XN000022-1982-11-10 — Page 20

WEDNESDAY, NOVEMBER 10, 1982

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MANAGEMENT OF PUBLIC SECTOR ****

ONE OF THE DIFFERENCES IN MANAGEMENT BETWEEN THE PUBLIC SECTOR AND THE PRIVATE SECTOR IS THAT THE OPERATIONS OF GOVERNMENT ARE OPEN TO CONSTANT PUBLIC SCRUTINY AND CRITICISM, THE GOVERNOR, SİR EDWARD YOUDE SAID TODAY.

THE SIZE ALONE ALSO GIVES MANAGEMENT IN THE PUBLIC SECTOR A DIMENSION OF ITS OWN, SIR EDWARD TOLD A DINNER GATHERING OF THE HONG KONG MANAGEMENT ASSOCIATION.

+IN A PRIVATE COMPANY IF SOMEONE GETS THE ANSWER WRONG AND I MUST ADMIT TO A SUSPICION THAT EVEN IN THE PRIVATE SECTOR THAT OCCASIONALLY HAPPENS - YOU CAN USUALLY TREAT IT AS A PRIVATE MATTER OR AT LEAST AS A MATTER BETWEEN YOU AND YOUR SHAREHOLDERS,+ HE SAID.

+WITH THE WATCHDOGS OF THE FINANCE COMMITTEE AND THE PUBLIC ACCOUNTS COMMITTEE OF THE LEGISLATIVE COUNCIL, THE INVESTIGATIVE FUNCTIONS OF THE UMELCO COMPLAINTS SYSTEM AND CONSTANT EXPOSURE TO CRITICISM, WHETHER JUSTIFIED OR UNJUSTIFIED, IN THE PRESS, THOSE IN THE PUBLIC SECTOR WILL HEAR SOON ENOUGH WHEN THEY DO NOT DO A GOOD

JOB. +

SIR EDWARD SAID IT WAS SOMETIMES ARGUED THERE WAS ANOTHER ESSENTIAL DIFFERENCE THAT IN GOVERNMENT THERE WAS NO TEST OF PROFITABILITY AND THAT IN CONSEQUENCE THOSE WHO WORKED IN THE PUBLIC SECTOR HAD IT EASY.

+THIS DISTINCTION IS OVERDONE, VALUE FOR MONEY IS AS IMPORTANT A PRINCIPLE IN THE PUBLIC SECTOR AS IT IS IN THE PRIVATE, HE SAID, ADDING THAT IN BOTH THERE WERE USUALLY MEANS OF ESTABLISHING COSTS.

SIR EDWARD SAID THAT IN THE PRIVATE SECTOR, ONE COULD USUALLY QUANTIFY THE LIKELY BENEFITS. +BUT IN THE PUBLIC SECTOR THERE ARE MANY DECISIONS TO BE TAKEN WHERE THE BENEFITS CANNOT BE QUANTIFIED IN ANY MATHEMATICAL SENSE,+ HE SAID.

+I CAN TELL YOU WHAT IT COSTS TO BUILD A HOSPITAL, CONSTRUCT A ROAD OR PAY A HIGHER RATE OF SOCIAL SECURITY BENEFIT TO A SPECIFIED NUMBER OF PEOPLE- BUT THERE IS NO SIMPLE WAY OF QUANTIFYING THE COMPETING NEEDS OF THE INHABITANTS OF THE EASTERN DISTRICT, THE PRIVATE MOTORISTS OR THE DISADVANTAGED POOR IN ORDER TO ESTABLISH WHICH SHOULD TAKE PRECEDENCE.+

SIR EDWARD SAID THE SIMPLE TOOL OF PROFIT AND LOSS ACCOUNT COULD NOT BE BROUGHT INTO USE AND THE CHOICE REMAINED IN THE LAST RESORT A MATTER OF JUDGEMENT.

+BUT THE NEED TO GET VALUE FOR MONEY, WHICHEVER IS CHOSEN, IS AS VITAL IN THE PUBLIC SECTOR AS IT IS IN THE PRIVATE. +

SIR EDWARD HAD EARLIER IN HIS SPEECH STRESSED THAT THE FIRST PRINCIPLE OF MANAGEMENT WAS THAT PEOPLE WERE DIFFERENT FROM ALL OTHER RESOURCES AND THEY WOULD REMAIN THE KEY TO THE SUCCESS OF ANY ORGANISATION.

/HE SAID

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