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# HONG KONG URBAN COUNCIL
and efficiency. Experience tells us that a lot of UC capital works or electrical and mechanical works could not be completed on schedule, thus causing unnecessary overspending of human and material resources.
The Electrical and Mechanical Services Trading Fund was established on 1 August 1996. Although the Trading Fund has no separate legal identity and the services it provides are still Government services, it is self-financing and charges for its services are on a commercial basis and will ultimately compete in the open market. Therefore, while providing services, the Electrical and Mechanical Services Department (EMSD) has to be alert whether the services are of high quality or up to professional standard. If the client departments are not satisfied with the services it provides, they have the right to select other service providers at the end of the three years' period. By that time, EMSD will have to face market competition. Does it mean that within these three years, the Urban Council will allow it to unjustifiably increase its charges on the ground of improving the quality of services? Of course, the answer is no. I suggest the Council to hire independent professional assessor to make a fair assessment of EMSD's services and charges, so that its charges can be monitored. Three years later, the Electrical and Mechanical Services Trading Fund will truly switch over to the mechanism of the open market competition.
It is said that competition brings about advancement. Our initial observation is that under the pressure of open market competition, EMSD has constantly reviewed its own work and suggested improvement measures. I believe these will not only lead to proper utilization of human and material resources, but will also achieve the maximum efficiency in work.
In the Memorandum of Administrative Arrangements signed between the Government and the Urban Council, it is stipulated that if the Urban Council is in need of certain services or works which certain government departments can provide, the Council must hire these services from the relevant government departments. However, as some government departments are not subject to the control of market mechanism, the standard of services they provide is usually unsatisfactory. I therefore propose that the relevant stipulations in the Memorandum of Administrative Arrangements should be reviewed.
Mr. Chairman, with these remarks, I support the motion.
MR. WONG KING-Cheung (in Cantonese):—Mr. Chairman, my speech today is mainly about capital works and recreation facilities.
Mr. Chairman has just mentioned the Urban Council projects completed last year. In fact we had already held a number of discussions last year about the problems of the construction periods and delays of capital works. With the efforts of the Capital Works Select Committee and the two Sub-Committees under it, the Council has also worked out a series of monitoring measures. In fact I think such measures cannot thoroughly solve the problems. The Council entrusts the Architectural Services Department (ASD) with the work of
Page 318 of 498
Page 318 of 498
+98
360
HONG KONG URBAN COUNCIL
and efficiency. Experience tells us that a lot of UC capital works or electrical and mechanical works could not be completed on schedule, thus causing unnecessary overspending of human and material resources.
The Electrical and Mechanical Services Trading Fund was established on 1 August 1996. Although the Trading Fund has no separate legal identity and the services it provides are still Government services, it is self-financing and charges for its services are on a commercial basis and will ultimately compete in the open market. Therefore, while providing services, the Electrical and Mechanical Services Department (EMSD) has to be alert whether the services are of high quality or up to professional standard. If the client departments are not satisfied with the services it provides, they have the right to select other service providers at the end of the three years' period. By that time, EMSD will have to face market competition. Does it mean that within these three years, the Urban Council will allow it to unjustifiably increase its charges on the ground of improving the quality of services? Of course, the answer is no. 1 suggest the Council to hire independent professional assessor to make a fair assessment of EMSD's services and charges, so that its charges can be monitored. Three years later, the Electrical and Mechanical Services Trading Fund will truly switch over to the mechanism of the open market competition.
It is said that competition brings about advancement. Our initial observation is that under the pressure of open market competition, EMSD has constantly reviewed its own work and suggested improvement measures. 1 believe these will not only lead to proper utilization of human and material resources, but will also achieve the maximum efficiency in work.
In the Memorandum of Administrative Arrangements signed between the Government and the Urban Council, it is stipulated that if the Urban Council is in need of certain services or works which certain government departments can provide, the Council must hire these services from the relevant government departments. However, as some government departments are not subject to the control of market mechanism, the standard of services they provide is usually unsatisfactory. I therefore propose that the relevant stipulations in the Memorandum of Administrative Arrangements should be reviewed.
Mr. Chairman, with these remarks, I support the motion.
MR. WONG KING-Cheung (in Cantonese);—Mr. Chairman, my speech today is mainly about capital works and recreation facilities.
Mr. Chairman has just mentioned the Urban Council projects completed last year. In fact we had already held a number of discussions last year about the problems of the construction periods and delays of capital works. With the efforts of the Capital Works Select Committee and the two Sub-Committees under it, the Council has also worked out a series of monitoring measures. In fact I think such measures cannot thoroughly solve the problems. The Council entrusts the Architectural Services Department (ASD) with the work of
Page 318 of 498
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