Summary of Achievements in 2001-02

In 2001-02, bureaux, departments and subvented organisations together will deliver savings of $2,248 million, which is 2.1% of the total recurrent operating expenditure subject to EPP§. These savings have been reflected in the reduced provisions sought by bureaux, departments and subvented organisations in the 2001-02 Estimates.

In principle, we allow bureaux, departments and subvented organisations to set their own pace in meeting the 5% cumulative savings target by 2002-03. As it turns out, 42 of these bodies (or over 40%) have over-achieved the cumulative 3% target savings by 2001-02. Of these 42 bodies, 16 have achieved their overall 5% target savings and six are fairly close to it.

The savings achieved by individual bureaux, departments and agencies are listed below. Those achieving more than the 3% cumulative savings target by 2001-02 are marked with an asterisk (*).

§ There are some recurrent expenditure items which are exempted from the EPP. These include expenditure on providing financial assistance to the needy (such as social security, student financial assistance and legal aid), pension payments and school expenditure.

Chief Executive's Office, Bureaux and Beijing Office

Departments

Subvented Organisations

*Those achieving more than the 3% cumulative savings target by 2001-02 are marked with an asterisk (*)

**Savings as percentage of the recurrent operating expenditure that is subject to EPP in 2001-02.

Notes :

1. To advance Government's initiatives for promoting innovation and technology, attracting inward investment and improving services to industry and commerce, the Trade and Industry Bureau was retitled the Commerce and Industry Bureau (CIB) and took over the Business and Services Promotion Unit (BSPU) from the Financial Secretary's Office, and the trade and industry group of departments was reorganised on 1 July 2000.
2. The Constitutional Affairs Bureau has delivered 5% EPP savings in 2000-01.
3. Following (1), the new Innovation and Technology Commission (ITC) and Invest Hong Kong were established upon dis-establishment of the former Industry Department. They are deemed to have delivered 4.4% and 5% EPP savings respectively in 2001-02 through the former Industry Department through streamlining of staff structure and operational procedure. ITC aims to deliver the remaining 0.6% EPP savings in 2002-03.
4. Following (1), the Trade Department was retitled Trade and Industry Department and took over from the former Industry Department functions relating to the general support for the industrial sector and small and medium enterprises.
5. As the Hong Kong Applied Science and Technology Research Institute Company Limited, a company which was formed to take forward the detailed planning for development of the Applied Science and Technology Research Institute, was only established in January 2000, it is deemed to have fulfilled the 1% savings requirement in 2000-01. The Institute aims to achieve the remaining 4% EPP savings from 2001-02 onwards.
6. The Office of The Ombudsman will be de-linked from the Government and operate on a subvented basis from 2001-02.
7. Skills Centres have delivered 5% EPP savings in 2000-01.
8. Savings under other subvented organisations are summarised (excluding those subsumed under the responsible bureaux and departments).

Analysed by type of expenditure, the total amount of productivity savings of $2,248 million is made up of :

Personal emoluments and personnel related expenses include civil service staff salaries and allowances and other staff costs. Departmental expenses and other charges are the day-to-day operating expenses of bureaux and departments. Subventions cover recurrent payments to non-government bodies in support of their on-going expenses.

As in last year, although not incurring Government expenditure and hence technically not subject to EPP, the Housing Authority and the five Trading Fund departments (namely the Companies Registry, the Electrical and Mechanical Services Department (other than those divisions which are funded from Government expenditure), the Land Registry, the Office of the Telecommunications Authority and the Hong Kong Post Office) have also undertaken to reduce their operating expenditure through enhanced productivity. The five Trading Fund departments will reflect productivity gains achieved under EPP in the pricing of their services. Their savings are summarised below: