The Government Minute laid before the Legislative Council in April 1986 reported that the China Light and Tower Company Limited and the Government still aimed to complete a public lighting agreement which would come into effect in April 1986. The Minute stated that some issues, including on-cost charges, remained unresolved but were not expected to affect the target date. The Minute advised that in the meantime discussions with the Hong Kong Electric Company Limited on improving the lighting control were continuing.
3.9 In April 1986 a final draft of a public lighting agreement incorporating a number of new clauses was forwarded by the China Light and Power Company Limited for consideration by the Director of Highways. The Company said that they would revert to the pre-April 1985 financial and reporting procedures unless the public lighting agreement was signed on or before 31 July 1986. On 31 July 1986, following clearance from the Finance Branch of the Government Secretariat, the Director of Highways informed the Company that adjustments to the new clauses would be necessary. Government would accept the draft public lighting agreement including the 20% on-cost rate on condition that:
the Government could at any time buy out the whole or part of the outstanding capital assets without seeking agreement from the Company;
the energy tariff would continue to be based on the existing standard of 4,188 hours per lamp per year; and the Company would not undertake temporary reinstatement to road openings in connection with road lighting work unless such a requirement was included as an additional condition in the road opening permit.
However, on 29 August 1986, the China Light and Power Company Limited withdrew unilaterally from its discussions with the Government. The withdrawal was sudden and in view of the considerable efforts by both parties up to that point took the Government by surprise. The Director of Highways subsequently requested the Company to submit any new proposals which might lead to the conclusion of a public lighting agreement.
3.10 The Director of Highways also told the Company that the changes to the present financial arrangement with the Government, notified when the Company withdrew, could prove difficult. This arrangement had been implemented with the prior consent of the Company.
3.11 In the meantime bi-monthly meetings between the Highways Department and the Hong Kong Electric Company Limited are continuing with a view to tightening up financial and technical controls to the latter and the Company is designing a simple photo-electric control system for Hong Kong Island.
3.12
Satisfactory monitoring of the activities of the power companies in the implementation of the capital and maintenance programmes for public lighting cannot be achieved without a formal agreement between the Government and the power companies. The Committee are concerned by the unexpected turn of events in the negotiations between the Government and the China Light and Power Company Limited. The Committee hope that the Company is not being over protective of its interests at the expense of the public. The Committee urge the Government to use its best endeavours to resume negotiations. The Committee wish to be kept informed of progress on the subject. Unless formal agreements with the power companies have been signed by then, the Committee also request the Director of Audit to report on the latest position in his report on the accounts of the Hong Kong Government for the year ended 31 March 1987.
3.13
Overpayments to the security contractor at Kai Tak Airport by the Director of Civil Aviation in the absence of a formal and efficient profit control system. (Paragraphs 3.10-3.12 of P.A.C. Report No. 8). The Director of Civil Aviation has now reached agreement with the contractor on a basis for apportionment of costs. Audited accounts for 1984 and 1985 have been submitted by the contractor, and these have been used to adjust the level of administration fees for 1984 and 1985. This will restrict security service profit levels to 14.4%. In early 1987, on receipt of the 1986 audited accounts, provisional payments for 1986 will be similarly adjusted.
3.14 The Airline Operators Committee has now agreed that the airlines should assume greater responsibility for supervising the security contractor's charges and profit margins and that these charges should not form part of government expenditure. A programme to implement the new arrangement is expected to start on 1 April 1987. The Committee wish to be informed of the progress in this matter.
3.15
Overassessment of janitor staff and cleaning grants for aided secondary schools and the Government's failure to ensure that the surplus money was properly invested or otherwise not misused. (Paragraphs 3.13-3.14 of P.A.C. Report No. 8). The Government Minute laid before the Legislative Council in April 1986 stated that the Director of Education had advised aided school councils in June 1985 that the janitor staff establishment of standard Government secondary schools and the notional establishment of janitor staff in standard aided secondary schools should be reduced from 17 to 13. As the notional establishment was used as the basis for calculating the janitor staff and cleaning elements of the Administration grant, the Director told the councils that the level of the grant would be reduced proportionately. The reduction was to be in three phases starting from 1 April 1985.
3.16 The councils objected to the reduction arguing that aided schools had different needs for janitor staff. Many of their buildings were different from Government schools. The Government then surveyed 14 aided secondary schools to find out whether or not it was appropriate to use the janitor staff establishment for Government schools to calculate grants to aided schools. The survey showed that for a standard aided secondary school, an average of 13 janitor staff, exactly the number in a standard Government secondary school, would be sufficient. The survey also showed that the present system of payment (a fixed amount for each operating class) underpaid schools with a smaller proportion of floating classes. The alternative of paying a fixed amount for each classroom equivalent underpaid schools with a larger number of floating classes. Consequently it was proposed to calculate the grant both ways and pay each school the larger of the two amounts.
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