As foreshadowed in the second issue, a sum is now set aside as an "efficiency dividend" for distribution to bureaux, departments and subvented organisations as recognition of the productivity gains they deliver in 1999-2000.  

We have recently finalised the confirmed baseline-plus for 2000-01 and in the light of the overall budgetary position, have allocated a sum of $81.8 million (representing 10% of the total productivity gains in 1999-2000) as "efficiency dividend". The amount will be distributed according to the extent of productivity gains achieved by individual bureaux/departments/subvented organisations. In simple terms, all bureaux, departments and subvented organisations are given an allocation of new money (in recurrent expenditure) for 2000-01 equivalent to 10% of their productivity gains achieved in 1999-2000.  

The allocation of "efficiency dividend" is a one-off exercise. However, new money allocated as "efficiency dividend" is recurrent expenditure which may be used to employ new staff or be used as departmental expenses as the Controlling Officer sees fit. Although the "efficiency dividend" is earned by individual departments/subvented organisations and accordingly has been so distributed, Bureau Secretaries may redeploy the total "efficiency dividend" amongst or between departments/subvented organisations to meet his or her overall policy objectives. We would however expect consultation and mutual agreement amongst all parties concerned.