HONG KONG URBAN COUNCIL
167
I want to analyze this matter as well as outline our future direction. I would also like to draw Members' attention that our decision would involve a lot of areas. Miss Ada WONG just now referred to paragraph 4.10 of the Memorandum of Administrative Arrangement of 1973 which stated that the USD could set up its own works division. Such an establishment would involve a lot and we should consider it carefully. As it is today, we manage a large number of staff and our senior members of the directorate are mostly Administrative Officers, not professionals or technical staff. Miss WONG moved to deal with the issues of direct contracting-out and negotiation of on-cost which was set at 16%. Yes, we should certainly negotiate, only we did not do so actively in the past. The ASD is not the only one, the EMSD which repairs and purchases vehicles for us also charges us 15% on-cost.
I would like to draw Members' attention to the complexity of this matter. In paragraph 1.4 of the Memorandum, it was expressly stated that certain government departments would be the service providers for the Urban Council. If we want the USD to provide such services in future, we have to negotiate with the Chief Secretary and the Central Government for a change of the system.
As regards direct negotiations of on-cost and contracting-out matters, there are now examples of the latter. Some of our projects, though not many, are already implemented on a contracting-out basis. When we have detailed papers and after the Capital Works Select Committee and the Standing Committee have discussed the matter, there should not be much difficulties in implementing the contracting-out system. We can of course negotiate with the ASD for the on-cost percentage and to contract out more projects. Concerning the suggestion to set up a works division within the USD, I think we have to be very careful. We must find out whether there will be duplication of efforts. Some of our directorate officers are Administrative Officers who may not have the professional knowledge to monitor works projects. As for future support, since there are quite a few government departments working at construction, we have to consider if other support departments will be affected. Whilst I appreciate the spirit of the motion, I would like Members to consider other associated factors before supporting the motion. I think this matter should first be discussed in detail at the Council and then it is for the Standing Committee of the Whole Council to outline our future direction. Thank you.
Will Miss Ada WONG make her concluding remarks?
Miss Ada Wong Ying-kay (in Cantonese):—Mr. Chairman, I thank my colleagues for supporting my motion. Of course, I understand that we cannot change what was arranged 20 years ago overnight, but I can also read between the lines of the Memorandum that it was not anticipated that the mode of using ASD's services (formerly PWD) would continue for 23 years. In the Memorandum, it was written that we could take on projects ourselves. But then, as many Members just pointed out, we have to consider a lot of factors.
Page 171 of 408
Page 171 of 498
Page 171 of 498
HONG KONG URBAN COUNCIL
167
I want to analyze this matter as well as outline our future direction. I would also like to draw Members' attention that our decision would involve a lot of areas. Miss Ada WONG just now referred to paragraph 4.10 of the Memorandum of Administrative Arrangement of 1973 which stated that the USD could set up its own works division. Such an establishment would involve a lot and we should consider it carefully. As it is today, we manage a large number of staff and our senior members of the directorate are mostly Administrative Officers, not professionals or technical staff. Miss WONG moved to deal with the issues of direct contracting-out and negotiation of on- cost which was set at 16%. Yes, we should certainly negotiate, only we did not do so actively in the past. The ASD is not the only one, the EMSD which repairs and purchases vehicles for us also charges us 15% on-cost.
I would like to draw Members' attention to the complexity of this matter. In paragraph 1.4 of the Memorandum, it was expressly stated that certain government departments would be the service providers for the Urban Council. If we want the USD to provide such services in future, we have to negotiate with the Chief Secretary and the Central Government for a change of the system.
As regards direct negotiations of on-cost and contracting- out matters, there are now examples of the latter. Some of our projects, though not many, are already implemented on a contracting-out basis. When we have detailed papers and after the Capital Works Select Committee and the Standing Committee have discussed the matter, there should not be much difficulties in implementing the contracting-out system. We can of course negotiate with the ASD for the on-cost percentage and to contract out more projects. Concerning the suggestion to set up a works division within the USD, I think we have to be very careful. We must find out whether there will be duplication of efforts. Some of our directorate officers are Administrative Officers who may not have the professional knowledge to monitor works projects. As for future support, since there are quite a few government departments working at construction, we have to consider if other support departments will be affected. Whilst I appreciate the spirit of the motion, I would like Members to consider other associated factors before supporting the motion. I think this matter should first be discussed in detail at the Council and then it is for the Standing Committee of the Whole Council to outline our future direction. Thank you.
Will Miss Ada WONG make her concluding remarks?
Miss Ada Wong Ying-kay (in Cantonese):—Mr. Chairman, I thank my colleagues for supporting my motion. Of course, I understand that we cannot change what was arranged 20 years ago overnight, but I can also read between the lines of the Memorandum that it was not anticipated that the mode of using ASD's services (formerly PWD) would continue for 23 years. In the Memorandum, it was written that we could take on projects ourselves. But then, as many Members just pointed out, we have to consider a lot of factors.
Page 171 of 408
Page 171 of 498
Page 171 of 498
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