Although its operation has not been entirely smooth in the past year, the Accountability System represents an important step in the right direction, according to a report released by the Constitutional Affairs Bureau today.

The 12-month Report on Implementation of the Accountability System for Principal Officials says the Government will learn from the incidents in the past year and strive for improvements.

Gov't will canvass public opinions

The Government will improve existing arrangements for canvassing public opinions, and enhance its communication with the public and the Legislative Council to ensure policies are more in tune with people's aspirations.

The bureau has submitted the report to LegCo for discussion on July 21.

In reviewing the implementation of the system in the past year, Secretary for Constitutional Affairs Stephen Lam said that the new system has three clear advantages.

System has 3 advantages

First, any future Chief Executive will need to form a political team of principal officials with similar political beliefs, who are willing to account to the people collectively for the governance of Hong Kong.

These officials will shoulder the political responsibility of governance, address the aspirations of the community and respond to public demands.

Second, through the appointment of Permanent Secretaries, the system has preserved the fine traditions of a permanent, professional and politically neutral civil service.

This would be conducive to maintaining the stability of Hong Kong's administrative structure in the long term.

Third, in dealing with major political incidents such as the penny stocks and car purchase incidents, and the legislative proposals relating to the implementation of Basic Law Article 23, the Chief Executive will consider all relevant factors before deciding whether a politically appointed official should face criticism, make a public apology or leave office.

The existing system allows the Chief Executive to formulate his own judgement on each and every incident.

Gov't tries to meet aspirations

The report also states that the march on July 1 demonstrates clearly to the Government that the public has dissatisfaction with its governance and what the Government has done falls short of public expectations.

The report says that on July 17, the Chief Executive indicated that the Government will meet various political parties, major sectors of the community, the media and opinion leaders regularly.

The Government will keep in touch with citizens through various means to listen to their views directly. It will also actively strive to open channels of discussion and to engage professional and committed persons in various advisory and statutory committees and organisations.

Through these institutionalised and effective channels, they will make positive contributions to the governance of the Government.

Mr Lam said that even though implementation of the accountability system had not been entirely smooth, the Government had become more flexible, decisive and responsive in addressing the aspirations and demands of the community.

For example, following the outbreak of SARS, the $11.8 billion package to revive the economy was formulated in only a few weeks.

The report also mentions that on July 16, the Chief Executive announced that he had accepted the resignation of the Financial Secretary and the Secretary for Security.

He said: "This shows that under the system, the Principal Officials could, having regard to circumstances pertaining, tender their resignation to the CE.

"The CE could then decide, in the light of prevailing circumstances, how to reorganise his political team to regain public confidence in the Government.

"Compared with the previous system whereby Principal Official positions were filled by civil servants, under which any misconduct would need to be handled in accordance with the civil service disciplinary mechanism and civil servants were not in a position to shoulder political responsibility, the present system represents an improvement."

Administrative improvements made

Mr Lam said that the undertaking given by the bureau to provide the 12-month review report last year mainly covered the following administrative matters:

(1) Saving of resources

During the deliberations of the system, the Government has undertaken that sufficient resources will be saved in 12 months' time to ensure that the implementation of the system will not involve additional expenditure.

Through reorganisation exercises, together with other streamlining and cost-saving exercises, the Government has identified savings of $111.16 million.

The savings arising from deletion of directorate posts amounted to $46.4 million. These savings alone were already in excess of the $42.23 million incurred when the system was introduced last year.

(2) System on declaration of interests

The Government undertook to review the system on declaration of interests last year. The review has been completed.

Officials had to provide more information for public inspection in respect of land or buildings held by them.

Where the officials were a director or shareholder of, or had an interest in a private company, local or offshore, the nature of business of the company would also be declared.

(3) Division of responsibilities between the Financial Secretary and the Secretary for Financial Services & the Treasury

Information on their responsibilities was made public on July 27 to delineate more clearly the roles and responsibilities of these two positions.

As for other reviews including the review of statutory and advisory bodies, the review of statutory powers of the Chief and Financial Secretaries and the remuneration for the third term Chief Executive, the administration will revert to LegCo as appropriate.