SCS's transcript on grade structure reviews
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     Following is the transcript (English portion) of a media session given by the Secretary for the Civil Service(SCS), Miss Denise Yue, today (November 27) on the grade structure reviews:

SCS: Earlier today, the Chief Executive received from the relevant advisory bodies on civil service salaries and conditions of service three review reports, one on the directorate grades, one on the disciplined services grades, and one on a few selected civilian grades. These reports have already been released for public information.

     The Chief Executive has tasked the Civil Service Bureau to study the findings and recommendations of these reports and consult with the concerned parties. We will do so in the coming months. We will consult relevant departmental management, staff representatives, civil servants and the Legislative Council. We will then formulate the Administration's position and seek a decision from the Chief Executive-in-Council, hopefully within the first half of next year.

     Each of the three reports has made a number of recommendations with additional financial implications. We have an open mind on these recommendations at this stage, as we have yet to study the reports and consult with the relevant parties.

     We are acutely aware that the global economy is being hit hard by the worldwide financial crisis.  Hong Kong's economy is also worsening rapidly. For some time to come, Hong Kong will have to confront some unprecedented challenges. In view of the gravity of what is happening, when the Administration submits its position formulated after study and consultation to the Executive Council, we will propose to defer the implementation of those recommendations involving additional financial implications to until the local economy has returned to a steady state.

     The aim of the "deferral" proposal is to enable the Government to concentrate its resources on tackling the problems and challenges brought about by the global financial crisis, together with all the people in Hong Kong and all the businesses sectors. We know civil servants have expectations over the grade structure reviews. We also believe they have the bigger picture in mind, and accept that the top priority must be the safeguarding of the overall interests of Hong Kong and the fostering of unity and solidarity in our society.

     Finally, I would like to take the opportunity to express our gratitude to the Chairmen and members of the three advisory bodies, and the departmental management and staff sides concerned, for the efforts and contributions they have made in the past year in the conduct of the grade structure reviews. Their commitment and full co-operation have helped to bring about the timely completion of these reviews.

Reporter: By deferring the implementation of the recommendations, you are actually freezing civil service pay. Are you worried that this will affect the morale of the civil service?

SCS: The three grade structure reviews cover, roughly speaking, about one third of the civil service. The three grade structure reviews are very specific. One is on all the disciplined services grades, one is on directorate grades and the other is on a handful of civilian grades. So the three grade structure reviews do not affect the whole civil service. But having said that, we still value the contributions of the advisory committees and their consultation with the staff side and management over the past year. So we would seriously study the recommendations in the three reports and we will seriously consult with the staff side, the departmental management concerned and the Legislative Council. We will then formulate the Government's position and make our submission to the CE-in-Council for a decision. We will recommend to the CE-in-Council to defer implementing those recommendations supported by the Government and which have additional financial implications until the Hong Kong economy has returned to a steady state. This is what we will be doing in the coming months.

Reporter: Does it mean a pay freeze for the next year to come?

SCS: As I have said, this is a very specific exercise addressing around one third of the civil service. In so far as the overall civil service is concerned, you will understand that each year the Government will, through the relevant advisory bodies, conduct an annual pay trend survey. That exercise will continue. That exercise is likely to be completed some time in May next year. We will in accordance with the established practice, submit the findings of the pay trend survey, the staff side's pay claims as well as our assessment to the then prevailing economic situation, Hong Kong Government's fiscal situation, staff morale and other relevant factors to the CE-in-Council for a decision on whether or not civil service pay in 2009/10 should be revised. And if so, how it should be revised. So the three grade structure reviews are quite separate from the annual civil service pay review exercise.

Reporter: Do you think that it is appropriate to announce a pay rise for some civil servants amidst the fact that a lot of people are being laid off?

SCS: The three independent advisory bodies have devoted a whole year's time, communicating and consulting with departmental management and the staff sides. They have met numerous times themselves and they have come up with the findings and the recommendations in the three reports which we have released today. The three reports represent the collective efforts of the three advisory bodies together with the concerned staff sides and departmental management. So we, in Civil Service Bureau, and the Administration, will treat these reports very seriously. We would undertake consultation in the coming months. And after consultation, we will submit our recommendations to the CE-in-Council. In that context, we would also recommend to the CE-in-Council that those recommendations supported by the Government, if they involve additional financial implications, we would recommend to the CE-in-Council to defer their implementation until Hong Kong's economy has returned to a steady state. We believe the civil service at large would understand the rationale behind our deferred implementation proposal because I think the civil service also realize that being part of the community of Hong Kong, what is most important is the overall interest of Hong Kong, what is most important is the feeling of being on the same boat with the rest of the community in Hong Kong.

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

Ends/Thursday, November 27, 2008
Issued at HKT 20:01

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