REPORT OF THE

PUBLIC ACCOUNTS COMMITTEE

ON

REPORT NO. 66 OF THE DIRECTOR OF AUDIT

ON

THE RESULTS OF

VALUE FOR MONEY AUDITS



July 2016

P.A.C. Report No. 66





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

3

The Government's Response

5

3

Part 3Committee Proceedings

Consideration of the Director of Audit's Report

1

4

Meetings

2

4

Arrangement of the Report

3 - 4

4

Acknowledgements

5

4

Part 4Chapter

1.Efforts of the Rating and Valuation Department in safeguarding revenue on rates and government rent

A.Introduction

1 - 10

5 - 9

B.General Revaluations

11 - 26

10 - 16

C.Interim valuations

27 - 40

16 - 23

D.Rates exemption for rural properties

41 - 50

23 - 27

E.Collection of rates and government rent

51 - 55

27 - 29

F.Conclusions and recommendations

56 - 58

30 - 46

2.Fresh food wholesale markets

1 - 5

47 - 49

3.Retrofitting of barrier-free access facilities for grade-separated walkways

1 - 6

50 - 52

4.Admission schemes for talent, investors and workers

1 - 6

53 - 55

5.Hong Kong Academy for Performing Arts

1 - 5

56 - 58

6.Monitoring of safe operation of lifts and escalators

1 - 5

59 - 61

7.Dedicated Fund on Branding, Upgrading and Domestic Sales

1 - 5

62 - 64

8.Procurement and inventory management of ICT products and services

1 - 5

65 - 67

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

 
68

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 66 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT

 
69

Appendix relating to Part 1: "Introduction"

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

 
70 - 71

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'

 
72 - 74

Appendix relating to Part 3: "Committee Proceedings"

Appendix 3Witnesses who appeared before the Committee

 
75

Appendices relating to Chapter 1 of Part 4: "Efforts of the Rating and Valuation Department in safeguarding revenue on rates and government rent"

Appendix 4Opening statement made by Secretary for Financial Services and the Treasury at the public hearing on 7 May 2016

 
76 - 80

Appendix 5Letter dated 24 May 2016 from Commissioner of Rating and Valuation

 
81 - 89

Appendix 6Consolidated reply in May 2016 from Secretary for Financial Services and the Treasury, Director of Buildings, Director of Home Affairs and Director of Lands

 
90 - 95

Appendix 7Letter dated 7 June 2016 from Secretary for Financial Services and the Treasury

 
96 - 98

Appendix 8Letter dated 30 June 2016 from Commissioner of Rating and Valuation

 
99 - 100

Appendix 9Letter dated 24 May 2016 from Director of Buildings

 
101 - 104

Appendix 10Measures taken by the Home Affairs Department to ensure that timely actions would be taken on ineligible rates-exempted houses outside designated village areas

 
105

Appendix relating to Chapter 2 of Part 4: "Fresh food wholesale markets"

Appendix 11Consolidated reply dated 2 June 2016 from Secretary for Food and Health and Director of Agriculture, Fisheries and Conservation

 
106 - 125

Appendix relating to Chapter 3 of Part 4: "Retrofitting of barrier-free access facilities for grade-separated walkways"

Appendix 12Consolidated reply dated 10 June 2016 from Director of Highways and Director of Civil Engineering and Development

 
126 - 142

Appendix relating to Chapter 4 of Part 4: "Admission schemes for talent, investors and workers"

Appendix 13Reply dated 27 May 2016 from Director of Immigration

 
143 - 162

Appendix relating to Chapter 5 of Part 4: "Hong Kong Academy for Performing Arts"

Appendix 14Consolidated reply dated 20 June 2016 from Secretary for Home Affairs and Director of Hong Kong Academy for Performing Arts

 
163 - 179

Appendix relating to Chapter 6 of Part 4: "Monitoring of safe operation of lifts and escalators"

Appendix 15Reply dated 27 May 2016 from Director of Electrical and Mechanical Services

 
180 - 189

Appendices relating to Chapter 7 of Part 4: "Dedicated Fund on Branding, Upgrading and Domestic Sales"

Appendix 16Reply dated 31 May 2016 from Secretary for Financial Services and the Treasury

 
190 - 192

Appendix 17Consolidated reply dated 31 May 2016 from Secretary for Commerce and Economic Development, Acting Director-General of Trade and Industry and Executive Director of Hong Kong Productivity Council

 
193 - 242

Appendices relating to Chapter 8 of Part 4: "Procurement and inventory management of ICT products and services"

Appendix 18Reply dated 27 May 2016 from Government Chief Information Officer

 
243 - 252

Appendix 19Letter dated 27 May 2016 from Director of Government Logistics

 
253 - 254

Appendix 20Reply dated 31 May 2016 from Director of Environmental Protection

 
255 - 259

Appendix 21Reply dated 26 May 2016 from Commissioner of Customs and Excise

 
260 - 262

Appendix 22Reply dated 7 June 2016 from Director of Highways

 
263 - 266

Appendix 23Letter dated 25 May 2016 from Director of Leisure and Cultural Services

 
267 - 268

Appendix 24Reply dated 27 May 2016 from Director of Water Supplies

 
269

Appendix 25Letter dated 27 May 2016 from Director of Fire Services

 
270

Appendix 26Reply dated 30 May 2016 from Director of Health

 
271 - 272

ACRONYMS AND ABBREVIATIONS

 
273 - 274