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and organizational structure. Various branches of the Department in making proposals would have to be endorsed by the Administration Select Committee before they can be implemented. In other words, the existing establishment and organizational structure of the Department has in fact been formulated in line with the Council's actual operations and demands. And therefore, the Council has ways and means to ensure that the Department's establishment and organizational structure can correspond with the Statement of Aims and Five-Year Plans. The Council has all along adopted effective ways to adjust the Department's establishment and organizational structure. In early 1990, in response to the Government's policy of zero growth in establishment, the Council deleted some 1500 posts. Furthermore, some services of the Council were also contracted out, for example, cleansing of markets. These services have been contracted out. As a result, surplus posts have been deleted. So, in providing any new service, the Department would also implement the Council's policy to ensure that the Department's establishment and organizational structure would be appropriate and also cost effective.
Before an internal review is conducted and before an external consultancy firm is even engaged, let me say that I do have some reservations about this proposal and that I don't think there is such a need at present. Let us ask ourselves. Has the Department incurred any excessive expenditure in staff emolument resulting in financial deficit and has there been any delay in implementing the Council's work and programmes as a result of manpower shortage? Has there been any surplus of manpower in the Department? I think the answers to all these questions are in the negative. Since there is no serious problem in the establishment and organizational structure of the Department, I do have doubts as to whether or not it is appropriate to commission a consultant to conduct a review at this stage.
An external consultancy firm is not familiar with the Statement of Aims and Five-Year Plans and also the policies and operations of the Council and Department. It would take time for the consultancy firm to gain an in-depth knowledge of the operations of the Council. It would also require assistance and information from the Department. So, under the circumstances, how far will the consultant be able to understand the operation of the Council and the Department? Suggestions or recommendations thus made would also give rise to questions as to their effectiveness.
6. The existing operation is for the Council to formulate the policies and the Department to implement the policies. Reviews on establishment and organizational structure are also conducted by the Department. Because the Department is familiar with its internal operations, it is in a better position to conduct reviews, be accountable and be able to report to the Council. That would be more cost effective and more
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