6.63 Conclusions and Recommendations. The Committee are encouraged by the achievements arising from the val for money studies. The Finance Branch has made valuable improvements in the management of the public purse.
6.64 The Committee whole-heartedly support the programme of value for money studies by the Finance Branch and the setting up of steering groups in departments.
6.65 The Committee note that the practice of setting up departmental steering groups has been valuable in securing the full support of departments in the pursuit of value for money. The Committee therefore recommend that early action be taken to create the additional directorate posts needed to facilitate, as quickly as possible, the objective of extending the steering group concept to all major departments. The Committee wish to be informed of the progress in this matter.
6.66 The Committee request that they be informed of the plan for the setting up of steering groups in major departments.
6.67 Paragraphs 90-93. Slow progress and delays in taking action on formulating a detailed policy on the subventing of insurance premiums and in devising a system by which the various risks can be covered at minimum cost. The Deputy Financial Secretary explained the delay. The problem was complex and involved many Government departments and a very large number of subvented voluntary agencies. The risks involved different people on different pay scales employed by different organizations. It was not easy to specify the insurance requirements exactly. However, proposals had now been received from a firm of international insurance brokers on a block insurance arrangement. Their report was now being examined. However, he could not yet say what savings would be achieved.
6.68 The Secretary said Government had not assumed the risk of fire in subvented medical organizations at the same time as it had assumed the risk for aided schools because the schools were homogeneous. Medical institutions were not. The Standing Committee had therefore elected to introduce the arrangement gradually on a trial basis. He hoped to be able to extend the arrangement to the subvented medical organizations in the near future. It had been agreed that medical organizations whose buildings had been destroyed by fire could rely on the Government to make good the damage provided the Government was satisfied there was a continuing need for the service and the repair or replacement of the buildings was on a no-frills basis. The Secretary undertook to provide the Committee with an estimate of the savings achieved as a result of Government carrying the risk of fire in schools.
6.69 The Deputy Financial Secretary said that it had been decided, with effect from 1 April 1987, not to subvent medical organizations for taking out insurance for professional malpractice. Implementation of this decision was in the hands of the Director of Medical and Health Services.
6.70 Conclusions and Recommendations. The Committee are pleased to note that six years after the matter of formulating a detailed policy on the subventing of insurance premiums and in devising a system by which the various risks can be covered at minimum cost was first raised by the Director of Audit, positive action has now been taken.
6.71 The Committee note that insurance brokers have drawn up a proposal for providing block discount rates for employees' compensation insurance and public liability insurance. The Committee wish to be informed if this proposal is accepted.
6.72 The Committee note that the Government has the intention to carry the risk of fire in subvented medical organizations, subject to confirmation that the facilities provided are still required and to reprovisioning the facilities on a no-frills basis. The Committee wish to be informed of the progress in this matter.
6.73 The Committee note that the Government carries the risk of professional malpractice for the professional medical staff of the Medical and Health Department. The Committee further note that the Director of Medical and Health Services is devising similar assurances for the professional medical staff in subvented organizations. The Committee wish to be informed of the progress in this matter,
6.74 Paragraphs 107-112. The failure to apply Government procedures flexibly, resulting in additional expenditure of $4.75 million. The Registrar General told the Committee that his staff ceiling had been fixed to meet future staff requirements for specific activities. These did not include microfilming. If he had created additional posts for this purpose from within the staff ceiling there would have been a reduction in other services. He had not felt that this was justified. The Registrar General had abandoned his attempt to persuade the Deputy Financial Secretary to raise his ceiling because all avenues had been exhausted. Staff for the Money Lenders Unit had not been obtained as easily as implied in paragraph 111 of the Director of Audit's report. The analogy was not appropriate because there was a statutory requirement for the Moneylenders Ordinance to be brought into operation. This required the setting up of the Moneylenders Registry. Although there had been no statutory requirement to set up a microfilming unit, the Registrar General agreed that there had been a time limit on the lease of the accommodation in the World Trade Centre. Failure to meet the time limit would have led and, did lead, to additional expenditure.
6.75 The Deputy Financial Secretary said that he had been aware of the urgency of the microfilming work, but he had believed that if the Registrar General had been really determined to get the extra staff for microfilming he could have created the posts inside his ceiling without sacrificing his other priorities. Staff ceilings could not have been raised at that time because of the overriding importance of restraining civil service growth. The procedures were now marginally more flexible but economy remained an overriding objective.
6.76 The Registrar General said that the documents at the Kowloon East Government Offices had now been destroyed with the exception of 170,000 memorials dating from 1844 to 1945. These had historical value. Documents stored in Aberdeen had been destroyed by a fire.
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