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Item for Establishment Subcommittee of Finance Committee

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Item for Establishment Subcommittee of Finance Committee For discussion EC(2002-03)10 on 19 February 2003 ITEM FOR ESTABLISHMENT SUBCOMMITTEE OF FINANCE COMMITTEE HEAD 50 – GOVERNMENT LAND TRANSPORT AGENCY HEAD 58 – GOVERNMENT SUPPLIES DEPARTMENT HEAD 130 – PRINTING DEPARTMENT Subhead 001 Salaries Members are invited to recommend to Finance Committee the following proposal to facilitate the merging of Government Land Transport Agency, Government Supplies Department and Printing Department into a new department named Government Logistics Department with effect from 1 July 2003 – (a) the creation of the following new grades and ranks – Director of Government Logistics (D5) ($154,700) Deputy Director of Government Logistics (D3) ($128,365 - $136,015) (b) the creation of the following new rank – Controller of Government Land Transport (D1) ($98,595 - $104,615) /(c)….. EC(2002-03)10 Page 2 (c) the deletion of the following grades and ranks – Director of Government Supplies (D5) ($154,700) Government Printer (D5) ($154,700) Deputy Director of Government Supplies (D3) ($128,365 - $136,015) Government Land Transport Administrator (D2) ($117,040 - $124,305) (d) the creation of the following seven new permanent posts for the new department – 1 Director of Government Logistics (D5) ($154,700) 1 Deputy Director of Government Logistics (D3) ($128,365 - $136,015) 1 Principal Executive Officer (D1) ($98,595 - $104,615) 1 Controller of Government Land Transport (D1) ($98,595 - $104,615) 2 Controller of Government Supplies (D1) ($98,595 - $104,615) 1 Chief Printing Superintendent (D1) ($98,595 - $104,615) /(e) ….. EC(2002-03)10 Page 3 (e) the deletion of the following eight permanent posts under the three existing departments – Government Land Transport Agency 1 Government Land Transport Administrator (D2) ($117,040 - $124,305) Government Supplies Department 1 Director of Government Supplies (D5) ($154,700) 1 Deputy Director of Government Supplies (D3) ($128,365 - $136,015) 2 Controller of Government Supplies (D1) ($98,595 - $104,615) Printing Department 1 Government Printer (D5) ($154,700) 2 Chief Printing Superintendent (D1) ($98,595 - $104,615) PROBLEM We need to rationalise the organisational structure of our logistic support departments for better efficiency and economy. PROPOSAL 2. We propose to merge the Government Land Transport Agency (GLTA), Government Supplies Department (GSD) and Printing Department (PD) /into ….. EC(2002-03)10 Page 4 into a new Government Logistics Department (GLD) to be established on 1 July 2003. The proposal will entail the following changes to the number and deployment of directorate posts on the civil service establishment – (a) the creation of a Director of Government Logistics (DGL) (D5) post and a Deputy Director of Government Logistics (DDGL) (D3) post, to be offset by the deletion of the existing Director of Government Supplies (DGS) (D5) and Deputy Director of Government Supplies (DDGS) (D3) posts in GSD; (b) the deletion of the Government Printer (GP) (D5) post in PD; (c) the creation of a Controller of Government Land Transport (CGLT) (D1) post to be offset by the deletion of the existing Government Land Transport Administrator (D2) post in GLTA; (d) the deletion of a Chief Printing Superintendent (CPS) (D1) post in PD; (e) the creation of a Principal Executive Officer (PEO) (D1) post, to be offset by the deletion of an existing Chief Executive Officer (CEO) (MPS 45-49) post in GLTA, a CEO post in GSD and a Senior Executive Officer (SEO) (MPS 34-44) post in PD; and (f) the lateral transfer of three posts (with duties unchanged), comprising two Controller of Government Supplies (CGS) (D1) and one CPS (D1) posts, from existing departments to the proposed GLD. Technically, this means the creation of three new posts under the new department, to be offset by corresponding deletions under the existing departments. The merger will also involve the amalgamation of establishment ceilings for the three existing departments. JUSTIFICATION 3. Government is committed to ensuring the cost-effective use of public resources and to improving the efficiency of its operation. In this context, we have reviewed the organisation for provision of logistic support services in Government, in particular the functions and organisations of GLTA, GSD and PD. /Existing ….. EC(2002-03)10 Page 5 Existing Structures of GLTA, GSD and PD 4. The existing organisation charts and key responsibilities of the three Encls. 1-6 departments are set out at Enclosures 1 to 6. At present, there are a total of eight permanent directorate posts in the three departments – (a) one directorate post in GLTA, viz. the Government Land Transport Administrator (D2); (b) four directorate posts in GSD, comprising DGS (D5), DDGS (D3) and two CGS (D1); and (c) three directorate posts in PD, comprising GP (D5) and two CPS (D1). 5. Despite their specialisations, the three departments all share a common objective of providing cost-effective logistic support to facilitate the efficient operation of other bureaux and departments. There is scope for better efficiency and economy through integration, specifically to – (a) streamline organisation and enable better co-ordination of logistic support services within the Government; (b) facilitate synergies in operation and cross-fertilisation of expertise for provision of the services; and (c) enhance efficiency and economy in deployment of resources for providing the services. Proposed Organisation of GLD 6. The proposed new department will continue to provide essential logistic support services for government bureaux and departments, specifically those relating to transport operation and management, procurement and supplies, as well as the provision of government printing services. Organisationally, the professional functions of GLTA, GSD and PD will be preserved under three specialist operational divisions in the new GLD while the departmental administrative, financial control and procurement functions of the three existing departments will be combined and re-organised under three new common services Encl. 7 divisions. The proposed organisation chart of GLD is at Enclosure 7. The organisation and key responsibilities of the six divisions are as follows – /Common….. EC(2002-03)10 Page 6 Common Services Divisions (a) Administration Division Comprising the Administration Section and the Accounts Section, this division will be responsible for departmental administration, human resource management and financial management of the new department. (b) Management Services Division Comprising the Supplies Surveys and Stock Verification Section and Systems Administration Section, this division will mainly be responsible for conducting system and financial surveys, internal audit checks and providing IT support for departmental operations. (c) Procurement Division This division will be responsible for the procurement of general purpose vehicles and common stores and services for the Government. It will also be responsible for market research and sourcing, providing advice on the terms of tenders and contracts, conducting tender negotiations and handling matters relating to the World Trade Organization Agreement on Government Procurement. Operational Divisions (d) Supplies Management Division This division will be responsible for the operation of the Government Logistics Centre, the grade management of supplies grade staff in various departments, monitoring contracts and claims, handling quarters furniture inspection and inventories and disposal of stores. (e) Printing Division This division will operate the printing workshop and administer contracts for outsourcing of printing work for government bureaux and departments. It will also be responsible for advising bureaux and departments on all matters relating to printing, including the use and purchase of printing equipment and accessories. (f) Land Transport Division This division will look after the provision of vehicles and land transport services to the departments, including the vetting of vehicle /requirements ….. EC(2002-03)10 Page 7 requirements. It will also be responsible for operating the central transport pool and for management of the driver grades. 7. Apart from the centralisation of the common services in the three existing departments, the merger will coincide with the planned rationalisation of current establishment arising from changing operational needs. These initiatives include the adjustment to the size of the GLTA pool of vehicles to align with the expected service demand and the disbandment of the ID Card Unit in PD upon introduction of the SmartCard ID cards. Proposed Changes in Directorate Establishment Director of Government Logistics (New rank) (D5) 8. Reporting to the Permanent Secretary for Financial Services and the Treasury (Treasury), DGL will supervise the administration of GLD and oversee the provision of logistic support services to bureaux and departments. The creation of the new DGL post will be offset by the deletion of the DGS (D5) post in GSD. The justifications for the new rank and post, together with a job description, are at Encl. 8 Enclosure 8. Deputy Director of Government Logistics (New rank) (D3) 9. DDGL will assist the Director in supervising and ensuring the smooth operation of six divisions headed by five directorate officers (D1) and two non- directorate officers (MPS 45-49) and in steering inter-division activities. The creation of the post will be offset by the deletion of the DDGS (D3) post in GSD. The justifications for the new rank and post, together with a job description,
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