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LC: Paper on "The Government minute in response to PAC Report No.44"
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    Following is the speech by the Chief Secretary for Administration, Mr Rafael Hui, in tabling "The Government Minute responding to Report No.44 of the Public Accounts Committee (PAC)" in the Legislative Council today (November 2):


Madam President,


     Laid on the table today is the Government Minute responding to Report No. 44 of the Public Accounts Committee (PAC).

     The PAC report examines two subjects in the Director of Audit・s Report No. 44.  The Administration is grateful for the time and effort of the PAC devoted to this report.

     I would like to respond to some of the comments made by the Chairman of the PAC, who spoke on 6 July when tabling the PAC・s Report.

     In the 1999 Policy Address, the Administration announced the targets of reducing the total emissions of respirable suspended particulates and nitrogen oxide from vehicles by 80% and 30% respectively by end of 2005.  The package of emission reduction measures introduced since 1999 has proved to be very effective.  We expect to achieve these reduction targets by the end of this year.  Indeed, the number of smoky vehicles spotted in the streets has already been reduced by over 80% since 1999.
 
     Notwithstanding the success in reducing vehicular emissions, Hong Kong is increasingly affected by air pollution at the regional level.  Working closely with the Guangdong (GD) authorities is therefore a key element to effectively improve our air quality.  As early as 1999, the Hong Kong Special Administrative Region Government and GD Provincial Government started a joint study on the air pollution problem.  Based on the findings of the joint study, the two Governments reached a consensus in April 2002 to reduce pollution in the entire Pearl River Delta Region by 2010.  A Pearl River Delta Regional Air Quality Management Plan was jointly promulgated in December 2003.  The two Governments have set up a joint special panel to take forward various measures under the Plan.  As the first milestone under the Plan, a regional air quality monitoring network is now under testing and will become fully operational within this year.

     There is no room for complacency in combating pollution.  We welcome suggestions in the PAC report to help improve our emissions reduction programmes.  The Transport Department (TD) and the Environmental Protection Department (EPD) have already put in place some of the recommended improvement measures, e.g. revising the standing instructions on smoke test procedures to take into account comparable European Community and US procedures, and procuring tachometers to carry out maximum engine speed check during free acceleration smoke tests to guard against engine tampering.  In parallel, the two departments are consulting the transport trades on the feasibility of tightening the TD・s smoke opacity standard to align it with that currently adopted by the EPD, and shortening the prescribed period for smoky vehicle owners to pass the smoke test.  We are also seeking to expand the refilling network of the liquefied petroleum gas (LPG) and are trying hard to search for a suitable site for setting up a new LPG terminal on Hong Kong Island.  We will continue to make our utmost effort to strengthen the diesel vehicle emission controls so as to further improve the air quality.

     Turning to the PAC・s findings on the Postal Mechanisation System (POMS) at the Air Mail Centre (AMC), we accept the PAC・s recommendations in the Report.

     The Post Office has established new departmental rules to strengthen the monitoring of the performance of consultants/contractors.  For the new project to replace the Mechanised Letter Sorting System (MLSS) at General Post Office (GPO) and International Mail Centre (IMC), the PO has set up a Steering Committee chaired by an Assistant Postmaster General to monitor the project.  The project officer is required to submit monthly progress report to the Steering Committee which will present a progress report to the Postmaster General (PMG) quarterly.  Any urgent matters will be dealt with by the PMG.

     As for other projects of value exceeding $1.3 million, a Steering Committee will be set up to monitor progress.  It is required to submit a written progress report to a directorate officer appointed by the PMG to oversee the project at least quarterly, fully documenting the progress and the rationale for project decisions.  Any exception to such rules requires the approval of PMG personally.  For projects at or below $1.3 million, they will be monitored by the project officer and his/her supervisor.
 
     Separately, the PO has continued to explore ways to improve the performance and utilization of the POMS further.  Compared with 2004-05, the overall performance of the POMS has generally improved in the first quarter of 2005-06.  Meanwhile, the PO is studying the feasibility of utilizing the spare capacity of the POMS at the AMC to take up further mail processing work currently undertaken at the GPO and the IMC.  The PO will take the study result into account in planning the replacement of the MLSS at GPO and IMC.

     The PO has also established new departmental rules to strengthen its financial monitoring and payment systems to enhance the checking procedures for capital projects of a value exceeding $100,000.  The new rules set out in detail the checking procedures before effecting payment and the responsibilities and authority of the respective officers in the process.  To ensure full compliance with the control procedures, the PO・s Internal Audit team will also conduct audit checks on the payment records.

     Finally, I wish to echo the PAC Chairman・s remarks that the PAC plays an important role in safeguarding public interests by continuing to press for the delivery of high quality public service in an efficient and cost-effective manner.  The Administration looks forward to receiving its constructive comments and wise counsel.  As always, we shall respond positively and promptly.

     Thank you.

Ends/Wednesday, November 2, 2005
Issued at HKT 18:25

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