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 2008

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 51)



February 2009

P.A.C. Report No. 51





CONTENTS


Paragraph

Page

Part 1Introduction

The Establishment of the Committee

1

1

Membership of the Committee

2

1

Part 2Procedure

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 3Report of the Public Accounts Committee on Report No. 48 of the Director of Audit on the Results of Value for Money Audits and Supplemental Report of the Public Accounts Committee on Report No. 47 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 48]

Laying of the Report

1

4

The Government Minute

2 - 7

4 - 9

Part 4Report 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)
[P.A.C. Report No. 49]

Laying of the Report

1

10

The Government Minute

2 - 46

10 - 26

Part 5Supplemental Report of the Public Accounts Committee on Report No. 49 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 49A]

Laying of the Report

1

27

The Government Minute

2 - 4

27 - 29

Part 6Committee Proceedings

Consideration of the Director of Audit's Report

1

30

Meetings

2

30

Arrangement of the Report

3 - 4

30

Acknowledgements

5

30

Part 7Observations 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 2008

1

31

Part 8Chapter

1.Administration of the DesignSmart Initiative

A.Introduction

1

32

B.Corporate governance and administration of the Hong Kong Design Centre

2 - 25

32 - 39

C.Management of projects funded by the Design Support Programme

26 - 48

40 - 48

D.Promotion of design by the Hong Kong Design Centre

49 - 55

49 - 51

E.Administration of the Design Incubation Programme

56 - 61

51 - 53

F.Overseas practices in the promotion of design

62 - 65

53 - 54

G.Conclusions and recommendations

66

54 - 63

2.Emergency ambulance service

1 - 2

64

3.Management of public markets

A.Introduction

1 - 2

65 - 66

B.Usage of public markets

3 - 27

66 - 76

C.Market stall rentals and charges

28 - 38

76 - 79

D.Problem of stall subletting

39 - 50

80 - 85

E.Management of a public market in Kowloon

51 - 58

86 - 89

F.Planning of new public markets

59 - 67

90 - 94

G.Conclusions and recommendations

68

94 - 102

4.Reduction and recovery of municipal solid waste

A.Introduction

1 - 2

103

B.Strategic management of municipal solid waste

3 - 13

105 - 109

C.Progress of municipal solid waste recovery

14 - 27

109 - 116

D.Implementation of domestic waste recovery programmes

28 - 34

116 - 118

E.Implementation of non domestic waste recovery programmes

35 - 41

118 - 121

F.Conclusions and recommendations

42

121 - 126

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



127

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 51 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT



128

Appendix relating to Part 1: "Introduction"

APPENDIX 1Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region



129 - 130

Appendix relating to Part 2: "Procedure"

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'



131 - 133

Appendices relating to Part 3: "Report of the Public Accounts Committee on Report No. 48 of the Director of Audit on the Results of Value for Money Audits and Supplemental Report of the Public Accounts Committee on Report No. 47 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 48]"

APPENDIX 3Progress update and indicative timetable for relocation of the Yau Ma Tei Fruit Market provided by the Food and Health Bureau in January 2008



134 - 135

APPENDIX 4Letter of 7 January 2009 from the Director of Agriculture, Fisheries and Conservation



136 - 137

APPENDIX 5Letter of 29 January 2009 from the Director of Agriculture, Fisheries and Conservation



138 - 142

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 2007 and the Results of Value for Money Audits (Report No. 49)
[P.A.C. Report No. 49]"

APPENDIX 6Letter of 23 January 2009 from the Secretary for Security



143 - 144

APPENDIX 7Letter of 29 January 2009 from the Secretary for Development



145 - 146

APPENDIX 8Letter of 22 January 2009 from the Director of Lands



147 - 148

APPENDIX 9Letter of 30 January 2009 from the Secretary for Education



149 - 150

APPENDIX 10Action plan of the English Schools Foundation as at September 2008



151 - 152

Appendices relating to Part 5: "Supplemental Report of the Public Accounts Committee on Report No. 49 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 49A]"

APPENDIX 11Further progress made by the Hong Kong Tourism Board on matters outstanding in the Government Minute laid before the Legislative Council in July 2008



153 - 157

APPENDIX 12Further developments and progress made by the Administration as reported in the Government Minute laid before the Legislative Council in July 2008



158 - 160

APPENDIX 13Letter of 17 July 2008 from the Chief Secretary for Administration



161 - 167

APPENDIX 14General Circular No. 8/2008 on "Governance of Government-owned or Funded Statutory Bodies"



168 - 176

Appendices relating to Part 6: "Committee Proceedings"

APPENDIX 15Witnesses who appeared before the Committee



177 - 178

APPENDIX 16Introductory 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 Tuesday, 9 December 2008



179 - 180

Appendices relating to Chapter 1 of Part 8: "Administration of the DesignSmart Initiative"

APPENDIX 17Letter of 9 January 2009 from the Chief Executive Officer, Hong Kong Design Centre



181 - 184

APPENDIX 18Letter of 30 December 2008 from the Secretary for Home Affairs



185

APPENDIX 19Letter of 7 January 2009 from the Commissioner for Innovation and Technology



186 - 188

APPENDIX 20Letter of 22 January 2009 from the Commissioner for Innovation and Technology



189 - 190

APPENDIX 21Letter of 2 January 2009 from the Director of Audit



191 - 192

Appendices relating to Chapter 3 of Part 8: "Management of public markets"

APPENDIX 22Opening statement made by the Secretary for Food and Health at the public hearing on 9 December 2008



193 - 194

APPENDIX 23Letter of 11 December 2008 from the Secretary for Food and Health



195 - 201

APPENDIX 24Letter of 15 December 2008 from the Secretary for Food and Health



202 - 214

APPENDIX 25Letter of 12 January 2009 from the Director of Food and Environmental Hygiene



215 - 217

APPENDIX 26Letter of 24 December 2008 from the Director of Food and Environmental Hygiene



218 - 220

APPENDIX 27Letter of 16 December 2008 from the Director of Food and Environmental Hygiene



221 - 243

Appendices relating to Chapter 4 of Part 8: "Reduction and recovery of municipal solid waste"

APPENDIX 28Opening statement made by the Secretary for the Environment at the public hearing on 16 December 2008



244 - 250

APPENDIX 29Letter of 7 January 2009 from the Secretary for the Environment



251 - 252

APPENDIX 30Letter of 6 January 2009 from the Assistant Director (Environmental Infrastructure), Environmental Protection Department



253 - 255

APPENDIX 31Letter of 31 December 2008 from the Director of Food and Environmental Hygiene



256 - 257

ACRONYMS AND ABBREVIATIONS



258 - 261