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As explained in the Government Minute, our consultants recommend that the most practical way to resolve the problems of PCWA management is to allocate PCWA berths through open and competitive bidding. Action is now in hand to implement the recommendations. The Economic Services Branch has formed a Working Group to oversee the management reform. Our plan is to replace, in phases, the current berth allocation system by a tendering arrangement. We are consulting the trade and aim to tender out the majority of the berthing spaces by the end of this year.

On the aspect of law and order in PCWAS, the Director of Marine has taken steps to enhance liaison between the PCWA managers, the local police and ICAC representatives. Economic Services Branch has also put in place a system calling for joint reports from the PCWA management in conjunction with the Police and the ICAC. Hopefully, this would remove the criminal and "triad" elements in PCWAS.

Finally, consultants. I must respectfully put it to Members that the observation of the PAC on the Government's "seemingly habitual dependency on external consultants" is unfounded. The use, selection and management of consultants by Government are subject to rigorous procedures. Our system ensures that consultants are used only when necessary and appropriate, and that both the desired results and value for money are obtained.

We do not give approval for the use of consultants unless there is a clear need for specialist professional expertise which the department concerned does not possess, or there is a significant shortfall in the required professional skills to undertake the task. No doubt Members will appreciate, if we were to undertake all our projects in- house, it would require an unacceptable expansion of the civil service. The use of consultants allows us to meet the uneven workload demands imposed on departments by time limited projects in a cost-effective manner.

We have clearly stipulated guidelines for the selection of consultants to ensure the best value for money for the Government. We have successfully operated a lump sum fee competitive system for some years to achieve an appropriate balance between technical competence and cost in the selection process.

Many of the staff employed on consultancies are prominent experts in their We have optimised the opportunities for technology transfer from these consultant teams to civil servants.

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