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LC: Speech by CS introducing the Government Minute
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     Following is the speech by the Chief Secretary for Administration, Mr Henry Tang, introducing the Government Minute in response to Report No. 50 of the Public Accounts Committee dated July 2008 in the Legislative Council today (October 22) (translation):

President,

     Laid on the table today is the Government Minute responding to Report No. 50 of the Public Accounts Committee (PAC).

     When presenting the Report No. 50 on July 9, the Chairman of the PAC set out in detail the comments of the PAC on the two chapters from the Director of Audit's Report, viz. the commercialisation and utilisation of government properties and The Society for the Aid and Rehabilitation of Drug Abusers (SARDA).  The Administration is grateful for the time and efforts that the PAC has devoted.  Details of the Government's response to the conclusions and recommendations in the Report are set out in the Minute.  Today, I would like to highlight the key measures taken in the relevant areas.  

Commercialisation and utilisation of government properties

     In allocating government properties, the Government Property Agency (GPA) has been following the general principle and procedures set out in the Accommodation Circular No.1/97 that government-owned premises are to be used primarily for providing accommodation for public facilities or as government offices, and that commercial activities would be considered if the premises concerned are surplus to requirement.  The Administration is pleased to note that the PAC agreed that GPA should follow the general principle and procedures of the Circular in allocating the surplus accommodation in the Trade and Industry Tower in 2007.

     Regarding the government-owned premises within areas originally reserved for the MTR entrance/exit in private developments, GPA, Buildings Department, Department of Justice (D of J) and other relevant departments are working together to explore options to put the three government-owned premises in Buildings A, B and C to gainful use.  That said, the feasibility of alternative uses is affected by many factors.  These include the need to comply with the requirements of the Buildings Ordinance, restrictions stipulated in the deed and assignment of the premises concerned, terms and conditions of the Deed of Mutual Covenant of the parent buildings, technical constraints of the parent building structures, availability of necessary building facilities, etc.  

     As for resolving the dispute over the responsibility for the water seepage problem of the government premises in Buildings A and B, GPA is seeking legal advice on the matter.  

     To ensure more cost-effective usage of government premises areas, GPA, Highways Department and Lands Department would make provisions for other gainful uses in the lease conditions in case MTR entrance/exit areas reserved in private developments are no longer required for the designated purposes.

The Society for the Aid and Rehabilitation of Drug Abusers

     Provision of drug treatment and rehabilitation for drug abusers is an integral part of Government's overall anti-drug policy.  Non-governmental organisations (NGOs) have long been playing a key role in delivering the necessary services.  Established in 1961, SARDA is a pioneer on this front.  The Administration is committed to maintaining a close partnership with SARDA and other NGOs to enhance drug treatment and rehabilitation services in Hong Kong in response to changing circumstances.

     On the management and control of Government subvention, the PAC is concerned about the prolonged discussions between SARDA and the Department of Health (DH) about the legitimacy of DH's authority in giving directions to SARDA.  On this, SARDA has pledged to ensure compliance with DH's subvention guidelines and other directives and to seek advice from DH where necessary.

     The PAC has expressed concern that DH has yet to enter into a Memorandum of Administrative Arrangements or a funding and service agreement (FSA) with SARDA.  In this respect, DH has started discussion with SARDA on an FSA and aims at concluding it within this financial year.  They would also discuss the need or otherwise for changing the funding mode.

     To assist SARDA in enhancing its services and corporate governance, DH has commissioned the Efficiency Unit to conduct a study on the corporate governance of SARDA, the scope of which includes the roles and responsibilities of government representatives on its Executive Committee (EC), so as to clarify whether the government representatives on the EC are full members with voting rights and their future role on the EC.  These arrangements will be incorporated in the FSA.

     In response to the PAC's concern over the low attendance rate of some members at its various committee meetings, SARDA has taken positive measures to improve members' attendance, including requiring ex-officio members to attend all committee meetings, and issuing reminders to members with low attendance rate.

     On SARDA's proposal of establishing a Centre for Anti-drug Education and Disciplinary Training at Shek Kwu Chau for young psychotropic substance abusers, considering the significant capital costs and the recurrent expenditure involved and that SARDA's expertise is mainly in treating opiate abusers, the Security Bureau (SB) and DH have been examining in detail its latest submission, including the cost-effectiveness and long-term financial sustainability of the proposal.  We will arrive at a considered response to SARDA within this financial year.

     I would like to take this opportunity to highlight that since the publication of the Audit Report No. 50 and following the subsequent PAC proceedings, DH and SARDA have been working hand in hand in following up the recommendations.  SB has also been coordinating and promoting their efforts with a view to improving the services and the administration of SARDA.

     Finally, I would like to thank the PAC for its constructive comments and recommendations.  These comments and recommendations are useful in ensuring value for money in the delivery of public services.  The Administration is pleased to accept these criticisms and comments.  As always, we stand ready to respond promptly. Thank you.

Ends/Wednesday, October 22, 2008
Issued at HKT 11:39

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