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The public sector has a duty to ensure that community gets maximum value from the available resources, and must direct these resources to achieving the best possible results.

This was stated by the Chief Executive, Mr Tung Chee Hwa, in his Policy Address at the Legislative Council meeting today (Wednesday) while noting the skill, loyalty and dedication of the Civil Service.

"Driven by the Chief Secretary for Administration, the public sector will undertake an Enhanced Productivity Programme. We will set targets and require departments and agencies regularly to review their baseline expenditure to ensure that it is directed to Government's main priorities," he said.

In the next few months the Administration will require departments and agencies to put forward proposals for new or improved services without giving them additional financial resources. Managers will be required to deliver productivity gains amounting to five per cent of their operating expenditure between now and the year 2002.

As appropriate, the Administration will also require managers to make more use of appointments on contract, rather than permanent appointments.

On civil service pay, the Chief Executive said: "The Secretary for the Civil Service will shortly commission the Standing Commission on Civil Service Salaries and Conditions of Service to carry out a detailed Benchmark Review to determine whether or not civil service pay at the crucial entry point is still in step with the equivalent pay levels being offered in the private sector."

Once the results are known, the Standing Commission would also advise on what steps should be taken to adjust civil service entry pay to ensure broad comparability with that in the private sector.

Mr Tung assured the public that in making these changes, the Government would not accept any deterioration in its level of service to the community.

"I am confident that the public service will respond positively to this challenge, and will come to pride itself on being lean and fit, while attaining high standards of accountability and productivity," he said.

End/Wednesday, October 7, 1998

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