The withdrawal of the administrative measure allowing without query a 50% tax cut of the honorarium for district councillors will be deferred to the 2006-07 fiscal year, Chief Secretary for Administration Donald Tsang says.

Responding to Public Accounts Committee Report 43 in the Legislative Council today, Mr Tsang said the move is to allow sufficient time for introducing appropriate arrangements which will not cause undue inconvenience and confusion to district councillors.

On the committee's recommendation the Government should consider converting 50% of a district councillor's honorarium to the Operating Expenses Allowance, Mr Tsang said this involves fundamental changes to a councillor's remuneration package. The Government will consult the Independent Commission on Remuneration for District Council Members and report back to the committee.

English Schools Foundation reform

On the English School Foundation's corporate governance and headquarters administration, Mr Tsang said the school has set up a taskforce to look into governance issues, looking at separating management functions from the governance body. It is expected more detailed proposals will be available in June and full implementation pursued before September next year.

He said improving the school's governance is an overriding priority, proceeding over the subvention issue, which has little scope for substantive discussion. The Education & Manpower Bureau will closely monitor the progress of the school's reform. The discussion on future subvention arrangement will continue when the school has restored a proper governance structure.

Discovery Bay experience unlikely

Turning to the grant of land at Discovery Bay and Yi Long Wan, Mr Tsang said the Discovery Bay development, begun in the 1970s and 80s, took place against the particular economic and development background prevailing at that time.

The then administration considered that given the huge investment in the project and the prevailing circumstances, the developer should be allowed some flexibility in the implementation process.

He pledged the experience of the Discovery Bay development is unlikely to recur elsewhere, as the town planning system has become mature, more accountable and transparent with a clear process for preparing statutory plans and channels for hearing public views.