Subject to
Members' approval and assuming preparatory work on RTHK' s change of status can begin immediately following the approval, we expect that the above stages can be completed before the financial year 1991/92. A further submission will be made in due course setting out in more detail implementation of the proposed arrangements.
Political Considerations
19
The Chinese will be interested in the proposals to disestablish RTHK; arrangements will be made to brief them at an appropriate time.
FINANCIAL AND STAFFING IMPLICATIONS
20
RTHK current ly
has
326
a department al grade establishment of 606 of which
are on permanent and pensionable terms of employment. Significant staffing and financial implications may arise from the dis-establishment of RTHK.
21
The detailed implications will be subject to, among other things, the costs of setting up the Board and running its secretariat, the new terms and conditions of service to be offered by the Board, the bridging-over package and the secondment arrangements to be made for those who wish to remain within the civil service. If RTHK were to be dis-established by 1 April 1990, the cost to Government, if abolition-of-office terms were offered with immediate payment of enhanced pensions and ex-gratia allowance, could be up to approximately $177 million. This figure represent s the worst-case" cost to Government. Depending on the actual options offered and the take-up of them by staff, the actual cost to Government could be significant ly lower than this. The estimated cost is additional to earned pensions. The commuted gratuity pensions payable (i.e. earned pension gratuity plus additional enhanced pension gratuity) which would have to be paid on the date of disestablishment is estimated at about $91 million. In addition an ex gratia allowance of up to $26 million may have to be paid on the date of
3
disestablishment.
#1
on
22
The estimated cost does not provide for compensation for Cable & Wireless (C&W) staff now working for RTHK under the Technical Services Agreement between Government and the company. Although they are not RTHK staff, C&W
C&W may ask for compensation if the change in arrangements leads to redundancies affecting their staff. It also does not allow for severance payment s departmental contract staff eligible for such payments.
to