EC(1999-2000)15

For discussion
on 9 June 1999

ITEM FOR ESTABLISHMENT SUBCOMMITTEE OF FINANCE COMMITTEE

HEAD 55 - GOVERNMENT SECRETARIAT :
INFORMATION TECHNOLOGY AND BROADCASTING BUREAU
Subhead 001 Salaries
    Members are invited to recommend to Finance Committee -

  1. the creation of the following supernumerary directorate posts for a period of three years -

    1 Administrative Officer Staff Grade B
    (D3) ($127,900 - $135,550)

    1 Chief Engineer
    (D1) ($98,250 - $104,250)

  2. an increase in the ceiling placed on the total notional annual mid-point salary value of all non-directorate posts in the establishment of the Information Technology and Broadcasting Bureau (ITBB) in 1999-2000 from $25,746,000 by $3,166,560 to $28,912,560 to allow the creation of five non-directorate posts.
PROBLEM

The Secretary for Information Technology and Broadcasting (SITB) needs additional staff to oversee the Cyberport development.

PROPOSAL

2. To assist SITB to oversee the Cyberport development, we propose to -

  1. create two supernumerary directorate posts of one Administrative Officer Staff Grade B (AOSGB) (D3) and one Chief Engineer (CE) (D1) for a period of three years; and

  2. increase the ceiling placed on the total notional annual mid-point salary (NAMS) value of all non-directorate posts in the establishment of ITBB in 1999-2000 from $25,746,000 by $3,166,560 to $28,912,560 for the creation of five non-directorate posts.
JUSTIFICATION

Cyberport development

3. The Financial Secretary announced on 3 March 1999 Government's intention to proceed with the $13 billion Cyberport development which will be designed as a flagship project to put Hong Kong firmly on the global information technology and services (IT/IS) map. The Cyberport is an information infrastructure project with the objectives of creating a strategic cluster of top IT and IS companies and a critical mass of professional talent in Hong Kong in the shortest possible time. Local companies will benefit from the opportunity to work in close proximity with leading IT and IS companies from overseas. In addition to providing additional jobs, the companies in the Cyberport will provide Hong Kong people with opportunities to learn new skills and develop creative ideas in the IT and IS field. Our young people will be encouraged by the building up of a professional community at the Cyberport to choose a career in the IT and IS field.

Need for monitoring of the Cyberport project

4. Under the present arrangement, the Pacific Century Group (PCG) will be responsible for the design, construction, development and marketing of the Cyberport. To facilitate effective coordination of works, the essential infrastructure works for the Cyberport development, including the drainage, sewage treatment facilities, roads and public transport interchange, will be entrusted to PCG. We are now working on the legal documentation and agreements with a view to concluding them by this summer. According to the present project schedule, the entrusted infrastructure works will commence in September 1999 and the construction of the Cyberport portion will start in 2000 for completion in phases from late 2001/early 2002 to 2003.

5. Given the importance of the Cyberport project, the Government will need to liaise closely with PCG, Cyberport tenants/prospective tenants, IT/IS associations and other interested parties to ensure that detailed specifications and design of the Cyberport meet users' requirements. We will also need to monitor closely the Cyberport development by PCG to ensure that the design, construction and development of the project meet the specifications laid down by the Government. Separately, we need to formulate recommendations on the future management and marketing strategy for the Cyberport and to assist in the administration of the future management organisation (tentatively named as the Cyberport Company) which will be responsible for setting the future direction of the Cyberport, defining the main principles of management, administering the admission criteria and overseeing the day-to-day management of the Cyberport.

The Current Organisation of ITBB

6. SITB is currently underpinned by two Deputy Secretaries, designated as Deputy Secretary for Information Technology and Broadcasting 1 (DS(1)) and Deputy Secretary for Information Technology and Broadcasting 2 (DS(2)). DS(1) is responsible for overseeing the policy areas of broadcasting and telecommunications as well as bureau administration and DS(2) is responsible for overseeing the policy areas of the IT infrastructure and services, the Year 2000 compliance work, film services and publications. As both DS(1) and DS(2) are already fully occupied, SITB needs additional staffing support to take forward the Cyberport development. An organisation chart of ITBB showing the responsibilities of each of the Deputy Secretary is at Enclosure 1.

Responsibilities and composition of the new Division

7. We propose to set up a new Cyberport Division in ITBB, on a temporary basis, to undertake the following tasks -

Overall

  • to oversee the design, development, marketing and management of the Cyberport in order to ensure that it aligns with the objectives of our Digital 21 information technology strategy;
Planning and Construction
  • to ensure the design and development of the Cyberport will be in accordance with the terms of the agreement with PCG;

  • to monitor progress of the engineering and construction works;

  • to ensure proper co-ordination among Government departments in order to keep to the overall programme of the Cyberport;
Marketing
  • to oversee the implementation of a marketing strategy, including a strategy for the recruitment of tenants, attraction of human resources, public relations, marketing and promotion of the Cyberport;

  • to work closely with PCG in the marketing of the Cyberport, both to multinational corporations and to local IT companies

  • to liaise with future tenants (i.e. those who have signed letters of intent) and prospective tenants (i.e. those who have registered an interest to become Cyberport tenants) to maintain their interest during the development stage of the project;

  • to encourage and assist future tenants to explore the feasibility of early set-up of their operations in Hong Kong in temporary accommodation prior to the completion of Phase 1 of the Cyberport;
Management
  • to formulate recommendations on the future management strategy for the Cyberport;

  • to provide administrative support to the Cyberport Company, its board of directors and its sub-committees. The Cyberport Company will be responsible for setting the future direction of the Cyberport, defining the main principles of management, administering the admission criteria and overseeing the day-to-day management of the Cyberport;

  • upon appointment of a management company, to monitor the work of the management company in the management of the Cyberport; and

  • to set up the Cyberport Company to hold the title of the Cyberport and eventually transfer the above functions of the Cyberport Division to this company.
8. Given the above tasks and the anticipated workload, we propose to set up a new Division comprising the following posts -
  1. 1 supernumerary AOSGB post, to be designated as Deputy Secretary for Information Technology and Broadcasting (Cyberport) (DS(Cyberport));

  2. 1 supernumerary Chief Engineer post, to be designated as Chief Engineer (Cyberport) (CE(Cyberport)); and

  3. 5 non-directorate posts, comprising 1 Senior Architect post, 1 Chief Executive Officer post, 1 Senior Executive Officer post, 1 Personal Secretary I post and 1 Personal Secretary II post, in the Cyberport Division to provide the necessary support.
The proposed organisation chart of ITBB Cyberport Division is at Enclosure 2.Encl. 2

9. The head of the new Division will have overall responsibility for overseeing the Cyberport development. More specifically, the officer will be responsible for formulating the necessary institutional arrangements for overseeing the Cyberport development during its construction and operation, to constantly review the progress of the project in the light of the terms of agreement with PCG; to liaise with IT and IS industry and business sectors, academia and providers of IT products and services in Hong Kong, the Mainland and overseas over the design of the Cyberport, its positioning vis-a-vis other similar developments, linkage with universities and the industry. The officer also needs to maintain close liaison with Bureaux and Departments and co-ordinate action to ensure timely completion of the project. In discharging his duties, the officer will need to work closely with senior executives of PCG, multinational corporations and local IT/IS companies and other Cyberport users, to attend meetings of ExCo, LegCo and other organisations as appropriate. Given the level of responsibility and the importance of the duties involved, we consider that head of the new Division should be a directorate officer at ADSGB (D3) level with the necessary experience and ability to handle complex issues which must be completed within a fixed time frame.

10. In order to provide adequate directorate and professional support to the team leader, we also propose the creation of a Chief Engineer (D1) post, to be designated as CE(Cyberport), to assist the team leader to ensure the design and development of the Cyberport will be in accordance with the terms of agreement with PCG and be able to meet users' requirements. The officer will provide professional and technical input to monitor the progress of the engineering and construction works and to ensure effective coordination among Government departments in order to keep to the overall programme of the Cyberport.

11. These two directorate officers will also be responsible for setting up the management structure of the Cyberport, including the establishment of a Cyberport Company and its board of directors with Government representatives and independent advisers which will oversee the Cyberport. We anticipate that work on overseeing the planning and development of the Cyberport as well as on the establishment of the institutional arrangement for the management of the Cyberport should be completed within three years, by which time the need for the two directorate posts will reduce greatly. The DS(Cyberport) and CE(Cyberport) posts are therefore proposed for creation on a supernumerary basis for a period of three years in the first instance. We will review the continued requirement for these two posts in 2001. The proposed job description of the DS(Cyberport) and CE(Cyberport) posts are at Enclosure 3 and 4 respectively.

12. SITB also proposes to create five non-directorate posts as listed in paragraph 8(c) to provide the necessary technical, executive and secretarial support to monitor the Cyberport development. Details of the five new posts, which we will create through the usual Departmental Establishment Committee machinery, are set out at Enclosure 5.

FINANCIAL IMPLICATIONS

13. The additional notional annual salary cost of this proposal at MID-POINT is -

$No. of Posts
Supernumerary directorate posts2,793,6002
Non-directorate posts3,166,5605
________________
Additional5,960,1607
________________

14. The full annual average staff cost, including salaries and staff on-costs, is $10,107,576.

15. We have not included provision in the 1999-2000 Estimates to meet the cost of the proposal which is estimated at $4,470,000 for the remainder of the financial year. If Members approve this proposal, we will provide supplementary provision required in 1999-2000 under delegated authority.

BACKGROUND INFORMATION

16. In his 1997 Policy Address, the Chief Executive announced his vision to make "Hong Kong a leader, not a follower, in the information world of tomorrow". To achieve this end the ITBB formulated the Digital 21 information technology strategy aimed at "enhancing and promoting Hong Kong's information infrastructure and services so as to make Hong Kong a leading digital city in the globally connected world of the 21st century". The Cyberport will be an important infrastructure in this overall strategy which will help IT and services companies to take advantage of the facilitating environment which we are providing.

17. One AOSGB from Civil Service Bureau's operational reserve and one Chief Telecommunications Engineer from Office of Telecommunication Authority are temporarily on loan/seconded to ITBB to cope with the workload in the initial preparatory stage of the Cyberport project. These loan/secondment arrangement will lapse upon the creation of the posts being sought.

CIVIL SERVICE BUREAU COMMENTS

18. The Bureau has considered carefully alternative means to provide the appropriate level of service bearing in mind the need for efficiency and productivity but considers this proposal the most appropriate way to proceed. Having regard to the reasons put forward, Civil Service Bureau considers the proposal justified and the grading and ranking appropriate.

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

19. As the posts are proposed on a supernumerary basis, we shall report their creation, if approved, to the Standing Committee on Directorate Salaries and Conditions of Service in accordance with the agreed procedure.

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Information Technology and Broadcasting Bureau
May 1999



Enclosure 1 to EC(1999-2000)15

Organisation Structure of ITBB

Enclosure 2 to EC(1999-2000)15

Proposed Organisation Chart of ITBB Cyberport Division

Enclosure 3 to EC(1999-2000)15

Proposed Job Description of the Deputy Secretary (Cyberport) (D3) Post

Post : Deputy Secretary (Cyberport)
Rank : Administrative Officer Staff Grade B (D3)
Responsible to : Secretary for Information Technology and Broadcasting

Main Duties and Responsibilities -

1. to direct, coordinate and supervise the work of the Cyberport Division;

2. to oversee the design, development, marketing and management of the Cyberport in order to ensure that it aligns with the objectives of our Digital 21 information technology strategy;

3. to monitor progress of the engineering and construction works and to ensure proper coordination among Government departments in keeping the overall programme of the Cyberport;

4. to formulate recommendations on the future management strategy for the Cyberport;

5. to facilitate the Cyberport Company and its sub-committees in formulating the direction of the development of the Cyberport, laying down the main principles of management and administering the admission criteria for tenancy applications;

6. to oversee the implementation of a marketing strategy and to engage the interest of potential tenants during the development stage of the Cyberport project, including a strategy for recruitment of tenants, attraction of human resources, public relations, marketing and promotion of the Cyberport development;

7. (upon appointment of a management company) to monitor the work of the management company; and

8. to set up the management structure of the Cyberport, including the establishment of a Cyberport Company and its board of directors with Government representatives and independent advisers which will oversee the Cyberport in future.

Enclosure 4 to EC(1999-2000)15

Proposed Job Description of the Chief Engineer (Cyberport) (D1) post

Post : Chief Engineer (Cyberport)
Rank : Chief Engineer (D1)
Responsible to : Deputy Secretary (Cyberport)

Main Duties and Responsibilities - 1. to oversee the engineering and building construction works of the Cyberport development;

2. to provide technical support to DS (Cyberport) in ensuring that the design and construction of the Cyberport meet the specifications as laid down by the Government;

3. to monitor the overall programme of the Cyberport, provide guidance and initiate remedial action where necessary to ensure the Cyberport's timely completion;

4. to coordinate action among Government departments and liaise with public utility companies and statutory authorities in order to obtain agreement and to resolve problems in connection with the project's construction such as statutory approvals and clearance of land required for the works;

5. to maintain close contact with the Cyberport developer and government bureaux/departments on the timely completion of the infrastructure works and to pay regular visits to work sites to keep close track of project progress;

6. to monitor and ensure cost control for all engineering and building works at the Cyberport; and

7. to liaise with relevant government departments on the handing over and maintenance of completed works.

Enclosure 5 to EC(1999-2000)15

Non-directorate posts to support the Cyberport Division

  1. one post of Senior Architect - to assist the two directorate officers to oversee the design and development of the Cyberport and to coordinate action among Government departments to ensure that overall programme of Cyberport project will be met;

  2. one post of Chief Executive Officer and one post of Senior Executive Officer - to assist the two directorate officers to execute recommendations on the future management strategy for the Cyberport; to provide administrative support to the Cyberport Company and its sub-committees; to engage the interest of potential tenants during the development stage of the project; (upon appointment of a management company) to monitor the work of the management company in implementing the marketing strategy; and to set up the institutional arrangements for the Cyberport Company; and

  3. one Personal Secretary I post and one Personal Secretary II post - to provide secretarial and clerical support to the new DS(Cyberport), CE(Cyberport), SA(Cyberport) and CEO(Cyberport) posts.