REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

THE REPORTS OF THE DIRECTOR OF AUDIT

ON

THE ACCOUNTS OF THE GOVERNMENT OF

THE HONG KONG SPECIAL ADMINISTRATIVE REGION

FOR THE YEAR ENDED

31 MARCH 2013

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 61)



February 2014

P.A.C. Report No. 61





CONTENTS


Paragraph

Page

Part 1Introduction

The Establishment of the Committee

1

1

Membership of the Committee

2

1

Part 2Procedure

The Committee's Procedure

1

2 - 3

Confidentiality undertaking by members of the Committee

2 - 3

3

The Committee's Report

4 - 5

3

The Government's Response

6

4

Part 3Report of the Public Accounts Committee on Report No. 58 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 58]

Laying of the Report

1

5

The Government Minute

2 - 8

5 - 8

Part 4Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2012 and the Results of Value for Money Audits (Report No. 59)
[P.A.C. Report No. 59]

Laying of the Report

1

9

The Government Minute

2 - 41

9 - 25

Part 5Committee Proceedings

Consideration of the Director of Audit's Report

1

26

Meetings

2

26

Arrangement of the Report

3 - 4

26

Acknowledgements

5

26

Part 6Observations of the Public Accounts Committee on the Report of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2013

1

27

Part 7Chapter

1.Direct land grants to private sports clubs at nil or nominal premium

A.Introduction

1 - 6

28 - 31

B.Government policy decisions in 1969 and 1979

7 - 34

31 - 40

C.Implementation of the "opening-up" requirement

35 - 52

40 - 49

D.Monitoring of compliance with lease conditions

53 - 72

49 - 55

E.Way forward

73

55

F.Conclusions and recommendations

74 - 76

55 - 72

2.Management of roadside skips

A.Introduction

1 - 8

73 - 75

B.Government actions on regulating roadside skips

9 - 41

76 - 91

C.Government system for facilitating skip operations

42 - 47

91 - 93

D.Conclusions and recommendations

48 - 50

93 - 101

3.Allocation and utilization of public rental housing flats

A.Introduction

1 - 10

102 - 106

B.Allocation of flats to people in need of public rental housing

11 - 34

106 - 118

C.Maximizing the rational utilization of public rental housing flats

35 - 66

118 - 130

D.Tackling abuse of public rental housing

67 - 86

130 - 138

E.Way forward

87 - 90

138 - 139

F.Conclusions and recommendations

91

140 - 155

4.Protection of country parks and special areas

1 - 4

156

5.Fire protection and prevention work of the Fire Services Department

1 - 4

157

6.Government's efforts to enhance fire safety of old buildings

1 - 4

158 - 159

SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE

 
160

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 61 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
161

Appendix relating to Part 1: "Introduction"

Appendix 1Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region

 
162 - 163

Appendix relating to Part 2: "Procedure"

Appendix 2Paper presented to the Provisional Legislative Council by the Chairman of the Public Accounts Committee at the meeting on 11 February 1998 on Scope of Government Audit in the Hong Kong Special Administrative Region - 'Value for Money Audits'

 
164 - 166

Appendices relating to Part 4: "Report of the Public Accounts Committee on the Reports of the Director of Audit on the Accounts of the Government of the Hong Kong Special Administrative Region for the year ended 31 March 2012 and the Results of Value for Money Audits (Report No. 59)
[P.A.C. Report No. 59]"

Appendix 3Location of the five commercial buildings and the five footbridges in the Central District

 
167

Appendix 4Letter of 30 January 2014 from the Secretary for Development

 
168 - 169

Appendix 5Progress in implementing Audit's and the Public Accounts Committee's recommendations on regulatory control of private hospitals

 
170 - 173

Appendix 6Progress in implementing Audit's and the Public Accounts Committee's recommendations on land grants for private hospital development

 
174 - 179

Appendix 7Updated progress in implementing Audit recommendations on provision of local services by the Marine Department

 
180 - 184

Appendices relating to Part 5: "Committee Proceedings"

Appendix 8Witnesses who appeared before the Committee

 
185 - 186

Appendix 9Introductory remarks by Chairman of the Public Accounts Committee, Hon Abraham SHEK Lai-him, GBS, JP at the first public hearing of the Committee in respect of the Director of Audit's Report No. 61 on Saturday, 23 November 2013

 
187 - 188

Appendices relating to Chapter 1 of Part 7: "Direct land grants to private sports clubs at nil or nominal premium"

Appendix 10Opening statement made by the Secretary for Home Affairs at the public hearing on 23 November 2013

 
189 - 191

Appendix 11Letter of 9 January 2014 from the Secretary for Home Affairs

 
192 - 196

Appendix 12Letter of 18 December 2013 from the Secretary for Home Affairs

 
197 - 204

Appendix 13A table on "Annual Government Rent Payable by Organisations holding Private Recreational Leases since 1997" provided by the Home Affairs Bureau

 
205

Appendix 14Letter of 9 December 2013 from the Director of Lands

 
206 - 212

Appendix 15A table on "Details of Advertisements to Publicise the Availability of Private Recreational Leases Facilities for the Use of Outside Bodies" provided by the Home Affairs Bureau

 
213

Appendix 16Timetable for the Home Affairs Bureau to take forward the Audit recommendations

 
214 - 218

Appendices relating to Chapter 2 of Part 7: "Management of roadside skips"

Appendix 17Opening statement made by the Secretary for Development at the public hearing on 2 December 2013

 
219 - 220

Appendix 18Opening statement made by the Secretary for the Environment at the public hearing on 2 December 2013

 
221

Appendix 19Opening statement made by the Acting Secretary for Transport and Housing at the public hearing on 2 December 2013

 
222 - 223

Appendix 20Letter of 13 December 2013 from the Director of Lands

 
224 - 227

Appendix 21Letter of 11 December 2013 from the Commissioner of Police

 
228 - 230

Appendix 22Letter of 16 December 2013 from the Secretary for Development

 
231 - 237

Appendix 23Letter of 14 January 2014 from the Secretary for the Environment

 
238 - 239

Appendix 24Letter of 21 January 2014 from the Commissioner of Police

 
240 - 241

Appendix 25Letter of 17 December 2013 from the Commissioner for Transport

 
242 - 250

Appendix 26Letter of 11 December 2013 from the Director of Food and Environmental Hygiene

 
251 - 252

Appendices relating to Chapter 3 of Part 7: "Allocation and utilization of public rental housing flats"

Appendix 27Opening statement made by the Secretary for Transport and Housing at the public hearing on 25 November 2013

 
253 - 256

Appendix 28Letter of 12 December 2013 from the Secretary for Transport and Housing

 
257 - 285

Appendix 29Letter of 7 January 2014 from the Secretary for Transport and Housing

 
286 - 295

Appendix 30Supplementary Information Sheets provided by the Housing Department

 
296 - 327

Appendix relating to Chapter 4 of Part 7: "Protection of country parks and special areas"

Appendix 31Letter of 20 December 2013 from the Director of Agriculture, Fisheries & Conservation

 
328 - 335

Appendix relating to Chapter 5 of Part 7: "Fire protection and prevention work of the Fire Services Department"

Appendix 32Letter of 20 December 2013 from the Director of Fire Services

 
336 - 348

Appendices relating to Chapter 6 of Part 7: "Government's efforts to enhance fire safety of old buildings"

Appendix 33Letter of 31 December 2013 from the Director of Fire Services

 
349 - 358

Appendix 34Letter of 8 January 2014 from the Acting Director of Buildings

 
359 - 366

ACRONYMS AND ABBREVIATIONS

 
367 - 370