ESTABLISHMENT SUBCOMMITTEE OF FINANCE COMMITTEE -- papers -- 4 Nov 98

EC(98-99)12

For discussion
on 4 November 1998

ITEM FOR ESTABLISHMENT SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 37 - DEPARTMENT OF HEALTH
HEAD 90 - LABOUR DEPARTMENT
Subhead 001 Salaries

the creation of the following permanent post in the Labour Department -
an increase in the ceiling placed on the total notional annual mid-point salary value of all non-directorate posts in the permanent establishment of the Labour Department in 1998-99 from $643,475,000 by $11,713,920 to $655,188,920; and
a decrease in the ceiling placed on the total notional annual mid-point salary value of all non-directorate posts in the permanent establishment of the Department of Health in 1998-99 from $2,163,494,000 by $11,713,920 to $2,151,780,080.

PROBLEM

The current establishment of the Occupational Health Service (OHS) under the Labour Department (LD) does not reflect accurately the management structure of LD and the Department of Health (DH) and the resources under their respective control in pursuit of their programme areas. It is also not conducive to effective deployment and supervision of staff.

PROPOSAL

2. The Commissioner for Labour (C for L), in consultation with the Director of Health (D of H), proposes to transfer 27 medical and nursing posts from DH to the OHS of LD with effect from 1 December 1998. The proposal has the support of the Secretary for Education and Manpower and the Secretary for Health and Welfare.

JUSTIFICATION

3.At present there are 27 permanent posts under the establishment of DH although the post-holders actually serve the LD's OHS. These posts, comprising one Consultant and 26 medical and nursing staff at various ranks, have been seconded from DH to LD since their creation. Although the secondment was first made on a trial basis, over the years the posts have become an integral part of the organisation structure of the OHS, as shown at the Enclosure, and will continue to be so in the foreseeable future to support LD as the principal department in the provision of occupational health services in Hong Kong. There is a need to critically examine the secondment arrangement and consider establishing the posts in LD on a permanent basis to reflect more accurately the management structure.

4.Moreover, as the 27 posts are under the establishment of DH, these resources are accounted for under DH's programme area Disease Prevention, despite the fact that they are effectively supporting LD's programme area of Safety and Health at Work alongside 15 other medical and nursing posts recently created under the establishment of LD which are also performing similar duties in the OHS. This arrangement does not reflect accurately the resources provided to the two departments in pursuit of their respective programme areas.

5.The need for LD to manage on a long-term basis secondees filling posts under the establishment of another department is also not conducive to effective deployment and supervision of staff. As the present arrangement is unsatisfactory, and there is no compelling reason or advantage to continue with it, C for L proposes to transfer the 27 posts in question from DH to LD with effect from 1 December 1998.

CONSULTATION

6. At an earlier Establishment Subcommittee meeting on 12 February 1998, when Members considered the proposal to create a new Consultant post in the OHS, we informed Members that, subject to finalisation of the detailed arrangements at the operational level, we would seek the Establishment Subcommittee's approval to transfer an existing Consultant post to LD.

7. Serving medical and nursing staff in the LD have been consulted. They have indicated their support to the proposal.

8. D of H has also consulted the Grades Consultative Committees (GCCs) of DH on 21 October 1998. At the meeting, the GCCs noted that D of H would remain as the head of grade for those medical and nursing staff working in LD and would continue to be responsible for all grade management functions such as promotion, posting and professional training. The GCCs endorsed the proposal.

FINANCIAL IMPLICATIONS

9. As the proposal is to effect a transfer of existing permanent posts, it does not have additional financial implications.

10. The notional annual salary cost at MID-POINT of the 27 posts to be transferred is as follows -

Rank	Notional Annual Salary Cost at Mid-Point at 1998-99 Estimates price level $	No. of Posts
Directorate
Consultant	1,499,673	1
Total for directorate	1,499,673	1
Non-directorate
Senior Medical and Health Officer	929,220	1
Medical and Health Officer	4,263,120	6
Nursing Officer	2,756,520	6
Registered Nurse	3,765,060	13
Total for non-directorate	11,713,920	26

11.The full annual average staff cost of one directorate post of Consultant and 26 non-directorate medical and nursing posts, including salaries and staff on-cost, is $24,090,552 at current price level. No provision has been included in the 1998-99 Estimates under Head 90 Labour Department to meet the cost of this proposal. Subject to Members' approval, we shall provide the supplementary provision required under delegated authority, offset by deletion of an equivalent amount under Head 37 Department of Health.

BACKGROUND INFORMATION

12.As a key step to restructure and improve occupational health service, one Consultant post and 26 other non-directorate posts of medical and nursing staff have been created in the former Medical and Health Department since 1979 and subsequently placed under the establishment of the DH. Since their creation, the posts have been seconded to LD.

13.In 1996, LD set up an OHS to support its work as the principal department responsible for all matters relating to the provision of occupational health services in Hong Kong. One Consultant and 14 other non-directorate medical and nursing posts have since been created in LD to meet the increase in workload in this area. To date, officers in these posts and the 27 posts seconded from DH are serving side by side in the OHS undertaking similar duties.

CIVIL SERVICE BUREAU COMMENTS

14. The Civil Service Bureau supports the proposed transfer of the 27 posts concerned from DH to LD.

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

15. As the proposal does not involve the creation of additional permanent directorate posts or creation of a new rank or grade at the non-directorate level, advice from the Standing Committee on Directorate Salaries and Conditions of Service, or that of the Standing Commission on Civil Service Salaries and Conditions of Service, is not required.

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Education and Manpower Bureau
October 1998