Civil service will be cut to 160,000 over four years
Thursday, January 9, 2003
hongkong.scmp.com
MAY SIN-MI HON
The chief executive announced a 10 per cent reduction in civil service staffing to 160,000 over the next four years.
Cutting the size of the bureaucracy emerged as one of the key measures the government is to adopt as it seeks to tackle the ballooning budget deficit.
The cuts in the number of public servants come with an across-the-board freeze on recruitment from April, also announced by Tung Chee-hwa.
He also hinted at a possible pay cut for civil servants, saying they were ready to contribute to cutting government expenditure.
"I would like to stress that civil servants are not the cause of our fiscal deficit. They are prepared to ride out the present difficulties with the rest of the community and accept a pay cut, if circumstances so require," he said.
It is expected the government will go ahead with a pay-level review after consulting civil service unions.
On the staff-cutting, Mr Tung said it would be achieved through natural wastage and normal retirement. "We are keenly aware that the fiscal deficit problem is pressing and calls for quick resolution. The government and civil service colleagues have already commenced consultations with the expectation of producing early results," he said.
The target of cutting staff levels to 160,000 by 2006-07 represents a drop of 20.5 per cent from the peak level of 201,356 in 1991.
The number of civil servants that have left through natural wastage, including normal retirement and resignations, varied from 3,841 in 1998-99 to 3,763 in 2000-01.
A second round of voluntary retirements would be launched as well, Mr Tung said.
It is understood details of the plan, including the compensation package which is said to be less attractive than that of the first round in 2000, will be tabled for discussion at the Executive Council meeting next Tuesday.
Last time, compensation was capped at the lump sum pension due at an officer's retirement age, plus six months' salary. Under that scheme 9,774 civil servants opted for retirement.
Federation of Civil Service Unions chairman Leung Chau-ting said the plan for staff cuts was too radical.
Hong Kong Civil Servants General Union chairman Cheung Kwok-biu said if the compensation in the second round of voluntary retirements was not attractive, it was doubtful if the size of the bureaucracy could be cut by 10 per cent.
Hong Kong Progressive Alliance chairman Ambrose Lau Hon-chuen said more details were needed on how to implement the staff cuts.
"It is only a long-term target to cut the size to 160,000. There are no details on what should be done in the short-run. The financial secretary needs to give a detailed account in his Budget [in March]," he said. |
