EC(97-98)57
For discussion
on 4 February 1998


ITEM FOR ESTABLISHMENT SUBCOMMITTEE OF
FINANCE COMMITTEE

HEAD 150 - GOVERNMENT SECRETARIAT : HOUSING BUREAU
Subhead 001 Salaries

Members are invited to recommend to Finance Committee the creation of the following permanent post -

1 Administrative Officer Staff Grade B1

(D4) ($145,150 - $149,600)

PROBLEM

The directorate support in the Housing Bureau (HB) is inadequate to cope with the increase in the complexity and volume of work in the housing policy area, in particular to ensure the achievement of the Chief Executive'shousing production targets and to monitor the implementation of the Government'sLong Term Housing Strategy (LTHS).

PROPOSAL

2. The Secretary for Housing (S for H) proposes to create one permanent post of Administrative Officer Staff Grade B1 (AOSGB1) (D4) as the senior Deputy Secretary for Housing to strengthen the directorate structure of HB.

JUSTIFICATION

Existing responsibilities

3. HB is the only bureau in the Government Secretariat with one Deputy Secretary (DS), with the exception of the Financial Services Bureau which has one DS at AOSGB1 (D4) level and one Government Economist (D4). Whilst the Bureau has only 44 permanent posts 1, the volume of policy and administrative duties dealt with by the Bureau are no less than that of other policy bureaux. These duties include the Resource Allocation Exercises, the Draft Estimates of Expenditure, the Policy Address exercise, Executive Council and Provisional Legislative Council (PLC) papers, briefs for senior officials and the Chief Executive and attendance at major committee meetings.

4. The workload being undertaken or supervised by the present DS for Housing ranked at Administrative Officer Staff Grade B (D3) is very heavy. The following responsibilities in particular call for increasing attention and commitment -

  1. in response to rising public expectation, Members of the legislature have shown increasing interest in housing matters since the establishment of HB. Since 1995, the Bureau has received over 200 written and oral questions from PLC/LegCo Members. This is amongst the highest number received by any other policy bureau. The Bureau has also taken part in 22 motion debates on housing policy;

  2. in addition to drafting policy papers and being responsible for HB'slegislative programme, the DS for Housing sits on a total of over 20 boards and committees, including four committees of the Housing Authority. The recent trial restructuring of the Housing Department's management structure has added to this workload;

  3. the DS for Housing is responsible to S for H for the establishment and operation of the new Estate Agents Authority;

  4. the residential property market is a major issue of public concern. Analysis and advice on market trends and anti-speculation measures is one of the DS for Housing'skey responsibilities;

  5. in response to public aspiration, HB has made a total of 85 Policy Commitments in a variety of areas including, amongst others, clearance, interim housing, housing for the elderly, and public housing estate management. The DS is responsible for monitoring and, when necessary, taking action to accelerate the progress of these commitments;

  6. there is a substantial amount of capital expenditure falling under the supervision of HB. The DS for Housing is responsible to S for H for the allocation and management of resources earmarked for accelerating public works projects on housing-related infrastrusture. He is also responsible for overseeing projects funded from this source and accounted for under Head 711 Housing of the Capital Works Reserve Fund. We are committed to spendingtotal expenditure of over $11.6 billion on such projects over the next five years;

  7. the fact that no department reports executively2 to HB actually increases the level of work involved. Despite the lack of direct authority, the Bureau is accountable to the PLC and the Chief Executive on all matters relating to the Housing Authority, the Housing Department (with some 15 000 staff), and the Housing Society. The Bureau relies on the Housing Authority, Housing Society and Housing Department to achieve a large number of its policy targets; and

  8. at present, the DS for Housing has 15 senior officers 3 (on Master Pay Scale 45 or above), including six directorate staff, working for him, one of the highest ratios among Deputy Secretaries in the Government Secretariat.

New responsibilities

5. In addition to the duties listed above which in themselves fully justify the provision of an appropriately ranked DS, the Bureau is faced with various new commitments of increasing importance and urgency -

  1. housing is one of Strategic Policy Objectives in the Chief Executive's1997 Policy Address. The DS for Housing has been charged with leading a new committee to develop and co-ordinate the initiatives announced on 8 October 1997 in the policy document entitled "Better Housing for All". We have undertaken to implement a number of new policy initiatives, in particular to increase the production of flats to meet the target of 85 000 flats a year starting from 1999-2000, to encourage wider home ownership in order to achieve a home ownership rate of 70% by 2007, to reduce the public rental housing waiting time to three years by 2005, and to contribute to work relating to the urban renewal programmein the booklet but I thought responsibility, particularly that relating to new initiatives, rests with SPEL. Please ask HB to confirm.). This requires a higher degree of involvement of HB in areas such as land supply and transport infrastructure which were previously handled entirely by other policy bureaux;

  2. HB also plays a major role in the Steering Committee on Land Supply for Housing (HOUSCOM), chaired by the Financial Secretary, and has been charged by HOUSCOM with implementing a major review of the development procedures of the Housing Authority and Housing Society;

  3. the Bureau has been tasked to set up and maintain a detailed site inventory of all public and private housing developments in Hong Kong and to detect and remedy potential shortfalls in flat production speedily. This involves monitoring progress on individual housing sites managed by Project Directors in the Territory Development Department, the Housing Department and the Lands Department. The number of sites involved is currently about 940 with an estimated production capacity of 780 000 flats. When there are problems related to any particular housing site which cannot be resolved at the district or departmental level, they are referred to the HB for resolution. The Bureau is also responsible for identifying new sites to remedy potential shortfalls in flat production. This is a major new undertaking which will be taken charge of by the Bureau'sProject Management Division;

  4. in the next few years, the Housing Society will be responsible for carrying out a number of new initiatives including the Senior Citizen Residence Scheme for middle-income elderly people and the Mixed Development Scheme to complement existing subsidised home ownership schemes. The Sandwich Class Housing Scheme has also been expanded. It requires additional efforts to ensure that these initiatives are implemented smoothly and according to schedule;

  5. HB has recently reviewed the Government'sLTHS. The completion of this exercise has led to the setting up of a new Housing Strategy Division in the Bureau 4 to monitor the implementation and further development of the strategy. Specific tasks of the new Division include -

      • the servicing of the LTHS Advisory Committee due to be set up in early 1998;

      • supervision of the Government'sHousing Demand Model operated by the Housing and Land Supply Division of the Planning Department;

      • developing the policy initiatives contained in the LTHS White Paper published in January 1998. HB is required to provide policy guidance on many initiatives in the White Paper before they can be taken forward by the concerned bureaux and departments. For example, input at the DS level is required for the Tenants Purchase Scheme under which public rental flats are sold to existing Housing Authority tenants, and the "Home Starter Loan Scheme" under which $18 billion will be lent over a five-year period to first time home buyers; and

      • conducting research and analysis in strategic policy areas such as the affordability of prospective buyers in relation to subsidised housing, and the impact of new policies on public housing waiting time and other housing commitments.

Additional directorate staff resources

6. It is clearly not practicable for the present DS for Housing, with his full range of existing responsibilities, to take up the new duties described above single-handedly. In view of the complexity and scope of the policy involvement in implementing our housing objectives and initiatives, an additional senior Deputy is necessary. The present lack of a D4 officer to stand in for the S for H during his absence on leave or duty visits has also hindered the efficient functioning of the Bureau.

7. The senior DS for Housing, who will stand in for S for H when necessary, must be fully familiar with the mainstream work of the Bureau, including meetings with the PLC, dealing with Housing Authority and Housing Society matters, liaison with private developers and conducting major Central Government exercises, such as the Resource Allocation Exercise. He will be in charge of the Private Housing Division, the Public Housing Division and the Administration and Resources Management Division. The junior Deputy will have the task of managing both the Project Management Division, which deals with housing production and fast-tracking as well as housing-related infrastructure, and the Housing Strategy Division which deals with servicing of the new LTHS Advisory Committee as well as monitoring major strategic issues such as housing demand and land supply. These tasks are sufficiently important and complex to warrant the staffing of the post by an officer at AOSGB level.

8. The organisation charts of HB showing the existing structure and that with the proposed second DS for Housing are at Enclosures 1 and 2 respectively. The duty lists of the existing DS for Housing and the proposed duty lists for the two DSs for Housing are at Enclosures 3 to 5.

FINANCIAL IMPLICATIONS

9. The additional notional annual staff cost at mid-point of this proposal is -


($)


No. of Posts

AOSGB1 (D4)

1,795,200


1

1,795,200


1

The annual average staff cost of the proposal, including salary and on-costs, is $3,097,164.

10. This proposal will necessitate the creation of one additional non-directorate post of Senior Personal Secretary at a notional annual mid-point salary cost of $365,160 and a full annual average staff cost of $614,760.

11. We have included sufficient provision in the 1998-99 draft Estimates to meet the cost of this proposal and the additional non-directorate post.

BACKGROUND INFORMATION

12. S for H has overall responsibility for public and private housing matters in Hong Kong. He is at present assisted in the exercise of his duties by one DS and four Principal Assistant Secretaries. Set up in November 1994, HB is responsible, inter alia, for formulating Government policy on the provision of housing in the public and private sectors. It oversees Hong Kong'spublic housing programmes, monitors the operation of the private housing market, and facilitates the provision of sufficient land and infrastructure to meet forecast housing demand.

CIVIL SERVICE BUREAU COMMENTS

13. The ranking and grading of the proposed post are appropriate having regard to its duties and responsibilities.

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

14. 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.


Housing Bureau
January 1998


1.Excluding four posts on attachment and eight new posts due to be created on a permanent basis with effect from 1 April 1998.

2.With certain exceptions (such as Housing Department's Squatter Control Office)

3.With effect from 1 April 1998 this number will increase to 18, i.e. including seven directorate staff, due to the creation of one Chief Engineer and two Senior Engineer posts.

4. Comprising one Principal Assistant Secretary, one Chief Assistant Secretary, two Assistant Secretaries and one Chief Executive Officer. The directorate posts were created on 1 April 1997.


Enclosure 3 to EC(97-98)57

Present Duty List for Deputy Secretary for Housing

Rank : Administrative Officer Staff Grade B (D3)

Main duties and responsibilities

  1. Co-ordinating and facilitating policy formulation and implementation of Government'shousing policies, including clearance of policy papers and briefs for the Executive Council and the Legislative Council;

  2. monitoring the implementation of the Long Term Housing Strategy and advising the Secretary for Housing on changes to the Strategy;

  3. liaising with the Housing Authority, Housing Society, Land Development Corporation and private developers in the provision of housing;

  4. monitoring and co-ordinating the planning and supply of housing in the private and public sectors;

  5. keeping the Landlord and Tenant (Consolidation) Ordinance, the Housing Ordinance and other housing-related legislation under review and initiating legislative proposals as necessary;

  6. developing the policy on rehousing for people affected by redevelopment or clearances;

  7. monitoring and co-ordinating information on the residential property market;

  8. attending meetings of the Housing Authority'sCommittees, Provisional Legislative Council Panels, the Land and Building Advisory Sub-committees, and other ad hoc meetings as necessary; and

  9. resource management and administration of the Housing Bureau.

Enclosure 4 to EC(97-98)57

Proposed Duty List for Deputy Secretary for Housing (1)

Rank : Administrative Officer Staff Grade B1 (D4)

Main duties and responsibilities

  1. Co-ordinating the Long Term Housing Strategy, and facilitating policy formulation and implementation of Government'shousing policies within the overall framework of the Long Term Housing Strategy, including clearance of policy papers and briefs for the Executive Council and the Provisional Legislative Council;

  2. liaising with and monitoring of the Housing Authority, Housing Society, Land Development Corporation and private developers in the provision of public and private housing;

  3. keeping the Landlord and Tenant (Consolidation) Ordinance, the Housing Ordinance and other housing-related legislation under review and initiating legislative proposals as necessary;

  4. devising of policy on rehousing for people affected by redevelopment and clearances;

  5. monitoring and co-ordinating information on the residential property market;

  6. attending meetings of the Housing Authority'sCommittees, Provisional Legislative Council Panels, the Land and Building Advisory Sub-committees, the Elderly Commission, the Estate Agents Authority, and other ad hoc meetings as necessary;

  7. resource management and administration of the Housing Bureau; and

  8. supervising the work of the Private Housing Division, Public Housing Division and Administration and Resource Management Division of the Bureau.

Enclosure 5 to EC(97-98)57

Proposed Duty List for Deputy Secretary for Housing (2)

Rank : Administrative Officer Staff Grade B (D3)

Main duties and responsibilities

  1. Monitoring the overall implementation of the Long Term Housing Strategy and advising the Secretary for Housing on changes to the Strategy;

  2. supervising the operation of the Housing Demand Model operated by the Planning Department and advising the Secretary for Housing on the implication of changes to housing demand;

  3. helping to ensure the achievement of the flat production targets set by the Chief Executive by monitoring all housing sites in Hong Kong and advising on remedial action in the event of potential slippage;

  4. implementing housing-related infrastructural projects under Capital Works Reserve Fund Head 711 Housing to meet the housing production targets for both public and private housing;

  5. monitoring a computer-based data bank (the Integrated Housing Information System) containing or linked to other computer systems containing detailed site specific information on all housing developments in Hong Kong;

  6. attending meetings of the Town Planning Board, Committee on Planning and Land Development, Land Disposal Committee, the Steering Committee on Land Supply for Housing, Provisional Legislative Council Panels and other ad hoc meetings as necessary;

  7. servicing the LTHS Advisory Committee and the Housing Project Action Team; and

  8. supervising the work of the Project Management Division and the Housing Strategy Division of the Bureau.