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Following is the speech by the Chief Secretary for Administration, Mr Donald Tsang, in the motion debate on "Streamlining the Administrative Procedures to Enhance Efficiency" in the Legislative Council today (March 14):
Madam President,
I would like to thank the Hon Chan Kwok-keung for moving this motion today. It gives me an opportunity to speak on a subject dear to my heart. It allows me to talk about what we have been doing to upgrade the work in the Civil Service, and our plans for further improvement. It also enables me to address some of the concerns we hear about the Civil Service in this Chamber and elsewhere. Indeed, within the Civil Service itself at many levels, there is lively and ongoing debate on efficiency and accountability. I am grateful for Members' valuable suggestions, on ways to enhance public services efficiency. We shall take them all on board.
Need for Continuous Improvements
Madam President, let me assure you the fact that I am addressing an almost empty chamber will not diminish my zeal to respond fully to the challenge posed in the motion. Perhaps I should draw much comfort from a near empty chamber, because this strongly suggests that a majority of our Honourable Members regard delaying their lunch as far more serious than what they perceive government efficiency as a problem.
Madam President, public services are very much part of our daily lives. They define the difference between good and bad quality of life. Clean water supply, a safe and healthy living environment, quality education and medical services, good recreational facilities, an efficient transportation network. These are just a few tangible examples. We are committed to enhancing the efficiency, productivity and cost-effectiveness of public services day in and day out and to better serve our community. We know there is simply no alternative to this continuous pursuit of excellence. Economically bad times strengthen our resolve. Our efforts include -
* Addressing the ever-growing needs and aspirations of the community, within the limited resources available, working to established budgetary guidelines;
* Learning how to exploit, rather than simply cope with the fast-moving technological changes which are transforming the way we think, we live and we work. In other words, to do more with less.
Streamlining administrative procedures, enhancing communication and cutting red tape are but part of the bigger picture of the continuous reform that we pursue with determination in realizing our vision for the Civil Service. That vision springs from our ambition to be Asia's world city. It remains the driving force of our public sector reform initiatives.
Vision for the Civil Service
So, what is this vision? It embraces four key elements that define a world-class government: excellent customer service; managing for results by results; securing joined-up government; and achieving world-class productivity. Let me elaborate.
First, we must impart in our daily work a customer focus, and seek to organise around the needs of our customers, rather than expect them to fit around us. And, second, the way we respond to community concerns must shift from throwing money and people at problems, to ensuring cost effectiveness against results achieved; from responding to short-term pressures, to realizing long-term development goals. In short, we manage for results, and by results.
Third, we need a joined-up government. What do I mean by that? We have 16 bureaux and 70 departments. Some people may see this as a recipe for confusion and overlap. This is not the case. Hong Kong is a modern and complex community. Public services become highly specialized and are perforce departmentalized. But the departments are joined up through their supervising bureaux. At policy level, we try to look at each issue in the context of the Government's corporate agenda, and work towards coherent policy objectives that reflect our priorities. At service delivery level, implementation of a policy trickles down through a group of executive agencies working together to provide the community with convenient, accessible and one-stop services, rather than each agency working within its own little bunkers.
Finally, we aspire to world-class productivity. Let there be no mistake: we continue to uphold the principle of "small government". That means containing the size of the Civil Service. We constantly re-engineer the way the Government is run, for instance, for developing new ideas through making the best use of Internet and e-Business. We are determined to fast-track our public works procedures and town planning processes to improve efficiency. We give managers both the flexibility to manage resources and accountability for service delivery. This includes being clear about the Government's role, and the areas where the community and the private and voluntary sectors are best left to take the lead.
To realize this vision, a number of reform programmes are in train. These programmes resulted in a considerable increase in public sector efficiency. More important, they have brought about a gradual transformation of the public service culture, culture about management and about service delivery. Let me explain to Members what we have achieved.
A Client-based Focus
Serving the Community Programme
To instill a client-based focus in the public service, a series of initiatives were launched a decade ago under the "Serving the Community Programme". These initiatives have sown the seeds for reform.
A key initiative under the programme is the publication of performance pledges on the standard of services we provide. These performance pledges help departments to better manage relationships with the community they serve, set performance standards for staff to follow and engender a customer culture in their daily operations.
Trading Funds
Another major initiative is the trading fund concept. By giving the general manager of a trading fund a greater degree of financial autonomy, departments can respond more readily to changing market conditions and public demand. The Companies Registry, Land Registry, Office of the Telecommunications Authority, Hongkong Post and Electrical and Mechanical Services Department are now operating as trading funds. They have all maintained financial viability whilst keeping price increases well below inflation levels.
Joined up Government
To secure "joined up government", advances in information technology provide an effective tool. On a Government-wide basis, we are making greater use of our internal e-mail system these days in enhancing communication and operation. Some 27,000 officers will be linked up through a government-wide system by June this year, and many more are connected in intra-departmental systems. The number of internal e-mails within Government has shot up from about 170,000 in the first two months in 1999 to over 3.3 million during the same period in this year.
I ask colleagues to pass files and papers to me over the e-mail wherever possible. I take great satisfaction in promptly conveying, through our internal electronic network, both in person and in parallel to all principals concerned, my comments, views or decisions on matters where my personal intervention is called for. I take even greater satisfaction in achieving this while reducing substantially the number of paper documents crossing my desk. We are decisively moving towards a less paper operation. In terms of communicating with this Council, I am grateful for Members' support for the government's proposal to submit papers through e-transfer to the LegCo Secretariat. We are eager to put the scheme into effect shortly.
We are taking active steps to ensure that the concept of "joined up government" is manifested on service delivery level. We know we must provide our customers with convenient access to one-stop shop services, rather than asking them to scurry from department to department. It is on this premise that the Trade and Industry Department has upgraded its Small and Medium Enterprises Information Centre into the Support and Consultation Centre for SMEs in November last year. This not only upgrades its service, but has thrown up the most positive acronym I've ever encountered - SUCCESS. Through partnership with more than 60 major trade and industry associations, support organisations, professional bodies, private firms, and government departments, SUCCESS provides SMEs with a comprehensive range of free information, business advisory services and facilities under the same roof.
Take government's effort to improve our urban greenery as an example. This is an example mentioned by Mr Chan Kwok-keung and the Honourable Chan Yuen-han in their speeches. Three policy bureaux and 12 departments are indeed involved. The numbers do not imply inefficiency. They simply reflect the specialization of work required in a modern society. To deliver this programme, a Co-ordinating Committee on Greening is set up under the chairmanship of the Secretary for the Environment and Food, with representatives of the relevant departments as members. With this central steer, clear demarcation of duties and responsibilities of the agencies involved and properly co-ordinated efforts, we are making excellent progress in greening up government land.
Adopting the best practices in the private sector, we set up an integrated call centre in July last year to provide a one-stop telephone service to handle all enquiries and complaints on environmental hazards and cleanliness matters, covering the work of seven related departments. The centre is staffed by trained personnel working as a team, using effective IT support to handle customers' enquiries. We plan to extend the service to cover a further nine departments in the near future
E-government Initiatives
A vivid illustration of our commitment to one-stop and customer-oriented access to public services is the Electronic Service Delivery Scheme (ESD). This is our flagship e-government project. It now provides over 110 public services from more than 40 departments over the Internet, and through public kiosks located in convenient public locations. Using ESD, the public can now file tax returns, apply for renewal of driving and vehicle licences, pay Government bills, look for job vacancies and register as a voter online. You can even book your appointment for marriage dates online. Since its launch in December 2000, there have been over 370 million hits and over 1.34 million transactions via ESD. Over 70% of public services amenable to the electronic mode of service delivery have been provided with an e-option, i.e. the option to obtain services through electronic means. Our aim is to provide an e-option for 90% of such public services.
A More Productive, Efficient and Effective Civil Service
Containing the Size of Civil Service
Madam President, we are committed to maintaining a compact, efficient and productive Civil Service. In this regard, I would mention the various initiatives introduced under the Civil Service Reform to contain the size of Civil Service, referred to as 'elephant' by some of the Honourable Members earlier today. We have successfully implemented a Voluntary Retirement Scheme for 59 designated grades in the Civil Service. In tandem with this, we are pursuing measures to reduce the size of the Civil Service establishment, from some 198,000 anticipated for March 2000 to 184,300 as at 1 January 2002. Total savings so achieved amount to $1.43 billion. We are making good progress in our drive to reduce the establishment further to 181,000 by March 2003, i.e. another 17,000 or 9% since March 2000.
Enhanced Productivity Programme
A major productivity driver is the Enhanced Productivity Programme (EPP), designed to achieve both short-term quantified productivity gains and a lasting improvement in public sector productivity. In other words, we strive again to "do more with less". I am pleased to report that savings amounting to $2 billion have been achieved this year under the EPP. Together with the savings achieved last year and the year before, cumulative savings under EPP amount to $5.4 billion, or 5.2% of expenditure. This exceeds the cumulative savings target of 5%.
Expediting Works Procedure & Town Planning Process
We are embarking upon a number of other major re-engineering projects. They include streamlining the approval procedures to expedite the delivery of public works, a matter raised by several Members today. Over the past year, through simplifying and fast-tracking procedures and taking parallel action in tendering and funding applications, we have reduced the pre-construction lead time for an average civil engineering project by a third, from about six years to less than four years. For building projects, the lead time has been shortened to two years. But I agreed with Members we need to do better. The focus for the coming year is on how best to improve on the administrative procedures for resolving public objections, so as to further cut down the lead time and to increase our competitiveness. For this we may need amending legislation and the help of the Honourable Members here.
Similarly, we are determined to achieve a more efficient town-planning process. We shall start consultation with stakeholders shortly on specific proposals to speed up procedures and increase efficiency. We need to simplify the statutory procedures for resolving objections to draft plans and expedite approval for development proposals. We will also be exploring the feasibility of further delegation of powers and functions of the Town Planning Board.
Private Sector Involvement Programme
In keeping with the policy of controlling the growth of public expenditure, we shall encourage greater use by government departments of outsourcing and other modes of private sector involvement in public service delivery. The aim is to harness the flexibility, new ideas, technologies and skills available in the private sector. Outsourcing offers great opportunities for the Civil Service, particularly as we expand into new service areas. It helps departments achieve greater flexibility, upgrade service delivery, and improve cost effectiveness. To date, the results are encouraging. I'll mention two examples:
* The Housing Department's outsourcing of its estate management and maintenance services which cover 113,000 units in its initial phase. The programme is expected to achieve savings overall of about 20%.
* The Social Welfare Department (SWD)'s contracting out of its Residential Care Services for the Elders through a competitive bidding process. The first example, at Sai Ying Pun Community Complex, has just opened. The winning bid was 27% less per place than similar services subvented under the Lump Sum Grant mode. Another five such services will be tendered out in the coming few months. Social Welfare Department has also contracted out new home care, meal and enhanced home and community care services for the elderly since 2000, with efficiency gains of 15% to 20%.
Our efforts on this front will continue and we will work harder.
Conclusion
Madam President, I have gone into some detail in this debate, because Civil Service reform is such an important issue for the whole community. The Administration has taken many concrete steps in this regard, and it has plans to go even further. What I have described reflects a firm commitment of the Administration and is our enterprise in progress. We understand that radical changes are being made by governments in the USA, Canada, Australia, the UK, Singapore and elsewhere. Here in Hong Kong, we are making good progress in the right direction. Notwithstanding that, we are conscious that these efforts and initiatives are simply not good enough. In the dynamic regional and global economy in which Hong Kong operates, we must try harder, we must do more. We need to run in order to stand still, and run faster still in order to stay ahead of the game.
Let me assure Honourable Members that the issue will remain a top priority for us. The Financial Secretary and I continue to oversee the formulation of the overall strategy of public sector reform and its implementation. Together, we pledge to provide a firm steer to bureaux and departments in their drive for greater efficiency and productivity. Our aim is simple: to do better for the people of Hong Kong we have the privilege to serve. During this process, we shall continue to look to this Council, members of the public and the business community for advice, for suggestions, for ideas and for constructive criticism. In working together to serve our community better, we will also strive to preserve the Hong Kong Civil Service as one of the most clean, efficient, effective and responsive in the world.
Thank you.
End/Thursday, March 14, 2002
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