Legislative Council of the Hong Kong Special Administrative Region Finance Committee Report on the examination of the Estimates of Expenditure 2019-2020 July 2019 Finance Committee Report on the examination of the Estimates of Expenditure 2019-2020 July 2019 CONTENTS Chapter Page I Introduction 1 – 2 II Civil Service 3 – 10 III Administration of Justice and Legal Services 11 – 23 IV Central Administration and Other Services 24 – 37 V Financial Services 38 – 47 VI Public Finance 48 – 54 VII Constitutional and Mainland Affairs 55 – 63 VIII Environment 64 – 78 IX Housing 79 – 91 X Transport 92 – 105 XI Home Affairs 106 – 116 XII Commerce, Industry and Tourism 117 – 136 XIII Communications and Creative Industries 137 – 145 XIV Food Safety and Environmental Hygiene 146 – 159 XV Health 160 – 170 XVI Innovation and Technology 171 – 186 XVII Planning and Lands 187 – 205 XVIII Works 206 – 215 XIX Education 216 – 231 XX Security 232 – 246 XXI Welfare and Women 247 – 264 XXII Labour 265 – 276 Appendix Page I Programme of the special meetings of the Finance A1 – A3 Committee II Summary of written and supplementary questions B1 – B3 and requests for additional information III Attendance of members and public officers at the C1 – C37 special meetings of the Finance Committee IV Speaking notes of Directors of Bureaux, Secretary D1 – D98 for Justice, and Judiciary Administrator Chapter I : Introduction 1.1 At the Legislative Council meeting of 27 February 2019, the Financial Secretary of the Hong Kong Special Administrative Region Government introduced the Appropriation Bill 2019. 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 21 sessions of special meetings over five days from 8 to 12 April 2019 to examine the Estimates of Expenditure. The purpose of these special meetings was to ensure that the Administration was seeking a provision no more than was necessary for the execution of the policies of the Government for 2019-2020. 1.3 To facilitate the smooth conduct of business, members of the Committee were invited to submit written questions on the Estimates of Expenditure using a web-based application system. A total of 7 109 written questions were received and forwarded to the Administration for replies. The Administration provided replies to the first 3 300 questions before the special meetings and replies to the remaining questions that were in order before the third Budget meeting of 8 May 2019. Members' questions and the Administration's replies have been uploaded onto the Council's website. 1.4 Each session of the special meetings from 8 to 12 April 2019 was dedicated to a specific policy area and attended by the respective Director of Bureau and Controlling Officer. The schedule of the 21 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. The records of the proceedings of the 21 sessions are given in Chapters II to XXII. Supplementary questions and requests for further information from members were referred to the Administration for written replies after the meetings, while broad policy issues raised during the meetings were referred to - 1 - Chapter I : Introduction the respective panels for follow up, where necessary. 1.5 A total of 149 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 prior to the third Budget meeting on 8 May 2019. 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, the Secretary for Justice and the Judiciary Administrator at the special meetings are contained in Appendix IV. 1.7 This report, published in both Chinese and English, would be presented to the Legislative Council on 3 July 2019 in accordance with Paragraph 53 of the Finance Committee Procedure. - 2 - Chapter II : Civil Service 2.1 At the invitation of the Chairman, Mr Joshua LAW, Secretary for the Civil Service ("SCS"), briefed members on the civil service establishment and the financial provisions relating to the policy area of central management of the civil service (Appendix IV-1). Civil service establishment and grade structure review 2.2 Referring to Annex A to Reply Serial No. CSB019, Dr CHENG Chung-tai sought explanation for the estimated significant decrease by 135 civil service posts in the Hospital Authority ("HA") in 2019-2020 while positive changes were projected in the civil service establishment of most bureaux/departments ("B/Ds") during the same period. SCS explained that due to historical reasons, there were civil servants working in some statutory organizations, such as HA and Hong Kong Monetary Authority. As the related civil service posts would be deleted upon retirement of these civil servants, the reduction in the civil service establishment in HA was estimated based on the projected number of civil servants retiring in the financial year. HA would appropriately fill the subsequent vacancies by its own staff. 2.3 Referring to Reply Serial No. CSB045, Mr Holden CHOW sought information on the number of staff consultation fora held on the grade structure review for the disciplined services grades. SCS explained that at the invitation of the Government, the Standing Committee on Disciplined Services Salaries and Conditions of Services ("SCDS") had commenced work on the review together with the Standing Committee on Directorate Salaries and Conditions of Service, with the latter to advise on the salaries and conditions of service of the heads of the disciplined services. SCDS had met with both the management and the staff side representatives of the disciplined services. The two advisory bodies had invited them to submit proposals by end March 2019. He had also exchanged views with disciplined services staff, including the staff side of the Disciplined Services Consultative Council, on the scope and progress of the review, and other issues of concern to their grades at regular meetings. SCS assured members that the Administration would maintain close communication with disciplined services staff. He was also confident that the two advisory bodies would ensure full participation of the staff side in the course of the review. - 3 - Chapter II : Civil Service Extension of service of civil servants 2.4 Referring to Annex A to Reply Serial No. CSB023, Mr Jimmy NG sought explanation for the low percentage of eligible civil servants who had opted for extension of service in the Financial Services and the Treasury Bureau and the Innovation and Technology Bureau. SCS advised that serving civil servants who joined the Government between 1 June 2000 and 31 May 2015 were given the option to extend their service by five years, and they could, having regard to their own circumstances, decide whether or not to take this option within the two-year option period which commenced in September 2018. As the option period had only commenced six months ago, it was too early at this stage to analyse the differences in the numbers of eligible civil servants who had taken the option among various B/Ds. 2.5 Noting from Reply Serial No. CSB004 that the Post-retirement Service Contract ("PRSC") Scheme received favourable response, Dr CHIANG Lai-wan asked whether there were part-time positions provided under the Scheme so that applicants could enjoy more flexibility. SCS advised that B/Ds might, having regard to their operational and service needs, engage retired/retiring civil servants on contract terms under the Scheme to undertake ad hoc, time-limited, seasonal or part-time tasks that required specific civil service expertise/experience. Dr CHIANG urged the Administration to provide more part-time positions under the Scheme so as to allow more opportunities for experienced civil servants to continue to make contributions beyond their retirement age. 2.6 Referring to Annex A to Reply Serial No. CSB004, Dr CHENG Chung-tai asked whether the relatively higher number of full-time PRSC staff employed by the Correctional Services Department and the Customs and Excise Department indicated that the two departments were facing succession problem arising from the retirement wave. SCS responded that the PRSC Scheme allowed Heads of Grade/Heads of Department ("HoGs/HoDs") to further employ retired officers according to their own operational needs. It was therefore difficult for the Civil Service Bureau ("CSB") to provide specific reasons for the number of PRSC staff engaged by individual - 4 - Chapter II : Civil Service B/Ds. Dr CHENG, however, considered that CSB should look into the situation with the relevant departments, particularly the Correctional Services Department as there had been reports of management issues in some correctional institutions. Civil service training and development 2.7 Noting from Reply Serial Nos. CSB008 and CSB052 that the new civil service college was expected to be completed by 2026, Mr CHAN Chun-ying pointed out that similar civil service training institutes in Singapore and Canada organized training programmes on a wide range of subjects, including finance and information technology, for their own civil servants.