Views sought: Joseph Wong says the review exercise is expected to end in the first half of 2005 to give more time for the community to voice their opinions on this important and controversial public policy.

Proposals on improving civil service pay level survey methodology and its application will be out in the second quarter of next year for extensive consultation.

Secretary for the Civil Service Joseph Wong said today the Government aims to proceed with the field work of the survey in the fourth quarter of next year and complete the current exercise, including introducing any necessary legislation for implementing both upward and downward pay adjustments in future, in the second quarter of 2005.

The Civil Service Bureau has published a report setting out the progress made in the development of an improved pay-adjustment mechanism for the civil service.

The improved mechanism will comprise three components:

* the conduct of periodic pay-level surveys every few years;

* the conduct of annual pay-trend surveys based on an improved methodology; and,

* an effective means for implementing both upward and downward pay adjustments.

 "The development of an improved civil service pay-adjustment mechanism forms part of our ongoing efforts to modernise the management of the civil service and will contribute towards a more rational civil service remuneration system in the long-term," Mr Wong said.

"A well-constituted civil service pay system is conducive to a robust and efficient civil service and the sound deployment of manpower resources for the economy at large."

The improved adjustment mechanism will be more responsive to changes in the community and the manpower situation in the market.

"The development of an improved mechanism is a complex exercise involving a lot of detailed and technical considerations. In particular, we need to ensure that the constituent components of the improved mechanism will inter-operate effectively within an integrated framework," Mr Wong said.

"It is therefore desirable to conduct extensive consultation within the civil service and inform the public of progress from time to time."

To ensure the pay-level survey is carried out in a credible and professional manner, the bureau will develop the survey methodology and carry out the actual survey work and data analysis, with professional assistance from outside consultants in two stages.

For the first stage, a consultant has been appointed to provide technical assistance in developing a feasible and detailed survey methodology.

On the application of the findings of the pay-level survey, Mr Wong said the issue is complex, and requires further deliberations in the relevant steering committee and consultative group.

He stressed that in coming to a decision, the Government will follow the principles of law and fairness and be guided by the overall interests of the community. The exercise should not be regarded as a quick solution to cutting Government expenditure.

"We shall take due account of the views of staff and ensure that the design of the improved mechanism is in the overall interests of the community as a whole," Mr Wong said.

In the interests of maintaining a stable civil service and to allow time for more in-depth study and extensive consultation, a step-by-step approach will be adopted while giving priority to the current exercise.

Efforts to improve progressively various prevailing remuneration-related measures - such as the review of various civil service allowances - will continue, he added.