Date:

Time:

Reporter:

26.11.86

8.30 am 12.15 pm

CNB

1 too much has been placed upon this corruption aspect. If you have

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no confidence in your staff that for a meagre $120 there would

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be a danger of corruption, then there are wider implications.

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Travel documents, letting the wrong people in, not looking at

criminal records, those are even wider implications, so I don't

think we should place too much emphasis on that because they're not dealing with actual cash but tickets.

DI: I must make this absolutely clear and, with great respect to our colleagues in the Audit Department, in fact the

report here misunderstands the argument. We have never advanced the argument that we don't want to do the job because it's one which has corruption opportunities. We have confidence in the integrity of our staff and all the jobs we have to do have got corruption

opportunities. What we are saying is that if Government does the job, it must have proper procedures with proper anti-corruption measures taken. This is basic Government policy. We have to do this.

If we don't do it, the Corruption Prevention Department of ICAC will

19 come along and make us do it, and there is extra cost to the tax-

20 payer in taking these measures.

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CHAIRMAN: Fair enough. We understand that fully. Okay.

Thank you very much.

DI: Thank you, sir.

CHAIRMAN: The next item on the agenda deals with the

Director of Audit's Report, paragraph 90 - 93. May I invite the Deputy Financial Secretary. This deals with the slow progress and delays

in taking action or formulating a detailed policy on the subventing

of insurance premiums and in devising a system by which the various

risks can be covered at a minimum cost.

Peter.

MR POON: May I ask the Deputy Financial Secretary whether 35 he can explain the reasons why it has taken so long to enter into

negotiation with the insurance brokers over the issue of block

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