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Following is the transcript of a media session given by the Secretary for the Civil Service, Mr Joseph W P Wong, today (December 3) on the post-retirement employment of former civil servants and implementation of the civil service pay adjustment with effect from January 1, 2005:

Reporter: ... What will the Government do? Will the Government tighten the exemption given in future ... ?

Secretary: I think there are two issues here. The first issue is in respect of the particular case. We have make it clear to the retiree concerned that she should not take part in any bidding process, she should not be a part of the bidding team for the West Kowloon project, she should not take part in any promotion activities such as participating in any public consultation sessions, she should not make any other public presentations or appearances in relation to any bid for the project or acting as a spokesman for any bidder of the project. These conditions are an elaboration of what I said in LegCo this Wednesday. These conditions have been conveyed to the retiree concerned. We will of course keep an interest in the matter and we will of course consider if there is any evidence of breach of these conditions in this case or in any other cases that warrants further action.

Reporter: What do you mean by following up the case...?

Secretary: We have been keeping an interest in the matter and of course we have further communications with the retiree concerned. As I explained, we also set out the conditions very clearly as to what are the parameters within which she can operate.

Reporter: So it is a reminder...?

Secretary: We have to judge the case on the basis of the information provided to us and we have done all we can to elaborate on the conditions within which the original approval was given. As I said it would not be appropriate for me or anyone to reach a conclusion on the matter but we will be quite willing to respond for example to any questions coming from the media or from the LegCo members on the particular facts of this case.

Reporter: ... So far there is no evidence to point out there is a breach...?

Secretary: I think, put it this way, we have been concerned about the matter, which is why we have followed up on the matter, which is why we have been in touch with the officer, and which is why we have set out more clearly the conditions of the original approval.

Reporter: ... clarify the parameters ... what can do or cannot do?

Secretary: The original approval is that the officer is allowed to work for a particular company, which is a ferry company, for work related to cultural aspects of the company's activities. It does not include the real estate or other land matters. As a result of media reports on the activities of the retiree concerned, we have followed up on the matter and we have therefore thought it is necessary to set out more clearly the parameters within which she could operate, particularly as we are of course aware of the sensitivity relating to the West Kowloon project.

Secretary: After careful consideration of the matter, in consultation with our legal advisers, the Government has decided that the second phase pay adjustment specified in the Public Officers Pay Adjustments (2004/2005) Ordinance should continue to be implemented with effect from January 1, 2005. After the Government's application for leave for appeal against the Court of Appeal judgment has been considered, we will write to civil servants to confirm this decision and to provide more details.

Reporter: ......What is the rationale behind......?

Secretary: Of course, the basis of this decision is that it is lawful. That is a very important basis for taking this decision. In addition, and this is even more important, the second round pay adjustment was a result of strenuous efforts on both sides, the management and the staff sides to reach a consensus. It was a consensus reached not very easily. The first phase of the consensus was implemented last year. (The Public Officers Pay Adjustments (2004/2005) Bill was passed by the Legislative Council on December 10, 2003. Adjustments to the civil service pay will be implemented by two phases from January 1, 2004 and January 1, 2005.) We believe it will be right and proper for us to continue to implement what as I said before is a lawful phase two pay reduction. I am sure this decision will be acceptable to the vast majority of the civil servants and will be considered as fair and reasonable by the community at large.

(Please also refer to the Chinese portion of the transcript)

Ends/Friday, December 3, 2004

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