For 2001-02, we are on target to deliver 2% savings. Bureaux, departments and subvented organizations together will release some $2,000 million from the baseline operating expenditure. These savings, as with those achieved in 2000-01, will be redeployed for new or improved services.

In fact, during the first year of implementation of EPP, we have achieved savings of 1.2 % , or $1,148 million which is slightly over the set target. The full amount has been redeployed to fund new and improved services.

Bureaux, departments and subvented organizations so far have been able to deliver the target savings under EPP. They have made extra effort to ensure that there is no deterioration in the quality of public service as a result of the implementation of EPP. They have also make use of their savings to implement new initiatives and improve further their existing services.

To enable the public to monitor how well the bureaux, departments and subvented organizations deliver EPP, we have published the third annual booklet which reports on how we achieve the productivity gains, the initiatives on new or improved services provided through the savings achieved, and measures taken by us to safeguard the quality of service and support the implementation of EPP.

We are confident that our continued good work will enable us to meet the overall target of 5 % productivity gains by the year 2002-03.

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