TNAG-0364-FCO40-410-McKinsey-Report-on-strengthening-the-machinery-of-government-1973 — Page 71

13

Hive Off Some

Departments

Many Governments reduce the central administrative load by hiving off sections of activity to form separate agencies or nationalised industries. Government's role in the activity is then limited to setting overall standards and determining key factors such as prices; in all other respects the agencies are managed independently by their own Board and staff. In Hong Kong pot- ential candidates for hiving off would include the airport, the railway, the Waterworks and the Post Office.

Tooporteat

Increase

Delegation

From Finance Committee

The present machinery requires most decisions on the use of funds to go to Finance Committee or one of its sub-committees. The increase in scale of Government activity results in a corresponding increase in the numbers of committee items, and although steps are taken periodically to delegate authority to individuals the volume is still monumental.

or by:

The situation could be improved by greater statutory and other delegation,

-

Reducing supplementary papers by using operating

plans as a basis for Annual Estimates

Making greater use of block votes

Reducing the number of heads and sub-heads in

the Annual Estimates.

***

The introduction across the whole of Government of the recommended changes will entail a sizable ádditional work load, much of which will

inevitably fall on senior staff who are already hard pressed with day-to-day administration. It may therefore prove to be necessary to tackle implement- ation over a period of years.

Tests to determine the desirability and feasibility of the recommended changes are now being carried out in pilot areas. When they are completed, Government will be able to decide more precisely on the timing of full imple- mentation.

Whatever timing is decided, we have no doubt of the ultimate value of full implementation. Eventually, it should result in substantial savings in manpower and other resources. And it should considerably strengthen the Hong Kong Government's capability to meet the requirements of growth in the future.

McKinsey & Company, Inc.