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Following is the translation of the speech by the Chief Secretary for Administration, Mr Henry Tang, in introducing the Government Minutes responding to Reports No. 53A and 54 of the Public Accounts Committee in the Legislative Council today (October 20):
President,
Laid on the table today is the Government Minutes (GM) responding to Reports No. 53A and 54 of the Public Accounts Committee (PAC).
When presenting Reports No. 53A and 54 on June 2 and July 14 respectively, the Chairman of PAC set out comments on three chapters in the Director of Audit's Reports, viz. Control of Western Medicines, Development of EcoPark, and Hong Kong Chinese Orchestra. We are grateful for the time and efforts that PAC has devoted to this. We accept PAC's various recommendations and Government's specific response is set out in GM. Today, I would like to highlight key measures we have taken in the relevant areas.
Control of Western Medicines
The Administration welcomes the comments of PAC in respect of control of Western medicines which help us ensure the safety, efficacy and quality of medicines in Hong Kong. We are committed to enhancing the regulatory regime for Western medicines and ensuring that it is on par with international standards.
On the control of unregistered pharmaceutical products purported to be for re-export, the Department of Health (DH) has formed a Task Force on "Import and Export Control of Pharmaceutical Products" to formulate strategies for control of medicine imported for re-export based on risk assessment. The Task Force is exploring relevant measures, including the development of a computer system to track the import and re-export of unregistered medicine.
To enhance the standard of local drug manufacturers, DH plans to adopt the latest international standards promulgated by the World Health Organisation and Pharmaceutical Inspection Co-operation Scheme. DH will, based on risk assessment, regularly review the frequency and scope of inspections of wholesalers, importers/exporters, and authorised and listed sellers of poisons. It will also continue to improve the effectiveness of inspection and enforcement actions.
In response to the concerns of PAC, DH has enhanced the monitoring system on product recall and accorded a high priority to timely issue of public alerts. DH has also been working closely with the Government Laboratory to review the sampling and procedures on medicine testing.
In respect of licensing criteria, prosecutions and disciplinary actions, the Pharmacy and Poisons Board has taken on board the recommendations of PAC for achieving a greater deterrent effect against malpractices to protect the public interest. In particular, the Board has raised the penalty against malpractices by authorised sellers of poison and revised the protocol to include the checking of conviction records of related authorised sellers of poisons when considering their applications for registration.
To protect public health and maintain confidence in the use of medicines, the Administration is preparing legislative amendments and finalising the implementation details to tighten up the control regime of Western medicines.
Development of EcoPark
We agree with PAC that there is room for improvement in the planning and administration of the EcoPark. The Administration will continue to accord high priority to the development of the EcoPark to promote the development of the local recycling industry through investment in advanced technologies and high value-added processes.
In response to the recommendations of PAC, the Administration will ensure that contract and financial arrangements are resolved at the planning stage in future environmental projects. We will critically examine the need for involving the private sector in the project development and operation, and, if necessary, explore alternative contract arrangements.
We note PAC's concerns as to whether the Legislative Council (LegCo) was consulted on the development of the EcoPark project. The Environment Bureau and the Environmental Protection Department (EPD) have been reporting regularly to the LegCo Panel on Environmental Affairs the progress of the EcoPark development and will continue to maintain close dialogue with LegCo over the matter.
As regards the progress of the EcoPark project, all six lots in Phase 1 of the EcoPark have been let out for recycling of various waste materials. Four of them have commissioned operation. EPD will continue to assist the remaining tenants in commencing operations as soon as possible.
Based on the experience from the Phase I development, we are reviewing the modus operandi of the EcoPark to increase the attractiveness of the Phase 2 lots. We will continue to maintain close dialogue with relevant stakeholders and monitor the latest market situation. The Administration is reviewing the leasing arrangement of Phase 2 on the precondition that tenants should be selected through an open, competitive and fair process. We aim to invite tenders from the recycling industry for Phase 2 by the end of 2010.
Regarding the administration of the management contract for operating the EcoPark, we understand that the Operator has been deploying additional resources to manage the EcoPark and has worked out an integrated marketing strategy to promote the EcoPark. To closely monitor the Operator's performance, a quarterly performance appraisal reporting system has been introduced since September 2010. We will consider adding terms in future contracts to allow for payment adjustments in accordance with the actual service standards of the Operator.
Hong Kong Chinese Orchestra
In providing funding support to performing arts groups, including the Hong Kong Chinese Orchestra (HKCO), the Government strives to appropriately balance the need for prudent use of public funds and respect for artistic autonomy. We consider that the governing boards of the performing arts groups, in addition to steering artistic excellence, should also assume the responsibility to set up proper internal procedures and guidelines to enhance transparency and accountability in the use of public money and effective management. In response to PAC's recommendations on HKCO's governance and management, HKCO has started to review, having regard to its nature and characteristics, relevant operational guidelines with a view to ensuring that its internal procedures and regulations are in line with good governance and management principles.
We note the concerns of PAC on the criteria by which the Home Affairs Bureau (HAB) evaluates subvented performing arts groups, including HKCO. To improve the current funding and evaluation arrangements, HAB appointed a consultant in March 2010 to conduct a study. The study aims to review the objectives of public funding for performing arts in Hong Kong and make recommendations on a sustainable funding mechanism for performing arts groups, including establishing qualitative and quantitative assessment criteria for performing arts groups. We will consult the LegCo Panel on Home Affairs before formulating proposals.
We have urged the performing arts groups to adopt measures to ensure compliance with the provisions which are outside the audit scope under the 2010-11 Funding and Services Agreements, including adopting proper internal controls and auditing measures, complying with the requirements on the prevention of conflict of interest and establishing procurement procedures. We will continue to monitor full compliance with the Funding and Services Agreements by the performing arts group. The Administration will also disseminate information on governance and management practices to HKCO and other subvented performing arts groups, and encourage them to share good practices to improve governance.
Finally, I would like to thank PAC once again for its constructive comments and recommendations. The Administration will, as always, respond positively and implement them earnestly. Thank you.
Ends/Wednesday, October 20, 2010
Issued at HKT 12:42
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