because among a number of contemporary re-development projects where an application was made by the developer to change the permitted land use, the Hung Hom dockyard re-development case was the only one where there was a departure from the policy. The Secretary for Lands and Works has informed me that the policy is currently under view and my observations will be considered as part of that review. The Deputy Financial Secretary has informed me accepts the validity of many of my conclusions but that in the context of the political and economic circumstances prevailing in early 1984, it was essential that this very large project went ahead without delay.
the
61. Delay in occupying premises in a private development above the Mass Transit Depot in Tsuen Wan. In previous reports I invited attention to the long delays which had occurred over the years between the leasing of office accommodation by the Government and its occupation by departments and in paragraphs 63–66 of my 1983–84 report I referred to a delay in occupying office accommodation provided by private developers for Government, Institution and Community (GIC) purposes. In paragraphs 5.14 to 5.21 of their Seventh Report the Public Accounts Committee expressed their concern over the delays which occurred in the allocation of the GIC accommodation through a breakdown in communication and a lack of proper planning and noted the commitments given by the Secretary for Administrative Services and Information to finalize the procedures for the allocation of GIC accommodation and to include these in the Accommodation Manual.
62. A recent audit review revealed a similar case where there were delays in occupying accommodation in a private development, resulting in a delay in making needed services available and in a wastage of $1 million in terms of rental based on 1983 values. In May 1978 the Director of Social Welfare made a bid for accommodation in a private development above the Mass Transit Depot in Tsuen Wan to set up a centre for the elderly and a youth centre. The Social Welfare Department's requirements were subsequently incorporated into the conditions of grant permitting development above the depot and a sum of $3.6 million was deducted from the premium payable by the developer for the construction of the two welfare centres. Layout plans for the centres were approved by the Director of Social Welfare in 1980. The accommodation for the centre for the elderly was completed in February 1983 and that for the youth centre in September 1984. However the centres were not taken over by the Director of Social Welfare until November 1984 and the centre for the elderly was not opened until June 1986, whilst up to September 1986 the youth centre had still not been brought into operation.
63. Several factors have contributed to the overall delays in occupying the premises. In the case of the centre for the elderly the Social Welfare Department did not become aware that the premises were available for occupation until March 1984, more than a year after the occupation permit was issued, and at that time the department had not overcome certain difficulties which had arisen over the constitution of the voluntary agency which had submitted an application to run the centre. These difficulties were not resolved until August 1984 and a short term tenancy agreement was subsequently completed in April 1985. A Lotteries Fund grant for fitting-out works was approved in December 1985 enabling tendering procedures to be set in train and the works were completed in the middle of 1986.
64. In the case of the youth centre, although the layout plans had been vetted by the Social Welfare Department, the department noted in July 1981 that the headroom of the centre was exceptionally high and a request was made to the developer to lower it at his own expense. On learning that the developer was reluctant to incur additional expenditure no further consideration was given to the matter until July 1983 when the voluntary agency intending to run the centre stated that the exceptionally high ceiling made partitioning impossible and would produce an unacceptable echo during activities. Plans for the necessary alteration work were submitted by the voluntary agency to the Building Authority in November 1985 but have not yet been approved.
65. I have invited the attention of the Director of Social Welfare to the delays in occupying GIC premises provided in private developments, pointing out that the delays were caused by inadequate communication and co-ordination between the Government departments concerned and by a lack of good forward planning. In reply, the Director of Social Welfare has assured me that efforts would be made to rectify the areas of concern. I have suggested to the Secretary for Administrative Services and Information that a comprehensive set of procedures for taking over GIC premises in private development projects should be prepared and included in the Accommodation Manual and I have been informed that appropriate action in consultation with the other departments and branches concerned is being taken.
66.
The Secretary for Administrative Services and Information has recently drawn my attention to what he refers to as another serious case where an area of 895 square metres has been reserved by a developer for the Social Welfare Department to operate a children and youth centre, a multi-service centre for the elderly and a day care centre for the elderly in the Provident Centre in North Point. Whilst the occupation permit for these premises was issued in May 1984 the reserved space has not yet been taken over for use.
67.
Value for money studies conducted by the Finance Branch of the Government Secretariat. In his evidence before the Public Accounts Committee in November 1985 on the subject of raising productivity and restraining growth in departmental establishments (paragraphs 6.63 to 6.67 of the Eighth Report of the Public Accounts Committee), the Deputy Financial Secretary informed the Committee that the Finance Branch of the Government Secretariat had been conducting value for money studies for the previous three years in addition to establishment reviews. He stated that the results obtained from the value for money studies undertaken had been very satisfactory being instrumental in reducing the total establishment by 2 500 posts and in reinforcing the Government's objective of a zero growth policy. Because experience had shown that value for money studies were more effective than establishment reviews, the Deputy
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