140. The latest position is that:
Controlling officers of education, social welfare and medical subventions have examined the existing arrangements for the subvention of insurance premiums; and
-proposals are under consideration for the Government to carry the risk of loss or damage by fire on schools and hospitals and to take out consolidated insurance policies against claims for employees' compensation in the subvented sector.
I am informed that interim proposals will be put to the Standing Committee on the Administration of Subventions in the next few months.
141. Head 42 - Electrical and Mechanical Services Department. Subheads 002 and 113. Allowances and Administration. The Kevin Industrial Building housing the Electronics Division of the Electrical and Mechanical Services Department was extensively damaged during the passage of Typhoon Ellen in September 1983. In addition to the repair work, it was considered necessary to strengthen the building to enable it to withstand typhoons and strong winds to protect the expensive electronics equipment kept there and the Deputy Financial Secretary approved the inclusion of an item in the Public Works Programme at an estimated cost of $1,470,600. The remedial work included replacement of the existing window frames with security frames and thicker glass and stronger entrance doors. The remedial work was carried out from June to November 1984 and during this period the normal 24-hour security duties performed by staff of the Electronics Division was supplemented by two special security teams, each consisting of five officers of the Electronics Division working overtime. Overtime and subsistence allowances totalling $310,000 were paid to the officers concerned.
142. I have expressed the view to the Director of Electrical and Mechanical Services that it would have been more cost-effective to employ a private security service instead of Government officers on overtime for the purpose of performing additional security duties. I pointed out that there was a lack of control over overtime work as there was no record to indicate that overtime work had been authorized in advance. I have suggested that the internal control procedures should be strengthened by requiring overtime work to be authorized in advance and that the cost- effectiveness of working overtime should be evaluated before it is authorized. The Secretary for the Civil Service has concurred with my suggestions and has pointed out to the Director of Electrical and Mechanical Services that the underlying principles are embodied in Government regulations.
143. In response to my enquiry, the Director of Electrical and Mechanical Services has informed me that he shares my view that it was not cost-effective to allow Government officers to work overtime solely for the purpose of providing security service. The Director has stated however that the overtime worked during the period in question was intended to meet other operational needs of the Electronics Division and that during the hours when remedial work was actually being carried out, the security duties must of necessity be performed by the staff of the Electronics Division. The Director has also informed me that all overtime work must now be authorized in advance in accordance with Government regulations and that he has issued instructions to improve the internal control procedures relating to the payment of overtime and related allowances. As it is apparent that a private security service could have been employed at night when remedial work was not being performed, I estimate on the basis of average costs that there would have been a saving of $103,000 if a private security service had been employed instead of using Government staff to perform the same duties by working overtime.
144. Head 53 Government Secretariat: City and New Territories Administration. Subhead 215. Environmental improvement and community involvement projects. In examining the expenditure allocated for the three-year period from 1982-83 to 1984-85 to District Boards for environmental improvement and community involvement projects, I questioned certain items which I considered to be outside the ambit of the vote as described in the estimates of expenditure approved by the Legislative Council and amplified in guidelines issued by the City and New Territories. Administration. The expenditure questioned included grants of over $1.2 million for the administrative expenses and over $200,000 for office renovation and equipment of various recreational and cultural organizations, which did not comply with the requirement that the expenditure should be restricted to specific recreational and cultural projects. The expenditure questioned also included over $200,000 paid towards a dance training scheme for schools organized by the Education Department which did not meet the requirement that it should be used only for district-based activities. The Secretary for District Administration accepted that for most of the expenditure questioned, he will ensure that in future payments to recreational and cultural organizations will be made in such a way as to bring them within the ambit of the vote.
145. Head 90 - Labour Department. Subhead 001. Salaries. The Pneumoconiosis (Compensation) Ordinance 1980 provides for a Pneumoconiosis Compensation Fund to be financed from a levy on those major trades and industries mainly responsible for causing pneumoconiosis diseases. The legislation came into operation on 1 January 1981 and persons diagnosed as suffering from pneumoconiosis after that date became entitled under the Ordinance to claim compensation and damages from the Pneumoconiosis Compensation Fund. At the same time it was decided as a matter of Government policy to pay compensation on an ex-gratia basis to those who had been diagnosed as suffering from the disease before the operative date of the legislation. In order to administer the pneumoconiosis compensation scheme, the Commissioner for Labour formed a Pneumoconiosis Compensation Unit comprising eight professional and clerical staff. The number of staff was provisional because at that time it was not possible to accurately assess the workload involved. The first task of the Pneumoconiosis Compensation Unit was to deal with some 1 500 ex-gratia cases and in
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