Save & Invest Account

Q.1: Funding from the "Save & Invest Account" cannot be used on initiatives with recurrent consequences.  Then, can my department use the funding from the Account to organise a series of seminars for promoting cultural changes to be held over a period of three years?  Will this be regarded as "recurrent" in nature?
A.1: No.  As long as the purpose and duration of the proposed seminars are well defined, we could accept the proposal as a time-limited "project" for funding by the "Save & Invest Account".  As for accounting, depending on the amount sought, we will either allow the creation of a separate Other Non-recurrent commitment or credit the funding involved to Departmental Expenses Subhead 149 as advised by the Department. 
 
Q.2: Can the balance in the Account be used to employ non-civil service contract staff on a time-limited basis?  Can we use the funds in the Account to pay for overtime allowances under PE?
A.2: We will be as flexible as possible in the nature of the spending. The key consideration is the purpose of the project, i.e. leading to improved productivity.   

However, under no circumstances will the creation of civil service posts be allowed under the "Save & Invest Account" scheme.  
 

Q.3: If a department has a credit balance in the Account, will it affect the department's chance of bidding funds under the Capital non-works RAE?  Will FB expect the department to first draw funds from the Account before putting up bids?
A.3: No.  The normal RAE process and the "Save & Invest Account" scheme are two separate exercises.  We will examine the bids from a department under capital non-works RAE independent of the credits accrued in its "Save & Invest Account".  However, when a department's bid fails in the competitive process of RAE, the Controlling Officer is welcome to draw from his department's "Save & Invest Account" if he considers the initiative of significance to enhancing  productivity. 
 
Q.4: Can Bureau Secretaries make use of the "Save & Invest Account" balances of departments under their purview to fund projects of the bureaux?
A.4: Only with the agreement of the account-holder, i.e. the head of department concerned. 
 
Q.5: Will net recurrent savings arising from Save & Invest projects be subject to sharing between the Centre and the initiating department? 
A.5: Under normal circumstances, we will allow the initiating departments to keep all the savings generated through the Save & Invest projects to help departments to meet the EPP targets and to encourage departments to achieve more savings. 
 
Q.6: Will the "Save & Invest Account" facility continue to exist in future? Will the same percentage of DE underspending be credited to our Account?
A.6: Our intention is to make the "Save & Invest Account" a standing facility to encourage Controlling Officers to economise and to invest in productivity. There may be some fine tuning in the future but the spirit will remain the same. 
  
Efficiency Dividend

Q.7: Is "Efficiency Dividend" also subject to EPP? Will it be distributed again next year? Any scope for adjusting in future the split of it between PE and DE?
A.7: No. "Efficiency Dividend" is not subject to EPP. It is distributed in recognition of the efforts made by Controlling Officers to achieve productivity gains in 1999-2000. It is a one-off exercise as all bureaux/departments, and subvented organisations will be obliged to make EPP gains from 2000-01. As the "Efficiency Dividend" distributed will become part of the department's baseline expenditure, the usual arrangements for virement between PE and DE will apply. 
 
Q.8: Will the "Efficiency Dividend" be adjusted for inflation based on the factors promulgated by FB in the context of preparing the 2000-01 draft Estimates?
A.8: Yes. New money allocated as "Efficiency Dividend" is treated as part of the recurrent expenditure and thus will receive the same treatment.
  
Others

Q.9: Many departments are anticipating a surplus in General Grades staff in their pursuit of EPP savings. Would departments be relieved from complying with the stipulated EPP targets if the Centre could not take back these surplus staff?
A.9: We recognise that surplus staff, especially in some General and Common grades, is likely to be one of the greatest challenges in implementing EPP. The Centre is thinking laterally to devise solutions and we hope to issue guidelines in due course. But we must point out that individual departments have a shared responsibility in tackling this issue. 
 
Q.10: Will there be additional one-line vote departments in 2000-01?
A.10: There is no immediate plan to introduce additional one-line vote departments in 2000-01 as the pilot scheme has only been operating for a comparatively short period of time. Obliged to report progress to LegCo before we roll it out further.