For discussion PWSC(95-96)63
on 6 December 1995
ITEM FOR PUBLIC WORKS SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 703 - BUILDINGS
Quarters - Others
17JO - Purchase of departmental quarters for married staff of the
Independent Commission Against Corruption 1996
Members are invited to recommend to Finance Committee the upgrading of 17JO to Category A at an estimated cost of $136.5 million in money-of-the-day prices for the purchase of departmental quarters for married staff of the Independent Commission Against Corruption.
There is a substantial shortfall in the provision of departmental quarters for married staff of the Independent Commission Against Corruption (ICAC).
2. The Commissioner of the ICAC proposes to upgrade 17JO to Category A at an estimated cost of $136.5 million in money-of-the-day (MOD) prices for the purchase of departmental quarters for married staff of the ICAC.
3. The scope of the project comprises the purchase of departmental quarters (about 33 units in total) of different grades at an estimated cost of $136.5 million. Subject to market conditions and in consultation with the Commissioner of the ICAC, the Government Property Administrator (GPA) will determine the exact locations and number of quarters at the acquisition stage.
4. It is government policy to provide quarters for married disciplined services staff, subject to availability of resources, in order to sustain morale and to facilitate retention. This policy applies to the ICAC. To date, we have provided the ICAC with 138 units1 . Despite this, there is still a substantial shortfall in the provision of quarters for the ICAC. The shortfall as at 15 September 1995 is 151. Details are as follows -
|
Units of quarters
|
|
Supply
|
Demand
|
Shortfall
|
Percentage
shortfall
|
|---|
|
Married Officer2
|
40
|
96
|
56
|
58%
|
|
Married Junior Personnel
|
98
|
193
|
95
|
49%
|
|
Total
|
138
|
289
|
151
|
52% |
5. Governments policy has always been to provide departmental quarters for married disciplined services staff through both construction and purchase. Subject to availability of sites, the former option is usually cheaper but will take several years. The latter is more practical when we need to address a significant shortfall in the supply of quarters within a short timeframe. We confirm that no existing quarter construction projects for disciplined services staff are available to cater for the requirements of the ICAC. The purchase option is therefore the only viable way to alleviate the shortfall in the immediate future.
6. The purchase option is also based on operational considerations. To house ICAC investigators/surveillance officers en bloc in one building will make the movements of these officers very visible which might compromise the confidentiality of operations. Preferably, therefore, the quarters should be evenly spread in different districts, which are well served by public transport.
7. The ratio of the shortfall in quarters for married officers to that for married junior personnel is 1 to 1.7. On this basis, we propose to purchase 12 units for married officers and 21 units for married junior personnel. To address the remaining shortfall, we will continue to seek more quarters through the purchase option as well as allocations from other future quarters building projects where possible.
8. We estimate the total cost of purchasing the quarters to be $136.5 million in MOD prices3 , made up as follows -
|
$ million
|
|---|
|
(a) 21 F/H grade units at an estimated average unit cost of $3 million for married junior personnel
|
63.0
|
|
(b) 12 D/E grade units at an estimated average unit cost of $6 million for married officers
|
72.0
|
|
(c) Fitting out, furniture and equipment and contingencies
|
1.5
|
|
Total
|
136.5 |
9. We estimate the annually recurrent expenditure on management charges to be $0.48 million.
10. We upgraded 17JO to Category B in September 1995.
1 -- This figure has increased from 100 in January 1995 whcn the Finance Committee approved to upgrade 13JO to Category A for the purchase of departmental quarters for married staff of the ICAC. The increase is made up of the 26 units purchase under 13JO and another 12 units allocated by GPA from existing stock.
2 -- Married officers refer to departmental grade staff on the ICAC Salary Scale points 11 to 30. Married junior personnel refer to departmental grade staff on the ICAC Salary Scale points 1 to 10.
3 -- unlike other public works projects, we state the value of the project only in MOD prices and not in constant prices because the use of inflation indices based on changes in costs of labour and materials are not directly applicable in the case of purchasing property. GPA intends to buy the required property units over a period of time in 1996 and confirms that $136.5 million will be adequate for this purpose.
