XN000022-1992-11-06 — Page 7

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FRIDAY, NOVEMBER 6, 1992

BUT FERS AND CHARGES AFFECTING THE PUBLIC FOR THE SERVICES PROVIDED UNDER A TRADING FUND WILL CONTINUE TO BE SUBJECT TO THE USUAL APPROVAL PROCEDURES.

THE SPOKESMAN SAID DEPARTMENTS UNDER TRADING FUNDS WOULD REMAIN GOVERNMENT DEPARTMENTS, THEIR STAFF WOULD REMAIN CIVIL SERVANTS AND THEIR ASSETS WOULD REMAIN GOVERNMENT ASSETS.

UNDER THE TRADING FUND OPERATIONS, DEPARTMENTS WOULD BE ABLE TO RESPOND ΤΟ THE CHANGING NEEDS OF THEIR FEE-PAYING CLIENTS MORE PROMPTLY, TO THE BENEFIT OF THESE CLIENTS.

"FOR EXAMPLE, WHEN DEMAND FOR SERVICES INCREASE, REVENUE FROM FEES WOULD ALSO INCREASE AND, UNDER THE TRADING FUND, THE INCREASED REVENUE CAN BE USED TO ACQUIRE THE ADDITIONAL RESOURCES NECESSARY ΤΟ MAINTAIN THE STANDARD OF SERVICE, SUCH AS BY TAKING ON MORE FRONT-LINE STAFF OR TO ACQUIRE MORE EQUIPMENT," THE SPOKESMAN EXPLAINED.

THE DEPARTMENT WILL NO LONGER BE CONSTRAINED BY THE AMOUNT OF FUNDS VOTED IN THE ANNUAL ESTIMATES OF EXPENDITURE, WHICH CANNOT BE PROMPTLY ADJUSTED IN RESPONSE TO RAPIDLY CHANGING DEMAND.

THE TRADING FUNDS BILL WOULD PUT IN PLACE A NEW SET ACCOUNTING AND FINANCIAL ARRANGEMENTS FOR THE DEPARTMENTS FINANCED TRADING FUNDS.

UNDER THESE NEW ARRANGEMENTS, A CHIEF EXECUTIVE WOULD APPOINTED TO CONTROL AND MANAGE EACH TRADING FUND.

OF

BY

BE

THE CHIEF EXECUTIVE WOULD BE REQUIRED TO PRODUCE AN ANNUAL BUSINESS PLAN WHICH WOULD, AMONG OTHER THINGS, SET OUT THE STANDARD OF SERVICE HIS DEPARTMENT WOULD BE AIMING TO ACHIEVE, THE STAFFING AND INVESTMENT PROPOSALS, AND FINANCIAL PROJECTIONS.

RELEVANT POLICY

"THE BUSINESS PLAN HAS TO BE AGREED WITH THE SECRETARY AND WOULD PROVIDE THE BASIS AGAINST WHICH THE CHIEF EXECUTIVE'S AND THE DEPARTMENT'S PERFORMANCE IN THE COMING YEAR ARE TO BE JUDGED, THE SPOKESMAN SAID.

·

"THIS IS TO ENABLE THE POLICY SECRETARY TO SATISFY HIMSELF THAT A GOOD STANDARD OF SERVICE WILL BE PROVIDED AT A REASONABLE COST.

"

THE ANNUAL ACCOUNTS OF A TRADING FUND WILL BE AUDITED BY THE DIRECTOR OF AUDIT, AND THE ANNUAL STATEMENTS OF ACCOUNTS WOULD BE TABLED IN THE LEGISLATIVE COUNCIL.

THE SPOKESMAN ALSO EXPLAINED THAT THE BILL WOULD BE AN ENABLING LEGISLATION. THE ACTUAL SETTING UP OF A TRADING FUND IN A DEPARTMENT WOULD BE BY RESOLUTIONS OF THE LEGISLATIVE COUNCIL.

CASE-BY-CASE

BASIS

EACH TRADING FUND WILL NEED A SEPARATE RESOLUTION SETTING OUT THE TERMS, WHICH WILL HAVE TO BE PREPARED ON A APPROPRIATE TO THE OPERATION CONCERNED.

/SUBJECT TO