REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

THE REPORTS OF THE DIRECTOR OF AUDIT

ON

THE ACCOUNTS OF THE GOVERNMENT OF

THE HONG KONG SPECIAL ADMINISTRATIVE REGION

FOR THE YEAR ENDED

31 MARCH 2007

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 49)



February 2008

P.A.C. Report No. 49

---

CONTENTS
				Paragraph	Page
Part 1	Introduction
	The Establishment of the Committee			1	1
	Membership of the Committee			2	1
Part 2	Procedure
	The Committee's Procedure			1	2
	Confidentiality undertaking by members of the Committee			2 - 3	3
	The Committee's Report			4 - 5	3
	The Government's Response			6	3
Part 3	Report of the Public Accounts Committee on Report No. 46 of the Director of Audit on the Results of Value for Money Audits [P.A.C. Report No. 46]
	Laying of the Report			1	4
	The Government Minute			2 - 8	4 - 12
Part 4	Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2006 and the Results of Value for Money Audits (Report No. 47) and Supplemental Report of the Public Accounts Committee on Report No. 46 of the Director of Audit on the Results of Value for Money Audits [P.A.C. Report No. 47]
	Laying of the Report			1	13
	The Government Minute			2 - 49	13 - 31
Part 5	Committee Proceedings
	Consideration of the Director of Audit's Report			1	32
	Meetings			2	32
	Arrangement of the Report			3 - 4	32
	Acknowledgements			5	32
Part 6	Observations of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2007			1	33
Part 7	Chapter
	1.	Hong Kong Tourism Board: Corporate governance and administrative issues		1 - 2	34
	2.	Hong Kong Tourism Board: Planning, execution and evaluation of marketing activities		1	35
	3.	Outsourcing of the management of public rental housing estates
		A.	Introduction	1 - 2	36
		B.	Protection of non-skilled workers engaged in outsourcing contracts	3 - 21	36 - 44
		C.	Procurement of services and contract administration	22 - 34	44 - 47
		D.	Monitoring of the performance of property services agents	35 - 42	47 - 50
		E.	Performance management and contingency planning	43 - 47	50 - 51
		F.	Conclusions and recommendations	48	52 - 56
SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE					57
CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 49 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT					58
Appendix relating to Part 1: "Introduction"
APPENDIX 1	Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region				59 - 60
Appendix relating to Part 2: "Procedure"
APPENDIX 2	Paper 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'				61 - 63
Appendices relating to Part 4: "Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2006 and the Results of Value for Money Audits (Report No. 47) and Supplemental Report of the Public Accounts Committee on Report No. 46 of the Director of Audit on the Results of Value for Money Audits [P.A.C. Report No. 47]"
APPENDIX 3	Letter of 7 June 2007 from the Chief Secretary for Administration				64 - 67
APPENDIX 4	Action plan of the English Schools Foundation as at September 2007				68 - 69
Appendices relating to Part 5: "Committee Proceedings"
APPENDIX 5	Witnesses who appeared before the Committee				70
APPENDIX 6	Introductory remarks by the Chairman of the Public Accounts Committee, Dr Hon Philip WONG Yu-hong, GBS, at the public hearing of the Committee on Monday, 10 December 2007				71 - 72
Appendices relating to Chapter 3 of Part 7: "Outsourcing of the management of public rental housing estates"
APPENDIX 7	Materials of the powerpoint presentation made by the Deputy Director of Housing (Estate Management) at the public hearing on 10 December 2007				73 - 81
APPENDIX 8	Summary table on "Audit Commission's recommendation and Housing Department's response" provided by the Housing Department				82 - 83
APPENDIX 9	Letter of 8 January 2008 from the Director of Housing				84 - 97
APPENDIX 10	Estate Management Division Instruction No. M07/2007(S) issued on 7 December 2007				98 - 104
ACRONYMS AND ABBREVIATIONS					105 - 107