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The benefits of this approach are already filtering through, particularly in the areas of performance pledges, programme management, performance measurement and trading funds. All departments are being encouraged to pursue these initiatives where they are appropriate in their service area. And within this overall approach, departments are also encouraged to improve their services continuously, and to focus on specific services where this is necessary. This is an on-going programme of work 'that should go a long way towards allaying any fears that the Hon Moses Cheng and other Council Members may have about our commitment to improving overall efficiency.

The Hon David Li raised the related question of privatisation. I can assure him that the Hong Kong Government does not, as a general rule, aim to provide services that can be better provided for by the private sector. There are, however, areas where for various reasons we have developed certain services in the Government that might on the face of it be better carried out by the private sector. The Hon Member referred in this context to the Kowloon-Canton Railway Corporation, the Mass Transit Railway Corporation and the Post Office.

Of these, the first two enjoy considerable autonomy as public corporations and provide efficient and effective services, and we therefore have no plans to change their status. We do, however, intend to introduce a trading fund into the Post Office later this year so that it can operate on a more commercial basis, and thereby improve its levels of service, while remaining a government department. This follows the good results that we have obtained in the Land and Companies Registries since Members passed the Trading Funds Bill in 1993.

The Civil Service

Turning to the Civil Service, I am grateful for the encouraging remarks made by the Hon Cheung Man-kwong, the Hon Martin Barrow and the Hon Jimmy McGregor. The civil service is one of the foundation stones of Hong Kong's stability and prosperity. Much has and will continue to be expected of it as society's aspirations grow and as 1997 comes closer. We must however be conscious of the need to do nothing to destabilise the service, or cause unease to our civil servants.

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