TNAG-1986-FCO40-2819-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 6

in

play; rather his presence could erode the independent image of the Corporation. The Chairman of the Board should be appointed by the Governor; the remaining members, however, should be appointed by the policy Secretary concerned keeping with the policy of establishing a clearly-defined relationship between each statutory body and the relevant Secretary.

Proposed Financial Arrangements

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As is the case for certain subvented statutory bodies, the new RTHK will be funded by a one-line government discretionary subvention. It will submit to the Controlling Officer for the subvention estimates of it s revenue and expenditure for the financial year ahead which will form the basis of the subvention to be entered in Government's draft annual Estimates. The amount of subvention to RTHK will take into account the income

the income generated by RTHK it self through sponsorship donations sales of programmes and commissions. It will also have regard to the Government's budgetary constraints, and will be subject to normal resource allocation procedures which would include the vetting of RTHK' s proposals to ensure that they remain within its prescribed mandate. The funds will be subject to voting by the Legislative Council in the context of the Government's annual Estimates exercise.

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accounts.

RTHK will be required to keep proper records and While these records and accounts will be audited by auditors appointed by the RTHK Board,

RTHK Board, the Controlling Officer for the subvention and the Director of Audit will have unhindered access to them. In addition, the Director of Audit may also carry out

also carry out value-for-money audits on RTHK and the results of such audits will be tabled in the Legislative Council. Other than the above restrictions RTHK will be able to determine how to use its funds as may be appropriate for the performance of it s statutory functions and duties. Government property, including land and buildings, now being used or occupied by RTHK will generally be handed over to or vested in, the new RTHK. Details of such arrangements will be determined later.

Proposed Staffing Arrangement s

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One

of

must

,

the principles underlying any corporatisation exercise is that civil servant s

be given the choice of bridging over to the new organisation or of remaining as civil servants. We propose that

(a)

a bridging-over package should be prepared to encourage existing civil servant s in RTHK to give up their civil service status and take up employment with the new corporation; and