Session No. 5 File name : cedb(cit)- doc



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Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)086







Question Serial No.







3037




Head :

152 Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)

Subhead (No. & title) :







Programme:

(3) Subvention: Hong Kong Trade Development Council

Controlling Officer:

Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)

Director of Bureau:

Secretary for Commerce and Economic Development

Question:
As many people have criticised that the salaries of the senior management of the Hong Kong Trade Development Council (HKTDC) are too high, will the Bureau consider advising the HKTDC to review the salary levels of its senior management? If yes, what are the details? If not, what are the reasons? Also, can the Bureau provide the estimates of the HKTDC for the latest year so that the public can have some knowledge about its expenditure on salary and other operating costs? If not, what are the reasons?
Asked by: Hon. NG Margaret
Reply:
The Hong Kong Trade Development Council (HKTDC) commissions consultancy firms to conduct review on the remuneration of its staff from time to time, with a view to ensuring that HKTDC’s remuneration is largely in line with that in the private sector. Review on its staff’s remuneration and pay trend adjustment also need to be approved by the Council of the HKTDC.
HKTDC’s financial statements, the staff costs and operational costs as well as the salaries and allowances of its directorate (i.e. the Executive Director, Deputy Executive Directors and Assistant Executive Directors) are set out in HKTDC’s annual report, which is tabled at the Legislative Council by the Government every year.



Signature




Name in block letters

MISS YVONNE CHOI

Post Title

Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)

Date

18.3.2010





Examination of Estimates of Expenditure 2010-11


Reply Serial No.




CONTROLLING OFFICER’S REPLY TO
INITIAL WRITTEN QUESTION


CEDB(CIT)087







Question Serial No.







3038




Head :

152- Government Secretariat: Commerce and Economic Development Bureau (Commerce, Industry and Tourism Branch)

Subhead (No. & title) :
















Programme :

(6) : Travel and Tourism




Controlling Officer :

Permanent Secretary for Commerce and Economic Development (Commerce, Industry and Tourism)




Director of Bureau :

Secretary for Commerce and Economic Development





Question :
The Bureau stated that its key areas of work for 2010-11 included working with the trade to improve the operation and governance of the Travel Industry Council of Hong Kong (TIC). Please provide details of the plan and estimated expenditure. What specific measures have the Bureau implemented to monitor the operation of TIC? Will the relevant regulatory mechanism be reviewed and revised? If yes, what is the action plan and estimated expenditure? If no, what are the reasons?
Asked by : Hon. NG Margaret
Reply :
The Travel Industry Council of Hong Kong (TIC) has a membership that covers all local licensed travel agents. As an integral part of the regulatory mechanism for travel agents in Hong Kong, the TIC’s scope of work includes drawing up codes of good practice for the travel sector as well as handling complaints and non-compliance cases. In response to the motion passed at the meeting of the Legislative Council Panel on Economic Development (ED Panel) on 16 July 2009, the government is reviewing the operation of the TIC. In fact, the TIC has already implemented various new initiatives in recent months to enhance the transparency of its operation and internal governance. These include uploading the agendas and minutes of TIC’s meetings to its website for members’ reference and strengthening the participation of Government and representatives from non-trade sectors in its various committees. We will report to the ED Panel on the outcome of the review and continue to work with the tourism sector and the TIC to follow up on the review findings, to ensure that the TIC will contribute as much as possible to the development of our tourism industry.
The above review is conducted with existing resources.
As the business of TIC members are closely related to the interests of both outbound and inbound travellers, it is essential that the Government closely monitors its finances and other aspects of operations. On its finances, TIC is required under the Travel Agents Ordinance to submit to the Secretary for Commerce and Economic Development each year the estimates of its income and expenditure in respect of the next financial year. On its daily operations, representatives of the Tourism Commission (TC) participate in meetings of the Board and its various committees as member or observer. TC also maintains close contact with TIC to provide advice and assistance on matters related to the tourism market and development of the industry, the operating environment of travel agents, tourist protection, as well as the financial position of TIC, so as to facilitate TIC’s regulatory work and its effective use of resources.
TIC was specified a “public body” under the Prevention of Bribery Ordinance (Cap. 201) in 1990 and all its Directors are therefore “public servants” subject to the regulation of the Ordinance. With the assistance of the Independent Commission Against Corruption, TIC issued the General Code of Conduct for the TIC Board of Directors to ensure that its Directors discharge their duties in an impartial and honest manner with the objective of protecting the interest of both the consumers and the travel industry.
We consider the above monitoring mechanism is operating effectively. We will continue to work with TIC and keep a close watch on its operational efficiency.

Signature










Name in block letters

MISS YVONNE CHOI







Post Title

Permanent Secretary for Commerce

and Economic Development

(Commerce, Industry and Tourism)








Date

18.3.2010



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