Lau was defeated by Emily Lau Wai-hing in the 1995 election of the Legislative Council of Hong Kong (LegCo). In 1996, Lau secured a seat in the Provisional Legislative Council. He was elected into LegCo in both 1998 and 2000 LegCo elections in the geographical constituency, after he joined the Democratic Alliance for Betterment of Hong Kong (DAB).
In 2003, due to the pro-Government stance of DAB especially on the issue of implementing Article 23 of the Basic Law, the popularity of Lau, being a member of the DAB, was affected, and the Civil Force performed poorly in the 2003 District Council elections. Lau himself lost the District Council seat in Shatin that he held for years. The Civil Force retained 14 seats in the Shatin District Council.
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