher staff retention
are also key benefits. This is particularly the case for Gen
Y’s and Millenials, who typically highly value having flexible
workplace arrangements.
- Peter Smith, Wavelength Consulting
COMMITTEES IN ACTION | 13
Financial, Legal and Tax Committee: Submission to
Treasurer on Double Taxation Agreement
During his July visit to Hong Kong, the Australian Treasurer, Wayne Swan,
received a submission from our committee urging him to elevate the
importance of a double taxation agreement between Australia and Hong
Kong.
The committee gave five key reasons in support:
1. It would encourage Asian investors to participate in Australian funds
2. Australia would be able to take greater advantage of Hong Kong’s Closer
Economic Partnership Arrangement with China - and thus its ability to
export to China tariff free.
3. Australia’s reputation as a regional hub for financial services in Asia
would be raised - and reservations investors have about the Australian
financial services industry would be reduced.
4. It would support Australia’s development as a secondary RMB destination
in Asia.
5. It would redress the present imbalance in Australia’s tax treatment
between Singapore and Hong Kong, which favours Singapore.
The feedback is
the Treasury’s
main concern
for entering into
the agreement is
loss of tax
revenue. We
will be working
to forward our
view as to why
this concern
is misplaced.
Darren Bowdern
of KPMG will lead the focus, for the Committee and the Chamber.
We’ll keep you posted.
- Brooke Patterson, Jarrah Wealth
MEMBERS SIGN UP FOR VEGGIES!
Over 300 members renewed early in June and going into our 25th
year, the below 25 members will each be receiving a vegetable
hamper from Tas’Mania:
David Hinchey
David Punter
Richard Holloway
Wendy List
Batya Shulman
Shanti Govindaraju
Daniel Chan
Michael Leung
W. H. Wong Cameron Hassall
Daniel Booth
Travis Benjamin
Jonathan Leong
Kristina Koehler
Calvin Mak
Angelina Wong
Donald Hess
Glenn Haley
Antonio Koo
David Hogan
Karl Hudson
Lydia Tye
Geraldine Johns-Putra
Arthur Bowring
Jasmine Lu
Vegetables from the world's richest soils, freshest air & cleanest waters. 3kg packs
$380; 6kg packs $680. Freshly picked & delivered to your door weekly. Call 81351394
or visit www.meatmarket.hk to order today.

14 | ON THE SCENE
Like to see your company brand here?
New advertising opportunity – on this popular space!
Email Karen at karen.wu@austcham.com.hk for details
AUSTRALIA DEPUTY PRIME MINISTER AND TREASURER WAYNE SWAN MP DELIVERED A
SPEECH TO AUSTCHAM MEMBERS AND FRIENDS DURING HIS VISIT TO HONG KONG IN
JULY. THE AUSTRALIAN REFLECTIONS LUNCHEON WAS HELD AT RENAISSANCE HARBOUR
VIEW HOTEL. THANKS TO THE EVENT SPONSORS:
Luiz Da Silva Pedruco and Avi Machlin
of Westpac.
Charles Kingsley with Richard Huston,
Liu Li-Gang and Tony Souza of ANZ.
Sidney Cheung and Cassandra
McCarthy.
Gaurav Ahuja, Mark Machin of Canada
Pension Plan Investment Board with
Susan Yuen of ANZ.
Peter Chen, Paul Mitchell and Warren
Phillips of KPMG.
Dan Ryan and Mark Sims.
Katrina Arkell of Qantas Airways
and Christopher Xing.
Alice Jim of Austrade with Georgia
Milne and Adrienne Lee of ANZ.
Karen Chen and Christopher
Condon.
Chen Gang and Wei-Zong Shen.
The Deputy PM models his Panda BBQ
apron – a gift from AustCham.
Geoffrey Stevens, Adam McKissack
and Zhang Dong.
Thomas Wong, Deborah Leung of CPA Australia,
Commissioner of Trade & Investment Queensland
(Hong Kong) Angela To with Charles Wong.
To book an event, please email bookings@austcham.com.hk

ON THE SCENE | 15
OVER 100 GUESTS ATTENDED AUSTCHAM’S AUSTRALIA ON THE VINE 2012 WINE
TASTING EVENT AT AZURE IN HOTEL LKF. SPECIAL THANKS TO THE EVENT SPONSOR:
Nicole Hielscher, Janice Lee and
Paul Taylor.
Fergus Brooks and Brooke Beatson.
With thanks to our event partners:
Sally and Jamie Spence of
Asia Link Limited.
Brad Schofield and Peter Ball.
THE AUSTCHAM YOUNG EXECUTIVES MIX AT SIX WAS HELD AT PLAY IN CENTRAL.
Penny Angore, Janine Barnes and Amy
Benger of Ernest & Young.
Congratulations!
The winner of our New to Hong Kong Series
“Peninsula Sky High” Champagne
Breakfast & cityview helicopter
ride for two went for the ride
in July.
Thanks again to series
sponsor Allied Pickfords!
Mark Rudnicki and Luz Ilagan.
Agnes La and Liz Choy.
Shannon Deacon, Sally Hasler of
Australian Consulate-General and
Simone Pedersen.
Ricky Mui of Robert Walters, Scotia Wong
with John Lo of AIA, Leonie Valentine of
Telstra and Patrick Daley of Clayton Utz.
Caption Dominic Simoneau, Mandy and
Travis Jones.