For discussion FCR(95-96)95
on 15 December 1995

ITEM FOR FINANCE COMMITTEE

HEAD 177 - SUBVENTIONS : NON-DEPARTMENTAL PUBLIC BODIES
New Recurrent Account Subhead “Privacy Commissioner for Personal Data”

Members are invited to -

  1. approve the creation of a new recurrent account subventions subhead “Privacy Commissioner for Personal Data” under Head 177 Subventions : Non-Departmental Public Bodies;
  2. accept the financial implications of establishing the Privacy Commissioner for Personal Data at an estimated annually recurrent cost of $28.6 million; and
  3. note the financial implications of creating under delegated authority three new commitments : one of $4 million for meeting the setting up costs; one of $2 million for a large scale publicity campaign; and one of $7.8 million for computer systems for automated functions, for the Privacy Commissioner for Personal Data.


PROBLEM

We require funds to set up an office of the Privacy Commissioner for Personal Data (the Privacy Commissioner)Office (PCO) to implement the provisions of the Personal Data (Privacy) Ordinance (the Ordinance).

PROPOSAL

2. The Secretary for Home Affairs (SHA) proposes that the Privacy Commissioner shall receive full and direct subvention from the Administration as an autonomous statutory body. For this purpose, we propose to create a new recurrent account subhead under Head 177 Subventions : Non-Departmental Public Bodies for subventing the Privacy Commissioner’s activities. SHA will be the Controlling Officer of this new expenditure subhead.

JUSTIFICATION

Functions of the Privacy Commissioner

3. The Ordinance was enacted on 3 August 1995. It aims to protect the individual’s privacy with respect to personal data and to safeguard the free-flow of personal data to Hong Kong from interference by countries that already have data protection laws.

4. Section 5 of the Ordinance provides for the establishment of statutory authority, the Privacy Commissioner, who shall be appointed by the Governor, to enforce and promote compliance with its requirements. The main functions and powers of the Privacy Commissioner are to -

  1. monitor and supervise compliance with the provisions of the Ordinance;
  2. approve and issue codes of practice giving practical guidance for compliance with the provisions of the Ordinance;
  3. specify classes of data users required to provide information concerning their personal data practices for compilation of a public register of data users;
  4. approve the automated matching of personal data;
  5. promote awareness and understanding of, and compliance with, the provisions of the Ordinance;
  6. carry out inspections of personal data systems, including those of Government departments and statutory corporations; and
  7. investigate, upon receipt of complaints from data subjects or on his own initiative, suspected breaches of requirements of the Ordinance.

Organisation of the Privacy Commissioner’s Office

5. In accordance with section 9 of the Ordinance, the Privacy Commissioner may employ staff to assist him in the performance of his functions and to exercise the powers in paragraph 4 above. We propose that the Privacy Commissioner be initially supported by an office of 31 staff. responsible for the management and administration of the PCO Given the leadership qualities required of the Privacy Commissioner and the nature of his her statutory duties, we consider it appropriate to rank the post of the Privacy Commissioner at Point 5 on the Government Directorate Pay Scale.

6. To carry out the above functions effectively, we expect the office of the Privacy Commissioner to compriseorganised the following two divisions -

  1. The Operations Division
      To deal with general enquiries from members of the public and organisations concerning the provisions of the Ordinance;
      to receive and take action on complaints lodged with the Privacy Commissioner under the Ordinance, including screening, investigation and conciliation;
      to undertake inspections of personal data systems as ordered by the Privacy Commissioner and make recommendations to the data users concerned for improved compliance with the provisions of the Ordinance;
      to conduct investigations of suspected breaches of the Ordinance as ordered by the Privacy Commissioner and take appropriate follow-up action to ensure compliance with its provisions;
      to approve and issue codes of practice providing guidance for compliance with the Ordinance’s requirements;
      to deal with applications from data users for approval of automated data matching procedures;
      to provide advice on matters that may affect the privacy of individuals in relation to personal data; and
      to give legal advice to the Privacy Commissioner.
  2. The Administration and Promotion Division
      To provide secretarial support;
      to provide administrative support, including human, financial and information resources management;
      to arrange and co-ordinate promotion and publicity programmes, which will include a large scale publicity campaign in the first year of operation, seminars, and workshops; and
      to arrange and oversee research projects on matters relating to privacy protection for personal data.

7. The Privacy Commissioner shall determine the remuneration and the terms and conditions of his staff. In line with present subvention policy, he shall be required not to offer terms and conditions which are superior to those provided by Government to comparable grades in the civil service. The proposed staffing structure of his office, which is subject to the agreement of the Privacy Commissioner, is at Enclosure 1. The salary scales of the posts involved at or above the rank of Assistant Secretary are at Enclosure 2. In estimating the resource requirements of the office, we have taken into account the functions and powers of the Privacy Commissioner as well as both the local and overseas experience of other similar statutory bodies.

FINANCIAL IMPLICATIONS

8. Based on the above staffing structure, we estimate that the office of the Privacy Commissioner will require an annually recurrent expenditure of $28.6 million, made up as follows -


$ million

Salaries and allowances

21.6

Office rentals, air-conditioning and management fees

3.9

General expenses

1.2

Promotion and publicity

0.5

Hiring of consultancy services1

1.4

Total

28.6

9. SHA aims to bring the office of the Privacy Commissioner into operation in early 1996. We estimate that it will require a subvention of $2.6 million to meet its operating cost for the remainder of the current financial year. Subject to Members’ approval, we shall provide the necessary supplementary provision in 1995-96 under delegated authority and include sufficient provision in the 1996-97 draft Estimates.

10. In addition to the annually recurrent expenditure, we expect that the office of the Privacy Commissioner will require the following one-off commitments in the first year of its operation:conducting a one-off large scale publicity campaign on establishment of the Office. The PCO will also require about $4 million for office fitting out and procurement of office furniture, equipment and vehicle; about $2 million to conduct a large scale publicity campaign; and about $7.8 million to install computer systems for automated functions to facilitate its work.cost of

11. If Members approve the creation of the new recurrent account subventions subhead for the Privacy Commissioner, SHA will approach the Secretary for the Treasury for the creation, under delegated authority, of the above three capital account commitments .

BACKGROUND INFORMATION

12. Following the enactment of the Ordinance in August 1995, we have set up a preparatory team in the Home Affairs Branch to undertake preparatory work to establish the office of the Privacy CommissionerPCO. Its work includes identifying suitable office accommodation, preparing staff and other resource requirements, advising Government departments on preparation for compliance with the Ordinance and responds to enquiries on the Ordinance from the private sector. It is also developing an administrative framework for the officePCO, including policies and operation procedures, personnel and accounting systems and handling of complaints.

13. We briefed the LegCo Panel on Information Policy on preparatory work relating to the setting up of the office of the Privacy Commissioner on 1 December 1995. We also informed Members that we intended to was earmarked for the Privacy Commissioner to conduct a large scale publicity campaign in its first year of operation. One Member queried whether there were sufficient staff resources to undertake the promotion and publicity work under our proposal. We explained that a Senior Assistant Secretary and a Clerical Officer II would be deployed full-time to undertake promotion and publicity activities. In addition, we envisage that the Chief Assistant Secretary, who is the head of the Administration and Promotion Division, will be actively involved in planning and overseeing promotion and publicity activities. However, we will obtainenga the necessary specialist expertise, such as graphic design skills promotion and publicity from outside as and when required as it will be more cost-effective to do soPCO.

Home Affairs Branch
December 1995

1 -- This is for employing expert services to inspect the personal data systems of organisations, the work of which is highly technical.


Enclosure 2 to FCR(95-96)95

Proposed salary scales for the Privacy Commissioner for Personal Data

Rank

Pay Points

Privacy Commissioner for Personal Data

Point D5 of Government Directorate Pay Scale ($133,900)

Deputy Privacy
Commissioner for Personal
Data

Point D3 of Government Directorate Pay Scale ($111,100-$114,400-$117,750)

Assistant Commissioner
(Operations)

Point D2 of Government Directorate Pay Scale ($95,550-$98,550-$101,450)

Chief Assistant Secretary

Points 45 - 49 of Government Master Pay Scale
($62,665 - $72,195)

Legal Advisor

Points 45 - 49 of Government Master Pay Scale
($62,665 - $72,195)

Senior Assistant Secretary

Points 34 - 44 of Government Master Pay Scale
($39,300 - $60,475)

Senior Chinese Language
Officer

Points 34 - 44 of Government Master Pay Scale
($39,300 - $60,475)

Assistant Legal Advisor

Points 32 - 44 of Government Master Pay Scale
($36,490 - $60,475)

Accountant

Points 30 - 44 of Government Master Pay Scale
($33,290 - $60,475)

Assistant Secretary

Points 28 - 33 of Government Master Pay Scale
($30,365 - $38,210)


Last Updated on 2 December 1998