Page 97
160
HONG KONG URBAN COUNCIL
Another ramification is the virtual impossibility to ascribe due credit to any of these district officers for the savings he has achieved in executing his duties.
Therefore, with a view to enhancing efficiency and control in this respect, I propose that the principle and procedures of 'responsibility accounting' be introduced to the operation of the Department. I shall leave such technical details as responsibility identification, cost allocation and variance analysis to the care of our expert, the Senior Treasury Accountant. In corollary, a parallel 'management control system' should also be introduced to assist district officers in their utilization of resources and evaluation of their effectiveness.
Manpower Utilization
To maximize the efficiency of staff deployment, manpower utilization at the regional level should be related to district cost centres with each assuming a measure of local responsibility. Any manpower surplus arising from any such centre(s) should be released to a central pool for temporary inter-district deployment. As an incentive to induce the provisional transfer of staff between districts, these centres will be credited with an accounting entry, so that the relevant district will be awarded with a reduced charge on its expenditure head as a result of its manpower release.
Since the performance of the responsibility centres are to be measured in terms of input costs and output effectiveness, the corresponding district activities can be closely monitored through this system of reporting and evaluation. No less important is the role of our headquarters administrators, who will be responsible for overall co-ordination and critical examination of district activities and work schedules in order to ensure the optimal allocation of staff resources under this re-deployment scheme.
Establishment
A flexible approach to staff deployment will also contribute to austerity, the need for which is apparent when we recall the bizarre experience of the past year, during which the Council was confronted with spiralling increases in staff costs that rocketed by about 30%. In addressing such financial stringency stemming from inflation, the Administration Select Committee has installed additional control measures using a two-prong approach. First, a ceiling allowing a maximum of 500 new posts, net of deletion, was placed on the growth of staff establishment. Second, a financial limit of $10 million was prescribed for the purpose of creating new posts and re-grading existing ones in the year 1980/81. As a result of the commendable effort from the Department, it is estimated that a saving of $5.4 million will be achieved. The cost implications due to this restraint on the increase in establishment are therefore modest, representing a minimal increase in basic salaries of about 1.3% based upon a revised estimate of $349.3 million for this item in 1980/81.
HONG KONG URBAN COUNCIL
161
For the coming year 1981/82 these principles will continue to apply. The number of total net new posts permitted is not to exceed 680, subject at the same time to a financial limit of $7 million, or 1.8% of the 1981/82 estimate for basic salary. $3 million will be available for re-grading exercises. Therefore, the total financial implications for new posts and re-grading would be $10 million, or 2.6% of the 1981/82 estimate of basic personal emolument. Undoubtedly, innovations in various aspects of the administrative system are complex and time-consuming to design. Nevertheless, the task, though demanding and strenuous, would be no less worthwhile and challenging for those who share a part in it.
The subject of Council election has been a topic mentioned by a member. It must be stressed that the formation of the committees went through the normal election procedures, in a proper and dignified manner, last year as in previous years. Whatever the outcome of the process would be adequately reflected in the outstanding performance of the Council. In a free enterprise economy as Hong Kong, meritocracy must prevail. We simply cannot afford second best.
I support the motion before Council.
(The Hon. F. K. HU left during Dr. Kim CHAM's address.)
MR. STEPHEN M. L. LAU (in Cantonese):-Mr. Chairman, I think the present policy on hawkers is correct. The aim is that the younger generation and the new immigrants would not take part in the hawker trade but take part in productive production, otherwise it would be for the people who are unfortunate to help those who are fortunate, the unfortunate being the rate-payers and the fortunate being the hawkers.
At this year's Annual Convention Debate I would like to put forth the following opinions on the Council's Statement of Aims:
Hawkers Problem
In retrospect, though re-ordering exercises were carried out on a district basis last year to regulate hawkers trading in the streets, there is yet much to be desired in that the hawkers are still occupying much of the space on both sides of the streets. And, it is very likely that those hawkers who are not eligible for pitch allocation in the re-ordering exercises would at any time start trading in the streets again. As to unlicensed hawkers, it is all the more difficult to take the gauge of the situation.
Though the presence of hawkers in the housing estates is not within the jurisdiction of the Council, it is inevitable that clearance operations taken by the Housing Department will result in hawkers being driven out from the estates onto the streets thus creating more confusion. For the past years the Council has been pinning high hope on the 25 new market projects in the pipeline and relying on them to solve the hawkers problem. However, except
Page 98