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 2003

AND THE RESULTS OF

VALUE FOR MONEY AUDITS (Report No. 41)


February 2004

P.A.C. Report No. 41





CONTENTS
Page

I.Introduction

1The Establishment of the Committee1

2Membership of the Committee1

II.Procedure

1The Committee's Procedure2 - 3

2 - 3The Committee's Report3

4The Government's Response3

III.Report of the Public Accounts Committee on Report No. 38 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 38]


1Laying of the Report4

2 - 8The Government Minute4 - 9

IV.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 2002 and the Results of Value for Money Audits (Report No. 39) and Supplemental Report of the Public Accounts Committee on Report No. 38 of the Director of Audit on the Results of Value for Money Audits
[P.A.C. Report No. 39]


1Laying of the Report10

2 - 53The Government Minute10 - 50

V.Committee Proceedings

1Consideration of the Director of Audit's Report51

2Meetings51

3 - 4Arrangement of the Report51

5Acknowledgements51

VI.Observations 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 200352

VII.Chapter

1.Public markets managed by the Food and Environmental Hygiene Department53 - 75

2.Provision of noise barriers for mitigating road traffic noise76 - 106

3.Buildings Department's efforts to tackle the unauthorised building works problem107 - 129

4.Planning and provision of public secondary school places130 - 150

5.The acquisition and clearance of shipyard sites151

6.Funding of tertiary education152 - 173

SIGNATURES OF THE CHAIRMAN, DEPUTY CHAIRMAN AND MEMBERS OF THE COMMITTEE174

CHAPTERS IN THE DIRECTOR OF AUDIT'S REPORT NO. 41 DEALT WITH IN THE PUBLIC ACCOUNTS COMMITTEE'S REPORT175

APPENDIX 1Rules of Procedure of the Legislative Council of the Hong Kong Special Administrative Region176 - 177

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'178 - 180

Appendix relating to Part III: "Report of the Public Accounts Committee on Report No. 38 of the Director of Audit on the Results of Value for Money Audits [P.A.C. Report No. 38]"


APPENDIX 3Letter of 15 January 2004 from the Director of Food and Environmental Hygiene181 - 185

Appendices relating to Part IV: "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 2002 and the Results of Value for Money Audits (Report No. 39) and Supplemental Report of the Public Accounts Committee on Report No. 38 of the Director of Audit on the Results of Value for Money Audits [P.A.C. Report No. 39]"


APPENDIX 4Letter of 15 January 2004 from the Acting Government Property Administrator186 - 188

APPENDIX 5Letter of 20 January 2004 from the Secretary for Housing, Planning and Lands189 - 191

APPENDIX 6Letter of 7 January 2004 from the Executive Director, Employees Retraining Board192

APPENDIX 7Letter of 13 January 2004 from the Secretary for the Environment, Transport and Works193 - 203

Appendices relating to Part V: "Committee Proceedings"


APPENDIX 8Witnesses who appeared before the Committee204 - 205

APPENDIX 9Introductory remarks by the Chairman of the Public Accounts Committee, Dr Hon Eric LI Ka-cheung, GBS, JP, at the first public hearing of the Committee on Monday, 8 December 2003206 - 207

Appendices relating to Chapter 1: "Public markets managed by the Food and Environmental Hygiene Department"


APPENDIX 10Letter of 26 January 2004 from the Acting Director of Food and Environmental Hygiene208 - 210

APPENDIX 11Letter of 30 December 2003 from the Permanent Secretary for Health, Welfare and Food211

APPENDIX 12Letter of 20 January 2004 from the Director of Audit212

APPENDIX 13Letter of 19 December 2003 from the Director of Food and Environmental Hygiene213 - 223

APPENDIX 14Letter of 30 December 2003 from the Director of Food and Environmental Hygiene224 - 225

APPENDIX 15Letter of 5 December 2003 from the Secretary for Financial Services and the Treasury226 -227

Appendices relating to Chapter 2: "Provision of noise barriers for mitigating road traffic noise"


APPENDIX 16Letter of 24 December 2003 from the Director of Highways228 - 229

APPENDIX 17Letter of 27 January 2004 from the Director of Highways230 - 231

APPENDIX 18Letter of 22 December 2003 from the Director of Environmental Protection232 - 239

APPENDIX 19Letter of 22 December 2003 from the Director of Lands240 - 244

APPENDIX 20Letter of 9 February 2004 from the Director of Lands245 - 246

APPENDIX 21Letter of 21 January 2004 from the Director of Environmental Protection247 - 268

APPENDIX 22Letter of 31 December 2003 from the Director of Territory Development269 - 271

APPENDIX 23Letter of 21 January 2004 from the Director of Territory Development272 - 273

APPENDIX 24Letter of 19 January 2004 from the Director of Audit274 - 275

APPENDIX 25Letter of 9 February 2004 from the Director of Audit276 - 278

APPENDIX 26Letter of 31 December 2003 from the Secretary for the Environment, Transport and Works279 - 281

APPENDIX 27Letter of 9 February 2004 from the Director of Territory Development282 - 283

Appendices relating to Chapter 3: "Buildings Department's efforts to tackle the unauthorised building works problem"


APPENDIX 28Letter of 23 December 2003 from the Director of Buildings284 - 301

APPENDIX 29Letter of 2 January 2004 from the Acting Director of Buildings302 - 313

APPENDIX 30Letter of 27 January 2004 from the Director of Audit314 - 315

Appendices relating to Chapter 4: "Planning and provision of public secondary school places"


APPENDIX 31Letter of 31 December 2003 from the Director of Audit316 - 317

APPENDIX 32Information note provided by the Secretary for Education and Manpower318 - 322

APPENDIX 33Letter of 30 December 2003 from the Director of Audit323 - 324

Appendices relating to Chapter 6: "Funding of tertiary education"


APPENDIX 34Letter of 31 December 2003 from the Secretary-General, University Grants Committee325 - 327

APPENDIX 35Letter of 8 December 2003 from the President and Vice-Chancellor, Hong Kong Baptist University328

APPENDIX 36Letter of 5 January 2004 from the Director of Audit329 - 333

APPENDIX 37Letter of 8 December 2003 from the President, The Hong Kong University of Science and Technology334

APPENDIX 38Letter of 18 February 2004 from the Secretary-General, University Grants Committee335 - 336