Outsourcing

The Department has followed the Government’s guidelines on outsourcing non-core activities to the private sector to improve efficiency and effectiveness. The major services outsourced include cleaning, security, horticultural maintenance and facility management. As of March 2011, the Department was managing 107 outsourced contracts for major services, covering both leisure and cultural facilities, at a total value of $2,394 million.

The Department’s outsourcing follows these principles:

• The contract must be commercially viable
• The standard of service must not be reduced
• The services must be cost-effective
• Staff should not be made redundant

Up to March 2011, the Department had contracted out the management of 16 sports centres, to deliver quality services to the public more cost-effectively through private sector expertise. They are: Jockey Club Tuen Mun Butterfly Beach Sports Centre, contracted out in 2000; Quarry Bay Sports Centre, Island East Sports Centre, Chun Wah Road Sports Centre, Cheung Sha Wan Sports Centre and Chuk Yuen Sports Centre, contracted out in 2001; Choi Hung Road Sports Centre, Wo Hing Sports Centre, North Kwai Chung Tang Shiu Kin Sports Centre and Ap Lei Chau Sports Centre, contracted out in 2004; Fa Yuen Street Sports Centre, Wong Chuk Hang Sports Centre and Tai Kok Tsui Sports Centre, contracted out in 2005; and Hiu Kwong Street Sports Centre, Yeung Uk Road Sports Centre and Tin Shui Wai Sports Centre, contracted out in 2007.

Because of a previous staff freeze, the Department was also compelled to contract out the management of several cultural facilities, including the Hong Kong Heritage Discovery Centre in 2005, the Dr Sun Yat-sen Museum and Fireboat Alexander Grantham Exhibition Gallery in 2006, and the Ping Shan Tang Clan Gallery cum Heritage Trail Visitors Centre in 2007.

The Department contracted out the management of Dr Sun Yat-sen Museum in 2006.

Contract Management

The Department tightly monitors service contractors to protect non-skilled workers’ wages and benefits. The Department has also put into operation a computerised appraisal system that provides an overview of contractors’ performance. Regular meetings are held between the Department’s contract management team and contractors’ senior managers to discuss contract management issues. Through these meetings the Department enhances mutual communication and conveys the message of zero tolerance for the exploitation of non-skilled workers.