For discussion EC(97-98)2

on 30 April 1997

ITEM FOR ESTABLISHMENT SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 142-GOVERNMENT SECRETARIAT :
OFFICES OF THE CHIEF SECRETARY AND THE FINANCIAL SECRETARY

Subhead 001 Salaries

    Members are invited to recommend to Finance Committee the creation of the following permanent posts in the Offices of the Chief Secretary and the Financial Secretary, Government Secretariat -

    1 Administrative Officer Staff Grade B1
    (D4) ($135,800 - $139,950)

    1 Administrative Officer Staff Grade C
    (D2) ($102,900 - $109,250)

    1 Principal Management Services Officer
    (D1) ($86,650 - $91,950)

PROBLEM

There is no dedicated unit to take forward the Services Promotion and Helping Business Programmes.

PROPOSAL

2. The Director of Administration, with the support of the Financial Secretary, proposes to set up a Business & Services Promotion Unit (BSPU) in the Offices of the Chief Secretary and the Financial Secretary to undertake the services promotion and helping business programmes, and to create three permanent directorate posts and 13 permanent non-directorate posts to staff the BSPU. The three permanent directorate posts are one Administrative Officer Staff Grade B1 (AOSGB1) (D4), one Administrative Officer Staff Grade C (AOSGC) (D2) and one Principal Management Services Officer (PMSO) (D1).

JUSTIFICATION

3. Hong Kong is now a service-oriented economy, with 83.8% of its GDP coming from services in 1995. Following the establishment of the Task Force on Services Promotion in August 1995, the Government has done a lot to equip Hong Kong to tackle more effectively the challenges of a service economy and to develop it further as the pre-eminent services centre in Asia.

4. The Task Force has completed its work and published its Final Report on 12 March 1997. The Report includes an update of the progress of implementation of the 71 Policy Directions promulgated in the 1996-97 Budget Addendum. It also sets out further initiatives to strengthen the eight key components around which we have built and will continue to build the government’s support for Hong Kong’s services sector, as well as a further 56 Policy Directions which we will pursue in support of 14 leading service industries.

5. The Trade and Industry Branch co-ordinated the Government’s services promotion efforts up till early 1997. We consider this arrangement only acceptable for the initial stages of the work, but inadequate for the long term. The services sector involves many different policy areas . Because the sector is so diverse, there is a need for effective co-ordination so that the services support and promotion initiatives on various fronts can have the maximum effect. A dedicated unit will ensure that the Government gives the necessary attention and resources to this important area of work. Putting the unit directly under the Financial Secretary will facilitate co-ordination amongst Policy Secretaries.

6. Closely related to the Services Promotion Programme is the Helping Business Programme which we launched in March 1996 under the aegis of a Task Force led by the Secretary for the Treasury. Phase I centred around seven pilot studies, which we completed on schedule by the end of last November. The Efficiency Unit has been supporting the Task Force but this Unit has many other responsibilities principally in the area of Public Sector Reform. As we intend to expand the Helping Business Programme, we need a dedicated unit to give it the necessary impetus and attention.

7. Given that both the Services Promotion and Helping Business Programmes are important to our economic development and are directly relevant to the business community, we intend to put both functions under the proposed BSPU.

Liaison with the Business Community

8. In order that the Government can approach both Services Promotion and Helping Business with a full understanding of the perspective of the private sector, we have established a Services Promotion Strategy Group and a Business Advisory Group respectively. The Financial Secretary and the BSPU will respectively chair and service the two Groups. Their terms of reference are at Enclosures 1 and 2.

Directorate Establishment of the BSPU

9. We propose to create three permanent directorate posts for the new Unit. The Director, BSPU will oversee the Unit’s work in both services promotion and helping business. On the services side, he will co-ordinate the services promotion initiatives by different Policy Branches and communicate directly with the Policy Secretaries and Department Heads. He will identify new initiatives and ensure their timely implementation by the right agency. He will keep in close touch with the services sector to ascertain their needs and consider and make recommendations as to how best to meet them. On helping business, he will oversee the implementation of the recommendations of Phase I studies, take forward the second and subsequent phases of the Helping Business Programme and ensure timely completion of all projects by the parties concerned. He will also keep in close touch with the business sector on its needs and seek to provide solutions through the Programme. He will report directly to the Financial Secretary in both areas. In view of the importance of the work and the range of responsibilities, we recommend pitching the post at AOSGB1 (D4) level.

10. We propose to create two other permanent posts at directorate level to assist the Director in carrying out the Unit’s responsibilities. On the services side, we propose to create a post of Assistant Director at AOSGC (D2) level. On the helping business side, we propose to create a post of PMSO (D1).

11. The Assistant Director will assist the Director in servicing the Services Promotion Strategy Group and its sub-groups. He will also liaise directly with PolicyBranches and Departments, relevant Industry and Trade Support Organisations and other services entities at a senior level to identify new ideas and initiatives, as well as monitor individual services promotion projects independently. As deputy to the Director, he is also responsible for the overall administration of the Unit and to ensure that it carries out the functions and meets the objectives expected of it.

12. The PMSO will assist the Director in servicing the Business Advisory Group and deal with various matters relating to consultancy studies conducted under the Helping Business Programme, monitor their progress and ensure their timely implementation. The Programme has had a good start, having been launched under the scrutiny of the former Task Force on Helping Business chaired by the Secretary for the Treasury. We are now at the stage of following up and progressively extending the techniques and lessons learned to other areas of Government activity. Because of the Programme’s heavy reliance on and significant interface with management consultants, we consider that the unique knowledge and experience of a Management Services Officer grade officer in managing consultants and consultancy work will be beneficial to its smooth running. The PMSO will provide the Director with the expertise and support necessary to sustain the momentum of work so far achieved, and to take forward and expand the Programme having regard to the needs of and feedback from the business community. At the present moment, we consider that directorate support to the Director on this side of the house should be pitched at ‘D1’ level. This will be in keeping with the objectives of keeping the Unit lean and small. We shall review the position as the Programme progresses.

13. The job descriptions of the three directorate posts proposed are at Enclosures 3, 4 and 5.

Transitional Arrangement

14. Pending the formal creation of the new BSPU, we have deployed a small team since January 1997 to prepare the groundwork. For this purpose, we created three supernumerary directorate posts (one AOSGB1, one AOSGC and one PMSO) under delegated authority for a six-month period. The work of this team in the past few months included compiling and publishing the Final Report of the Task Force on Services Promotion, setting up the Services Promotion Strategy Group, servicing the Business Advisory Group, as well as overseeing the implementation of the recommendations of Phase I studies and selecting and overseeing the implementation of new projects for Phase II of the Helping Business Programme.

FINANCIAL IMPLICATIONS

15. The additional notional annual salary cost at mid-point and full annual average staff cost of the proposal are $4,023,000 and $7,353,624 respectively, broken down as follows -

Post

Notional Annual Salary Cost at Mid-point ($)

Full Annual Average Staff Cost ($)

No. of Post

AOSGB1

1,679,400

2,965,560

1

AOSGC

1,273,200

2,315,352

1

PMSO

1,070,400

2,072,712

1


----------

-----------

------

Total

4,023,000

7,353,624

3

We have included half year provision in the 1997-98 Estimates. Subject to Finance Committee’s approval of the proposal, we will offset any supplementary provision required by deleting an equivalent amount under Head 106 Miscellaneous Services Subhead 251 Additional commitments.

16. The Directorate of the BSPU will have the support of a small team of 13 officers comprising one Senior Administrative Officer (SAO), one Chief Management Services Officer (CMSO), two Chief Executive Officers (CEO), two Executive Officers I (EOI), two Clerical Officers II (COII) and five Personal Secretaries (PS) of various ranks, at a total notional annual mid-point salary of $5,782,680 and a total full annual average staff cost of $9,634,752, broken down as follows -

Rank

Notional Annual Salary Cost at Mid-point ($)

Full Annual Average Staff Cost ($)

No. of
Post

SAO

869,220

1,545,180

1

CMSO

869,220

1,519,332

1

CEO

1,738,440

2,939,208

2

EOI

900,720

1,259,184

2

SPS

341,880

586,548

1

PSI

258,300

406,344

1

PSII

482,940

812,412

3

COII

321,960

566,544

2


----------

----------

----

Total

5,782,680

9,634,752

13

A chart showing the proposed organisation of the BSPU is at Enclosure 6.

CIVIL SERVICE BRANCH COMMENTS

17. In order to take forward the Services Promotion and Helping Business Programmes, CSB agrees that the BSPU requires three permanent directorate posts comprising one AOSGB1, one AOSGC and one PMSO. CSB considers the grading and ranking of the three proposed permanent directorate posts appropriate having regard to their duties and responsibilities.

ADVICE OF THE STANDING COMMITTEE ON DIRECTORATE SALARIES AND CONDITIONS OF SERVICE

18. The Standing Committee on Directorate Salaries and Conditions of Services has advised that the grading proposed for the posts would be appropriate if the posts were to be created.

Administration Wing
Government Secretariat
April 1997

(E5795/WIN104)

Enclosure 1 to EC (97-98)2

Services Promotion Strategy Group

Terms of Reference

To advise the Financial Secretary on matters relating to the development of Hong Kong as a service economy and as the pre-eminent services centre in Asia.

Enclosure 2 to EC (97-98)2

Business Advisory Group

Terms of Reference

  1. Having regard to the aims of the Helping Business Programme, to

      cut red tape and eliminate over regulation;

      reduce cost of compliance to business sector and cost of enforcement to Government;

      transfer services out of the public sector to the business sector where appropriate market conditions prevail; and

      improve existing services and introduce new services;

    to advise the Financial Secretary on the development and implementation of the Helping Business Programme as they might affect the business sector.

  2. To identify problems and difficulties encountered by the business sector in the Government’s regulatory or service functions and make recommendations to the Financial Secretary on improvements or solutions.

Enclosure 3 to EC (97-98) 2

Job Description

for the Post of AOSGB1 in the Business and Services Promotion Unit of the Offices of the Chief Secretary and the Financial Secretary

Rank : Administrative Officer Staff Grade B1 (D4)
Post Title : Director, Business and Services Promotion Unit

Main Duties and Responsibilities :

Responsible to the Financial Secretary for -

  1. Overseeing the operation of the Business & Services Promotion Unit in the Financial Secretary’s Office;

  2. Servicing the Services Promotion Strategy Group and the Business Advisory Group, both of which are chaired by the Financial Secretary;

  3. Liaising with Policy Branches and Departments, trade and related organisations, members of the business community, public and other interest groups to implement existing programmes and identify new initiatives to promote and support the service industries on an on-going basis;

  4. Liaising with Policy Branches and Departments, trade and related organisations, members of the business community, public and other interest groups to implement existing programmes and identify new initiatives to make the Government more "business-friendly"; and

  5. Undertaking such other duties as may be directed by the Financial Secretary.

Enclosure 4 to EC(97-98) 2

Job Description

for the Post of AOSGC in the Business and Services Promotion Unit f the Offices of the Chief Secretary and the Financial Secretary

Rank : Administrative Officer Staff Grade C (D2)
Post Title : Assistant Director, Business and Services Promotion Unit

Main Duties and Responsibilities :

Assist and support the Director, Business and Services Promotion Unit in -

  1. Servicing the Services Promotion Strategy Group chaired by the Financial Secretary, and its various Sub-groups;

  2. Identifying new promotional and support initiatives;

  3. Co-ordinating and monitoring the implementation of services promotion initiatives on all fronts;

  4. Liaising with parties within and outside the Government with a view to furthering the above purposes;

  5. Overall administration of the Business and Services Promotion Unit; and

  6. Undertaking such other duties as may be assigned by the Director.

Enclosure 5 to EC (97-98) 2

Job Description for the Post of

Principal Management Services Officer in the Business and Services Promotion Unit of the Offices of the Chief Secretary and the Financial Secretary

Rank :Principal Management Services Officer (D1)
Post Title :Principal Management Services Officer, Business and Services Promotion Unit

Main Duties and Responsibilities :

Assist and support the Director, Business and Services Promotion Unit in -

  1. Servicing the Business Advisory Group chaired by the Financial Secretary, and its various sub-groups;

  2. Formulation, development and implementation of the Helping Business Programme;

  3. Identifying new helping business initiatives;

  4. Overseeing and co-ordinating the conduct of business studies; and

  5. Undertaking such other duties as may be assigned by the Director.

Last Updated on 12 August 1999