Page 4 of 498
HONG KONG URBAN COUNCIL
to set up a Working Group to review the privatization of services. This question has not been answered in the written reply. I hope Mr. SUEN can answer the question directly.
Concerning my second question. I have seen some data about the maintenance charges for Refuse Collection Vehicles. I have learnt that the Council at present has 256 RCV's and that the annual average maintenance cost for each vehicle is $210,000 $210,000 × 256 gives a total of $53,760,000, a huge sum indeed. I wonder if we have a concrete plan to review whether charges levied by other departments, for example EMSD, are reasonable. Will the Council entrust maintenance responsibility to the Department or contract out to private contractors?
Coming to the third question, I am more concerned about the quality of contracting out services. Paragraph 8 of the written reply touched briefly on the subject of cost effectiveness. In fact, we are concerned with how to ensure that the service quality after contracting out will not be lowered.
MR. SUEN KAI-CHEONG (in Cantonese):—I refer to the need for the setting-up of a Working Group to review the privatization plan as mentioned by Mr. CHAN Choi-hi in his third question. As far as I know, the Council does not at present have a policy plan for privatization. However, as mentioned in paragraph 8 just now, we will consider, under the principle of responding to service needs, contracting out some services to private contractors in order to achieve savings in terms of costs and manpower without lowering quality. In implementing this, the approval of various Select Committees will have to be sought. As such, the Administration Select Committee will not make policy decisions on its own. I am just saying here that the Council has not for the time being considered setting up an inter-departmental working group on this matter. In case the SCWC feels there is such a need, it is up to the SCWC to decide on the work duties of the Working Group.
As to whether standards can be maintained after contracting out the service. I remember there was much concern on whether service standards of contracting out jobs would be affected when the subject was reviewed at the meeting of the Select Committee. For example, the Council recently contracted out cleansing services of certain streets to private cleansing companies. A thorough discussion over this topic was conducted at the meeting of the Public Health Select Committee. It was felt that only when the standards of existing contracted-out services were acceptable would extension of the contracted-out arrangement be considered.
MR. LI WAH-MING (in Cantonese):—Mr. Chairman, the figures quoted by Mr. CHAN just now are rather alarming. I refer to the annual maintenance charge for RCVs of $210,000. From what I hear, the EMSD intends to set up a trading fund which aims to increase competitiveness. Barring any unforeseen circumstances, this trading fund is expected to be in place this year. At present, maintenance of
Page 4 of 498