XN000022-1978-07-19 — Page 9

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WEDNESDAY, JULY 19, 1978

AUDIT (MENDMENT) BILL PASSED

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THE AUDIT (AMENDMENT) BILL 1978 WHICH REFLECTS THE GREATION AND THE ROLE OF THE PUBLIC ACCOUNTS COMMITTEE AS A STANDING COMMITTEE OF THE LEGISLATIVE COUNCIL, WAS PASSED TODAY.

THE NEW LEGISLATION STIPULATES THAT THE DIRECTOR OF

L

AUDIT ILL SUEMIT HIS REPORTS TO THE PRESIDENT OF THE LEGISLATIVE COUNCIL AND THAT THE GOVERNMENT'S ANNUAL ACCOUNTS AND THE DIRECTOR OF AUDIT'S REPORTS ! THEM WILL BE LAID BEFORE THE COUNCIL ALONG WITH THE REPORT OF THE PUILIC ACCOUNTS COMMITTEE.

SPEAKING AT THE RESUMED DEBATE CI: THE BILL BEFORE IT 3 PASSED, UNOFFICIAL COUNCILLOF, THE HON. LI FOOK-WO SAID C'LESS THE PUBLIC ACCOUNTS COMMITTEE HAS THE AUTHORITY TO CHALLENGE ANY DECISIONEY THE FINANCE ERANCH TO ALTER OR TO TAEC ACTION ON THE COMMITTEE'S RECOMMENDATIONS, IT IS DIFFICULT OT SEE HOW IT CAN EFFECTIVELY CARRY OUT ITS TASK AS THE LEGISLATIVE COUNCIL'S +WATCH- DOG+ OVER THE EXPENDITURE OF PUBLIC FUNES.

FR. LI NOTED THAT THE ACTING CHIEF SECRETARY SAID IN THE COUNCIL MEETING ON MAY 10 THAT THE COMMITTEE WOULD HAVE NO POWER TC ORDER ANY PARTICULAR ACTION TO BE TAKEN BUT THAT THE FINANCE BRANCH, AS THE BRANCH OF THE GOVERNMENT SECRETARIAT RESPONSIBLE FOR THE CONTROL AND MANAGEMENT OF PUBLIC FUNDS, WOULD NATURALLY ATTACH GREAT WEIGHT TO THE COMMITTEE'S OPINION,

HOWEVER, MP. LI SAID THAT WHILE THE UNOFFICIALS FULLY APPRECIATED THIS AND WHILE THEY DID NOT WISH TO INTERFERE

ITH THE CONSTITUTIONAL ASPECTS OF FINANCIAL MANAGEMENT, THEY „ERE MORE THAN A LITTLE UNEASY THAT THE POWER OF THE COMMITTEE

AS TO BE LIMITED ONLY TO MAKING RECOMMENDATIONS.

+ALSO, IF THE FINANCE BRANCH HAS THE RIGHT NOT TO IMPLEMENT ANY PARTICULAR RECOMMENDATION OF THE COMMITTEE OR TO TAKE ACTION OTHER THAN THAT WHICH THE COMMITTEE RECOMMENDS, DOES THIS NOT MEAN THAT IT IS THE FINANCE EPANCH THAT HAS THE LAST WORD ON THE CONTROL OF PUEL IC EXPENDITURE AND NOT THE LEGISLATIVE COUNCIL?+ MR. LI ASKED.

ON BEHALF OF THE UNOFFICIAL MEMBEPS, PR. LI SOUGHT AN ASSURANCE FROM THE GOVERNMENT THAT THE NECESSARY AUTHORITY WOULD BE INCLUDED IN THE COMITTEE'S FIAL TERMS OF REFERENCE.

IN REPLY, THE ACTING FINANCIAL SECRETARY, THE HON. DAVID JORDAN SAID THAT THE FINAL TERMS OF REFERENCE OF THE COMMITTEE HAVE ALREADY BEEN LAID DOWN IN THE NEW STANDING ORDER AND COULD BE ALTERED ONLY BY A FURTHER RESOLUTION AND DEBATE,

E TIRELY SEPARATE FROM TODAY'S DEBATE ON THE AUDIT (AMENDMENT) BILL.

+THE BILL WE ARE CONSIDERING TODAY PROVIZED FOR THE REPORT OF THE COMMITTEE TO BE LAID BEFORE THE COUNCIL, MR. JORDAN SAID.

/+SIMILARLY,