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The Urban Services Department (USD) achieved significant savings of eight per cent in 1997/98 and 11 per cent in 1998/99. The Department saved a total of some $1.3 billion in these two years as a result of its cost-cutting efforts through enhanced productivity initiatives and better deployment of resources.

The Department plans to save another 11 per cent or $0.81 billion in 1999/2000.

Since 1997, to cope with the reduction in rates revenue due to the economic downturn, the Department has launched cost-saving initiatives to enhance productivity and to optimise the use of resources.

Ms Elaine Chung Lai-kwok, Director of Urban Services, said today (Thursday) the savings were mainly achieved by streamlining procedures, cutting operational costs and reviewing staffing requirements. "So far, these measures have not led to any staff redundancies and they have the support of staff," she said.

"By streamlining procedures and eliminating redundant or obsolete work through office automation and other measures, the Department has achieved significant staff savings. The staff made available were re-trained and deployed to new facilities or new service programmes.

"Since 1997, the Department has completed 15 staffing reviews. It is expected that the implementation of the recommendations for these 15 reviews will result in the deletion of 782 posts, representing an annual saving of $74 million. Another 13 reviews are in progress.

"The establishment has been reduced by 411 posts over the period between April 1997 and April 1999 despite the commissioning of 67 new facilities and the requirements to service vast new areas in West Kowloon and elsewhere."

In 1997/98, a saving of $0.51 billion was achieved, representing around eight per cent of the total approved recurrent expenditure budget of $6.45 billion. In 1998/99, savings amounted to $0.76 billion, or about 11 per cent of the total approved recurrent expenditure budget of $6.94 billion.

In 1999/2000, further savings of about $0.81 billion (or about 11 per cent of the approved recurrent expenditure budget of $7.64 billion) from staff costs, vehicle procurement expenses and other efforts are planned.

Ms Chung assured the public that all these cost-saving efforts would not affect the levels and quality of services being provided.

"Despite our cost consciousness, we have tried to provide a clean and healthy living environment, to improve the quality of life for our citizens and to raise the art, cultural and sports profile of Hong Kong.

"For instance, the frequency of street cleansing in the urban areas is now among the highest if not highest in the world. A continuous stream of very high quality exhibitions has been launched and there are plans for such exhibitions up to 2001," she added.

During 1997 and 1998, very successful festivals such as the Hong Kong International Film Festival, the Hong Kong Literary Arts Festival and the Asian Arts Festival were held. The Department also provided financial and administrative support for the 4th World Swimming Championship and the 5th World Diving Grand Prix, held respectively in April and June 1999.

Furthermore, business reengineering concepts and the latest information technology were extensively used to review the Provisional Urban Council's booking, ticketing and venue hiring procedures. Major tender exercises were held to replace the URBTIX system and to upgrade the SPORTIX system.

As at today, Y2K problems in all USD systems have been rectified. Tenders are being assessed to provide a comprehensive library automation system for the urban areas and the New Territories and a digital library system for Hong Kong's Central Library in year 2000.

End/Thursday, June 17, 1999

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