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Legislative Council of the Hong Kong Special Administrative Region Legislative Council of the Hong Kong Special Administrative Region Finance Committee Report on the examination of the Estimates of Expenditure 2009-2010 June 2009 Finance Committee Report on the examination of the Estimates of Expenditure 2009-2010 June 2009 CONTENTS Chapter Page I Introduction 1 - 2 II Civil Service 3 - 8 III Communications and Technology 9 - 16 IV Commerce, Industry and Tourism 17 - 28 V Central Administration and Other Services 29 - 35 VI Administration of Justice and Legal Services 36 - 45 VII Financial Services 46 - 57 VIII Public Finance 58 - 59 IX Constitutional and Mainland Affairs 60 - 72 X Security 73 - 83 XI Food Safety and Environmental Hygiene 84 - 93 XII Health 94 - 105 XIII Environment 106 - 113 XIV Housing 114 - 122 XV Transport 123 - 136 XVI Home Affairs 137 - 145 XVII Welfare and Women 146 - 156 XVIII Labour 157 - 166 XIX Education 167 - 179 XX Works 180 - 190 XXI Planning and Lands 191 - 196 Appendix Page I Programme of the special meetings of the Finance 197 - 198 Committee II Summary of written and supplementary questions and 199 - 201 requests for additional information III Attendance of members and public officers at the 202 - 226 special meetings of the Finance Committee IV Speaking notes of Policy Secretaries 227 - 308 Chapter I : Introduction 1.1 At the Legislative Council meeting on 25 February 2009, the Financial Secretary of the Hong Kong Special Administrative Region Government introduced the Appropriation Bill 2009. Following the adjournment of the Bill at Second Reading and in accordance with Rule 71(11) of the Rules of Procedure, the President of the Legislative Council referred the Estimates of Expenditure to the Finance Committee for detailed examination before the Bill was further proceeded with in the Council. 1.2 The Finance Committee set up under Rule 71(1) of the Rules of Procedure comprises all Members of the Council except the President. The Committee held 20 sessions of special meetings over five days from 23 to 27 March 2009 to examine the Estimates. The purpose of these special meetings was to ensure that the Administration was seeking a provision no more than necessary for the execution of the policies of the Government for 2009-2010. 1.3 To facilitate the smooth conduct of business, members of the Committee were invited to submit written questions on the Estimates and a total of 2 985 written questions were received and forwarded to the Administration for replies. Both the printed and electronic copies of the written replies by the Controlling Officers were forwarded to members prior to the special meetings. The replies can also be browsed at the Council's website. 1.4 Each session of the special meetings from 23 to 27 March 2009 was dedicated to a specific policy area and attended by the respective Director of Bureau and his/her key Controlling Officers. The schedule of the 20 sessions is given in Appendix I. At the start of each session, the Director of Bureau/Controlling Officer concerned gave a brief presentation on the spending priorities and provisions sought under his/her programme areas. The Chairman then invited members to put questions to the Administration. A full record of the proceedings of the 20 sessions is given in Chapters II to XXI. Questions which were not dealt with and requests for further information were referred to the Administration for written replies after the meetings, while broad policy issues raised during the meetings were referred to the respective panels for follow up, where necessary. 1.5 A total of 120 supplementary questions and requests for additional information were referred to the Administration for reply after the special meetings. All the written replies to these questions were forwarded to members 1 Chapter I : Introduction prior to resumption of the Second Reading debate on the Appropriation Bill 2009 on 1 and 2 April 2009. A summary of the number of the questions and additional requests for information is given in Appendix II. 1.6 The attendance of members and public officers at the special meetings is given in Appendix III. The speaking notes of Directors of Bureaux at the special meetings are contained in Appendix IV. 1.7 This report, published in both Chinese and English, is presented to the Legislative Council on 24 June 2009 in accordance with Paragraph 53 of the Finance Committee Procedure. 2 Chapter II : Civil Service 2.1 At the invitation of the Chairman, Miss Denise YUE, Secretary for the Civil Service (SCS), briefed members on the major initiatives and expenditure concerning the civil service for the coming year (Appendix IV-1). Control of the civil service establishment 2.2 Mr WONG Kwok-hing said that The Hong Kong Federation of Trade Unions had all along been urging the Government to relax control of the civil service establishment. He therefore welcomed the Government's plan to increase the civil service establishment to meet service needs. He asked whether the additional posts were in fact existing vacancies or newly created posts, and whether serving non-civil service contract (NCSC) staff could apply for these posts. SCS responded that in view of the new initiatives to be pursued and the increasing demand on public services, it was considered justified to allow a moderate net increase in the civil service establishment of about 1 530 posts in 2009-2010. These were all new posts and those who met the entry requirements, including existing NCSC staff, could apply for the civil service posts through open recruitment. 2.3 Mr LEE Cheuk-yan supported the proposed increase in the civil service establishment, which had been shrunk from some 190 000 posts at its peak to about 160 000 posts as a result of the Government's effort to keep the civil service establishment under control. As it seemed that most of the 1 530 new posts would be earmarked for the disciplined services, Mr LEE expressed concern that other bureaux/departments might be forced to contract out their services, particularly those undertaken by Workman II posts under Model Scale 1 (MOD1) grades as these were still subject to control and approval from the Civil Service Bureau (CSB) was required for open recruitment of these posts. He pointed out that the duties of Workmen II were essential as evidenced by their contributions in cleaning the infected premises during the outbreak of the Severe Acute Respiratory Syndrome in 2003, and consideration should be given to allowing bureaux/departments to fill vacant Workman II posts. 2.4 In response, SCS clarified that the net increase in civil service establishment by 1 530 posts comprised both disciplined posts and civilian posts, details of which were set out in the Administration's reply serial no. CSB006. In gist, the departments which would enjoy the highest net growth in establishment were the Leisure and Cultural Services Department (LCSD) (net increase of 3 Chapter II : Civil Service 200 posts), the Housing Department (net increase of 177 posts) and Department of Health (net increase of 172 posts). She added that CSB had approved applications from three departments for open recruitment of grades under open recruitment control, involving some 360 posts. At present, there were some 6 800 Workmen II and 2 400 Workmen I in the civil service, and CSB was currently vetting applications for open recruitment of Workmen II from two departments. On outsourcing, SCS explained that it was an established policy that the private sector should be engaged in the delivery of public services if such services were considered well-suited for outsourcing, provided that this would not result in forced redundancy of serving civil servants. Mr LEE Cheuk-yan however pointed out that none of the 7 700 civil service vacancies filled between December 2008 and March 2010 belonged to MOD1 grades. In his view, the Government was depriving the grassroots of the opportunity to join the civil service. Non-civil service contract staff 2.5 Mr WONG Kwok-hing enquired if consideration would be given to creating more NCSC positions as part of Government's efforts to preserve employment and if so, the number of NCSC positions to be created. SCS explained that of the 62 000 jobs and internship opportunities which Financial Secretary undertook to create in the coming three years, about 44 000 were estimated to arise from various enhanced employment programmes, 4 000 were estimated to arise from internship opportunities provided under the "Internship Programme for University Graduates", 10 000 were jobs for maintaining 1 000 dilapidated buildings, 2 800 for assisting organizers to host more events to attract tourists, 260 for organizing activities relating to the 2009 East Asian Games and the 60th anniversary of the founding of the People's Republic of China, 500 for conducting education programme for Internet users, and 200 for enhancing energy efficiency in government buildings and public facilities. Given the nature of these jobs, it was expected that only some 200 to 300 NCSC positions would be directly created under the Government. SCS added that as at 31 December 2008, there were about 14 600 NCSC staff in the civil service. Based on available information, SCS expected that the number of NCSC positions engaged by bureaux/departments in 2009 and 2010 would stay at around 14 000 with some minor fluctuations, and with 500 to 600 additional positions to be created during summer months to meet seasonal upsurge in service demand. 4 Chapter II : Civil Service 2.6 Mr LEE Cheuk-yan recalled that the 2006 special review of the employment situation of NCSC staff had identified that the work of some 4 000 NCSC positions should be more appropriately performed by civil servants.
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