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10. HONG KONG GOVERNMENT OPTIONS IN VIEW OF CHINA, THE FINANCIAL COMMUNITY AND THE PUBLIC'S
GROWING CONCERNS
Hong Kong Government's civil service has always been considered one of the most efficient and competent in the region. It employs 186,642 people with proper qualifications, of which 98% are local. Most serve until they retire and so are very experienced with local problems.
In 1989, the civil service expenditure was :
Personal emoluments
Personnel related expenses Pensions
15.828 Billion
1.618 1.604
19.050 Billion
The rational of why Hong Kong Government still needs to spend all these time and money on employing consultants, invariably expatriates, is that Government feels it does not have the expertise on a lot of subjects. It is cheaper to go for help outside and hence employing a lot of consultants.
In any project, once appointed, the consultants will take over center stage. Neither the usual competent civil servants nor the public can do much except to wait for their recommendations.
The consultants' reports always come back in thick volumes justifying every detail of their recommendations, although many times the key principles were not correct. It is very difficult for the decision makers in Government to doubt these recommendations because "the consultants have already said so, and they are the experts." The public cannot say no because a lot of these reports are not made available to the public.
As the project developed further the problems and inadequacies surface. But since the consultant's recommendations have been adopted, and a lot of money and time have been spent down that way, the Government probably felt it had to defend their earlier decision to the end, even though the deficiencies are by now very obvious.
Under the circumstances, the Hong Kong Government will probably have to choose one of the following options on the implementation of the PADS SCHEME:
(1) GOVERNMENT BY NOT DOING ANYTHING
Drop the PADS SCHEME and do nothing. Let the SAR Government pick up the pieces, after 1997.
(2) GOVERNMENT BY CONSULTANTS, 1
Without further consulting the Legco, the District Boards, professionals, potential investors or the public, assure China that the PADS SCHEME and the present system of administering the project is the most logical one and try to win China's blessing so that the private sector and the financial community can gladly participate and finance the PADS SCHEME.
(3) GOVERNMENT BY CONSULTANTS, 2
Ignore China and the public. Without changing anything, go straight ahead with the present PADS SCHEME and management matrix and finance the Scheme out of tax money. We have already read Sir Piers Jacobs' (Financial Secretary) lips on future taxation hints.
(4) GOVERNMENT BY CONSULTANTS, 3
Ignore China and the public. Go ahead on a water-down (such as leaving out rail link to Chek Lap Kok, as rumoured in the market) PADS SCHEME and management matrix and finance the Scheme out of tax money. Let us hope that the tax increase will not be as severe.
(5) GOVERNMENT BY CONSULTATION
Together with the Legco, academics, financial community, the District Boards and the public, Government will re-examine the PADS SCHEME to see if there are more cost-effective options, and come to concensus with a scheme supported by the majority of The Hong Kong people. Surely with such a scheme, supported by the majority, CHINA WILL AND MUST BLESS IT.
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