For discussion EC(95-96)59
on 15 November 1995
ITEM FOR ESTABLISHMENT SUBCOMMITTEE
OF FINANCE COMMITTEE
HEAD 46 - GENERAL EXPENSES OF THE CIVIL SERVICE
Subhead 003 Recoverable salaries and allowances (General)
Members are invited to recommend to Finance Committee the retention of the following supernumerary post in the 1996-97 draft Estimates -
1 Administrative Officer Staff Grade B1
(D4) ($126,100 - $129,950)
The Hong Kong Export Credit Insurance Corporation (HKECIC) has requested the Government to continue to second a senior civil servant to fill its Commissioner post.
2. We propose to retain one supernumerary post of Administrative Officer Staff Grade B1 (AOSGB1)(D4) for a further year to allow for the continued secondment of a civil servant to the HKECIC as Commissioner.
3. The HKECIC was established by the Government in 1966 as Hong Kong's official export credit insurer, providing protection for Hong Kong manufacturers and exporters against the risks of their not being paid for the goods and services supplied to overseas clients. The powers and functions of the Corporation are defined under the HKECIC Ordinance (Cap. 1115). The Chief Executive of the HKECIC is the Commissioner, who has legal authority to implement and execute, on the Corporation's behalf, its powers, functions and duties.
4. HKECIC needs a capable administrator with demonstrated managerial ability and a sound grasp of the principles and practice of international trade and finance as its Commissioner. Since none of the senior officers of HKECIC is at present ready for appointment to the Commissioner post, we propose to continue to second a civil servant at AOSGB1 level to fill the post.
5. The current secondment arrangement carries with it a number of benefits, in particular in terms of the interchange of valuable and beneficial experience to both the HKECIC and to the Government which would not otherwise be possible. It affords an opportunity for civil servants to acquire experience in an important field of commerce and it provides the Corporation with an officer well versant with the Government machinery. Since the Corporation is governed by statute and needs to work closely with the Government, secondment brings a cross-fertilisation of knowledge and experience and enhances the understanding of both sides.
6. The desirability of the secondment arrangement is confirmed by a Consultancy Study commissioned by the Secretary for Trade and Industry in 1994 on the management needs of the HKECIC. The consultants recommended, amongst other things, that it is appropriate for the Corporation under the jurisdiction of the Government to be headed by a senior civil servant who has sufficient working experience in the various Government departments, and with previous exposure in the commercial field if possible. In the longer term consideration should be given to developing qualified senior managers and grooming them for the Commissioners position. The Government and the Corporation support this recommendation. A list of the overall and specific responsibilities of the post of Commissioner, HKECIC is at the Enclosure.
7. The notional annual salary cost of this proposal at mid-point is -
No. of Post
Supernumerary AOSGB1 post in HKECIC
8. We shall recover the full cost, including the staff on-cost, of the proposal from the HKECIC.
9. The proposal has no other financial or staffing implications.
10. A supernumerary AOSGB1 post has been created to provide for the secondment of a senior civil servant to the HKECIC since 1984. The post has since been retained annually in the context of the draft Estimates.
11. As the AOSGB1 post is proposed on a supernumerary basis, its retention, if approved, will be reported to the Standing Committee on Directorate Salaries and Conditions of Service in accordance with the agreed procedure.
Civil Service Branch
Enclosure to EC(95-96)59
As head of the Corporation, the Commissioner will, with the advice of the HKECIC Advisory Board, supervise and monitor the operation of the HKECIC within the powers and functions as defined in the HKECIC Ordinance (Cap. 1115), and where appropriate and justified, make recommendations to the Hong Kong Government for any modifications to the Corporations powers and functions to meet the business and administrative needs of the Corporation.
- to promote and monitor the business of the Corporation within approved policy in relation to the conduct of its business, namely -
- the classes of insurance contracts into which the Corporation is empowered to enter;
- the nature and extent of risks that may be covered under contracts of insurance entered into by the Corporation;
- the undertaking of liabilities;
- the giving of guarantees;
- to determine and oversee the organisation of the finances of the Corporation, particularly in the following areas -
- the total amount of capital and reserves required by the Corporation taking into account the sums at risk under contract of insurance;
- the investment policy of any surplus acquired by the Corporation;
- the raising of loans or mortgages whether on security or not;
- the acquisition of fixed assets;
- the movements of the underwriting accounts;
- the forecasting and monitoring of the administration account of the Corporation;
- the preparation of the Corporations annual report and statement of accounts;
- to service the HKECIC Advisory Board and seek the Boards advice on matters relating to the Corporations conduct of business; and
- supervision and appointment of all staff employed by the Corporation and overall administration of the Corporation.
- to liaise with and report to the authorities of the Hong Kong Government on matters relating to the powers, functions and business of the Corporation and to seek advice or approval where appropriate;
- to liaise with local financial institutions/business organisations and make agreements on behalf of the Corporation on financial transactions relating to the Corporations business;
- to liaise, negotiate and make agreements with overseas re-insurers on all matters relating to re-insurance contracts which the Corporation enters into with re-insurers;
- to represent the Corporation at the Berne Union and to promote the interest of the Corporation at the Union; and
- to liaise or keep in contact with overseas export credit institutions and to monitor developments in the field of export credits in overseas countries.
Last Updated on 3 December 1998