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 2012

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 59)



February 2013

P.A.C. Report No. 59





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 - 3

Confidentiality undertaking by members of the Committee

2 - 3

3

The Committee's Report

4 - 5

3

The Government's Response

6

4

Part 3Report of the Public Accounts Committee on Report No. 56 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 56]

Laying of the Report

1

5

The Government Minute

2 - 8

5 - 7

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 2011 and the Results of Value for Money Audits (Report No. 57)
[P.A.C. Report No. 57]

Laying of the Report

1

8

The Government Minute

2 - 28

8 - 20

Part 5Committee Proceedings

Consideration of the Director of Audit's Report

1

21

Meetings

2

21

Arrangement of the Report

3 - 4

21

Acknowledgements

5

21

Part 6Observations 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 2012

1

22

Part 7Chapter

1.Monitoring and reporting of air quality

A.Introduction

1 - 3

23

B.Management of air quality objectives

4 - 24

23 - 31

C.Administration of air pollution index

25 - 45

31 - 40

D.Performance reporting

46 - 49

41

E.Conclusions and recommendations

50

42 - 49

2.Implementation of air-quality improvement measures

A.Introduction

1 - 3

50

B.Emission control of vehicles

4 - 29

50 - 59

C.Emission control of marine vessels

30 - 55

59 - 67

D.Emission control of power plants

56 - 66

67 - 70

E.Emission control of non-road mobile machinery

67 - 71

70 - 72

F.Regional emission control

72 - 76

73 - 74

G.Conclusions and recommendations

77

74 - 83

3.Regulatory control of private hospitals

A.Introduction

1 - 8

84 - 86

B.Inspection of private hospitals

9 - 34

86 - 95

C.Monitoring of sentinel events and complaints

35 - 71

95 - 105

D.Price transparency in hospital charges

72 - 77

105 - 108

E.Performance measurement and reporting

78 - 79

108

F.Conclusions and recommendations

80

108 - 118

4.Land grants for private hospital development

A.Introduction

1 - 5

119

B.Special land grant conditions set on private hospitals

6 - 33

120 - 129

C.Monitoring and enforcement of land grant conditions

34 - 66

129 - 140

D.Sale of land for private hospital development

67 - 89

140 - 148

E.Conclusions and recommendations

90

149 - 164

5.Government's financial support to film industry

1 - 8

165 - 166

6.Management of public enquiries and complaints by the Food and Environmental Hygiene Department

1 - 12

167 - 172

7.Provision of local services by the Marine Department

1 - 18

173 - 176

8.Youth employment services

1 - 14

177 - 180

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



181

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 59 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT



182

Appendix relating to Part 1: "Introduction"

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



183 - 184

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'



185 - 187

Appendix relating to Part 3: "Report of the Public Accounts Committee on Report No. 56 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 56]"

Appendix 3Updated progress of implementing Audit recommendations on the management of commercial properties by the Hong Kong Housing Authority



188 - 198

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 2011 and the Results of Value for Money Audits (Report No. 57)
[P.A.C. Report No. 57]"

Appendix 4Location map of the five commercial buildings and the five footbridges in the Central District



199

Appendix 5Updated progress of implementing Audit recommendations on records management work of the Government Records Service



200 - 204

Appendices relating to Part 5: "Committee Proceedings"

Appendix 6Witnesses who appeared before the Committee



205 - 206

Appendix 7Introductory remarks by Chairman of the Public Accounts Committee, Hon Abraham SHEK Lai-him, SBS, JP at the first public hearing of the Committee in respect of the Director of Audit's Report No. 59 on Saturday, 24 November 2012



207 - 208

Appendices relating to Chapter 1 of Part 7: "Monitoring and reporting of air quality"

Appendix 8Opening statement made by the Secretary for the Environment at the public hearing on 7 December 2012



209 - 212

Appendix 9Letter of 14 December 2012 from the Director of Environmental Protection



213 - 226

Appendix 10Letter of 26 November 2012 from the Director of Environmental Protection



227 - 228

Appendix 11Letter of 20 December 2012 from the Director of Environmental Protection



229 - 233

Appendices relating to Chapter 2 of Part 7: "Implementation of air-quality improvement measures"

Appendix 12Letter of 28 December 2012 from the Director of Environmental Protection



234 - 238

Appendix 13Letter of 21 December 2012 from the Commissioner for Transport



239 - 249

Appendix 14Information on legislative amendment exercises for marine-related legislation since 2009 provided by the Secretary for Transport and Housing



250 - 254

Appendix 15Letter of 28 December 2012 from the Secretary for Transport and Housing



255 - 256

Appendix 16Letter of 24 December 2012 from the Secretary for Development



257 - 258

Appendix 17Legislative Council Brief on Air Pollutant Emission Reduction Plan up to 2020



259 - 271

Appendices relating to Chapter 3 of Part 7: "Regulatory control of private hospitals"

Appendix 18Opening statement made by the Secretary for Food and Health at the public hearing on 24 November 2012



272 - 275

Appendix 19Press release regarding appointments to the Working Group on Regulation of Private Hospitals on 18 December 2012



276 - 277

Appendix 20Letter of 21 November 2012 from the Director of Health



278 - 279

Appendix 21Letter of 28 November 2012 from the Director of Health



280 - 289

Appendix 22The inspection plans of the two selected hospitals provided by the Director of Health



290 - 296

Appendix 23The inspection reports of the two selected hospitals provided by the Director of Health



297 - 311

Appendix 24Checklist on compliance with land grant conditions provided by the Director of Health



312 - 316

Appendix 25A sample of a regulatory letter provided by Director of Health



317 - 321

Appendix 26Letter of 6 December 2012 from the Director of Health



322 - 326

Appendices relating to Chapter 4 of Part 7: "Land grants for private hospital development"

Appendix 27Memorandum of 23 February 1990 from the Chief Estate Surveyor / Estate Management (Regrant Section)



327 - 348

Appendix 28Memorandum of 28 January 1991 from the Chief Estate Surveyor / Estate Management (Regrant Section)



349 - 363

Appendix 29Memorandum of 22 April 1991 from the Director of Hospital Services



364

Appendix 30Information on monitoring of the compliance of the land grant condition of LG6 by Hospital D of providing low-charge beds provided by the Director of Health



365 - 413

Appendix 31Letter of 17 December 2012 from the Director of Health



414 - 417

Appendix 32Submission from Hospital C (Chinese version only)



418 - 421

Appendix 33Chronology of events for lease modifications of LG3 and LG4 to Hospital C provided by the Director of Lands



422 - 423

Appendix 34Chronology of events for processing of building plan submissions of Hospital C since 2005 provided by the Director of Lands



424 - 425

Appendix 35Letter of 19 December 2012 from the Director of Planning



426 - 435

Appendix 36Sections 6, 7 and 16 of the Town Planning Ordinance (Cap. 131)



436 - 438

Appendix relating to Chapter 5 of Part 7: "Government's financial support to film industry"

Appendix 37Letter of 12 December 2012 from the Secretary for Commerce and Economic Development



439 - 441

Appendix relating to Chapter 6 of Part 7: "Management of public enquiries and complaints by the Food and Environmental Hygiene Department"

Appendix 38Letter of 27 December 2012 from the Director of Food and Environmental Hygiene



442 - 447

Appendix relating to Chapter 7 of Part 7: "Provision of local services by the Marine Department"

Appendix 39Letter of 30 November 2012 from the Director of Marine



448 - 452

Appendix relating to Chapter 8 of Part 7: "Youth employment services"

Appendix 40Letter of 30 November 2012 from the Commissioner for Labour



453 - 456

ACRONYMS AND ABBREVIATIONS



457 - 460