For discussion EC(96-97)26
on 1 July 1996
ITEM FOR ESTABLISHMENT SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 162 - RATING AND VALUATION DEPARTMENT
Subhead 001 Salaries
Members are invited to recommend to Finance Committee the creation of the following new rank and supernumerary post in the Rating and Valuation Department with effect from 1 August 1996 for a period of three years -
1 Rating Adviser
(D3) ($111,100 - $117,750)
offset by the temporary deletion of the following rank and permanent post -
1 Rating Adviser
(D2) ($95,550 - $101,450)
The present senior directorate structure of the Rating and Valuation Department (RVD) is inadequate to cope with new work commitments over the next three years.
2. The Commissioner of Rating and Valuation (CRV) proposes to create a new rank and supernumerary post of Rating Adviser (RA) at D3 level to head the Computer Division and the Rating & Capital Valuation Division of the Department for a period of three years with effect from 1 August 1996, offset by the temporary deletion of the rank and permanent post of Rating Adviser at D2 level.
3. The RA currently heads the Computer Division of RVD and advises CRV on modern methods of mass appraisal of properties for rating and other taxation purposes. He also oversees the implementation of the Information Systems Strategy Plan in the Department and the development of new computerisation programmes in general. The major duties and responsibilities of the RA post are given in Enclosure 1. The senior directorate structure of the Department is shown in Enclosure 2.
4. Given the large number of properties that RVD has to cope with in its work, the Department has to rely heavily on computerisation and the establishment of the RA post has contributed substantially to the development of the various computer systems of the Department, including the current valuation systems and the new ones under development.
5. In the next three years, RVD will embark upon new work commitments and we expect that the RA's responsibilities and role will substantially expand. The additional work will involve not only knowledge of computerized mass appraisal techniques and valuation practices, but also participation in policy making and a pivotal management, supervision and coordination role. CRV therefore considers that the ranking of the RA post, currently at D2 level, does not adequately reflect the complexity and level of responsibilities of the post, having regard to the major developments in the next few years as outlined in the following paragraphs.
6. The collection of Annex III rent is an obligation under the Sino-British Joint Declaration. It will affect about 1.2 million properties. We estimate that the additional revenue to be collected is about $5 billion in a full year. For the majority of the properties which are subject to Annex III rent, the collection of the new rent will commence in June 1997. On 12 April 1996, Finance Committee approved the funding for RVD to develop a computerized Annex III rent billing and collection system (FCR(96-97)2), which involves a total non-recurrent expenditure of over $91 million. It is important to develop the system in time so that we can collect the Annex III rent as scheduled. The design of the computer system is complicated as it involves sophisticated links with RVD's existing systems. The RA will have to oversee the development and installation of the system and ensure its integration with other systems all within a very tight time frame. He will play a key management and coordination role within the senior directorate of the Department during the development period. Our plan is for the system to commence operation by July 1997 but we expect that the RA will have a continual role to play in the following two years in overseeing the design and establishment of a suitable user training programme and to review and fine-tune the system in the light of the initial operational experience in the collection of Annex III rent. Later this year, we will also introduce the related legislation to provide for the assessment and collection of Annex III rent into the Legislative Council. The CRV would require the expert technical advice of the RA in processing the legislation. We do not think that the current ranking of the RA would be sufficient to enable these tasks to be performed effectively and efficiently.
7. The Financial Secretary has announced in his Budget Speech that the Administration would seriously consider the feasibility of conducting revaluation on an annual basis after the completion in 1996-97 of the forthcoming revaluation exercise which will take effect from April 1997. This is a major policy issue which departs from the existing practice of conducting general revaluation on a triennial basis. The objectives are to soften the impact of any large increase in rates immediately following a general revaluation and to enhance the fairness in the assessment of the rateable value of properties. If we were to implement the proposal, a large part of the exercise will need to be computer-driven. Otherwise there would be significant resource implications which might make the proposal not feasible. The RA will assist CRV in examining the feasibility of the proposal from both the policy perspective, taking into account views expressed by Legislative Council Members and the public in the Budget debate, and from the technical angle, before the Administration can come to a firm view on the matter. This will entail an expansion in the scope and an increase in the complexity of the RA post.
8. The RVD is implementing an Information System Strategy (ISS) comprising 12 systems. The implementation is due for completion by the end of 1998-99. The project, as approved by the Finance Committee in November 1993 (FCR(93-94)94), is overall speaking proceeding on schedule and the final system will be ready to go live in late 1998. We expect that the RA, upon upgrading of the post, will continue with the work of steering the ISS project through. Moreover, the RA will also have to plan ahead within the next three years as to how the computerisation systems of the Department should further develop after completion of the implementation of the ISS in late 1998 in order to cope with further advances in information technology, demand for more on-line access and linkages between its systems and those of other land related departments.
9. The duties and responsibilities of the RA post have widened and increased in complexity since its first creation as a result of the expansion of the Computer Division of the Department. At the time when we ranked the post at D2 level in 1983 to head the then Computer Section, one Valuation Surveyor (VS) and three technical officers assisted the RA. The Division currently has one Principal VS, seven Senior VSs, six VSs and 30 technical staff. The supervisory role of the RA post has increased substantially.
10. Moreover, the span of control of the existing Assistant Commissioner (Rating and Valuation), who has to supervise the work of the Hong Kong Division, Kowloon (including New Kowloon) Division, the New Territories Division, the Rating & Capital Valuation Division, the Special Properties Division and partially the New Territories (Rural Programme) Division, is too wide. To rationalise the distribution of work, we propose that the RA, upon upgrading of the post, should be responsible for leading both the Computer Division and the Rating & Capital Valuation Division i.e. two of the largest divisions in the Department. The roles and responsibilities of the RA post would therefore be more complex than those at present and a more senior ranking is therefore appropriate.
11. The Treasury rates computer system would gradually be phased out after the transfer of the Collector of Rates responsibility from the Treasury to the RVD. In this connection, RVD will take over the responsibility for in-house printing of rates first demand notes, final notices, penalty advice etc. in mid 1998. One of the additional duties of the RA post will be to oversee the full integration of these functions into the Department.
12. We have carefully examined the possibility of sharing the new responsibilities discussed above amongst the deputy commissioner and assistant commissioners of the Department. However, with the expansion and diversification of RVD's work e.g. compilation and publication of property market information and provision of property-related information for Government policy review and formulation etc., these officers are all fully committed and do not have the additional capacity to deal with the important tasks which we now propose that the RA post should take up. Moreover, they lack the technical expertise required for performing the tasks. In carrying out this work, the RA would also need to force the pace across other divisions which are responsible to various assistant commissioners, who have the same ranking as the existing RA post. Therefore unless we upgrade the post, the Department would have operational and management difficulties in carrying out the new work commitments in the next few years effectively and efficiently.
13. There would be additional work commitments for the Department in the next three years which justify the upgrading of the RA post on a supernumerary basis. We therefore propose to upgrade its post from D2 to D3 level for a period of three years as from August 1996. In order to accommodate the proposed upgrading, we need to create a new rank of RA at D3 level. Our present intention is that the rank and post should revert to D2 level in August 1999. However, we will review the arrangement in the early part of that year. The duty list of the proposed RA (D3) post is in Enclosure 3. The proposed organisation structure of the Department is in Enclosure 4.
14 The additional notional annual mid-point salary cost of the proposal is -
|
Notional annual
mid-point salary
$
|
No.
of
Post
|
|---|
|
Upgraded Rating Adviser post (D3)
|
1,372,800
|
1
|
|
Less
|
Rating Adviser post (D2)
|
1,182,600
|
1
|
|
Additional cost
|
190,200
|
0 |
15. The additional full annual average staff cost of the proposal, including salaries and staff on-costs, is $342,000. There is sufficient provision in the 1996-97 Estimates to meet the cost of this proposal. The proposal has no other financial implications.
16. We first created the RA post in 1979 at D1 level on a supernumerary basis to provide specialist advice to CRV on modern methods of mass appraisal of properties for rating and other taxation purposes, including computer-assisted techniques. We upgraded the post to D2 level in 1983 to reflect the wider scope and greater responsibility of the post than originally envisaged. Over the years, the role of the post has expanded to cover the computerisation work of the Department in general. Given the long-term need for the post, the Establishment Subcommittee recommended (EC (93-94)54) and the Finance Committee approved the permanent creation of the post at D2 level in 1993.
17. The Civil Service Branch considers the duration, ranking and grading of the proposed new post appropriate having regard to its duties and level of responsibilities.
18. The Standing Committee on Directorate Salaries and Conditions of Service has advised that the grading proposed for the post would be appropriate if the post were to be created.
Finance Branch
June 1996
(E4755/WIN79)
Enclosure 1 to EC(96-97)26
- To advise and assist the Commissioner of Rating and Valuation on the development and application of modern technique and methods pertaining to the mass appraisal of property for rating and other taxation purposes.
- To advise the Commissioner on alternative systems of rating.
- To advise the Commissioner on the computeris
- To improve and enhance existing computer systems to meet the department's changing needs.
- To plan and develop new computerisation programmes.
- To oversee the planning, installation and implementation phases of the information systems strategy plan.
- To represent the Commissioner as a member of the Information Technology Services Department's Advisory Liaison Group in developing government-wide information technology strategies.
- To supervise the Computer Division and provide staff training and development on computer application.
Enclosure 2 to EC(96-97)26
RATING AND VALUATION DEPARTMENT ORGANIZATION CHART
1 June 1996
Enclosure 3 to EC(96-97)26
- To advise and assist the Commissioner of Rating and Valuation on the development and application of modern techniques and methods pertaining to the mass appraisal of property for rating and other taxation purposes.
- To oversee and monitor the installation and implementation of the Information Systems Strategy Plan and to plan for further development.
- To plan and direct a computer system for the full implementation of Annex III rent collection including development of facilities for data input and valuation, and development of the revenue billing and collection system.
- To develop and monitor the new Rates Billing and Collection System.
- To plan and direct the introduction of integrated in-house printing of rates demand notes and other documentation.
- To provide computer support for the Property Review and Development Progress Monitoring systems, Property Indices and other property information as required.
- To advise the Commissioner on the computerisation aspects, and the impact on revenue and ratepayers of revising rateable values as an annual revaluation exercise; to undertake rental analysis and valuation; and to examine the feasibility for the implementation of annual revaluation.
- To lead the Computer Division and the Rating and Capital Valuation Division.
- To represent the Commissioner as a member of the Information Technology Services Department's Advisory Liaison Group in developing government-wide information technology strategies.
- To provide staff training and development on computer applications.
- To undertake any other relevant duties assigned by the Commissioner from time to time.
Enclosure 4 to EC(96-97)26
PROPOSED RATING AND VALUATION DEPARTMENT ORGANIZATION CHART
(E4755/P.12/WIN79)
Last Updated on 3 December 1998
