TNAG-1415-FCO40-1896-Public-finance-in-Hong-Kong-1985 — Page 174

amount of floating plastic and other debris which was sucked into and damaged the propulsion system necessitating repairs that took the boats out of service for considerable periods of time. Also, a persistent defect in the jet unit steering deflector system made it difficult to manoeuvre the boats in typhoon shelters, an essential specification in the contract. Accordingly, it was decided in 1981 to convert all four launches to conventional propeller drive, a modification that was carried out between November 1981 and May 1983. I have calculated that the cost of conversion, repair and extra maintenance arising from the decision to specify the water-jet propulsion system for the boats amounted to $500,000. The water-jet units were sold in 1983 for less than $200.

152.

The launches were underutilized not only because of the repair work, but also because the Director of Marine failed to plan the recruitment of the crew for the boats to coincide with the dates of their delivery. It was not until October 1979, after all the boats had been delivered, that approval was given to employ the crew and there was then a delay of between eleven and fifteen months in fully mobilizing the vessels because of the time needed to recruit and train the crew. During that period the new launches were used occasionally but only by taking crew from other boats.

153.

The underutilization and unnecessary extra cost indicate that full value for money has not been obtained from the purchase of the four launches. The Director of Marine has expressed his regret at the delay in recruiting the crew for the boats which he said was due partly to financial constraints. Whilst accepting that the performance of the water-jet propulsion system had been below expectations, he did not concede that there was lack of foresight or a failure to fully investigate the advantages and disadvantages of the system at the pre-tender stage because he was confident that the known problems could be overcome. He explained that the

professional staff of the Marine Department had to rely on published technical papers rather than engaging in expensive and time-consuming test and evaluation programmes.