sector and on a total compensation basis, broadly speaking, not out of line with that of the public sector. The consult also made a number of recommendations for further reviews of the Council's salary structure and for changes in sta management practices and related areas.

3.38 The Committee wish to be informed whether the Administration is satisfied that the Trade Development Council is complying with the Government's policy that salaries and benefits paid to the staff of subvented organizations should not be greater than those paid to their equivalent posts in the civil service.

3.39 Implementation of the Government's policy for reducing traffic congestion. (Paragraphs 6.80-6.88 of P.A.C. Report No. 8). Financial approval has now been given to carry out a second Comprehensive Transport Study. The questions of an ERP Opt-in Scheme and the voluntary collection of tolls at tunnels using ERP technology will soon be considered by the Executive Council. Reviews on parking standards and taxi policy are still in progress. The Committee wish to be informed of further progress.

3.40 The expenditure of $250 million a year on the student travel scheme and its relevance to the Government's overall policy objectives. (Paragraphs 6.89-6.96 of P.A.C. Report No. 8). The Government has reduced the subsidy for recreational travel with effect from 1 October 1986 at an estimated saving in the academic year 1986–87 of $83.29 million. The Committee request that they be informed if any new proposals for refining further the student travel scheme are announced. The Committee's particular interests are in the possibility of withdrawing the subsidy from those who can afford to pay the full fare, and in the position of post-secondary students, who also benefit from the universities and polytechnic student finance scheme.

3.41

The cost-effectiveness of the Air Passenger Departure Tax collection system. (Paragraphs 7.7-7.15 of P.A.C. Report No. 8). The Government has now stated that its policy on the payment of fees to commercial companies that are required by law to collect taxes from the public is that no fees are paid unless there are special circumstances. The Air Passenger Departure Tax is the only current example of such circumstances. (There is also provision for payment of fees in the Cross-Harbour Tunnel (Passage Tax) Ordinance, but no fee has been paid.) The practice of paying fees for the collection of the Air Passenger Departure Tax is based on the long standing Government policy of restricting costs borne by airport users to those costs relating to services and facilities provided or demanded at the airport. This is in accordance with the statements of the International Civil Aviation Organization. Since the duty to collect tax is imposed by Government, the costs are recompensed.

3.42 A Working Group is re-examining the possibility of a flat rate fee to those who collect the Air Passenger Departure Tax. The Committee wish to be informed of the Group's recommendations.

3.43 Subsidence of the University Station platforms soon after completion resulting in extra costs estimated at $2 million. Initial site investigation not effective and non-compliance with prescribed departmental procedures. (Paragraphs 7.16-7.25 of P.A.C. Report No. 8). A Lands and Works Branch circular reflecting the Committee's recommendations in paragraphs 7.23-7.25 of the Committee's Eighth Report has been drafted but has not yet been issued pending consultation. The Committee are surprised at the length of time the Secretary for Lands and Works has taken to complete the draft of the circular. The Committee wish to know when it will be promulgated.

3.44 Kwai Chung incinerator project. Contractual claims of $7.1 million and delay in completion of 37 months arising primarily from less than satisfactory co-ordination of the plant and civil engineering works. (Paragraphs 7.26-7.35 of P.A.C. Report No. 8). The Committee understand that following discussion of the problems of managing complex multi-discipline projects in the Civil Engineering Services Department, the department has made a proposal to improve the administration of such projects by the appointment of a lead office or department. Financial responsibility will be aligned with administrative and executive responsibility, and when appropriate consideration will be given to seconding staff of relevant disciplines from other departments to the lead department.

3.45 Following agreement in principle by the Lands and Works group of departments to the proposal, the Director of Civil Engineering Services planned to submit a draft instruction to the Lands and Works group Directors' Meeting in late September 1986. It was expected that the formal Lands and Works Instruction would be issued before the end of 1986.

3.46 The Committee are pleased to note the progress. However, the Committee are concerned at the time taken by the Secretary for Lands and Works to complete the draft instruction. The Committee wish to know when it will be promulgated.

3.47 Lack of comprehensive guidelines on the planning and conducting of negotiations with the tenderers for the procurement of stores and services under single tender arrangements. (Paragraphs 7.36–7.44 of P.A.C. Report No. 8). The Committee understand that comprehensive guidelines have been drafted but not yet issued. The Committee trust that these will be issued without further delay. The Committee wish to emphasize the recommendations made in their Eighth Report that upon the issue of the guidelines to Controlling Officers, arrangements should be made for the guidelines to be properly monitored. The Committee attach particular importance to the involvement of specialist procurement staff in single tender negotiations where the expenditure involved is over a predetermined level.

3.48 Full-scale review of the procedures relating to the assessment and collection of revenue from properties and investments, land transactions and connected fees and charges, for which the Director of Buildings and Lands is responsible (and including the Mass Transit Office of the then Engineering Development Department), with a view to establishing a sound system of internal control and to issuing a manual of guidance for officers concerned with each step of the procedures; and four new cases of undercollection totalling $2 million because of mistakes. (Paragraphs 7.45–7.57 of P.A.C. Report No. 8). A full-scale review has been completed and, except for the overhaul of the file movement system in four urban

10

Share This Page