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External sources (not reviewed)

(c) merge the monthly provisions of the allowance for “entertainment and travelling expenses” into an annual provision.

Other expenditure including hospitality, local group transportation, interpretation services and souvenirs will be charged against other votes of the Secretariat.

The existing remuneration package for DC members comprises: (a) a monthly honorarium of $20,290; (b) an accountable annual provision of Operating Expenses Allowance at the rate of $233,544; (c) a non-accountable monthly provision of Miscellaneous Expenses Allowance at the rate of $4,120 to cover expenses like entertainment, self-development, personal insurance and minor purchase; (d) an accountable Setting-up Allowance of $100,000 per DC term to cover the cost of setting up a ward office, such as renovation of premises, purchase of furniture and equipment; and (e) an accountable Winding-up Allowance of $72,000 per DC term to cover expenses required to wind up a ward office, including severance payments for staff of the DC members.

Official entertainment expenses as an item under the one-line vote will be subject to the decision of individual bureaux to set a ceiling.

[...] expenditure on the emoluments (including [...] [...]

[...] [...] accommodation, dining, entertainment and logistical [...]

(g) entertainment expenses; and any prizes, either in the form of cash or other types of souvenirs.

[...] [...] not to allow departments or bureaux certain degree of flexibility over their entertainment expenses.

(5) When official entertainment is combined with private entertainment only that proportion of the expenditure that is attributable to the presence of the host and hostess and of their official guests may be charged to public funds.

This is a show of political stance. But we think the officials should not be penalized by having their salaries, entertainment fees or other expenditure items axed.

As regards the second part of the question, official entertainment expenses form part of the standard Subhead 149 General departmental expenses of each Head of Expenditure.

(b) to provide the Directors of Bureau with the necessary recurrent expenses (e.g. for overseas duty visit, entertainment etc)

The allowance seeks to cover expenses relating to liaison, entertainment, travelling, minor purchases, self-development as well as personal medical, dental and accident insurance of DC members.

Chairman, if we do not even cut his entertainment allowance, we cannot be accountable to the public.

In line with the present practice of annual revision of DC members’ honorarium, OER and MEA, we propose that SFST be delegated the authority to approve future adjustments to the EER level on an annual basis by reference to the movement of CPI(A).

Of the total entertainment expenses reimbursed to staff in the 2002-03 ESF financial year, 77% were related to staff functions.

There are Civil Service Regulations and general guidelines issued by the Director of Administration governing the charging of the entertainment expenses to public funds.

The supplementary provision will be met partly by transferring $4.508 million (being the salaries and non-accountable entertainment allowance of the current civil service CS and FS posts) from Head 142 Subhead 001 Salaries and partly from deleting an amount of $33.133 million from Head 106 Miscellaneous Services Subhead 251 Additional commitments.

On the issue of concern to Mr CHAN, since official entertainment expenses form part of the standard Subhead 149, I can tell the Member that the expenses incurred by Heads of Department or controlling officers must not exceed the provision as approved by the Legislative Council for each subhead.

As there is no fixed plan at the moment for the coming year, it is estimated that the official entertainment of the Works Branch in 2004-05 will be at about the same level as in current year.

Recently, the Government has also issued guidelines to strictly control departmental expenditures on entertainment, visits and use of vehicles, and to achieve as much savings as possible on the use of paper and power.

It is estimated that the official entertainment of the Environment and Transport Branch in 2004-05 will be at about the same level as in the current year.

Audit has recommended that the HKDC should: (a) seek the ITC’s approval prior to making salary adjustment to DSP project staff; (b) ensure that the DSP funding support is not used to meet entertainment expenses; and (c) seek the ITC’s approval if the budget of a DSP project item is exceeded by 15% or more.

[...] [...] special monthly remuneration and reimbursements [...]

Environment, Transport and Works and the Permanent Secretary for the Environment, Transport and Works (Environment and Transport) since both of them would have attended the same functions together and with other officers on a number of occasions.