REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

THE REPORTS OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS




July 2005

P.A.C. Report No. 44




CONTENTS
Page

I.Introduction

1The Establishment of the Committee1

2Membership of the Committee1

II.Procedure

1The Committee's Procedure2 - 3

2The Committee's Report3

3The Government's Response3

III.Committee Proceedings

1Consideration of the Director of Audit's Report4

2Meetings4

3Arrangement of the Report4

4Acknowledgements4

IV.Chapter

1Diesel vehicle emission controls5 - 24

2The Postal Mechanisation System at the Air Mail Centre25 - 59

SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE60

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 44 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT61

APPENDIX 1Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region62 - 63

APPENDIX 2Paper presented to the Provisional Legislative Council by the Chairman of the Public Accounts Committee at the meeting on 11 February 1998 on Scope of Government Audit in the Hong Kong Special Administrative Region - 'Value for Money Audits'64 - 66

APPENDIX 3Witnesses who appeared before the Committee67

APPENDIX 4Introductory remarks by the Chairman of the Public Accounts Committee, Dr Hon Philip WONG Yu-hong, GBS, at the first public hearing of the Committee on Monday, 9 May 2005

68

Appendices relating to Chapter 1: "Diesel vehicle emission controls"

APPENDIX 5Letter of 30 April 2005 from the Secretary for the Environment, Transport and Works69 - 71

APPENDIX 6Letter of 27 May 2005 from the Secretary for the Environment, Transport and Works72 - 81

APPENDIX 7Letter of 25 May 2005 from the Commissioner for Transport82 - 84

APPENDIX 8Letter of 25 May 2005 from the Director of Environmental Protection85 - 89

Appendices relating to Chapter 2: "The Postal Mechanisation System at the Air Mail Centre"

APPENDIX 9Opening statement made by the Postmaster General at the public hearing on 24 May90

APPENDIX 10Letter of 18 May 2005 from the Postmaster General91 - 96

APPENDIX 11Letter of 26 May 2005 from the Postmaster General97 - 112

APPENDIX 12Letter of 24 May 2005 from the Secretary for Financial Services and the Treasury113 - 121

APPENDIX 13Letter of 8 June 2005 from the Secretary for Financial Services and the Treasury122 - 126

APPENDIX 14Letter of 13 June 2005 from the Director of Government Logistics127 - 135