CHAPTER 2

REVIEW OF INDIVIDUAL GRADES AND
LIAISON WITH MAJOR CIVIL SERVICE STAFF ASSOCIATIONS

2.1During the year, we were invited by the Administration to advise on a number of proposals dealing with individual grades as well as to consider a report by the Administration on civil service fringe benefits. The gist of our deliberations and recommendations are set out in the following paragraphs.

Lowering of Salary Bar for the Assistant Education Officer Rank

2.2The Assistant Education Officer (AEO) rank is the entry rank for the Education Officer grade, appointment to which requires either a degree or a degree plus a Post-graduate Certificate in Education (PGCE). Appointees with only a degree enter the pay scale at MPS Point 17 and are barred from proceeding beyond MPS Point 27 and from promotion, unless they acquire a PGCE in the interval.

2.3To improve the quality of teaching in secondary schools, the Advisory Committee on Teacher Education and Qualification (ACTEQ) recommended that by September 2004 all secondary school teachers should possess a degree plus a PGCE. To speed up the process for serving secondary school teachers to acquire the PGCE, ACTEQ recommended that all appointees to the AEO rank after 1st September 1997 should be allowed no more than six years in which to acquire a PGCE. To give effect to the ACTEQ recommendation, the Administration proposed that the salary bar for AEOs appointed after 1st September 1997 be lowered from MPS Point 27 to MPS Point22.

2.4At the Commission's meeting on 16th January 1997, we considered and supported the Administration's proposal. Shortening the maximum period during which an AEO must undertake part-time studies to acquire the PGCE from 11 years to six years, would help to instill a sense of commitment and professionalism to young graduate teachers at an earlier stage in their career. This would serve to further the Government's objective of upgrading the quality of secondary education in Hong Kong.

2.5While there are no service-wide implications, lowering the salary bar of the AEO rank would have a bearing on the Primary School Master (PSM) grade where a similar bar exists at MPS Point 27 for the Assistant Primary School Master rank. The Administration does not consider this to be an immediate problem and assured us that this matter would be dealt with in the context of an overall review of the salary structure of the entire PSM grade, likely to be in the year 2000.

2.6Our views and recommendations were conveyed to the Governor in a letter dated 27th January 1997 (Appendix D). We understand that the salary bar for the AEO rank was lowered with effect from 1st September 1997.

Upgrading of Entry Requirement of the X-ray Assistant Grade

2.7Created in 1965, the X-ray Assistant (XRA) grade is responsible for chest radiography in the Tuberculosis and Chest Service in the Department of Health. With entry requirement set at Form IV level, the grade has been classified under the "Grades not requiring a full School Certificate" group. A new rank of Senior X-ray Assistant (SXRA) was created in 1981.

2.8With effect from 1st November 1996, only persons registered on the Register of the Radiographers Board are permitted to practise radiography. This new legislative requirement effectively spells an end to the career of XRAs and SXRAs who are ineligible for registration and for those who are eligible for registration, a de facto upgrading of their entry requirements by virtue of their registration as a diagnostic radiographer in the appropriate part of the Register. As a consequence, Form IV is no longer an acceptable qualification for appointment to the XRA rank.

2.9To meet increasing demand, the Department of Health has been expanding radiology service and raising the standard of radiographic services rendered by staff. Since 1st November 1996, the duties and responsibilities of the XRA grade have been enhanced. In addition to carrying out routine procedures of taking X-ray, XRAs have been given additional duties to ensure proper management and care of patients with varying disabilities and illnesses, and proper radiation protection for all patients. XRAs have also gradually taken up the new radiographic duties of taking plain X-ray of heads, limbs, shoulders and other parts of the body hitherto assumed by staff in the Radiographer grade.

2.10In the light of the change in entry requirement and having regard to the enhanced responsibilities of staff, the Administration proposed that the XRA grade be upgraded and reclassified under Group I of the "Technician, Supervisory and Related Grades" and its entry requirement revised to include registration in Part IV in the Register of the Radiographers Board. In line with the benchmark and common pay structure of the new qualification group, the Administration proposed that the pay scales of the XRA grade be revised accordingly. To reflect more accurately the changed status and enhanced duties, the Administration proposed that the XRA grade be retitled as the "Radiographic Technician" ("©ñ®g§Þ³N­û") grade. Accordingly, XRA would be retitled as "Radiographic Technician" and SXRA as "Senior Radiographic Technician". Promotion to the Senior rank requires a registration in Part III in the Register of the Radiographers Board, plus at least five years of satisfactory service in the grade.

2.11In the course of discussion with the Administration, members of the XRA grade put forward strong representations that implementation of the upgrading proposal and the new pay scales should be backdated to take effect from 1st November 1996, the date the new registration requirement came into force, rather than from a current date.

2.12Backdating is not normally allowed in pay reviews of individual grades, except in a major review exercise involving all grades in the civil service. The Administration gave careful consideration to the staff request. It noted that there had been no precedent cases where changes in entry requirement were necessitated by a change in legislative requirement and that it would be extremely rare for similar cases to occur in future. On the basis of the unique nature of this case, the Administration supported the backdating request.

2.13The Administration's proposals were presented to us for consideration at our meeting on 4th September 1997. We agreed with the Administration that the new legislative requirement had imposed a de facto change to the entry requirement for the XRA grade and that the new qualification, pitched at the Certificate level, would justify the reclassification of the XRA grade under Group I of the "Technician, Supervisory and Related Grades". We saw no objection to the new pay scales nor to the adoption of "Radiographic Technician" ("©ñ®g§Þ³N­û") as the replacement title for the XRA grade.

2.14In proposing that the new pay scales be implemented with effect from 1st November 1996 rather than from a current date, the Administration was, indeed, departing from an established practice, known to and generally accepted by staff since the major service-wide grade review exercise undertaken in 1979. The force of the Administration's argument was derived from the de facto change brought upon the XRA grade by virtue of the new legislative requirement for registration. This is a unique situation and it would be fair to say that staff of the XRA grade did have a legitimate expectation of the new pay scales being implemented upon the coming into effect of the registration requirement on 1st November 1996, the date upon which the careers of XRAs who could not qualify for registration were curtailed. We agreed, therefore, that the Administration's proposal for backdating, in the circumstances, was justified. We urged, however, that the Administration should explain this unique case to all staff associations to prevent misunderstanding and to ensure that the established practice of implementing decisions of pay reviews from a current date be continuously enforced, except in unique circumstances, on which the Commission's advice must first be sought.

2.15Our views and recommendations were conveyed to the Chief Executive in a letter dated 11th September 1997 (Appendix E). We understand that the upgrading proposal will be implemented in early 1998.

Review of School Passage Arrangements

2.16Under existing arrangements, officers of all ranks appointed before 1st August 1996 (excluding staff on Model Scale 1 and on temporary terms of service) are eligible for Overseas Education Allowance (OEA) to subsidise education of children in their country of origin and, for officers appointed on local terms of service, for their children's education in the United Kingdom only. OEA recipients are entitled to Government sponsored passages on commencement and cessation of education and for the purpose of visiting parents in Hong Kong during the period of overseas education. Officers appointed after 1st August 1996 are no longer eligible for OEA and school passages.

2.17Eligible officers are provided with air tickets purchased on their behalf by the Treasury, through either British Airways (BA) or Cathay Pacific Airways (CX) as stipulated by the Air Passage Agreement (APA) made between the Government and these two airlines. Air tickets are provided at the cheapest available Economy Class without stopover. For each 12-month cycle, a child aged under 19 is eligible for two return air tickets and a child aged between 19 and 21 one return ticket. Air tickets for up to a maximum of four dependent children may be claimed. For officers appointed on local terms of service, the minimum qualifying age for the child is 9 and the maximum is 21.

2.18The current school passage arrangements have been criticised by staff for being too rigid. The contract fare under the APA for a return ticket on the HK-UK route (about 98% of school passages are taken on this route) is more expensive than fares commonly available in the market. In the Director of Audit's report on the provision of air passages by the Government, published in 1996, it was also pointed out that the provision of school passages under the APA had resulted in substantial additional expenditure to the Government because cheaper fares available in the market could not be used. With the increasing number of new direct and indirect routes between HK and UK in recent years, the Government is under pressure to widen the choice of airlines, routing and frequency of flights by allowing eligible officers to use promotional fares in the market.

2.19In the light of these developments, the Administration considered it opportune to terminate the APA and to relax the existing rules to allow staff a free choice to purchase air tickets at market fares. The Administration proposed that in place of tickets arranged by the Treasury, a new School Passage Allowance (SPA) be provided to allow recipients to purchase air tickets themselves. The rate of the SPA would be set at 75% of the published student fare or, if such is not available, of the lowest applicable Economy Class published fare for the respective routes. An officer may buy any type of air tickets from any airline/travel agent. The ticket can be single or return; direct or indirect; with or without stopover, provided that it covers Hong Kong and the child's place of study. The SPA will be adjusted annually in April according to changes in air fares, as measured by the year-on-year change in air fare prices within the Composite Consumer Price Index (CPI) for the 12-month period ending February. Under the existing arrangement, passage is provided for either the officer or the spouse to visit their child(ren) in education overseas and that six points (equivalent to one return passage) will be deducted from each child receiving education in the country visited by the parent, as if each child had taken a return school passage. Under the new proposal, this double-deduction rule and the restriction on the use of the school passage by only one parent will be removed. The cost of the air ticket(s) taken up by the officer and/or his spouse will be deducted from their child(ren)'s SPA account, and in the case of an officer having more than one child receiving the allowance, deduction will be made from the account of one child only.

2.20We were invited by the Administration to consider the above proposals. In principle, we saw no objection to scrapping the air ticket arrangement which was the subject of criticism by the Director of Audit and a source of complaint from staff. By allowing eligible officers to maximize their benefit through making use of the variety of air tickets available in the market, the proposed School Passage Allowance appeared to be a reasonable and welcome alternative. The proposal would also help to achieve cost saving. These were no doubt changes in the right direction.

2.21We were concerned however that by relaxing the existing rules, specifically, by allowing recipients to purchase air tickets for journey on stopover flights and by removing the double-deduction rule making it possible for families with more than one child to benefit, in a cumulative way, more than families with only one child, the new proposal might, it would appear, result in more benefits for some civil servants than were allowed for under the existing arrangement.

2.22To allay our concern, the Administration reassured us that the situation we envisaged might not necessarily arise and that it would not be reasonable to prohibit students from taking flights with stopovers. The Administration conceded that under the proposed arrangement, families with more than one child would benefit more than families with only one child. However, the Administration thought that this should be seen in perspective. Based on statistics in the past six years, officers taking advantage of school passages only had an average of 1.2 children receiving school passages; and in the past two years, only 1.2% of the annual 9,000 return passages were taken by parents. The Administration felt that a little flexibility should be given to staff to secure their support.

2.23We had carefully examined the Administration's argument. Having regard to all relevant considerations, our consensus view was that notwithstanding our misgivings, the Administration's proposal could be supported. The proposal may not be perfect, but, by satisfying the aspiration of staff and by bringing about immediate cost saving, it is a definite improvement on the existing arrangement. If, in implementing the proposal, a little flexibility is built into the new scheme, this, balanced against the untenable situation of maintaining the status quo, is still a worthwhile course to pursue.

2.24At the Commission's meeting on 4th September 1997, we endorsed the Administration's proposal to terminate the Air Passage Agreement and to replace the current School Passage arrangement with a School Passage Allowance. Our views and recommendations were conveyed to the Chief Executive in a letter dated 19th September 1997 (Appendix F). We understand that the Administration will give notice to terminate the Air Passage Agreement by end December 1997 and introduce the new School Passage arrangements in July 1998.

Review of Leave Passage Arrangements

2.25Overseas officers and their dependants are eligible for leave passages of an appropriate class for either a direct or an indirect air route between Hong Kong and the officer's country of origin or any other destination. The officer may either be given air tickets or use his Leave Passage Allowance (which is an amount equal to the dollar value of the passage to which he is entitled) to pay for air fare and related travelling expenses. With effect from November 1981, all local directorate officers and their families are also eligible for overseas leave passages at rates similar to that given to overseas officers whose country of origin is UK.

2.26The Leave Passage Allowance (LPA) for officers of different countries of origin is linked to the price of published air fares for the respective routes. For officers on the HK-UK route (mainly overseas officers whose country of origin is UK and all local directorate officers), the value of their LPA is pegged to the value of contract fares under the Air Passage Agreement (APA), and for those officers whose leave passage entitlement is Economy Class, their LPA has been pegged, for historical reasons, to the value of discounted Business Class fare.

2.27The Administration considered that the linking of LPA with published air fares, in particular contract fares under the APA, should be changed. The pegging of LPA in respect of UK officers eligible for Economy Class travel to the discounted Business Class fare so that the officers concerned could enjoy upgrade to Business Class was a historical anomaly. With the price gap between contract fare and the highest Economy Class fare widening considerably over the years (from 7% in the early 80's to 46% at present), this arrangement seemed hard to justify. In addition, about 95% of eligible officers used the LPA to cover package tours and other holiday expenses including accommodation and car hire. The Administration considered it logical to delink from the contract air fare rates and to base future revisions of LPA on changes in Hang Seng Consumer Price Index (CPI) for package tour.

2.28Under the new proposal, the initial rate of LPA would be set at the prevailing rate payable to an officer in the respective pay bands at the date of implementation. Future revision of LPA would be made in April each year with reference to price changes of package tours, as measured by the year-on-year change in such prices within the Hang Seng CPI for the 12-month period ending February of the year. In the event that the entire amount of LPA for a full cycle was insufficient for an officer on overseas terms to procure a standard passage, the officer might request the provision of an air ticket of his entitled class by a direct route between HK and his country of origin in lieu of LPA for that cycle.

2.29Our view on the proposal was that in the light of the Director of Audit's comment that the pegging arrangement had resulted in excessive benefits to officers who were normally entitled to Economy Class passage, it was right for the Administration to delink LPA from the contract air fare rates. The Administration's proposal to base future revisions of LPA on changes in the Hang Seng CPI for package tour was also reasonable, considering that about 95% of eligible officers used LPA to cover package tours and other permitted holiday expenses.

2.30We noted the Administration's decision to set the initial rate of the new LPA at the prevailing rate, notwithstanding that this rate was criticised by the Director of Audit as being in excess of an officer's entitlement. The Administration's rationale was that in making changes to terms and conditions of service, it was important to keep to the established practice of preserving the benefits enjoyed by serving officers.

2.31Our view on this was that the Administration had to strike a balance between the Audit comment and their concern for fairness to staff. We appreciated that, in the present circumstances, this might not be easy. On balance, however, we were content with the Administration's proposed course of action as we had been assured that the Finance Committee of the Provisional Legislative Council would be consulted on this matter before the Administration formally implemented its proposals.

2.32At the Commission's meeting on 4th September 1997, we supported the Administration's proposal to adopt a new basis for revising the Leave Passage Allowance, subject to the proposal being approved by the Finance Committee of the Provisional Legislative Council. Our views and recommendations were conveyed to the Chief Executive in a letter dated 19th September 1997 (Appendix G). We understand that the new Leave Passage Allowance will be introduced with effect from 1st January 1998.

Development of a Multi-Skilled General Support Service

2.33The current package of proposals on the development of a multi-skilled general support service is the end result of a series of reviews undertaken by the Administration since February 1994, in response to our recommendation at that time that in the face of increased office automation, the Administration should develop a long-term strategy to reduce reliance on secretarial staff and to maximise their productivity.

2.34To keep us informed of progress, the Administration submitted two reports to the Commission : first in August 1995 and then in July 1996, giving detailed accounts of the various reviews. The Administration completed two further reviews in 1997 : one on the feasibility of developing multi-skilling in the Education Department as a pilot study, and the other on the effect of office automation on the provision of secretarial services in all Secretariat Bureaux. In the light of the positive results of these two studies, the Administration came to the view that long-term improvement to office efficiency lay in the development of a multi-skilled general support service which would remove restrictive work practices hitherto existing among the secretarial and clerical grades.

2.35The package of proposals subsequently formulated by the Administration would therefore serve to -

The Administration was confident that with the successful implementation of the package of proposals, a leaner and more effective general support service would emerge. Details of the Administration's proposals are included in our letter of 19th September 1997 to the Chief Executive at Appendix H.

2.36When we were invited to take note of the progress of the reviews undertaken by the Administration over the past two years on the impact of the development of office automation in the civil service, we made two persistent comments. First, the reviews took too long to complete and, secondly, to be effective in changing the service culture and mindset of civil servants towards a more welcome acceptance of automation, a top-down approach should be adopted. In view of the Administration's uncertainty whether all the necessary reviews could be completed before 1999 for it to take a view on the way forward and to formulate long-term strategies, we agreed in October 1996 that, having regard to the constraints faced by the Administration, it should aim to submit a comprehensive report to the Commission after the full implementation of the Government Office Automation Programme before the end of 1998, with firm recommendations on how the secretarial and clerical grades should be reorganised.

2.37Through putting together the current package of proposals, the Administration has advanced this time-table by about a year. In mounting extensive and in-depth consultation with the secretarial and clerical staff, the Administration has also managed to inculcate in them the need to constantly upgrade their skills to keep pace with technological changes. We agreed with the Administration that the proposals represented an important step forward in creating a conducive office environment and in helping to change the mindset of secretarial and clerical staff, leading ultimately to an enhancement of the efficiency and productivity of the civil service.

2.38At the Commission's meeting on 4th September 1997, we supported the Administration's proposals for the development of a multi-skilled general support service in the civil service. Our views and recommendations were conveyed to the Chief Executive in a letter dated 19th September 1997 (Appendix H). We understand that implementation of the proposed packages will take effect in stages commencing in January 1998.

Review of the Technical Inspectorate Grades

2.39The Technical Inspectorate grades were last reviewed by the Commission in the context of the 1989 Salary Structure Review. However, staff of the Technical Inspectorate grades and the Works Supervisor grade, as represented by the Joint Working Group for Salary Structure Review on Technical Inspectorate and Related Grades (JWG) had been campaigning vigorously for a review of their pay scales ever since the 1989 Review.

2.40This has resulted in repeated negotiations between the JWG and the Administration over a prolonged period. When the issue was last reviewed by us in October 1995, no decision could be reached at the conclusion of our discussion. We requested more detailed information from the Administration on the rationale for its conclusion that as the senior professionals (with a salary scale of MPS Point 45-49) were performing a more important job than the proposed new rank of Senior Superintendent of Works for the Technical Inspectorate grades, the salary scale for the latter could not, therefore, be set on a par with that for the senior professionals. This is an issue of considerable concern to the Technical Inspectors.

2.41In response to our request, the Administration undertook a comprehensive review which was completed in July 1997. The review covered details of technological and other related changes in the work of the Technical Inspectors in the Works group of departments, the Housing Department and the Government Property Agency. The Administration's conclusion was that while technological changes had brought about the use of new tools and equipment and the adoption of new working methods, they had not created a significant impact on the nature, scope and complexity of the work of the Technical Inspector grades as a whole, certainly not to the extent that warranted a fresh salary review.

2.42The Administration informed us that in undertaking the review, it had not consulted staff and, notwithstanding subsequent approaches by the Secretary General emphasising the importance of staff consultation, the Administration maintained that it would not serve any useful purpose to re-open a joint working group with staff.

2.43The JWG did not agree to this approach. It wrote to the Civil Service Bureau on 15th August 1997 requesting a meeting to discuss the Administration's submission to the Commission. It also wrote to the Secretary General on 21st August 1997 setting out a nine-point statement arguing why the pay scales of the Technical Inspectorate grades should be revised.

2.44The JWG's letters raised the question of whether it would be appropriate for the Secretary General to invite the Commission for formal advice against the claims by Technical Inspectors that they were in the dark about the Administration's review and would not accept any findings on which they had not been allowed to comment. Following further discussion between the Secretary General and the Civil Service Bureau, it was agreed that the Commission should be asked to take note only of developments so far. The Administration would revert to the Commission again after it had formally addressed the JWG's requests.

2.45At the Commission's meeting on 4th September 1997, we noted the Administration's progress report. We reiterated the importance of staff consultation. We understand that a formal meeting between the Civil Service Bureau and the staff concerned has been scheduled for January 1998.

Review of Civil Service Fringe Benefits

2.46In the course of examining the findings of the 1996 Fringe Benefit Survey at the Commission's meeting held on 5th September 1996, the Commission requested that the Administration should be asked to produce a report on the government policy regarding the quantum, eligibility rules and mode of dispensation of civil service fringe benefits. The Commission would also like to be advised on the rationale behind the benefit packages, the intended coverage, the actual coverage achieved, total expenditure in each area and any attempt on the Administration's part to relate civil service fringe benefits to those in the private sector. Also, in the light of the trend in the private sector towards monetisation of staff benefits, the Commission would like to know if the Administration had plans in that direction.

2.47The Administration completed a review report and submitted it to the Commission in August 1997. Two key policy considerations were highlighted in the report. They are -

2.48For the sake of simplicity, the report covered only those fringe benefits (i.e. pension, leave, leave passage, housing, education, medical and dental) available to new recruits on local terms. The report also provided detailed analysis of issues of topical concern to the Administration, including commentary on the feasibility of monetisation in respect of education, medical and dental benefits.

2.49At the Commission's meeting on 9th October 1997, we examined and discussed the Administration's report at great length. We were of the view that the report provided useful background and insight into the Government's current thinking on the practice and provision of fringe benefits in the civil service. While we made a number of specific comments and suggestions on individual benefit items, we were more concerned with the overall situation.

2.50We noted the Administration's emphasis on broad comparability with the private sector in determining civil service remuneration. The Administration has, indeed, conducted regular internal reviews over the years. It also monitors the situation through annual survey of fringe benefit provisions in the private sector. However, despite such reviews and comparisons, the fringe benefit packages provided to civil servants, taken as a whole, remain more generous than those available to employees in the private sector. This is particularly so in the case of leave, housing and retirement benefits.

2.51The Administration explained to us that under the established practice of "non-deprivation of existing privileges", it is extremely difficult to reduce any entitlements enjoyed by existing staff. We have strong reservations on this. The Administration's practice does not accord with the prevailing practice in the private sector, where current arrangements are normally superseded by new ones introduced. We are concerned that the Administration's position would restrict the Commission in giving advice to Government on how this important component of civil service remuneration can be modernised.

2.52This aside, we feel that, as reflected by the various comments we made at the meeting, there is clearly scope for further improvement in the civil service fringe benefit packages as they are presently constituted, without an increase in overall cost.

2.53Against the above considerations, we asked the Administration to conduct further research into the various issues raised by us and to report back to the Commission in say, six months to a year's time.

2.54Our views and recommendation were conveyed to the Administration via a letter to the Deputy Secretary for the Civil Service dated 30th October 1997 (Appendix I).

Liaison with Major Civil Service Staff Associations

2.551997 was a year of great significance in the history of Hong Kong. With the change of sovereignty drawing near, the concern for a smooth transition was uppermost in the minds of people. In the end, it was clear that all sectors of the community made their contributions, not least the civil service which played a pivotal role in ensuring the successful launching of the Hong Kong Special Administrative Region Government on 1st July.

2.56We gained an insight into the spirit and moods, the care and concern of civil servants through our informal meetings with the seven major civil service staff associations during the year. In 1997, these meetings took place between April to June. One theme that emerged persistently from these meetings was that the morale of the civil service was undented and that, as staff representatives, the office-bearers whom we met assured us of their steadfast support and allegiance for the new SAR Government. This was in contrast to their mood of uncertainty and lingering doubt when they raised the question of sovereignty change with us in previous years.

2.57They recognised the huge responsibilities of providing an efficient and effective administration. They conveyed to us the ever-increasing pressure civil servants of all ranks faced, both from within the organisation and from the public, in discharging their duties. They wanted the Administration to show more understanding and compassion for their problems and concerns. They attached great importance to maintaining a harmonious working relationship with the Administration through the establishment of more formal consultation channels. They set out for us a list of issues in which their members were keenly interested. These include, to name the more prominent ones, housing, medical, disposal of non-departmental quarters, development of a multi-skilled general support service, conversion of MOD 1 staff to permanent and pensionable terms of employment and admission into the Senior Civil Service Council.

2.58We are grateful to the representatives of the Association of Expatriate Civil Servants of Hong Kong, the Senior Non-Expatriate Officers Association, the Hong Kong Chinese Civil Servants' Association, the Staff Side of the Model Scale 1 Staff Consultative Council, the Hong Kong Civil Servants General Union, the Government Employees Association and the Federation of Civil Service Unions, who attended the meetings with us. The discussion at each of these meetings was lively and constructive. We listened with care and responded as appropriate to ensure that the Commission's stance on issues raised by the staff associations was clearly understood. We sent a checklist of issues raised at these meetings to the Administration. We appreciate the Administration's careful attention in responding to us and in pursuing follow-up action with the staff associations, where required.

2.59We have found these meetings useful and rewarding. To open up so as to ensure a wider spectrum of views could be canvassed, the Secretary General also met a group of 16 staff associations on 29th December 1997 for exchange of views. There are well over 200 individual staff associations in the civil service. We have asked the Secretary General to reach out to as many of them as he possibly could. Liaison with civil service staff associations will continue to be an important aspect of our work in 1998.

2.60In the course of the year, the Secretary General also maintained contact with various private sector organisations including the Employers' Federation of Hong Kong, the Hong Kong Institute of Human Resource Management and the Hong Kong General Chamber of Commerce. The aim was to keep track of developments in the private sector and, where appropriate, to make use of the opportunity to clarify misconceptions or explain matters related to civil service pay, conditions of service and pay trend surveys. We have asked the Secretary General to continue his effort in 1998.