Speech by Financial Secretary

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Following is a speech by the Financial Secretary, Mr Donald Tsang, at the cocktail reception to mark the 60th anniversary of the Government Supplies Department this (Monday) evening:

Nigel, ladies and gentlemen,

I am delighted to be here this evening to celebrate the 60th anniversary of the Government Supplies Department, and 60 years of solid achievement by the Department.

Established on 1 June 1938 under its former name Stores Department and comprising 148 staff, the Department assumed responsibility for the purchase and distribution of stores for use by the Government. At that time, the Department's annual purchase value was about $7 million, and the maximum stock value was $0.7 million. Today, the Department arranges between $4-5 billion worth of contracts each year and keeps a maximum stock value of $118 million. It serves over 80 government departments, subvented organisations and certain non-government public bodies. It has been careful to achieve economies wherever possible. In recent years, its staff members have declined by 33% to around 500, who are supported by another 1,150 Supplies Grade officers working in other government departments. This is a good illustration of the balance obtained between centralisation and decentralisation in the Government's purchasing and stores management function.

GSD staff have been very good to me: they have given me the opportunity to celebrate some of their achievements in recent years. For example, in April last year, I opened the Department's modern warehouse, the Government Logistics Centre in Chai Wan. This is a purpose-built warehouse, designed and equipped for modern stores management techniques to be practised. Its operations are supported by a fully computerised on-line ordering, distribution, stock management and accounting network system. I also have personal knowledge of the many critical contracts successfully negotiated by the professional procurement staff, including a number of purchases which are essential to the opening of the new airport at Chek Lap Kok in July.

I am confident that GSD will continue its policy of developing its activities on sound business lines and delivering its services to the customers' satisfaction. I am pleased to learn that it is planning to implement an Electronic Bidding System using the Internet and related technologies. It has also taken the initiative to seek a third party assurance of the quality of its services through ISO accreditation.

With commitment, dedication and vision, there is no doubt in my mind that GSD will forge ahead for many more successful multiples of 60 years. I am sure you will all join me in offering to Nigel, the Director, and his staff our warmest congratulations and best wishes for the future.

End/Monday, June 1, 1998

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