CONFIDENTIAL
027337 MDHIAN 740
MARKET COMPENSATION LEVELS.
5.
STAFFING AND REMUNERATING THE CORPORATION IN THE MANNER PROPOSED IN THE TWO CONSULTANCY REPORTS WILL ACHIEVE CONSIDERABLE COST SAVINGS TO THE GOVERNMENT (ESTIMATED AT WELL OVER DOLLARS 500 MILLION IN THE FIRST FIVE YEARS ALONE). HOWEVER, THE CORPORATION WILL NOT BE CONSTRAINED THEREBY FROM FULFILLING ITS PRIME OBJECTIVE, VIZ, TO PROVIDE HIGH QUALITY, PUBLIC SERVICE BROADCASTING FOR THE PEOPLE OF HONG KONG.
6.
A PERQUISITE OF ESTABLISHING A CORPORATION ALONG THE LINES PROPOSED IS A SATISFACTORY ARRANGEMENT FOR WINDING UP THE EXISTING ORGANIZATION, STAFFED LARGELY BY CIVIL SERVANTS. WE ARE PROPOSING THAT RTHK AS A GOVERNMENT DEPARTMENT BE DISESTABLISHED.
7.
ABOUT 750 STAFF IN RTHK WILL BE AFFECTED BY RTHK'S DISESTABLISHMENT. IN EXERCISES OF THIS KIND IT IS OUR POLICY TO TRY TO MEET OFFICERS' WISHES WHERE THEY PREFER TO REMAIN IN THE CIVIL SERVICE. HOWEVER, DEPARTMENTAL GRADE STAFF ON THE PERMANENT AND PENSIONABLE ESTABLISHMENT WHO ARE NOT ABLE, OR DO NOT WISH, TO TRANSFER TO OTHER GRADES WILL BE REQUIRED TO TAKE EARLY RETIREMENT ON ABOLITION OF THEIR OFFICES, BRINGING INTO PLAY THE APPROPRIATE PROVISIONS OF HONG KONG'S PENSIONS LEGISLATION.
OFFICERS ON AGREEMENT TERMS CAN EXPECT EITHER TO HAVE THEIR CONTRACTS RESOLVED OR TO BE TRANSFERRED TO OTHER POSTS IN THE GOVERNMENT TO ALLOW THEM TO SERVE OUT THE REMAINING PORTION OF
THEIR CONTRACTS. RTHK OFFICERS NOT TRANSFERRED TO OTHER POSTS WITHIN THE GOVERNMENT WILL BE ABLE TO APPLY FOR POSITIONS IN THE NEW CORPORATION WHICH THE BOARD OF GOVERNORS WILL BE RESPONSIBLE FOR FILLING. THERE IS, HOWEVER, NO GUARANTEE THAT THEY WOULD BE OFFERED POSITIONS BY THE NEW CORPORATION.
8. COUPLED WITH AN INCREASE IN COMMERCIAL REVENUE, REDUCED LEVELS OF EXPENDITURE WILL SUBSTANTIALLY REDUCE THE NEED FOR GOVERNMENT SUBVENTION, BY UP TO DOLLARS 96 MILLION OR 25 PER CENT OF THE 1990-91 LEVEL OF GOVERNMENT EXPENDITURE ON RTHK (EXCLUDING REVENUE) FOR 1992-93, AND UP TO DOLLARS 139 MILLION OR 36 PER CENT OF THE 1990-91 LEVEL FOR 1996-97.
9.
TO ACHIEVE THESE SAVINGS IN ANNUAL EXPENDITURE, HOWEVER, WE WILL NEED TO SET ASIDE AN AMOUNT OF SOME DOLLARS 214 MILLION
(JUNE 1991 PRICES) AS UP-FRONT EXPENDITURE FOR DISESTABLISHING RTHK AND FOR SETTING UP THE CORPORATION. AS A RESULT OF THE SIGNIFICANT SAVINGS REPRESENTED BY REDUCED ANNUAL SUBVENTIONS TO
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